AMR (AMR)

AMR (NYSE:AMR), parent company of American Airlines and American Eagle, faces a possible strike after its biggest labor bloc, the Transport Workers Union, asked federal mediators to declare a deadlock in contract negotiations, according to Investors.com. The carrier's flight attendant union said last week it'll do the same. AMR contends that talks are progressing.
In addition to the the failing talks with the TWU and the flight attendant's union, the airline's CFO Thomas Horton acknowledged that American and its pilots' union are "far apart" on a new labor contract, with American arguing that its labor costs are higher than those of rival carriers. Horton said American wants its pilot costs to be "competitive." The 2 sides are currently in negotiations overseen by a federal mediator. Fighting a war on three fronts does not leave American with the ability to really look at what is the real cost of flying. If the legacy carriers want to be competitive, it's time they reinvented and redesign their models and take the consumer into account and not just charge for everything to make-up costs due to their stuck-in-the-mud thinking.

Mar 12 · 11:46:00 AM · Source: Investors.com
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by Steve Wieczorek