Union leaders representing American Airlines pilots have reached a tentative labor agreement with management of the Ft. Worth, Texas-based carrier.
The deal will reportedly cut costs drastically for the airline but the pilots union agreed to it so they could potentially avoid a worse deal if the carrier abandoned the current agreement through bankruptcy.
‘The Allied Pilots Association board voted 9 to 7 to send the last and best offer to its membership for consideration, the union and the company said.
A vote by members is expected in coming weeks, prompting the judge overseeing American’s case in New York to postpone a ruling that had been scheduled for Friday on whether to allow the airline to abrogate the pilots’ contract, the airline said.
Ratification by pilots would end years of bitter negotiations and introduce a measure of labor stability to American’s bankruptcy.’
Details of the agreement were no released but the annual cost savings is said to be over $300 million a year.
“We believe this agreement addresses the needs of our pilots while achieving the goals of our business plan, and further demonstrates our commitment to reaching consensual agreements with all of our unions,” American said in a statement.