Skip to main contentAccess keys help

[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Tuesday, 15 April, 2003, 20:51 GMT 21:51 UK
American Airlines on critical list
American Airlines
The airline's future hangs in the balance
American Airlines is ready to file for bankruptcy after flight attendants rejected a pay cut.

The attendants have been given 24 hours to change their mind after voting to reject the deal by a narrow margin.

The company says the future of 100,000 jobs rests on the outcome of a fresh round of voting on Wednesday.

Don Carty, chairman of American's parent company AMR, said: "I must make completely clear that if we fail to secure flight attendant ratification by tomorrow (Wednesday), we are - regrettably - left with no alternative but to immediately file for bankruptcy."

Agreements secured

Earlier, American Airlines' mechanics voted to accept cuts in pay and conditions adding up to about $300m a year.

The pilots union has also ratified an agreement that cuts its members' wages and benefits by $660m.

This is our last chance to avoid bankruptcy
Don Carty, AMR chairman
The airline has said it needs all three unions to agree a deal to avoid being forced to file for bankruptcy.

Members of the Association of Professional Flight Attendants rejected the deal, which would cut annual pay and benefits by $340m, by about 500 votes.

New vote

A union spokesman said members who did not vote - or who cast their votes early - will be allowed to vote or change their vote by 2200 GMT on Wednesday.

The wider crisis
Combined debts of $100bn
Bookings down 40%
70,000 jobs at risk

The new vote could ultimately overturn Tuesday's tally - saving American from the bankruptcy courts.

The carrier has said the three pay deals will help save it $1.8bn a year in labour costs.

Don Carty said almost 10,000 jobs and the "future of 100,000 employees" was hanging in the balance.

'No alternative'

He said: "We believe that all employees will be better off if we can save jobs and restructure our costs consensually rather than through the bankruptcy process.

"This is our last chance to avoid bankruptcy."

AMR met millions of dollars in loan payments due on Tuesday, pending the flight attendants' revote Wednesday.

With another round of loan payments due on Wednesday, Mr Carty said the airline must have pay agreements in place.




WATCH AND LISTEN
The BBC's Susie Salmond
"It may not escape bankruptcy unless economic conditions improve"



SEE ALSO:
United strikes new pay deal
11 Apr 03  |  Business
US airlines fly towards extinction
27 Mar 03  |  Business
American Airlines avoids bankruptcy
01 Apr 03  |  Business
Congress approves airline aid
04 Apr 03  |  Business
Debt crushes Air Canada
01 Apr 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
AmericasAfricaEuropeMiddle EastSouth AsiaAsia Pacific