American Warns of Bankruptcy Filing
American Airlines said it would file for bankruptcy protection Tuesday if a group of pilots is able to delay a union’s vote on part of a $1.8-billion labor-savings plan.
The pilots want voting on the $660-million agreement suspended, pilots spokesman Sam Mayer said. The vote shouldn’t happen until negotiations with American, the world’s biggest carrier, are completed and the full plan is reviewed, he said.
The deadline for voting, which began April 1, is Monday.
“If we don’t have ratification by all unions Tuesday morning, we will file bankruptcy,” said Bruce Hicks, an American spokesman.
The airline is owned by AMR Corp. Shares fell 50 cents to $3.30 on the New York Stock Exchange.
The petition for a court-ordered delay will be filed Monday in federal court in Fort Worth, an attorney for the pilots group said.
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