American and APA reach agreement-in-principle

Washington DC
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American Airlines and the Allied Pilots Association (APA) have reached an agreement-in-principle on a new pilots contract at the bankruptcy airline.

The union board now must approve sending the tentative agreement to the membership for a vote, according to the APA on 9 November.

"We are pleased to have reached an agreement-in-principle with the Allied Pilots Association," says American. "We worked hard with the APA's negotiating committee to structure an agreement that addresses the priorities identified as most important to our pilots, while staying within the economic framework supported by the unsecured creditors' committee to ensure American's successful restructuring."

The APA and Fort Worth-based American have been locked in a contentious dispute since pilots rejected what was then the airline's last, best and final offer in August by an 11-percentage point margin. APA president captain David Bates resigned following the rejection.

In September, the US Bankruptcy Court for the Southern District of New York approved a modified section 1113 request by American to reject its previous pilots contract. The airline has had the option to implement its preferred contract with its pilots since the ruling.

American and the APA reengaged in contract negotiations in October, after a spike in cancellations due to maintenance issues that brought an increased focus to the dispute between the carrier and its pilots.