American labour ruling postponed a week

New York
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A judge at US Bankruptcy Court for the Southern District of New York has postponed ruling on American Airlines section 1113 request to reject its labour contracts until 29 June, giving the Allied Pilots Association (APA) more time to consider the airline's final offer.

The judge was scheduled to rule on the contracts today.

The APA says that it will work with the airline to address a lack of specifics in certain areas and analyse certain contractual provisions in the offer. The union's board will vote again on whether to send the offer to its members by 27 June.

The union voted to reject the offer, citing issues with specificity and a lack of time to analyse certain provisions, on 20 June.

"The extension will not change the terms of our final offer to APA," says American. "We're willing to sit down with the APFA [Association of Professional Flight Attendants] and TWU [Transport Workers Union] to resume good faith negotiations at any time."

"It's vital we close this chapter and move toward agreements that support a new American Airlines that can compete and win," they conclude.

The six-year contract that the APA is evaluating includes a 14.8% compounded increase in salary over the term, profit sharing and a change in scope that allows for additional domestic codeshare and more regional jets with a capacity of up to 79 seats, according to a letter from captain John Hale, vice president of flight at American, to employees.

Denise Lynn, senior vice president of people at American, says that the offer will generate savings of 17% compared with its current pilots contract.

The APFA and TWU had previously rejected American's final offers to their respective members.

The TWU says that it will discuss the extension with the court on 25 June.

The APFA did not comment on the extension.