(MENAFN) American Airlines announced that as it seeks to gain union consent for a long-term cost-reduction agreement, it proposes to quit plans to lay off pilots, reported AP.
The carrier, which is under bankruptcy protection, added that it is also offering pay hikes.
It said that in return for its offer, it will get more flexibility to appoint other airlines to fly bigger regional jets and to sell seats on other airlines' flights, moves opposed by the carrier's pilots as they jeopardize their job security.
US Airways Group Inc. plans to acquire AMR Corp., American parent company, out of bankruptcy and has gained support from the 3 unions that represent pilots, flight attendants and ground workers.
It is worth noting that in case American Airlines can win 6-year cost-reduction deals with pilots, and possibly also with mechanics, it could prove to creditors that it has a workable plan to slash costs and come out of bankruptcy as a profitable operation.
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