Fate of American Air hangs on extended vote

The future of American Airlines remains undecided following the rejection of a wage cut deal by one of the company's three main…

The future of American Airlines remains undecided following the rejection of a wage cut deal by one of the company's three main unions.

The deal is seen as critical to averting an imminent bankruptcy filing by the world's largest airline.

Last night the AMR-owned airline and unions agreed to extend the deadline for the vote until 10 p.m. (Irish time) to allow those who had not voted to do so, as well as enabling members to change their votes.

The world's biggest carrier said all workers must accept a plan to cut costs by $1.8 billion a year or it will file for Chapter 11 bankruptcy.

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Pilots, mechanics and other ground workers all voted to ratify the tentative union-management cost-cutting deal.

But flight attendants narrowly voted to reject the deal, with 51.4 per cent against and 48.6 per cent in favour, the Association of Professional Flight Attendants (APFA) said.

However, flight attendants were the only group of workers barred by their union from changing their votes even after American Airlines management sweetened the deal slightly.

As a result, the APFA and American Airlines agreed that the voting could be extended for people who want to change their vote some 30 hours after the first deadline expired.

While there are risks involved in filing for bankruptcy, the airline also would enjoy some advantages, including leverage to lower labour costs, renegotiate aircraft leases and restructure debt.

AFP