The Allied Pilots' Association (APA) has presented a proposal to beleaguered American Airlines that would allow $660 million in contract cost reductions.
The airline is asking all employees, including management, for $1.8 billion in permanent, annual savings to help save the company and help the airline to compete more effectively.
The pilots' offer is in line with targets presented by American Airlines' management to the APA at the start of talks.
"Face-to-face negotiations continue around the table, around the clock with the mechanics, flight attendants and pilots," American Airlines said in a statement.
However, banking sources close said American has been negotiating $1.5 billion in debtor-in-possession financing and could file for Chapter 11 bankruptcy protection as early as today.
AMR Corporation, the parent of American Airlines, posted an industry record $3.5 billion loss in 2002, nearly a third of the more than $11 billion in losses posted by the top eight US carriers.
Since the September 11th, 2001 attacks, rivals United's UAL Corp. and US Airways have filed for bankruptcy.
Agencies