AMR Risks Bankruptcy Delay on Pilot Rift
American Airlines’ widening rift with its pilots’ union threatens to delay the bankruptcy restructuring of parent AMR Corp. and improve the chances for a takeover by US Airways Group Inc.
While AMR’s unsecured-creditors committee wants a contract approved by pilots before leaving Chapter 11, Fort Worth, Texas-based American is imposing cost cuts spurned by the union. No new talks are set in bargaining that began in 2006, and the Allied Pilots Association wants members to authorize a strike.
Creditors’ patience may be tested as AMR struggles to show that it can reorganize successfully, said Fred Lowrance, an Avondale Partners LLC analyst in Nashville, Tennessee.