'Nothing Changes' Because Of Non-Binding Agreements With Labor Unions

Top management at AMR Corp. released a letter to its employees Tuesday saying that the recent non-binding agreements made between American's labor unions and US Airways have no real affect on the company's bankruptcy proceedings or business decisions.

The letter from chairman and CEO Thomas Horton (pictured) said that the company plans to "proceed on our path toward a successful restructuring of American." He said that the actions of US Airways are not biding on AMR Corp. or the unions in any way.

Horton said US Airways had made the announcements as a way to "address the challenges it has faced for a long time," but that the company was not considering a merger at this time.

Horton went on to point out that the airline had just made a major order of 460 new narrow-body jets in a fleet replacement strategy. He said that the company will be pursuing "necessary modifications" to collective bargaining agreements, which are currently underway.

Still, Horton did not rule out the prospect of a merger in the future, but said that would be a decision which would be made at the corporate level in collaboration with creditors.

The letter was posted in its entirety by USA Today.

FMI: www.aa.com