Fri, Jul 22, 2011
Praises Purchase, But Calls For Company To Resolve
Three-Year-Old Contract Dispute
After American Airlines announced Wednesday that the company has
ordered 460 new narrow-body planes, with options to purchase an
additional 465, the Association of Professional Flight Attendants
said that, while welcoming the news of new equipment, there is
still some unfinished business ... specifically the resolution of a
three-year-old contract dispute with the union.
The company plans to acquire 260 planes from the Airbus A320
family and 200 Boeing 737s. The company will be taking advantage of
approximately $13 billion of committed financing provided by the
two manufacturers. “The APFA applauds American Airlines
management’s decision to take the company in a new direction,
diversify the fleet, and modernize the in-flight experience for
passengers,” said APFA president Laura Glading. “But
the work is not done. Shareholders should not be satisfied until
management has secured both the physical and human capital to be
successful and addressed a labor situation that has lingered for
more than three years.”
The union is especially encouraged by the fuel efficiency these
new planes will provide. This purchase represents a calculated and
strategic move to bring American Airlines back to the forefront of
this country’s aviation industry. “Today’s
announcement shows the company is capable of making strategic
decisions,” said Glading. “We call on management to put
the same effort toward reaching a comprehensive agreement with its
employees that recognizes the sacrifices flight attendants and
others made to avoid bankruptcy and allow for today’s
promising announcement.”
That Boeing and Airbus were willing to provide American Airlines
with favorable financing terms is a testament to the sacrifices
that APFA’s membership and others made in 2003 when the
company was in dire straits. Without the generous salary and
benefits givebacks of the Flight Attendants, totaling over $2
billion, American Airlines would have neither the capital nor
credit needed to make such an ambitious purchase.
The introduction of the Airbus A320 family places particular
emphasis on the state of contract negotiations for all of the
airline’s unionized employees who will need to be trained and
certified to operate and maintain the new equipment.
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