APA President Dismisses Validity of Prediction Concerning Timetable

The Allied Pilots Association (APA), collective bargaining agent for the 13,500 pilots of American Airlines, responded to news stories published by various media outlets today regarding statements attributed to the union concerning a timetable for a possible bankruptcy filing by American Airlines.

"Evidently a news reporter obtained a copy of an Internet posting from one of our local official's web sites that contained a summary of a meeting last week with his members," said Captain John E. Darrah, APA President. "During the meeting, this local official discussed American Airlines' widely publicized cash burn rate and made a prediction about a potential bankruptcy filing date based on some 'back-of-the-envelope' calculations.

"This prediction in no way constitutes an official APA position. It is not based on any information from the extensive series of internal meetings that have taken place between APA and American Airlines management during the past several weeks. Given the numerous variables such as a possible war in Iraq, the airline's ability to raise additional cash through various means, the potential for government relief, and the possibility of cost-savings agreements with the carrier's employee groups, we are unwilling to make any such predictions."

While dismissing the validity of the prediction concerning bankruptcy, Darrah reiterated that APA believes the airline does face an extremely difficult situation, and that a war in Iraq would almost certainly exacerbate its problems.

"We have signaled our willingness to explore cost savings with American Airlines management," said Darrah.

"We have also emphasized the importance of the federal government taking steps to help preserve this vital industry. Due in large measure to the September 11, 2001 terrorist attacks, air travel is currently one of the most heavily taxed sectors of our economy. As direct victims of those attacks, the carriers cannot now be expected to underwrite a large portion of the cost of the ongoing war on terrorism." Founded in 1963, APA is headquartered in Fort Worth, Texas.

FMI: http://www.alliedpilots.org