Archive for Thursday, February 27, 2003

Pilots: American may face bankruptcy by May

February 27, 2003

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— AMR Corp., parent company of American and American Eagle airlines, could be forced into bankruptcy as soon as May, its pilots' union warned.

An analysis of AMR's finances by the Allied Pilots Assn. found the company has just three months' worth of cash reserves.

Fort Worth, Texas-based American Airlines pleaded with employees earlier this month to accept steep cuts in wages and benefits to save $1.8 billion annually. The pilots' analysis concluded that might not be enough.

"Realize that the $1.8 (billion) is a minimum figure," a posting on the union's Web site says. "There is no guarantee that AMR won't ask for more. AMR states the alternative is bankruptcy."

American spokesman Bruce Hicks said the airline would not comment on specifics of the union's findings.

"They understand the sense of urgency that we need," he said.

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