AMR, Pilots Union Agree to Mediation

AMR Corp.’s American Airlines, the No. 2 U.S. carrier, and its pilots have agreed to take their dispute over the integration of Reno Air Inc. to mediation. AMR and the Allied Pilots Assn. said they will hold two more direct bargaining sessions. If those talks are unsuccessful, the two sides will enter mediated talks for up to three days. AMR completed its $124-million purchase of Reno Air today. The union is demanding immediate raises for Reno Air pilots, who now earn about half of the $150,000 annual compensation package of American pilots. It also wants immediate raises for American pilots. The dispute led 9,200 union members to stage a protest that canceled 6,600 flights over 11 days beginning Feb. 6. A federal judge ordered the pilots back to work.