American Tweaks Offer to Pilots Union

AMR Corp.’s American Airlines pledged that it would not seek reduced retirement benefits for pilots if the pilots’ union agrees to speedy, winner-take-all arbitration over a new contract.

American also said it was changing the ground rules arbitrators would use to measure a new contract.

With the changes, the world’s largest carrier tweaked its surprise offer last month to head off drawn-out contract negotiations with its pilots by offering immediate pay raises of 15% to 22% if the union agreed to accept binding arbitration.

The 11,000-member Allied Pilots Assn. hasn’t decided whether to accept the offer, although the initial reaction from pilots was skeptical.

AMR shares fell 71 cents to $32.46 on the New York Stock Exchange.