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Unions Won’t Support AMR’s Purchase of TWA

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Associated Press

Leaders of American Airlines’ three unions said they cannot support the carrier’s purchase of bankrupt Trans World Airlines, saying the difficulty of absorbing TWA’s workers could cause turmoil. In a letter to Donald J. Carty, chief executive of the carrier’s parent AMR Corp., leaders of the pilots, flight attendants and mechanics unions said the airline should focus on improving benefits for its employees instead of acquiring TWA. Airline officials did not immediately respond to requests for comment about the letter. The unions don’t have the power to block AMR from closing the $742-million deal early next month, according to company officials, but they could make for labor unrest. The company’s 11,000 pilots, who begin contract negotiations this summer, protested American’s 1998 purchase of Reno Air by conducting a sickout that caused the cancellation of more than 6,000 flights. AMR shares fell $1.66 to close at $34.82 on the New York Stock Exchange.

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