Boston, MA 09/22/2014 (wallstreetpr) – Airline service provider, American Airlines Group Inc (NASDAQ:AAL) disclosed that it has struck a tentative agreement with the Association of Professional Flight Attendants or APFA on a fresh joint collective bargain involving over 24,000 flight attendants. However, the company has not revealed the terms of the tentative agreement.
More Generous Terms
American Airlines Group Inc (NASDAQ:AAL)’s Chairman and Chief Executive Officer, Dough Parker, said that the tentative deal with its attendants was a step forward in its integration, its statement revealed. He said he was building an airline company to take up competition aggressively in the international marketplace.
American Airlines’ CEO said that National Mediation Board’s Jim Mackenzie has played an important role in striking a deal. Now the APFA would take the details of the tentative deal to their members, who would take the same with combined flight attendant for a vote of ratification.
A spokesperson for the association told Reuters that the terms were more generous compared to the deal with Delta Air Lines, Inc. (NYSE:DAL) and United Airlines Inc. APFA President, Laura Glading, said that the team has brought home an excellent agreement though they were initially tenacious.
Waiting From 2003
Flight attendants of American Airlines Group Inc (NASDAQ:AAL) were waiting since 2003 for a favorable contract since they have compromised 30% of their benefits and wages when the company’s performance became sour. They lost 20% more in 2011 after the Airlines preferred bankruptcy protection.
The association was able to get a promise from management of US Airways when a merger became likely that negotiations for a contract should be expedited after the merger. This led to the negotiations for 150 days, which was considered significant compared to most of the negotiations that dragged for several years.
The association spokesperson told that they have learnt from other big mergers such as the United – Continental experience where negotiations were going on for years and faced the layoff threats. The agreement does not cover a small group of attendants in South America.
