|Updated: 12/07/2012 3:27 pm
||Published: 12/07/2012 3:26 pm
DALLAS (AP) - Pilots at American Airlines are approving a new labor contract, which could clear the way for consideration of a merger with US Airways.
The pilots' union announced the results Friday. Pilots rejected a similar offer in August, but union leaders lobbied hard for passage the second time around.
Under the contract, pilots will get pay raises and own 13.5 percent of American Airlines' parent AMR Corp. after it emerges from bankruptcy protection.
Union officials and analysts say the vote gives AMR creditors certainty about the company's labor costs, making it easier for them to weigh which gives them more money - American on its own, or getting bigger through a merger with US Airways.
Governor Mary Fallin released the following statement today after the Allied Pilots Association of American Airlines announced their members had ratified a contract with American Airlines.
“Ratification of a new contract by the Allied Pilots Association at American Airlines is a critical milestone in the restructuring of a great company. With valuable passenger service at three airports and over 6,000 employees at the Tulsa Maintenance & Engineering Base, American is a major contributor to our state’s success. Congratulations to union leaders and the management team at American that have successfully negotiated nine new contracts in just over one year. Oklahomans hope this new momentum will mean a quick exit from reorganization and a bright future for one of Oklahoma’s most important employers.”
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