Pilots join other unions in balking at pay-cut vote

FORT WORTH, Texas -- American Airlines pilots are threatening to join other unions in balking at wage and benefit cuts they already approved to keep the airline solvent.

Although the Allied Pilots Association said Tuesday it won't call for a new vote on the measure, a spokesman said union directors were considering telling their president, John Darrah, not to sign the ratification papers.

Two other unions, the Transport Workers Union and the Association of Professional Flight Attendants, have both called for another vote, increasing the possibility that the deal will be rejected.

The unions reacted angrily when they learned after consenting to the concessions that American had approved bonuses and pension payments -- executive perks that would be protected in bankruptcy -- but asked rank-and-file workers to take deep pay cuts.

Chairman's apology

American Airline chairman and chief executive Donald J. Carty has apologized for not telling workers sooner about the perks. The company has canceled the bonuses but not the $41 million in pension funding.

"The question has been whether we were going to have a revote, and our board has determined there is no need for one because it's in our bylaws and also explicit in the agreement itself that it does not take effect until our president signs it," said Andy Sizemore, a spokesman for the Allied Pilots Association.

Sizemore said the decision on whether Darrah would sign the agreement depends on what is "in the best interests of our pilots and American Airlines."

Pilots union spokesman Steve Blankenship said some union board members would like to see Carty resign; however, he said that was not yet an official position.

Association of Professional Flight Attendants spokesman George Price said his union's new vote will involve a 30-day paper ballot. He said details on when the revote would begin were being worked out.

Some American employees, while angry about the management benefits, still fear deeper wage cuts and more layoffs if fallout from the perks causes the concession deals to fail and American to file for bankruptcy.

On Wednesday, American Airlines' parent company, AMR, reported a $1.1 billion first quarter loss. It blamed its troubles on the depressed economy, war in Iraq, the high price of jet fuel and extremely low fares.

"All told, it's a perilous climate and our success is far from assured," Carty said.

He called the company's performance "dreadful" and warned "success is far from assured."

The first quarter loss was equivalent to $6.68 per share, compared with a net loss of $1.56 billion, or $10.09 per share, a year earlier. First quarter revenue fell slightly to $4.12 billion, compared with $4.16 billion a year earlier.

Airlines have been reeling for months, hurt by the sluggish economy, fallout from the Sept. 11 attacks, fears over the SARS virus and the war in Iraq. United Airlines is already in bankruptcy.