American Airlines talks run into night

By Ina Paiva Cordle
Knight Ridder News Service

Today is shaping up as a showdown at American Airlines as the board decides the fate of the carrier and that of Chairman Don Carty amid a groundswell of employee anger and distrust.

Talks between labor leaders and Carty continued late last night and could produce a deal that would avoid a Chapter 11 bankruptcy filing and could include Carty's resignation.

"Every single thing that one could think of that could be part of a true negotiation is on the table," said Rep. Pete Sessions, R-Texas, who was present but would not confirm if Carty's departure was discussed.

Meanwhile, American's parent AMR Corp. reported another staggering quarterly loss yesterday — $1.04 billion, or $6.68 per share.

Carty deemed the results "truly dreadful," citing high fuel prices, low fares, weak travel demand due to war and a sluggish economy.

Sessions and three other Texas congressmen met with leaders of the three unions, Carty and a handful of other top executives, in a series of meetings yesterday.

"The fact that we were in discussions for over three hours would indicate they felt there was some hope to find common ground," said Republican Rep. Joe Barton. "It doesn't take three hours to say there's no way we can reconcile."

Disgruntled flight attendants and transport workers have said they intend to hold a paper ballot revote that could take up to a month. Carty has said any delay in implementing cost-cutting agreements, scheduled to be put into place next Thursday, could lead to a bankruptcy filing.

American's union and nonunion workers have been outraged since details emerged last week about a bonus retention plan for seven senior executives and a supplemental pension plan for 45 top officers.

The compensation plans came to light after the three unions ratified concession packages totaling $1.62 billion. The bonuses have since been rescinded and Carty has publicly apologized.