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American Airlines and flight attendants cannot agree on new contract

American Airlines and flight attendants cannot agree on new contract

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Since there is no new contract, American Airlines flight attendants say they are preparing for a possible strike.

— Meghna Maharishi

American Airlines’ flight attendants union said Thursday it was unable to reach a new contract with management. The union added that the National Mediation Board is currently debating whether to give both parties a 30-day cooling-off period, which could lay the groundwork for a strike.

The union told all American flight attendants to prepare for a strike, but American took a much softer tone and announced that negotiations would continue.

“We made good progress in negotiations this week, expanding on the industry-leading proposal we’ve had on the table for months,” American said in a statement. “We look forward to continuing negotiations so our flight attendants can benefit from the contract they deserve. This agreement is within reach and we look forward to scheduling further meetings.”

The negotiations between American and its flight attendants were particularly controversial. Transportation Secretary Pete Buttigieg and Labor Secretary Julie Su also took part in the talks last week.

The Association of Professional Flight Attendants, the union that represents American flight attendants, opened “strike command centers” earlier this month.

If a flight attendant strike does occur, it could be a big problem for American, especially during the busy summer travel season. Some Wall Street analysts also say American took too long to reach an agreement with its flight attendants. United Airlines and Alaska Airlines are also in the middle of contract negotiations for flight attendants.

Even if the National Conciliation Board releases the flight attendants from negotiations and gives them a 30-day cooling-off period, it could still take months before they go on strike due to the provisions of the Railway Workers’ Labor Code.

First, the NMB must give the union permission to strike. Last year, the board rejected the union’s request to be excluded from mediation.

Earlier this month, American flight attendants rejected an immediate 17% pay raise, saying they wanted a collective bargaining agreement first.

“APFA’s position has been that flight attendants want and need a comprehensive contract,” the union said at the time.

Development of the stock index for the airline sector since the beginning of the year

What am I looking at? The performance of stocks from the airline sector in the ST200. The index includes companies publicly traded on global markets, including network carriers, low-cost airlines and other related companies.

The Skift Travel 200 (ST200) combines the financial results of nearly 200 travel companies valued at over $1 trillion into a single number. Learn more about the financial performance of the airline sector.

Read the full methodology behind the Skift Travel 200.

Photo credit: An American Airlines Airbus A319 lands in Santa Barbara. Glenn Beltz/Flickr