American Airlines Pilots Recommends Japan Airlines Stakeholders Reconsider What is Best for Carrier

Business Wire

posted: 36 DAYS 20 HOURS AGO

Text SizeAAA

The Allied Pilots Association (APA), certified collective bargaining agent for the 11,500 pilots of American Airlines (NYSE: AMR), is recommending that Japan Airlines’ stakeholders reconsider the wisdom of forging closer ties with other financially distressed companies.

According to recent news reports, oneworld carriers American Airlines and British Airways have been considering an investment in fellow alliance member Japan Airlines as part of a potential restructuring of the latter carrier. Like Japan Airlines, both American Airlines and British Airways have been struggling during the global economic downturn.

Meanwhile, the U.S. Department of Transportation is expected to rule soon on American Airlines’ application for antitrust immunity.

“A number of interested parties, including the U.S. Department of Justice and the European Commission (EC), have raised concerns about American Airlines’ application for worldwide antitrust immunity with British Airways and Iberia and related joint business agreement,” said APA President Captain Lloyd Hill. “Earlier this month, the EC announced that American Airlines’ plans may violate rules governing restrictive business practices. The EC also announced that it has been investigating the oneworld Alliance for possible illegal conduct.

“Given such financial and regulatory uncertainty, the stakeholders of Japan Airlines may want to reconsider how best to address the challenges confronting Japan’s preeminent flag carrier,” Hill said.

Earlier this month, APA urged the DOT to decline American Airlines’ application for worldwide antitrust immunity, citing the EC’s concerns and American Airlines management’s unwillingness to provide industry-standard job protections. APA has repeatedly expressed its own concerns about the job outsourcing, anti-competitiveness and national-security implications of American Airlines’ plans.

Founded in 1963, the Allied Pilots Association—the largest independent pilot union in the U.S.—is headquartered in Fort Worth, Texas. APA represents the 11,500 pilots of American Airlines, including 1,889 pilots on furlough. The furloughs began shortly after the September 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union’s Web site address is www.alliedpilots.org . American Airlines is the nation’s second-largest passenger carrier and fifth-largest cargo carrier.