American pilots back MOU proposal on terms for merger

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Union leaders for American Airlines pilots represented by the Allied Pilots Association (APA) have approved a proposed memorandum of understanding (MOU) which could act as an interim labour framework should the airline merge with US Airways.

APA says its board of directors voted in favour of the proposed MOU by 11-5 for consideration by management at American Airlines parent AMR and US Airways, together with the US Airline Pilots Association (USAPA) representing the latter's pilots.

"APA cannot disclose the terms that our board has approved at this juncture," the union says in a statement. "We are in discussions with the other three parties to the MOU process and the Unsecured Creditors' Committee about the timetable for their review, and when we would be permitted to divulge specific details if the MOU is approved by the respective parties."

APA and USAPA had earlier this month disclosed they are in talks with American Airlines and US Airways regarding an interim pilots agreement in the case of a merger. APA represents around 10,000 pilots at American.

Fort Worth-based American, which has been in US Chapter 11 bankruptcy protection for just over a year, and US Airways have been in discussions since signing a non-disclosure agreement in August. The latter reportedly made a formal offer to American in November.