Round-the-clock negotiations between American Airlines management and the Allied Pilots Association, a union which represents some 9,000 of the airline's flightcrew, had still failed to produce a new contract 18h before a threatened 15 February strike was due to begin.

The talks have become bogged down on pay increases and stock options and the introduction of regional jets in the American Eagle subsidiary, which is represented by a different union.

The dispute threatens to ground 20% of the nation's airline capacity. Clinton could appoint a Presidential Emergency Board, which could force pilots back to work .

Source: Flight International