Allied Pilots Association Applauds Delay in Ruling on American Airlines` Application for Antitrust Immunity

Thu Nov 5, 2009 2:55pm EST
 
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"More Time to Scrutinize the Airline`s Claims"
FORT WORTH, Texas--(Business Wire)--
The Allied Pilots Association (APA), certified collective bargaining agent for
the 11,500 pilots of American Airlines (NYSE: AMR), voiced its support for the
delay in the issuance of a final ruling by the Department of Transportation
(DOT) regarding American Airlines` application for worldwide antitrust immunity.


"The DOT no doubt had its reasons for choosing to waive its stated deadline of
October 31 for issuing a final ruling in American Airlines` application," said
APA President Captain Lloyd Hill. "We welcome the delay, which will afford
airline industry regulators at home and abroad more time to scrutinize the
airline`s claims. Policymakers must have a clear picture of the intended and
unintended consequences of permitting ever more collusive behavior in the
industry. We suspect that there is increasing concern about what could go wrong
if American Airlines is permitted to proceed." 

American Airlines filed its application for worldwide antitrust immunity with
other oneworld Alliance carriers nearly 15 months ago. Last month, the DOT`s
European counterpart, the European Commission (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 and the
Star Alliance for possible illegal conduct. 

Since American Airlines first announced its plans, APA has been citing concerns
about the negative impact on the airline`s workers, the inherently
anti-competitive nature of antitrust immunity and the implications for national
security. APA announced its unequivocal opposition to the deal last month based
on American Airlines management`s refusal to provide basic, industry-standard
job protections. At that time the union reiterated its concerns about the risks
of good U.S. jobs being permanently outsourced as a result of the deal. APA also
cited the EC`s stepped-up scrutiny as further evidence that regulators should
refrain from authorizing what amounts to a cross-border virtual merger. 

"We urge policymakers to be mindful about the damage that our nation`s airline
industry could sustain as a result of American Airlines` plans," Hill said.
"Their decision will help determine, for better or for worse, the future of this
vital component of the United States` transportation infrastructure. 

"In addition, their decision could well have an impact on our nation`s economic
future. With the high rate of unemployment widely acknowledged as an impediment
to sustained economic recovery, policymakers must take care to safeguard
existing U.S. jobs." 

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.

Allied Pilots Association
Captain Sam Mayer, 817-302-2350 / 203-731-1112
or
Gregg Overman, 817-312-3901 



Copyright Business Wire 2009

 

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