AMERICAN UNION PAYS THE PIPER
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AMERICAN UNION PAYS THE PIPER
FORT WORTH, Texas (AP) American Airlines settled with its pilots union Friday to resolve the $45.5 million penalty levied against the union after a sickout.
As part of the deal, the Allied Pilots Association transferred $20 million of the payment already in an escrow account, plus interest, to the airline.
The union also agreed to repay the remaining balance of about $25.5 million, with interest, to American on a 15-year payment schedule.
According to the agreement, claims against 25 union officials have been dismissed by American.
Officials with the airline and the union didn't respond immediately to calls for comment from The Associated Press.
U.S. District Judge Joe Kendall of Dallas imposed the penalty on the association after an 11-day sickout in February 1999 that resulted in the cancellation of nearly 6,700 flights.
American filed a breach-of-contract suit against the union to end the sickout, and Kendall ordered the pilots back to work.
As part of the deal, the Allied Pilots Association transferred $20 million of the payment already in an escrow account, plus interest, to the airline.
The union also agreed to repay the remaining balance of about $25.5 million, with interest, to American on a 15-year payment schedule.
According to the agreement, claims against 25 union officials have been dismissed by American.
Officials with the airline and the union didn't respond immediately to calls for comment from The Associated Press.
U.S. District Judge Joe Kendall of Dallas imposed the penalty on the association after an 11-day sickout in February 1999 that resulted in the cancellation of nearly 6,700 flights.
American filed a breach-of-contract suit against the union to end the sickout, and Kendall ordered the pilots back to work.
