Pilots Union Rejects Tentative Deal with American Airlines: Article Analysis Essay

Introduction

Susan Carey's Wall Street Journal article "Pilots Union Rejects Tentative Pact with American Airlines", is about the American Airlines pilots rejecting concessionary, a six-year contract offer from the parent AMR Corp. In the article, the author gives the reasons why the pilots, under the American Pilots Association (APA) chose to dissent from the deal. Additionally, the article mentions what may befall these pilots after that and the impact this rejection will have on the parent AMR Corp.

It is clear from the article that the union rejecting the contract creates a complicated situation. American Airlines considered the deal as vital. In the event the pilots accepted the agreement, it would have been an essential step towards their restructuring. The deal offered modest pay raise, guaranteed leaves, and probably a 13.5% equity in AMR Corp. Nonetheless, the rejection leaves the aviation company with no option but table the issue before the United States Bankruptcy court. The court will impose terms that are more unfavorable if it revokes the current labor agreements. However, this will only happen after a similar case by the flight attendants conclude. Accordingly, the pilots might lose even further. There is the risk of being strip off from any labor protection. This means that restoring any contract terms in future will be impossible. Another effect of the rejection of the deal is that it can potentially complicate the parent AMR Corp. plans of reorganization. The company is on the brink of bankruptcy and wants to come out of Chapter 11. The company has already agreed to seek merger alternatives and is in talks with the US Airways. The pilots rejecting the term means AMR will not win all labor cost saving during the merger. This hurts the ability of the company to raise capital.

Gauging from the complex nature of this problem, the author does so well to cover every aspect of the issue. She states the reason as to why the pilots rejected the deal. The Pilots union wanted to preserve as much of the pilot's contract terms as possible. The group intended to corner MRA into a merger with US Airlines where they would gain better. While this looks as excellently laid out strategy, it only seems to be a theory. Perhaps the approach is intended for the paper and may not be useful in real life. The author ought to have illustrated on the strategy to assure reader whether it was ever successful. However, with the direct reference of the words spoken by the union bosses on the plan, there is a great deal of credibility to the strategy as a whole.

Conclusion

The article is interesting, and the author keeps the story straight making sure that no party takes the blame for a failed deal. However, the authors use robust vocabularies, which require constant reference to the dictionary. Getting meaning from some sentences is hard. Additionally, the article does get a little complicated in that it lacks clarity as to whether it is about the American Airlines pilots or the parent AMR seeking merger alternatives. The author could avoid the confusion and be concise on what she is addressing. Overall, it is a well-composed piece with an important message for the public. Everything in the article is contemporarily relevant.