American rejects pilot contract
American Airlines, facing the possibility of a future cash crunch amid soaring fuel prices, said Tuesday it has rejected its pilots union’s contract proposals after determining the cost to the nation’s largest carrier would be too high if it accepted them.
The union immediately shot back, seeking to know if the rejection means the talks are at an impasse.
American, a unit of Fort Worth, Texas-based AMR Corp., said in an internal negotiations update that it informed Allied Pilots Association negotiators that the union’s proposals “are not in the best long-term interests of either our company or our pilots.” It said the proposals would increase American’s annual pilot costs by roughly $3 billion.
The pilots’ 2003 contract became amendable on May 1, though the two sides started talks in September 2006.
Last fall, the union asked for raises of 50 percent to return their pay to 1992 levels. The union says the pay restoration would only increase the company’s annual costs by $750 million. The company proposed that pilots could earn more by working longer hours.
•A New York judge concluded Tuesday that Dell Inc. engaged in repeated false and deceptive advertising of its promotional credit financing and warranties.
State Supreme Court Justice Joseph Teresi ordered the computer retailer to more clearly disclose that most customers don’t qualify for free financing or get “next day” repair service.
New York Attorney General Andrew Cuomo sued Dell last year. Teresi gave him until Dec. 1 to identify all consumer claims for third-party repairs, new computers or higher interest payments than they would have paid otherwise.
“For too long at Dell the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all,” Cuomo said. “This decision sends an important message that all corporations will be held accountable for the promises they make to consumers.”
•JetBlue Airways Corp. said Tuesday it will put off buying 21 new Airbus jetliners for four to five years because of rising fuel costs.
The planes, which were originally scheduled for delivery between 2009 and 2011, will now be delivered in 2014 and 2015.
“The aircraft deferrals we announced today will help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations,” chief executive Dave Barger said in a statement.