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But lately there have been encouraging signs. In each of the past two months, American posted better revenue per mile flown by each seat than its rivals. That shows American has been able to raise fares while still filling seats. Analysts say it has cut many unprofitable flights. In the all-important corporate-travel business, American has signed up more accounts this year than in the first half of 2011, chief commercial officer Virasb Vahidi said this week, although he didn't give numbers. American says it has the highest labor costs in the airline industry. In the past two months, it has received approval of cost-cutting contracts covering thousands of ground workers. It announced a tentative agreement with mechanics on Tuesday, and pilots are voting on a proposal that would give American more flexibility to use regional jets and partner with other U.S. airlines
-- benefits that Delta and United already enjoy. Those labor contracts include raises, but they would give American and AMR creditors certainty about labor costs for several years. And that might be just enough to help AMR executives control the terms of any merger. Officials at American's unions are openly hostile to AMR management. They claim that Horton and other executives are resisting a merger during bankruptcy so that they can get stock in the new company that emerges from Chapter 11 protection
-- stock that could be worth tens of millions of dollars. The CEOs of Northwest Airlines and United Airlines got compensation worth $27 million and $40 million after their companies emerged from Chapter 11 and went through mergers. An AMR spokesman said compensation won't influence management's decision.
[Associated
Press;
AP Airlines Writers Scott Mayerowitz in New York and Joshua Freed in Minneapolis contributed to this report.
Follow David Koenig at http://twitter.com/airlinewriter.
Copyright 2012 The Associated
Press. All rights reserved. This material may not be published,
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