American Says Delay Won’t Slow Reno Deal

A mediator overseeing negotiations will meet with AMR Corp.’s American Airlines today after the airline’s pilots union made changes to a proposed deal on pay issues linked to AMR’s acquisition of West Coast regional carrier Reno Air. American, however, said it will go ahead with plans to complete its takeover of Reno this month despite the new delay. The airline said Reno, which AMR acquired in December, will be fully integrated into American’s network Aug. 31. Putting Reno’s 300 pilots in American Airlines uniforms has prompted a drawn-out dispute over pay scales and seniority with the union representing American’s 9,500 pilots, the Allied Pilots Assn. APA’s board voted to approve a federally mediated settlement of the dispute–but only with amendments, effectively delaying a settlement while airline management decides whether to accept the changes. The union declined to specify what changes it had made in the mediated deal, which had already been approved by American Airlines. The company contends it cannot afford the amendments. The union and its president, Rich LaVoy, could not be reached for comment. AMR shares fell 56 cents to close at $61.38 on the New York Stock Exchange.