AMR Corp's share price drops to record low after pilots review labour contract offer
AMR Corp dropped to its lowest closing stock since 28-Mar-2003, following attempts to end a five-year deadlock with a contract proposal that offers pilots smaller pay increases than they had requested (Bloomberg/Dallas Business Journal, 15-Nov-2011). The proposal was posted on American Airlines’ labour website after a day of negotiations following a weekend break. The carrier is reportedly trying to increase the pressure on pilots to approve a tentative agreement by the end of the week. Two contracts presented late on 14-Nov-2011 included pay raises and job protection for pilots in exchange for increased productivity and operational flexibility.