AMR-Union Talks Reach an Impasse

AMR Corp.’s American Airlines and its flight attendants failed to reach a contract agreement in four days of talks, prompting federal mediators to consider asking President Bush to intervene and delay any strike until after the busy July 4 holiday, the carrier said.

The National Mediation Board recessed talks until June 20 and asked for a study on the economic impact of a walkout from the Transportation Department, American said. Such a study is required before the board can ask Bush to intervene and postpone any strike up to 60 more days.

The board was hoping to reach an agreement before the 23,000 members of the Assn. of Professional Flight Attendants were allowed to walk off their jobs at the carrier July 1, the height of the summer travel season.

“We will continue to work with the NMB and the [union] team to find common ground on the last few remaining issues,” said Sue Oliver, American’s chief negotiator. The union had no immediate comment other than to confirm the recess in talks. AMR shares fell 42 cents to close at $37.38 on the New York Stock Exchange.