AIRLINE BIZ

American Airlines said Wednesday night that it expects federal mediator Terri Brown on Thursday to schedule another round of talks. It didn't say when they would occur, although April is probably a good bet.

This announcement is problematical for TWU negotiators and in particular for John Conley, TWU Air Transport Division president.

Conley had promised members and the media last month that TWU would ask the National Mediation Board to release it into a 30-day cooling-off period if American and the union didn't have a deal by Monday, March 8.

However, the mediator subsequently added another two days to this round. On Monday, the TWU said NMB member Linda Puchala had asked it to delay the union's request for a release until Thursday.

Now, it appears the union had been given its answer before it could make the request: Keep talking.

Here's part of what American put out on its negotiations update:

"On Wednesday, the teams exchanged comprehensive proposals in an attempt to close the gaps on the large remaining items. While both parties made significant moves to toward each other on compensation and pension, we remain far apart in the areas the company needs to improve its competitive position - outsourcing dayline cabin cleaning, retiree medical and the ASM cap.

"The company recognizes the desires of our TWU-represented employees to quickly realize financial gains and the company's current proposal would provide more than $3,100 to full-time employees within the first six months of the agreement. This is in addition to increases in the total number of vacation, holiday and sick days provided annually.

"While the teams did not reach an agreement during this session, the company remains committed to the process, and we are ready to move ahead with any proposal that makes good economic and operational sense. We look forward to resuming mediated discussions with the TWU Fleet negotiating committee and anticipate that mediator Terri Brown will set additional dates tomorrow, March 11."

Below is American's full update, including its summation of its latest proposal to the TWU.

The Association of Professional Flight Attendants took "serious liberties with the truth" and was not bargaining in good faith when it said American Airlines' negotiating team walked out on negotiations last week, American's lead negotiator said Wednesday.

In a negotiations update, Mark Burdette, vice president of employee relations, said the union's version of events misrepresented what happened at the bargaining table when American and APFA negotiators met for five days ending March 3.

Among other things, the union had said the company had walked out on negotiations with 10 hours left, that American had refused to consider the union's last proposal, that American had negotiated in bad faith and that the airline's actions were "inexcusable."

Here's an excerpt from Burdette's version of events of what happened March 3, the last day:

"Early that afternoon, union negotiators told the mediator that they were working on a proposal with a 'new direction' and asked us to stay into the evening to receive it. So we did, with several members of our team missing their flights home to honor that request.

"But whether the union changed its mind or was simply testing us I can't say, because more than four hours later they emerged with a proposal that represented no change in their position from the day before. The 'new' proposal in fact changed exactly two words, neither of any consequence.

"So with nothing new at play and further progress unlikely, the mediator signaled the end - two hours after the scheduled conclusion and following hours and hours of talks. We left disappointed but committed to returning for another round as soon as a new session was scheduled.

"To our surprise, the APFA had other plans. In a hotline and media statements that followed, the union's leadership issued a patently false characterization of the events and a scathing attack on the company's intentions.

"Perhaps the APFA leadership planned all along to accuse us of 'turning our backs' on negotiations as a way to rile flight attendants, and when they couldn't get us to walk out, they concocted the story that we did.

"Perhaps the APFA's goal was to gain leverage by trying to paint the company's negotiators in a negative light.

"Perhaps the APFA opted for the drama of a good tale rather than take on the important task of communicating the details of the proposals on the table, including the company's offer of a wage increase on top of current industry-leading compensation.

"But whatever the intent, the union responded in a way that was not fair, not accurate, and definitely not in good faith."

We'll put up any union response to American's allegations.

The APFA's board has scheduled an April strike vote for members and is scheduled to meet with the National Mediation Board next week to ask to be released into a 30-day cooling-off period, a prelude to a possible strike.

American Airlines said it has offered to lease competitors enough slots at London's Heathrow or Gatwick airports to provide four daily round trips: one to Dallas/Fort Worth, one to Miami and two to Boston.

"Two more daily slot pairs could be required to made available should today's competitive conditions between London and New York change," American said.

The commitments as spelled out in the European Commission's announcement says that there would be 14 additional weekly flights, or two a day, from London to New York Kennedy. But buried deep down there is this paragraph:

"It is confirmed that, in the event that they are in fact operated and insofar as they continue to be so operated, the two new daily services which Continental Airlines, Inc. has announced it will be operating on London-New York (giving it a fourth daily frequency from IATA Summer Season 2010 and a fifth daily frequency from IATA Winter Season 2010/11) satisfy the requirements of this Clause 1.1.3."

So the applicants don't have to give up slots for the London-New York routes as long as Continental operates the routes.

Here's another thing American likes about the EC offer:

"The slots can be leased from the airlines' current slot portfolio and don't have to be slots currently used on the specified routes. The European Commission has agreed that the airlines should be compensated financially by those airlines wishing to lease slots."

In a 2001 DOT proposed order, AA and BA would have been required to give up enough slots for 16 daily round trips at Heathrow, and they wouldn't have gotten any money for the slots.

"We're pleased that the EC has recognised that we should be compensated for leasing the slots," BA CEO Willie Walsh said. "This reflects the fact that there is an active slots market in London where slots are generally traded for value."

The European Commission on Wednesday gave out details on what Oneworld partners American Airlines, British Airways and Iberia are offering to allay concerns about their partnership and request for antitrust immunity.

Namely, as it says in its official document:

The Parties undertake to make Slots available at London (at the choice of the Prospective Entrant, at either Heathrow or Gatwick) and, if applicable, at New York JFK airport, to allow one or more Prospective Entrant(s) to operate or increase the following number of new or additional Frequencies on the following Identified City Pairs:

• London-Dallas/Fort Worth: up to seven (7) Frequencies per week;

• London-Boston: up to fourteen (14) Frequencies per week;

• London-Miami: up to seven (7) Frequencies per week; and

• London-New York: up to fourteen (14) Frequencies per week.

The carriers also made commitments on frequent-flier programs and revenues. Here's how the commission put it in its press release:

In addition, British Airways, American Airlines and Iberia undertake to provide access to their frequent flyer programmes on the relevant routes, allowing passengers of the qualified new entrants to accrue and redeem miles on the parties' frequent flyer programmes.

The parties also propose to allow fare combinability and offer special prorate agreements in relation to the routes of concern, which would enable competitors to offer tickets on the parties' flights and facilitate access to connecting traffic. Finally, the parties commit to regularly submit data concerning their cooperation, which would facilitate an evaluation of the alliance's impact on the markets over time. To monitor the implementation of the commitments, a trustee would be appointed.

Interested parties have until April 10 to respond to the proposed commitments.

Here's a link into the EC's document on the partners' commitments. Below, we've put the entire press release from the European Commission.

American Airlines ranked ninth among 18 U.S. carriers in on-time rankings in January.

Normally, a No. 9 spot is no reason for celebration. But it marks progress for the Fort Worth-based carrier as it continues a slow climb from the bottom rungs of the ladder.

For three months in the first half of 2008, it finished at the absolute bottom. After the carrier added time to the schedule and took steps to improve the operation, American briefly climbed high in the rankings before dropping back down a year ago.

Since hitting 17th of 19 carriers last June, American has improved nearly every month since then. The one exception was December when it matched its November finish at 10th.

As usual, Hawaiian Airlines topped the list in January, American Eagle ended up 18th. That's an improvement from its 19th place finish in December, but only because the list was shortened to 18 carriers in January.

Here's the full DOT list. A flight is considered on time if it arrives within 14 minutes of schedule.

American Airlines CEO Gerard Arpey suggested Tuesday that TSA needs to do more "behavioral profiling" to separate "the potential bad guys from the non-bad guys." Arpey made the remark during a speech that generally complimented TSA's work since the agency's creation after the Sept. 11 terror attacks:

"The TSA is doing a good job under extremely tough circumstances. But it's clear to us that in the years and decades to come, there are going to be more and more flights, more and more people flying, and we are not going to be able to manage that level of activity handling security the way we do today," Arpey told attendees at the FAA's Annual Aviation Forecast Conference in Washington. "Common sense tells us we will need to use technology much more aggressively, and we need to use more aggressive behavioral profiling -- separating the potential bad guys from the non-bad guys."

It should be noted that other aviation officials, as well as lawmakers, have argued for more targeted scanning of passengers whose actions or behavior suggests they may pose a threat. The Nexis news database shows a couple of stories that report Giovanni Bisignani, director general of the International Air Transport Association, said this in late January. "Instead of looking for bad things -- nail clippers and rogue bottles of shampoo -- security systems, we need to focus on finding bad people," Bisignani said.

Of course, critics say any type of profiling could become racial or ethnic profiling, with security personnel reverting to stereotypes to pick out passengers who they think look like terrorists.

In remarks to reporters afterward, Arpey didn't elaborate on his "profiling" comment. Instead, he repeated frequent industry criticism of the security fees that are charged to carriers and passengers to fund TSA. "Why airlines are uniquely singled out to bear the burden of the war on terrorism still escapes me," Arpey said. "No other industry is being asked to have their customers pay a tax to defend our freedom. Part of the reason that there is not money in the industry for infrastructure, for ATC, is we're paying for all this other stuff."

Southwest Airlines CFO Laura Wright said Tuesday that Southwest wants more slots at New York LaGuardia Airport.

Speaking at the JP Morgan transportation conference in New York City, Wright said Southwest will be filing comments in the next few weeks to express interest.

Both airports operated under capacity limits, and airlines must obtain landing and takeoff slots during most of the day in order to operate there.

Delta Air Lines and US Airways want to trade slots and facilities at LaGuardia and Washington National. The U.S. Department of Transportation tentatively has said that swap will occur only if the two carriers give up some of their slots to other carriers, a prospect that they've indicated is a deal-killer.

But in any case, Southwest is ready to pounce if anything opens up.

"It's not a secret that we'd like more slots. If we could get more slots at LGA, we would take then. We don't have an expectation to have 100 flights a day at LaGuardia, but we know we've got demands for more than the eight that we have today," Wright said Tuesday.

"I think you said the same thing about Denver," JP Morgan analyst Jamie Baker said, referring to a city that will grow to 140 Southwest flights this year, four years after Southwest launched service there.

"I don't remember saying that," Wright said.

"I do," Baker said, "because I was recommending Frontier."

DOT officials filed a document in the Delta-US Airways file Feb. 16 noting that Southwest Airlines had inquired Feb. 12 about obtaining some more slots. Said DOT:

The questions focused on the following three areas:

1) Questions regarding the three alternatives suggested by the FAA for handling the
mechanics of any slot sale;

2) Whether an interested carrier could purchase multiple slot packages at each, either or
both airports; and

3) Whether Delta and US Airways would be required/encouraged to provide gates so that
the purchase of slots would result in the acquiring carrier being able to initiate or expand
service.

When American Airlines chief financial officer Tom Horton spoke Tuesday morning at the JP Morgan conference, one of the first questions he faced was whether American faced a strike in the near future.

Horton didn't really respond with a prediction, successfully evading the question.

Instead, he made these points as he summed up the situation:

• Contract talks at airlines take a long time.

• Mediation in airline labor negotiations takes a long time.

• There are a lot of labor groups at a lot of airlines now negotiating contracts.

• With the Allied Pilots Association, "it's fair to say we're far apart."

• "With the flight attendants we have negotiated some aspects of the contract, but there are other aspects to be negotiated.

• "The same goes for the Transport Workers Union."

• "It's a process that's under the purview of the [National] Mediation Board at this point, and we'll just have to wait and see how it comes out."

• American is "negotiating in good faith."

• It wants employees to be fairly compensated, but the company has to be competitive over the long term.

Mark Hetterman, American Airlines vice president of flight, will retire June 1 after nearly seven years as American's chief pilot.

He has sent out a "dear colleague" letter announcing his retirement "with privilege and pride."

"The privilege comes from the trust placed in me by Gerard Arpey and Bob Reding as our airline navigated through the most challenging times in our industry's history," he wrote.

"The pride emanates from being picked to represent the finest Flight Department, in the world's finest airline, while being part of an officer team that crafted, and an employee team that implemented, a survival strategy that has protected our airline's position as a premiere global network carrier," Hettermann wrote.

"My appreciation and respect goes to each and every one of you for the role you have played in the survival story that has come from that strategy - unlike any other in our global industry," he concluded.

Hettermann succeeded Robert Kudwa as VP-flight in September 2003 after serving as chief pilot and base manager at American's Washington, D.C., base. He was one of Arpey's first executive picks after Arpey took over as CEO in April 2003. Kudwa left American prior to Hettermann's appointment.

His career was typical of many pilots of his age: The former U.S. Air Force pilot joined American in 1973 after time in the military, then was furloughed a year later. He flew as a flight engineer, first officer and captain in a variety of airplanes.

His promotion came right after pilots and other employees had to swallow big cuts in pay, working conditions and benefits to go with post-9/11 furloughs. As such, he was often vilified and lampooned by the Allied Pilots Association, particularly after contract talks began in September 2006 and a new slate of national officers took over in July 2007.

The Transport Workers Union said it won't ask the National Mediation Board to release TWU and American Airlines into a 30-day cooling-off period until Thursday at least.

The TWU's statement:

"NMB Board Member Linda Puchala has asked the TWU and its representatives gathered in Washington today to hold off filing for release from mediation until at least March 11. An announcement had been planned for today.

"The union is honoring her request.

"The TWU will have further information this Thursday."

John Conley, International Air Transport Division president, had said the TWU will see a release from the NMB today, Monday, March 8, if the union didn't have an acceptable deal from American.

Association of Professional Flight Attendant president Laura Glading told Puchala Thursday evening that the APFA wanted to meet with the NMB to request a release into the 30-day period.

We haven't heard yet when and if that meeting will occur, but it might be timed with the TWU request. That's just our idle speculation.

(UPDATED to show that the negotiations period had been extended): Monday was originally the last of three days scheduled for talks between American and TWU's fleet service clerks and ground service employees. However, the NMB several weeks ago told the parties that the talks would go through Wednesday.

TWU represents seven bargaining units, four of which are combined in the fleet and ground service negotiations. Most of the TWU units began talks with American in November 2007. Federal mediators have been sitting in since early 2009.

Fortune magazine in its March 22, 2010, issue has named its most admired companies in various industries.

Our question this week: Name the airline that has been named the most admired U.S. airline on the airline industry list for the ninth year in a row.

Answer below.

"The FAA is now investigating that case at JFK Airport, you know, where that young kid was directing traffic as an air traffic controller. You know this story?

"Of course the airlines have jumped all over this. They say if you want an adult in the control tower, it's going to be an extra 30 bucks now."

Jay Leno, March 5, 2010

Allegiant Travel Co. said Friday it is buying six Boeing 757-200s from their original European operator and plans to begin Allegiant Air service to Hawaii beginning in late 2010.

Right now, Allegiant operates 46 of the McDonnell Douglas MD-80 family on its all-North American routes: MD-83s, configured for 150 seats, and MD-87s, configured for 130 seats.

"Allegiant is acquiring this fleet with the express purpose of serving Hawaii, a major leisure destination that it cannot serve with its existing MD-80 fleet," the carrier said in its announcement. "Allegiant Air expects to launch service to Hawaii once appropriate regulatory requirements have been met."

"Hawaii is the most prominent U.S. leisure destination currently un-served by Allegiant, and our small city customers have been requesting this service," said chairman and CEO Maurice J. Gallagher Jr.

"We are very optimistic about our ability to exploit the large third party ancillary revenue opportunity we believe exists in Hawaii," he said. "We expect the sale of hotels, rental cars, and many attraction and activities popular with Hawaii visitors will provide a very meaningful contribution to the success of the service."

Allegiant said it will take delivery of two airplanes over the next two months, to begin service in Q4 2010; one airplane in November and one next January, to start service in the first half of 2011; and two aircraft in Q4 2011, to start service in the first half of 2012.

"Allegiant expects to spend between $75 [million] to $90 million through 2012 acquiring and preparing this fleet for service," Allegiant said. "While Allegiant is able to acquire and prepare the aircraft for cash, it believes it will finance some portion of the purchase."

Allegiant said the 757 acquisitions won't impact its MD-80 plans and still expects to have 52 MD-80s in service by Dec. 31.

Although small, Allegiant has been one of the more profitable airlines around. It reported operating profits of $122.3 million in 2009, for an operating margin of 21.9 percent, and net income of $76.3 million on revenues of $557.9 million.

By comparison, Southwest Airlines, one of the few big U.S. airlines to report a 2009 profit, had net income of $99 million on revenues of $10.35 billion.

What's more useless when you get home than a five-cent coin from Aruba, 10 centavos from Brazil, 50 haleru from the Czech Republic, a 1,000-yen note from Japan or a one-Euro coin?

I've got an envelope full of orphan coins and currency at home, the money I couldn't quite spend at the chocolate store at the foreign airport before flying home.

But there's a way to recycle that money and put it to good use. UNICEF's Change for Good program allows travelers to donate their unused coinage and currency, to help children.

American Airlines has been participating in the program since 1994. Last year, travelers donated $1.2 million in U.S. and foreign currency, the most ever for American.

The money is collected on select international flights and at Admirals Clubs and Flagship Lounges. Donations received in January and February are earmarked to provide assistance to Haitian children.

"American Airlines and its participation in the Change for Good program is invaluable to the U.S. Fund for UNICEF for its ability to bring both funding and attention to UNICEF's work," said Caryl Stern, president and CEO of the U.S. Fund for UNICEF.

"A little change goes a long way. We are so thankful for the generosity of American Airlines customers and the dedication of the committed American Airlines employee volunteers who choose to help improve children's lives," Stern said.

The carrier also participated in a trick-or-treating program to bring in other donations in Admirals Clubs, on board airplanes and in the workplace.

""Special congratulations and thanks to the American Airlines flight attendants whose remarkable volunteer efforts have made this all possible," said Dan Garton, American's executive vice president of marketing.

For more information on the program and how you can donate, click here.

Once again, Fortune magazine has come out with its list of most admired companies, and once again, the process has us scratching our heads.

Southwest Airlines ranks 12th on the list, which is headed by Apple, Google and Berkshire Hathaway. The only other passenger carrier on the list is Singapore Airlines, No. 27. Cargo carriers FedEx is No. 13 and UPS is 33rd.

But if you go to the list by industry, Southwest ranks fourth among airlines, behind Singapore, Continental Airlines and Delta Air Lines.

Here's the difference, I think. The Top 50 list is voted on by businesspeople from all industries. The industry lists are voted on by the people from that particular industry.

Here's what Fortune wrote about Southwest:

Despite facing the most difficult economy ever for the airline industry, the leading low-cost U.S. carrier gained market share and extended its flight map. Southwest added new routes, including gates at New York's LaGuardia, and made an unsuccessful bid in August to acquire bankrupt rival Frontier Airlines for $170 million.

And while other cash-strapped carriers have started adding fees for checking a bag, Southwest will still carry two for free, earning from consumers and business the respect it touts with its stock ticker symbol: LUV.

Last year, Southwest ranked No. 7 overall and third on the airline list. Continental led the group last year, followed by Air France-KLM. Singapore was fourth, Lufthansa was fifth and Delta was sixth.

Only Delta and low-ranked US Airways improved their scores from 2009.

Check out Fortune's March 22 issue for the full story, but keep reading below for the airline list, with 2009 and 2010 scores.

1. The problem in predicting an airline strike is that the National Mediation Board has to allow it. And who knows what its three members are thinking?

2. I like to look at auto makes like Ferraris and Porsches at the car shows. If I cannot afford a car, I prefer to not afford the very best.

3. My activities over spring break will depend on showtimes at the cheap theater and which restaurant 2-for-1 coupons haven't expired.

We had a conference call today with the undersecretary of defense in charge of procurement and Lockheed Martin's top boss Bob Stevens. The topic: How the mixed-up F-35 program is gonna get better fast.

The program, only the world's most expensive weapons buy in the history of buying weapons, was looking to be 30 months behind schedule by the last check. For a jet fighter program like this -- three variants built off the same manufacturing line, each loaded with the highest of high-tech surveillance gear -- being that far behind is not totally unexpected but turns out to be very, very expensive when you've got 8 "partner" nations and three U.S. service branches involved in the building of it and they want their planes, well, on-time.

So the Pentagon and Lockheed have a plan to cut that "delay" down to a tidy 13 months instead of 30. I tried to get pretty excited about this press conference but what it means for North Texas is: The same. Jet gets built here. Lots of them. Creating many, many jobs down the road. Lockheed, headquartered elsewhere and hence really not on our radar screen, gets its hand slapped hard and is told to get ahold of itself, but the Lockheed program manager Dan Crowley is staying and gets a vote of confidence.

Moving on...

The damage reports from February's winter storms are still arriving, and the results aren't pretty.

FlightStats.com, which tracks U.S. airlines and their flights, said Thursday that carriers cancelled nearly 38,000 flights last month, with Southwest Airlines hit hardest.

FlightStats said Southwest canceled 3,687 flights, Delta Air Lines canceled 3,370, American Eagle cancelled 2,779, American Airlines cancelled 2,509 and US Airways cancelled 2,195.

But US Airways cancelled the highest percentage of its February flights, 6.24 percent, followed by United Airlines with 5.58 percent. Southwest at 4.45 percent was eighth among the nation's nine largest carriers in percentage of flights cancelled.

The worst performers were the smaller regional airlines, led by five regional carriers that cancelled over one in 10 February flights.

The storm predicably had a big impact on on-time arrivals, FlightStats said.

"In February on average, North American airlines managed to deliver just 72.85 percent of their flights to the gate on time - down from January's 77 percent and lower than last year's surprising 81 percent performance," FlightStats said.

"As bad as the weather was, the February's average was still better than the same month in 2007 and 2008," it added.

Continental Airlines, which shut down its Newark hub on Feb. 10 and Feb. 26, pegged the cost of winter storms in February at $25 million in lost revenue. US Airways, also a big player in the eastern United States, estimated its lost revenue at $30 million.

"Due to the length and severity of the storms, flight operations were suspended for a total of six days at three of the hardest hit major airports (three days at Washington National, two days at Philadelphia, and one day at New York- LaGuardia)," US Airways said.

The weather problems helped drop Southwest to seventh in on-time performance among the 39 carriers tracked. Alaska led the big carriers at No. 3, and United Airlines was sixth.

US Airways finished 13th, Continental was 14th, Delta was 15th, American Airlines was 17th, AirTran Airways ranked 19th and and JetBlue was 30th.

Keep reading to see a chart that shows the number and percentage of cancelled flights by airline, ranked from worst to best.

John Conley, Air Transport Division director for the Transport Workers Union, has released a statement addressing contract talks with American Airlines. It discusses the situation with the Association of Professional Flight Attendants and the TWU's own talks with American:

"Speaking for all 28,000 TWU members employed by AMR, we're very disappointed that the flight attendants union was not able to reach an agreement with American Airlines. It now appears that APFA will seek release from mediation.

"We know where they're coming from. It has become increasingly clear that management at American Airlines is not committed to reaching an agreement with the airlines' workers and AMR's unions must take additional steps to secure a new agreement.

"Just sitting at the bargaining table is not negotiating. The flight attendants, like AMR's ground workers, require a contract that is 'ratifiable.'

"Our members who kept this company aloft by taking 30 percent wage cuts and making other sacrifices will not accept pennies for their labors, nor will they just grin and bear it when management is taking seven-figure bonuses.

"American Airlines is gaining anti-trust immunity in the Atlantic and strengthening the Oneworld alliance in the Pacific, its stock is up 30 percent in February alone. If management would only address its labor issues it would fly even higher.

"AMR's executives are simply not recognizing the enormous contributions made by our members. Over the past four years we have utilized a facilitated approach, direct negotiations, mediation, super meditation and recess sessions, all to no avail.

"Releasing the parties is the natural order of progression and called for under the Railway Labor Act. TWU will be making an announcement about next steps in the bargaining process for ground workers next week."

Conley has said TWU would seek a release on Monday, March 8, if it doesn't have a deal with American by then.

This is when it gets dicey for reporters covering contract talks at American Airlines.

On one hand, we have the unions raising the specter of work stoppages as a means to create negotiations leverage. The flight attendants have raised the possibility; the ground workers have raised the possibility.

On the other hand, we have the airline soothingly saying everything's fine, talks take a long time, everybody remain calm and go back to sleep.

Our job here isn't to help the unions increase their leverage. Our job isn't to help the airlines decrease the union's leverage.

Our job is to let the public, particularly the traveling public, get a true sense of what is going on and what might happen.

So you tell me - what are the chances that the Association of Professional Flight Attendants, Transport Workers Union or Allied Pilots Association will go on strike any time soon?

Unless your name is Elizabeth Dougherty, Harry Hoglander or Linda Puchala, you're just guessing. Those three are the chairwoman and two other members of the National Mediation Board.

They alone will decide if contract talks have gone as far as they can and that the negotiations have reached an impasse.

The NMB historically has been very reluctant to reach that point. Its job is to help the two sides reach a deal they can live with, and to authorize self-help like strikes and imposed contracts only after all else fails.

Can this board be convinced by American's unions that the good-faith efforts at a negotiated deal have gone as far as they can go and that they should be released into the 30-day cooling-off period that precedes a potential job action?

Don't know. Only the NMB knows that in its collective heart of hearts.

On Feb. 21, a reader emailed me for advice. "We're planning a trip to Ecuador in June, and I'm debating whether to fly American because I know about their labor situation and don't want to get stranded/have our trip messed up because of a strike," he wrote.

I was absolutely no help to him. I just don't know.

Here's what the Association of Professional Flight Attendants put in its Wednesday night hotline:

This is APFA President Laura Glading. It is Wednesday, March 3, 2010. This is a special report from the lockdown bargaining talks with American which just concluded in Washington. DC.

At 6:30 this evening, we gave the company a realistic proposal that addressed our Flight Attendants' needs and the company's concerns. Rather than take any time to consider this offer, the company exited the room, informing APFA that it would not be in position to make a counter-proposal tonight.

After over 21 months of talks, this action by management is inexcusable.

AA management showed its true colors in full view of our Federal Mediator. Their team departed the scene without so much as a response.

Management has continuously come to meetings ill-prepared to bargain in good faith as required by the Railway Labor Act. These last five days have been no different. More than just ill-prepared, they have shown that they refuse to fairly deal with our Flight Attendants who under any measure have sacrificed enough.

We are through with the disregard and the disrespect.
Now we must move to the next step. Talk is clearly getting us nowhere with this company. We will be contacting the National Mediation Board on Thursday to request release into a 30-day cooling off period.

We will be meeting with the APFA Board of Directors beginning Sunday for a full review and to initiate the steps to move forward with a strike authorization ballot of the membership.

American Flight Attendants have been down this path before and we remain unified and strong. Now, with no other options on the table, management has forced us to take the next step necessary to get the contract we have worked so hard for.

As we have more information from the NMB, from your Negotiating Team and from the APFA Board, we will post it online at APFA.org.

Please continue to support your Team and your fellow Flight Attendants. Our futures and our careers depend on it. Thank you.

American Airlines Inc. and the Association of Professional Flight Attendants ended their five-day negotiating session Wednesday evening without a deal. In two items below this one, we have American's position and we have the APFA position.

As you'll note in the APFA statement, union president Laura Glading said the union will contact the National Mediation Board on Thursday to schedule a meeting to talk about releasing the union from further mediation and starting the clock ticking on a possible strike.

American in its statement said the union's last proposal was too expensive and would make American uncompetitive.

We don't have any indication that the NMB is ready to release APFA yet. It's been loathe to do so in recent history, preferring to hold management and union in mediation.

For example, Hawaiian Airlines pilot asked in October 2009 to be released so that the 30-day cooling-off period could begin. Instead, the NMB kept both sides at the table, and they reached a tentative agreement in December.

Also, as you'll read, the union said American walked out of negotiations. American spokeswoman Missy Latham has this followup comment:

"The notion that we walked out is categorically untrue. In fact, American Airlines negotiators are still in Washington, D.C. This round of talks was always scheduled to conclude at the end of business Wednesday evening and American Airlines actually agreed to wait to hear the union's counter-proposal. We agreed to review this version and the mediator recessed the session, after 7 p.m. ET. We will respond to the counter-proposal at our next negotiating session."

American Airlines version of the latest round of talks:

February 27 - March 3, 2010

The last five days of negotiations concluded Wednesday, March 3, as scheduled by the mediator.

Demonstrating our willingness to negotiate an agreement in a timely manner, the company presented a comprehensive proposal that significantly moved toward APFA in several areas of the contract, including compensation where the company offered structural increases.

As we've said all along, the company is willing to be creative in finding solutions that meet the needs of both parties. We recognize that structural increases are very important to the APFA. In order to offer those increases and other items key to APFA - like sequence pay protection and increased vacation and sick - we've proposed an eight-year deal that would help us to balance our costs over the long term.

APFA's current proposal would cost the company hundreds of millions of dollars over the life of their proposed six and a half - year contract, which would keep our labor costs at an uncompetitive level in relation to other carriers. This is an economic reality the company has asked APFA to recognize so both sides can work out an agreement that will allow the airline to compete successfully and provide competitive pay and benefits and a good career for its employees.

The parties are awaiting next steps from the mediator, and look forward to continuing to bargain when the mediator establishes the next set of dates.

New elements that the company proffered in its latest proposal are detailed below (more explanation around each of these elements will be included in the next edition of "Flight Attendant Negotiations News"). For the full proposal, click here.

(Keep reading for American's presentation of its last contract offer.)

This is the Association of Professional Flight Attendants' press release after the latest rounds of talks ended without a contract deal:

Washington, DC -- Negotiations between American Airlines Flight Attendants and management broke down today when the company left the bargaining table with ten hours remaining before the scheduled end of the intense five-day bargaining session.

At 6:30 pm ET, the Association of Professional Flight Attendants (APFA) gave the company a realistic proposal that addressed the Flight Attendants' needs and the company's concerns. Rather than take any time to consider this offer, the Company exited the room informing APFA that it would not be in position to make a counter-proposal this evening.

"This conduct is just another demonstration of the Company's bad faith bargaining that has been in full bloom for the past 23 months," said APFA President Laura Glading. "This display shows complete disrespect and disregard for our hard working Flight Attendants.

"APFA remains prepared to reach a mutually satisfactory agreement, but it is clear, now more than ever, that the company does not share the same interest," Glading continued. "Delay only serves the company. Each day without a new agreement equals another million dollars in the pocket of American.

"The company's actions speak loudly. When the bargaining party that sits across the table does not want to reach an agreement, that leaves the other party with no recourse other than to move to the next step," Glading continued. "We have exhausted all of our options and will now meet with our Board this weekend to move forward with the balloting of the membership for a strike vote."

APFA will be contacting the National Mediation Board tomorrow to schedule a meeting to request a release into a thirty-day cooling off period, at the end of which, APFA can choose to engage in a strike or other forms of self-help.

"Flight Attendants have been down this path before and we remain unified and strong. Now, with no other options on the table, management has forced us to take the next step necessary to get the contract we have worked so hard for," Glading concluded.

That ticking clock you imagine hearing is located at the National Mediation Board in Washington, D.C., near where American Airlines and the Association of Professional Flight Attendants are hanging out.

Wednesday is the last of five days of intense negotiations, and we haven't heard anything out of there yet. No contract, no impasse, no nothing.

Assuming no tentative agreement comes out of these talks, let's lay out the possibilities after about 22 months of talks:

1. The NMB mediator says the parties are making progress, and let's meet again in April or May.

2. The NMB mediator says the parties aren't making progress, that they should go back and rethink their final positions and let's meet again in April or May. Or August. Or September. Or during the next administration.

3. The NMB pushes the flight attendant negotiators to take American's last, final offer to its membership for a vote, even if the negotiating team and the union's leadership won't recommend its passage.

4. The NMB concludes that the talks have gone as far as they can go and proffers binding arbitration to both sides. That's a prelude to a 30-day cooling-off period.

APFA president Laura Glading has said the union will ask for a release from mediation, setting off the proffer-cooling-off-possible-strike timetable, if the two sides don't have a deal from this round of talks, which began Saturday.

But she said that after a previous round in January, and any public request was short-circuited when the federal mediator scheduled the Feb. 27-March 3 sessions.