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American Airlines' long-standing mechanics dispute may be in the past

Jan. 31, 2020
2 min read
American Airlines' long-standing mechanics dispute may be in the past
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American Airlines and the union representing its mechanics have reached a new labor accord that may end the disagreements that have plagued their relationship in recent years.

The carrier and the TWU-IAM Association have an agreement-in-principle on a new five-year contract covering the more than 31,000 staff, including American's mechanics, fleet service and stores employees, they said in separate statements Thursday.

The deal, which still must be finalized before being put to employees for a vote, includes wage and work rule improvements, as well as the integration of the still-separate American and US Airways' staff into a single group that would come more than six years after the carriers' merger.

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Early in 2019, an alleged work slowdown by mechanics and other staff forced American to cancel around 1,000 flights through May. A court ordered the slowdown halted in June, though American claimed the impact continued into July.

The alleged slowdown coupled with the impact of the Boeing 737 MAX grounding took a bite out of American's financial and operational performance through last summer.

American and the TWU-IAM group have been in discussions over a new agreement since 2015. However, differing maintenance philosophies, for example American traditionally did much of its work in house while US Airways outsourced more, proved a drag on talks.

American was ranked fifth in on-time arrival performance among mainline North American carriers in 2019, according to flight-data and analytics firm Cirium. The airline saw 79.9% of its flights arrive on time, nearly six-points lower than market leader Delta Air Lines.

Related: American and Delta were the world’s largest airlines in 2019

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    For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

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  • Annual Fee

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    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

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Why We Chose It

The Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet.

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  • $100 annual hotel savings benefit (on single hotel stay bookings of $500 or more, excluding taxes and fees, booked through thankyou.com)
  • Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
  • World Elite Mastercard benefits, extended warranty, damage and theft protection.

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  • $95 annual fee
  • Lacks travel protections that other travel rewards cards come with
  • For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
  • Earn 3 Points per $1 spent at Restaurants and Supermarkets
  • Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
  • Earn 1 Point per $1 spent on all other purchases
  • Annual Hotel Savings Benefit
  • 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
  • No expiration and no limit to the amount of points you can earn with this card
  • No Foreign Transaction Fees on purchases