American Airlines has upped its operational performance this fall.
The carrier is cancelling fewer flights and improving critical on-time metrics after what was a dismal summer. In fact, it set a record in November for the most days in a month without a single cancellation.
The unions that represent American's mechanics are pointing to this improvement as evidence as to why it should not have to pay sanctions to the company in the latest installment of a months-long legal fight between the company and the unions.
"The data currently available shows ... aircraft out of service at 7:00 am significantly improved during the time period at issue," the unions said in a court filing submitted Monday.
They added that "there is no basis to hold Defendants in contempt."
This spring, American Airlines Group Inc. (Nasdaq: AAL) sued The Association, a joint venture of the International Association of Machinists and Aerospace Workers and the Transport Workers Union that represents American's mechanics.
American said mechanics engaged in a work slowdown, a job action illegal under the Railway Labor Act airlines and their employee groups operate under. The company and the unions have been in negotiations for a new contract since December 2015.
A federal judge ruled in favor of American, saying that accepting the union argument would require him to "abandon common sense." Now, the two sides are debating whether or not the unions should have to pay sanctions for the slowdown.
If the unions were engaged in a work slowdown after the judge forbid them from interfering with American's operations on June 14, the unions could have to fork over a payment to the company for the financial damage the slowdown caused.
That's why figuring out when operations improved at American will be paramount to determine whether the company is eligible for sanctions.
In an August court filing, the company said at the time the judge's temporary restraining order was not working, and the slowdown caused over 950 flight cancellations in a two-month period starting June 14 — the day the TRO was ordered by the judge.
An American spokesperson said the carrier's operational performance has improved in recent months, and that improvement has continued into December.
In the Monday court filing, the joint venture also took umbrage with American saying the unions were not taking the court orders seriously.
They accused the company of complaining about "nitpicky details," like the fact that during one meeting where union leadership told employees to adhere to the court order, the leader was wearing flip flops.
"When union leaders used a prepared statement, American complains they should have been more extemporaneous," the unions said in the court filing. "When union leaders spoke off-the-cuff, American asserts the comments were contemptuous."
Whether or not American's sanctions attempt will be successful or not is unknown. American went through something similar with its pilots 20 years ago.
Frustrated by how a regional carrier was being integrated, pilots represented by the Allied Pilots Association coordinated a "sick out" that intensified after the court ordered the union to stop the job action.
The resulting flight cancellations led American to file for sanctions, and the court ordered the APA to pay the carrier $45.5 million.
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