This case reveals the efforts of American Airlines and their attempt to terminate the existing contract with the labor unions, specifically the pilots. The new contract allowed the airline to establish a new foundation of the expenditure that will consist lower costs and more plasticity. The goal is to ultimately reduce labor to that which are lower than its current framework costs previously approved by American Airlines in their agreements with the pilot association. This event took place as a result that the Allied Pilot Association rejected previous contract agreement. The Allied Pilot Association pressured American Airlines to develop a new bargaining agreement that requires a compromise over it. American Airlines spokesperson eventually
