Flight attendants at the American Airlines Group Inc (NASDAQ:AAL) rejected the 5 year contract deal, forcing the worlds’ largest carrier and the union for cabin crew workers into a binding arbitration. The rejection of contract affects close to 24,000 workers and complicates the integration of American Airlines Group Inc (NASDAQ:AAL) with US Airways. It is imperative to state that the two merged last year to form the worlds’ largest airline operator. The proposed contract had suggested for a raise but had ended all the profit sharing plans.
A reason which many believe did not go down well with the cabin crew union. The company in statement said that it was “disappointed” with the vote. Furthermore, the company added that it believed that the contract would have provided greater economic value not only to the company but also to the employees rather than any that would have to be reached through arbitration. The first arbitration meeting is scheduled to be held on December 3rd, the union added.
American Airlines Group Inc (NASDAQ:AAL) has been in a strong uptrend over the last couple of quarters. The company has also reported record profits in its recently released quarterly results. The company also has given an upbeat forward guidance which is being seen as a huge positive by the analyst and investor community.
The stock currently trades very close to its 52 week high which is at $44.88, is seen as a bullish indicator. Analysts on the street have a consensus BUY call on the stock and believe the falling crude prices would be hugely beneficial to the stock as it would help improve the bottom line of the company. Imperative to state that the Airline sector has been in the dumps for a large part of the past decade.