ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Sunday, February 16, 1997 TAG: 9702170099
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: From the Los Angeles Times and The Associated Press
American Airlines' effort to lure strike-wary passengers with discounts and upgrades triggered a fare war Saturday and appeared to attract some travelers back to the United States' largest domestic carrier.
But uncertainty hung over the airline as to whether the long-running labor dispute would be resolved during the 60-day cooling-off period ordered Saturday by President Clinton just minutes after the midnight strike deadline.
``We could go through this again in 60 days,'' said American Airlines pilot Dave Powell in the Miami airport before heading for the cockpit and a run back to his Boston base.
``My main reaction [to the president's intervention] was relief,'' he said. ``I am a moderate. I didn't want to strike. But I am disappointed, too, that nothing was settled.''
Clinton's use of the rare emergency measure forced American's pilots to continue working while a three-member emergency board tries to help bring about a settlement.
That brought relief to travelers nationwide and to many of the 90,000 American employees who were to be furloughed during the strike. American officials said 95 percent of the carrier's 2,200 flights Saturday were operating and that they expected virtually all of the 100 mostly overseas flights that were previously canceled to be restored by today.
Competing airlines had expected to benefit from an extended walkout at American, which carries one of every five domestic air travelers.
Instead, they were faced with American's promotional discounts of up to 50 percent, double frequent-flier miles and upgrades for business travelers. Several rival carriers immediately came out with matching discounts of their own.
Travel agents reported that customers Saturday were beginning to take advantage of American's fare sale, which will apply to tickets purchased now until March 3. The promotion includes round-trip flights such as Los Angeles to New York for $388 with no advance purchase requirement. American also said it would double frequent-flier mileage on all flights on American Airlines and American Eagle through March14. Rival carriers, including United, Continental, Northwest and America West, all said they intended to compete with American's specials in most markets. ``I think we'll definitely do some matching,'' Northwest spokeswoman Kathy Peach said Saturday, adding that details weren't available.
Some angry travelers said American can't buy their good will.
``We won't be purchasing a FlyAAway Vacation anytime soon again - that's for sure,'' said Angela Davies, who was flying from Washington to St.Croix in the Caribbean for an American vacation package.
Jon Nadelberg of San Mateo, Calif., who was flying to Hawaii, was more direct.
``They can both go to hell,'' he said of the union and management. ``The world and America will get around if American doesn't fly.''
There was little elation from American pilots, who expressed frustration about the forced cooling-off period.
``We feel the issues we were discussing are going to be the same issues today, the same issues next week, and the same issues 60 days from now,'' said Chuck Spence of Camarillo, Calif.
Until Clinton, no president had invoked the Railway Labor Act provision since 1966. While Clinton viewed the action as necessary because of the economic consequences of a strike grounding American, some predicted his action could have far-reaching implications for future airline labor negotiations.
``What is the policy going to be in future situations?'' asked David Walsh, a management professor at Miami University in Oxford, Ohio, who specializes in airline labor relations. If another airline strikes, he said, ``does this mean we're going to see presidential intervention?''
Clinton's advisers said that question weighed heavily in the president's mind, but so did an administration report that a strike could cost the national economy up to $200 million a day and leave 40,000 passengers stranded daily.
If there is no agreement in 60 days, Congress can impose a settlement.
American Airlines officials Saturday refused to speculate about the future, saying they wanted to put the fleeting strike behind them and focus on the business at hand.
Central to the pilots in the long-running contract talks was the question of who will fly the fleet of small regional jets that American wants to buy to replace turboprops on many short-haul routes.
The pilots' union insisted that only their members fly those planes, though they did agree to do so at a lower pay rate. The company maintained that to remain economically competitive, the regional jets must be flown by the lower-paid pilots of American Eagle, American's commuter affiliate.
Pay remained an issue, too. The union demanded raises equaling 11percent over four years and large stock options. American countered by offering raises totaling 6 percent spread over three years and smaller stock options.
LENGTH: Medium: 95 lines ILLUSTRATION: PHOTO: AP. At Dallas-Fort Worth International Airport, Capt.by CNBJohn Ray talks about the cooling-off period that will keep pilots
from striking. color.