American Airlines CEO chides pilots

American Airlines Chief Executive Officer Gerard Arpey told pilot union leaders their opposition to mergers hurts the world's largest carrier in any search for a possible partner, an officer with the labor group said.

Arpey made the statement in a meeting this week with the chiefs of American's three largest unions, Tom Westbrook, vice president of the Allied Pilots Association, said Friday. Union leaders requested the meeting for an update on the AMR Corp. unit's stance as rival airlines negotiate deals.

The 12,000-member union opposes mergers because American hasn't benefited from past acquisitions, Westbrook said. Pilots at American also were spared the loss of pensions and other benefits suffered by peers at carriers that declared bankruptcy.

"The incentive for us to be involved in those kind of discussions is not there," Westbrook said. "That has become a problem for AMR in their search for potential deals," he said, citing Arpey's comments to union leaders.

Arpey didn't discuss specifics of any talks the carrier might have had, Westbrook said. Continental Airlines Inc. has held discussions with Fort Worth, Texas-based American, a person briefed on the talks said last week.

Andy Backover, an American spokesman, confirmed that the union meeting involved a discussion of consolidation. He declined to provide specifics, citing confidentiality agreements.

The meeting reflected the quickening pace of possible industry tie-ups as Delta Air Lines Inc. and Northwest Airlines Corp. near a merger. Houston-based Continental also has held early talks with UAL Corp.'s United Airlines, Continental CEO Larry Kellner said last week.

Arpey didn't directly solicit the union leaders' support for a merger or acquisition, Westbrook said. The meeting also was attended by American Chief Financial Officer Thomas Horton and other executives, and leaders of the unions for flight attendants, and mechanics and ground workers.

Shares of AMR fell 20 cents to $14.23 on Friday.