A "murder-suicide" scenario that would mean bankruptcy and layoffs for the company, if American Airlines pilots would strike.
Despite the scenario, the Allied Pilots Association, has not taken the threat of a strike off the table even though negotiations with American Airlines (AMR) have not started yet.
Under federal labor laws, pilots couldn't strike until after May 2008, and even then there are many hurdles before the law allows a work stoppage. American wants a new contract in place before May 2008. But that may be even more difficult due to declining morale at the company.
The labor groups at American feel like they have been left behind while management has profited from the company lately.
But the threat of a strike might be a lost cause. The Pilot's union is "unlikely to employ traditional leverage such as the threat of a strike in upcoming negotiations," because a strike would likely drive the airline into bankruptcy and force pilot layoffs and wage and benefit cuts.
This could get nasty at American.
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