American Airlines is staring Chapter 11 bankruptcy
protection in the face after flight attendants rejected its proposed 15.6% wage
cut.

The carrier has given the attendants’ union until 10pm
tonight to persuade its members the deal is better than filing for bankruptcy.

Unions representing pilots and ground workers have
already accepted the airline’s labour proposals, but chief executive Don Carty
has insisted it will file for Chapter 11 unless it can get all three unions
approval.

The airline needs a swing of 500 votes after 9,309
workers voted for the cuts, but 9,842 rejected the proposal.