American Airlines is making "good progress" in three-week-old contract talks with pilots and will begin funding a new retirement plan to replace contributions to pilots' pension plans, a company executive said in a letter to pilots late Friday.
Senior Vice President Denise Lynn said the airline would begin paying 11 percent into a new 401K retirement program for pilots.
The pilots' pension plans end next month.
At the same time, the airline offered to increase the contribution to 14 percent if pilots approve a new contract.
"I believe good progress has been made and we are approaching a deal that the APA Board of Directors will soon agree to put out for a ratification vote," Lynn wrote to pilots.
Tom Hoban, a spokesman for the Allied Pilots Association, said the union had no comment on the letter.
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