Pilots at AMR Corp's (NASDAQOTH: AAMRQ ) American Airlines have approved a new work contract, according to a statement by their union Allied Pilots Association. Nearly two-thirds of the APA's members voted in favor of the agreement, despite rejecting a similar offer this past August.
Under the terms of the contract, the pilots will receive pay raises, and own shares in AMR once it emerges from bankruptcy. The shareholding will amount to a collective 13.5%.
Ratification of the agreement was seen as a key step in AMR's path out of bankruptcy. By extension, it is also considered critical for a potential merger with US Airways Group (NYSE: LCC ) .