American Airlines' hopes for snaring a contract extension with mechanics and ground workers were dashed Wednesday after talks with union leaders ended without a deal, according to a story in the Ft. Worth Star-Telegram yesterday. The Fort Worth-based airline had offered an unusual proposal to the Transport Workers Union two weeks ago, which would have extended the current contract for two years and included some form of incentive-based pay increases. Had it been successful, it would have been a significant victory on the labor front for the airline. But "everything fell apart" late Wednesday, said one source close to the negotiations. In an e-mail to local chapter presidents, union leaders said that the informal talks have finished and that "no agreements have been reached." The union, which represents 27,000 American mechanics, baggage handlers and other ground workers, will begin traditional negotiations for a new contract in November, officials said.

More