Dozens of American Airlines pilots face demotion, pay cut after losing contract dispute

Dozens of American Airlines pilots are facing a demotion from captain to first officer and a corresponding pay cut after losing a contract dispute that traces to the company's 2001 acquisition of Trans World Airlines. An arbitrator ruled last week that protections guaranteeing a limited number of captain positions to former TWA pilots, now employees at American, had expired. The decision means 85 or more former TWA pilots could be demoted from captain to first officer, with a corresponding number of American pilots making the move up from first officer to captain. The difference in pay between the two ranks can be as wide as $75 an hour, according to a lawsuit relating to the case. American and the Allied Pilots Association have avoided taking a side in the dispute, which pits two groups of employees against one another. But they'll have to sort through the fallout of the arbitrator's decision, which will alter the bidding priorities for a subset of American's more than 15,000 pilots and could force some to change their base of operations. <br/>