CALIFORNIA : American Moves to Integrate Reno Air : Airlines: Carrier presses ahead despite possibility of another work action by pilots. Talks between the two sides are continuing.

American Airlines steadfastly plans to integrate Reno Air into its system today despite an ongoing dispute with its pilots’ union over the merger that led to a pilots’ sickout against American and 6,600 canceled flights in February.

Both sides have been trying to negotiate a last-minute settlement over the issue, but American--the main unit of AMR Corp.--said it will absorb Reno Air, its 25 airplanes and its 2,100 employees into the American system regardless.

The parties continued talking Monday. But if a pact isn’t reached by today, the fear is that American’s pilots will again use some sort of work action to disrupt operations at American, the nation’s second-largest carrier behind United Airlines.

But the pilots, who are represented by the Allied Pilots Assn., do not have a lot of options. After their sickout in February, which disrupted travel for more than 600,000 passengers and cut AMR’s earnings by about $200 million, the APA was fined $45.5 million by a federal judge for ignoring his back-to-work order.

The judge also prohibited the APA and its leadership from authorizing or encouraging another job action by American’s 9,300 pilots. However, the union does have the option of filing a lawsuit against American to block the integration of Reno Air, which is a major part of American’s plans for expanding service in California and elsewhere in the West.

Starting today, though, all of Reno Air’s employees are expected to wear American’s uniforms, and reservations for Reno Air flights will go through American’s system. Reno Air’s Internet site already is redirecting consumers to American’s Web page. Reno’s airport signage will be changed to American as well, but Reno’s airplanes won’t start getting American’s paint scheme until early next year.

At Los Angeles International, American will continue using Reno Air’s space at Terminal 3, but only for flights to San Francisco and San Jose, said American spokesman Tim Kincaid. All other Reno Air flights will be transferred to American’s operations at Terminal 4.

AMR bought Reno Air, a tiny West Coast airline, last December for $124 million. But the purchase set off a rancorous dispute with its pilots, because the APA wanted Reno Air’s 300 pilots to be immediately brought up to their higher wage-and-benefit levels. American wanted to move more gradually.

Both sides also are at odds over how quickly American’s pilots would be promoted to more senior levels, now that American has the additional planes acquired with Reno Air.

American and the APA also are arguing over how quickly American will restore full seniority credit to pilots who were furloughed in the early 1990s, when American--then suffering massive losses--sharply scaled back its presence in California and the West.

Integrating Reno Air will add nearly 130 daily nonstop flights to American’s Western operations, especially on north-south routes where American has been a weak player against the likes of Southwest Airlines and United, the main subsidiary of UAL Corp.

AMR’s shares fell $1.50 to close at $59.63 on the New York Stock Exchange.

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If You Have Reno Air Tickets ...

Starting today, Reno Air will cease to exist as Reno Air and will be integrated into American Airlines. Here are some answers to consumers’ frequently asked questions about the change.

Q: What happens to my Reno Air tickets?

A: Tickets valid on Reno Air will be valid on American Airlines. Customers with Reno Air tickets valid for travel after today will be contacted about reissuance and revalidation by American Airlines.

Q: Where do I check in at the airport? Where do I go?

A: As of today, most Reno Air operations will become part of the American Airlines operation. There will be directional signs in the areas that were occupied by Reno Air. At Los Angeles International Airport, customers with seat assignments traveling on California, Nevada and Colorado flights may receive boarding passes at curbside and proceed directly to the departure gates in terminals 3 and 4.

Q: Whose planes will I travel on?

A: On most flights within California, Nevada and Colorado, you’ll fly aboard planes from Reno’s fleet of MD-80s and MD-90s. All aircraft will be maintained to American’s specifications and standards.

Q: How will these changes affect my Reno Air frequent-flier membership?

A: Reno Air’s program, called QQuick Miles, will end Dec. 31. If you are a member of that program, you by now have been automatically enrolled in American Airlines’ AAdvantage frequent-flier program, unless you were already an AAdvantage member. Your remaining mileage balance in the Reno Air program will be credited automatically to your AAdvantage account.

Source: American Airlines