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RENNEISEN v. AMERICAN AIRLINES, INC.

No. 92-1213.

990 F.2d 918 (1993)

Paul RENNEISEN, et al., Plaintiffs-Appellants, v. AMERICAN AIRLINES, INC., Defendant-Appellee.

United States Court of Appeals, Seventh Circuit.

Decided March 24, 1993.

Rehearing Denied April 22, 1993.

Attorney(s) appearing for the Case

Thomas H. Geoghegan (argued), Leon M. Despres, R. Edward Wilhoite, Jr., Despres, Schwartz & Geoghegan, Chicago, IL, for plaintiffs-appellants.

Joel H. Kaplan, David J. Rowland, Seyfarth, Shaw, Fairweather & Geraldson, Chicago, IL, Gregory S. Lewis (argued), Harry A. Rissetto, Morgan, Lewis & Bockius, Washington, DC, Richard A. Malahowski, American Airlines, Inc., Dallas, TX, for defendant-appellee.

Before CUMMINGS and MANION, Circuit Judges, and WOOD, Jr., Senior Circuit Judge.

CUMMINGS, Circuit Judge.

In 1983, American Airlines was losing money in the wake of airline deregulation and rising fuel prices. In order to cut labor costs, it struck a deal with the pilots' union. The union, Allied Pilots Association, relinquished wage and benefit guarantees for pilots not yet hired; in return American promised to preserve the wages and benefits of current pilots. On November 4, 1983, American and the union memorialized their deal in an "Agreement...

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