American Airlines who has the second largest number of  Unionized Baggage Handlers have failed to come to an agreement after 2 weeks of talks.

American is already in assisted talks with its pilots and flight dispatchers and the employees now in suspended negotiation represents baggage and cargo handlers, fleet service workers, aircraft-part clerks, simulator technicians and ground school and simulator instructors.  

The company which is already under pressure to lower costs due to inflated fuel prices could face the decision of bankruptcy if unions strike.

Delta the world’s largest carrier has already offered voluntary severance payouts to a majority of the 75000 employees to reduce labor costs and keep planes in the air.

Earlier this year a handful of small and regional airlines filed for bankruptcy and ceased operations completely.

If GM and the UAW are successful in getting money out of the 700 Billion Dollar TARP fund which was suppose to be restricted only for banks then Airlines will be next and where it will end no one will know.