American Deal?

Dallas, TX – American reaches tentative deal with mechanics

DALLAS (AP) American Airlines says it has reached a tentative contract agreement with mechanics, but a union spokesman says the report is premature.

Neither side offered more details.

American has been in long-running negotiations with pilots, flight attendants and ground workers.

The unions want raises to make up for pay cuts they took in 2003. The company says its labor costs are too high and hurt its ability to compete with other airlines.

Copyright 2010 The Associated Press.