American Airlines is losing the war on multiple fronts.

On one side, American is fighting various employee unions as the war over employment contracts continues. In a time when most airlines try to resolve such disputes within a few weeks of a contract’s expiration date, American has had ongoing issues with some employee groups for years, without reaching a successful cooperative agreement.

To be candid, American Airlines knew for years they were on a collision course with bankruptcy and employee contracts never seemed to be a top priority. Perhaps they knew Chapter 11 proceedings were eminent and decided to play the waiting game. Sure enough, once the bankruptcy process began last November it resulted in a bankruptcy judge ruling on the side of the company, allowing American to void out their labor contracts.

In an attempt to force cost reductions, American further eroded the relationship they had with their employees…if that was possible. While the management team at American is busy patting themselves on the back, the airline is now forced to deal with a wide range of critical problems.

A few weeks ago maintenance issues with seats aboard their 757s became evident, with the blame being placed on a outsourced company - and not the disgruntled airline mechanics. Still, one has to wonder if any of the mechanical issues of late could be related to a relaxed state among the mechanics. Hundreds of flight cancellations resulted as the airline took affected aircraft out of service to address the loose seat issue.

The pilots for the airline have expressed their disappointment and are now threatening to strike, which could lead to thousands of future flights being cancelled and tens of thousands of passengers stranded. Clearly, to me, it’s a situation which American Airlines’ management has created and now they are forced to deal with it and they seem convinced it is a battle worth fighting.

As American wages the battle with employees, some of the airline’s top frequent fliers are opting to make future reservations on other/competing airlines. Many who travel each week for important business meetings have made it clear they are not willing to place the future success of their business in the hands of an airline having so many problems. Why make a future reservation, only to find out at the last minute the flight has been cancelled? Such flight irregularities can mean a loss in revenue for business travelers and many are simply not willing to take the chance.

Of course other airlines are more than happy to accommodate disgruntled million-milers, trying to woo them and their business for future flights.

Either way, the hole for American Airlines continues to get deeper and unless their decision making process improves quickly, it could be their grave that they are digging.

Stand pat American, your stubbornness to address glaring problems could eventually lead to the end of a great airline. Here’s hoping you stop worrying about winning a war and finally get your act together, before it’s too late.