in anxious waiting as mediation talks between American Airlines and its 9,000 pilots shifted into high gear.

With travel plans for more than 200,000 people a day in the balance, the Airline and the Allied Pilots Association turned to a federal mediator Monday in an effort to stave off a weekend strike, the Associated Press reported yesterday.

If no agreement is reached by midnight Friday, the end of a federally mandated cooling-off period, the pilots have threatened a strike and the airline has said it would shut down. That would hobble a fifth of America's air-travel capacity, leaving ticketed passengers without a ride.

Officials at the Bermuda Department of Tourism meanwhile are holding their breath hopeful a strike can be averted.

"We're extremely anxious and are watching developments very closely,'' said Director of Tourism Gary Phillips yesterday.

American Airlines plans this year to operate three flights to the Island, taking over USAir's Boston connection. At present the airline operates one flight daily between Bermuda and New York City.

A federal mediator will shuttle proposals between representatives of the nation's largest domestic airline and the Allied Pilots Association at a downtown hotel.

The Fort Worth, Texas-based airline has promised to try to accommodate passengers by helping them find seats on other airlines if a strike is called.

"We would ask that our passengers be somewhat flexible,'' said American spokesman John Hotard.

The National Mediation Board asked for the same from the two sides in the talks.

"I think we're going into this with an open mind,'' said mediation board chairman Kenneth Hipp.

American and the union, which represents only the pilots, are butting heads over compensation and job security, although other contract issues could be discussed.

The pilots, who have not had a basic wage increase since 1993, are asking for raises more than double what the company offered in a tentative contract.

The company had agreed to increase salaries by three percent this year and two percent in 1999. It also had added stock options that were understood to represent retroactive pay since the contract has already been in talks for more than two years.

The union is seeking raises of about 11 percent over four years, plus increased stock options. American pilots earn an average $120,000 a year.

Although pay plays a large role, the second and possibly more divisive issue is who should fly the company's small jets.

As the rhetoric gears up, so has fear of a strike.

Pilots, who have been walking informational picket lines, report taunts and obscene gestures from other employee groups. There also have been several reports of threats.