Transport Workers Union Local 514 » American Airlines

The Bankruptcy Proof of Claim is NOT Due Until July 16, 2012

Al Ball — Tue, 22 May 2012 20:55:36 +0000

DO NOT PANIC!

All employees at American Airlines and American Eagle reportedly received a Proof of Claim form. This is standard in most large bankruptcy cases.

These claim forms may be used by employees who believe that AA or AE owes money for certain pre-petition claims (those that arose before November 29, 2011).

If you received one of these forms DO NOT PANIC. TWU will be sending out more information about the claims process. Please be patient, information will be available soon!

AMR Bankruptcy Update From President James C. Little

Al Ball — Mon, 21 May 2012 23:37:01 +0000

Brothers and Sisters,

No one ever said this would be easy. The bankruptcy process is complicated. Making matters worse, the bankruptcy laws are designed to protect assets and not people. In this letter, let me bring you up to date on our continuing efforts to fight back and protect all TWU members at American Airlines.

Our goal, from the start, has been to fight smart and to not get boxed into a corner. Even before bankruptcy was declared, we lined-up top bankruptcy lawyers, economists and investment bankers. In November, the minute bankruptcy was announced we had a plan in place. Our lawyers acted immediately on our behalf. Our bankruptcy website, text messages and special emails lit up your screens. We responded to the company’s announcement through demonstrations and media outreach. You may remember our attack on American Airlines (AMR) $30 million dollar London home as just one example.

Earlier this year, we made some progress when we were able to pressure the company, with major help from the PBGC, into freezing rather than terminating our pensions. Through long and difficult negotiations, and by knowing the company better than AMR’s outside advisors, we also were able to reduce the number of jobs to be cut and we succeeded at chipping away at many concessions. Despite these gains, we’re not fooling ourselves; we know that we’re playing against a stacked deck in a painful and unfair process.

I think we’ve done a good job creating options for our members and keeping the company on the defensive. The company lost their unforgiving grip on our futures, when in a surprise move, we announced our support, along with APA and APFA, for a merger with US Airways. The terms we had reached with US Airways put pressure on the company to further change their offer.

Last week, we entered yet another round. Five of our seven bargaining units voted to accept the company’s last offer. Our lawyers announced to the judge that the offers our members accepted serve as a “floor.” Going forward, any overall improvements that can be gained through judge assisted mediation extends to TWU members through the “me too” clauses (that were included in the last offers voted in last week). The “me too” clauses pertain to any potential gains achieved by APA or APFA as well as any gains any TWU represented unit achieves.

Beginning next week, we will enter into 1113 litigation settlement mediation with the company. Judge Sean Lane in an unprecedented move enrolled the assistance of another federal bankruptcy judge, James M. Peck. This court assisted process will be for both our members who rejected the company’s offers so we can try to obtain for them an equitable and ratifiable contract, and for the units that voted “yes,” in order to enforce their “me too” clauses. Judge Lane also moved the court deadline with approval of the debtors from June 6 to June 22.

We have other rounds ahead of us. And, again, we don’t want be boxed into a corner and we want to keep quickly moving along multiple paths that aren’t always predictable. We need to keep our opponents off guard.

The federal bankruptcy judge, James M. Peck who volunteered to assist in this Section 1113 settlement process, has no involvement in the case itself. He is neutral. He also has a full caseload, so scheduling this process is challenging. The pilots and flight attendant unions precede us in these informal mediation steps. In preparation for our turn, we will meet next week in DFW with the leaders of our negotiating teams for all of our titles.

As you can see, this fight is far from over. I want you to know that I will not sign nor move for court approval of the five tentative agreements until the process is complete. After all, that is why our TWU lawyers negotiated these “me too” clauses in the Fleet, GSI, Dispatch, MCT and Sim Tech offers.

We will redouble our efforts on behalf of all of our members and continue to vigorously litigate the Section 1113 case on their behalf. Our fight to obtain better offers must be stronger than ever.

I cannot emphasize enough that if we’re going to prevail it’s important that we remain unified and together through this union. Any division in our ranks only empowers our opponents. Without question, there is strength through unity.
In solidarity,

James C. Little,
International President
Transport Workers Union of America, AFL-CIO

AMR Authorized to Make New Aircraft Progress Payments

Al Ball — Mon, 21 May 2012 13:44:11 +0000

AMR Corp., the parent of American Airlines Inc., was given authority from the bankruptcy court last week to resume making predelivery payments for new aircraft to be made by Boeing Co. and Airbus SAS.

To replace aging MD80s and B757s, AMR has orders for 290 aircraft from Boeing, along with options for 175 more. From Airbus, there are orders for 260 and options for 365. Nine aircraft were delivered since the Chapter 11 filing.

AMR hadn’t made progress payments for new aircraft since filing for bankruptcy. The authorization given last week allows AMR to make up the $162 million in progress payments and make installments in the future when required. AMR’s papers don’t give details on the purchase agreements with Boeing and Airbus, saying the information is confidential and proprietary.

AMR, based at the airport midway between Dallas and Fort Worth, Texas, listed assets of $24.7 billion and debt totaling $29.6 billion in the Chapter 11 reorganization begun in November. American Airlines entered bankruptcy with 600 aircraft in the mainline fleet and another 300 with American Eagle, the feeder airline.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Tweets from inside the AA Bankruptcy Provided by @APFAunity

Al Ball — Fri, 18 May 2012 17:45:19 +0000

So of course, I had to call her out. Really? They don't have enough of an advantage?
(about 2 minutes ago)
... He was typing furiously on his laptap, and neither of them noticed me. She would have, but she was so engrossed in what he was typing...
(about 2 minutes ago)
She's sitting where I was pre-lunch in the double-seat pew next to Dan. I took another seat and as I looked over toward Dan...
(about 4 minutes ago)
There are 3 little associates in their early 30s who all alike and were sitting in front of Dan and me. After lunch, One of them moved.
(about 6 minutes ago)
BTW: I haven't mentioned the courthouse today. The 3 rows of seating are so overfilled with company billers, AA Sr. Mgt. and associates.
(about 7 minutes ago)
back in session. Beverly Goulet is on the stand. The co. att'y just said "The unions are being asked to give up concessions..." ASKED?
(about 8 minutes ago)
Breaking for lunch. Judge asking how long Goulet will be on the stand. AA says 20" upon return from lunch. Rob (cont) http://t.co/HhmXAiPj
(about 1 hour ago)
Judge is asking AA to respond. AA is dancing its way through trying to convince. Judge understands Rob's objection. Judge is holding off
(about 1 hour ago)
Witness is excused. Co is moving to have their new documents added into evidence. Objection from APFA's atty over one of the documents.
(about 1 hour ago)
Rob: So sitting here today you cannot tell us how long AA will lag behind its peers for rev performance? Dichter: no.
(about 2 hours ago)
Dichter is struggling with his responses on every level and the 10+ McKinsey associates are texting furiously and squirming non stop.
(about 2 hours ago)
This is incredibly interesting to watch. Apparently, McKinsey never gets challenged in the way Alex Dichter is being grilled by Rob Clayman.
(about 2 hours ago)
The guy who did prepare it is in the courtroom and is squirming. It's kinda fun to watch.
(about 2 hours ago)
This guy didn't prepare the chart and doesn't know what it stands for. It actually stands for Strength Parity Disadvantage.
(about 2 hours ago)
APFA's atty Rob Clayman is crossing Alex Dichter of McKinsey. Rob asked him to define SPD. He said "Strength Privilege and Disadvantage"
(about 2 hours ago)
Judge has a ? - We were discussing the limits of using city by city as a metric. But earlier you were talking (cont) http://t.co/zyNghlzF
(about 2 hours ago)
This guy keeps making analogies between business plans and life. "That's how life works as well."
(about 3 hours ago)
AA: various witnesses have criticized the company for stress testing, etc... how do you apply sensitivity (cont) http://t.co/l4QAimi4
(about 3 hours ago)
"Again, you model what you can know. the myriad of the small competitive responses you may or may not have to (cont) http://t.co/snq9Kbfi
(about 3 hours ago)
Maybe it's because I've finally caught up on my sleep, but this guy is really aggravating me. His nonchalance (cont) http://t.co/pGbtqFim
(about 3 hours ago)
"AA's revenue performance today relative to peers is explainable to the concrete actions proposed in the biz (cont) http://t.co/ipdtTpCx
(about 3 hours ago)
Now Dichter is trying to discredit Dan Akins' critiques on the business plan.
(about 3 hours ago)
"in 2010-11, as has been pointed out by many... '10 was a good year, '11 not as good but okay." "The gap to (cont) http://t.co/fOabksnq
(about 3 hours ago)
Dichter is being asked (on direct testimony) if he agrees with the comments by labor about the plan not being viable.
(about 3 hours ago)
Mr Dichter has no concept of the lives he's proposing to affect in his aloof attitude about where this $1billion+ is coming from.
(about 3 hours ago)
This guy is talking about the $1 billion + in concessions from labor as just what we need to have a healthy airline. Just like that.
(about 3 hours ago)
Atty is asking if Mr. Dichter believes in AA's Business Plan. PS: His company created the business plan.
(about 3 hours ago)
Court's in session. Alex Dichter is on the stand. He's from McKinsey. Co.
(about 3 hours ago)
APFA Hotline - Tweets From BK Court/Rebuttal - May 22, 2012http://eepurl.com/l5zsb
(about 13 hours ago)
@fenixdh Thx David!!
(about 18 hours ago)
@JoeyDiMaria Finally getting some rest JD. Good luck with your review in the back there. Wow what a handful. Phew
(about 18 hours ago)
RT @PlaneBusiness: Heads up! @APFAUnity is live tweeting from bankruptcy court in New York again today. Some interesting comments from ...
(about 18 hours ago)
Court is adjourned. Tomorrow's day starts with Alex Dichter, director at McKinsey, then Beverley Goulet-AA's chief restructuring officer.
(about 20 hours ago)
Five minute break before AA decides if they're going to redirect.
(about 21 hours ago)
And that shoots the argument about the analysts offering their opinion of our plan. It's nothing new. It's what they do.
(about 21 hours ago)
Carmen Parcelli, APFA att'y, asks Resnick if it's typical to give Wall Street Analysts a confidential copy of the biz plan? Resnick says No
(about 21 hours ago)
Sharon Lowenstein, TWU, is driving home that in the other airline bankruptcy proceedings, no union had expert witnesses. He doesn't recall.
(about 21 hours ago)
Suddenly he's unsure of his world. Instead of a certain comment, he's responding "possibly, maybe, I don't recall," or just silence...
(about 21 hours ago)
David Resnick hesitatingly agreed. And seems to have forgotten the rest.
(about 21 hours ago)
Isn't it true that the Standalone business plans for the other airline bankruptcies were supported by the creditors committees?
(about 21 hours ago)
Sharon just pointed out the difference between all the other bankruptcies and ours - that we are NOT operating under DIP financing
(about 21 hours ago)
Sharon Lowenstein, TWU Attorney. Their turn to cross. David Resnick with Rothschild.
(about 21 hours ago)
For the first time that I've seen, the Judge looks exhausted.
(about 21 hours ago)
Everyone has at least one electronic wireless device in their hand or lap. Their heads are moving up to the witness, down to their lap, up..
(about 21 hours ago)
So, back to the room description: 3 pews facing the judge. Filled with dark suits and some casual clothes from members who joined us today.
(about 21 hours ago)
@AAskyboy Thanks Raff!
(about 21 hours ago)
shout out to @dimariaj and @vfadden - thanks for following. Safe flight home...
(about 21 hours ago)
Cross of Resnick by APA has begun.
(about 21 hours ago)
break...
(about 22 hours ago)
so the company can go forward and have a dialogue with its stakeholders.
(about 22 hours ago)
the biz plan that the co. presents to its stakeholders which it did in feb. must be detailed, thorough, responsive to the key assumptions..
(about 22 hours ago)
this is a document we feel very comfortable with. we feel it's thorough 4 the progression of AA's restructuring.
(about 22 hours ago)
the diligence process has been extensive. one of the most substantial diligence processes - appropriate for a case of this significance
(about 22 hours ago)
The analysts haven't seen the biz plan. The supporting data is confidential so they don't have the appropriate amy of info to say either way
(about 22 hours ago)
AA: there have been many criticisms about the plan by Wall Street Analysts. How do you respond to that?
(about 22 hours ago)
AA's att'y asked him why he believes in this plan. Instead of talking about the strengths of the plan, he talked about the tests it survived
(about 22 hours ago)
it's the best plan EVER!
(about 22 hours ago)
yes of course he does. it's the prettiest baby ever in the world. aka the biz plan has sustained due diligence, the appropriate processes...
(about 22 hours ago)
short quick question about the plan. Response to whether this guy thinks his baby is pretty/aka the biz plan he created is perfect...
(about 22 hours ago)
objection sustained.
(about 22 hours ago)

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Letter from Sam Cirri, 5-16-2012

Al Ball — Wed, 16 May 2012 21:30:50 +0000

Brothers and Sister TWU Members,

As the LBO was to better the March 22 terms, we understand that AA implemented many concessions that were not acceptable. At this point, I, for one, am proud of the turnout of our membership in participating in the voting process. I would also like to add that, where some may feel satisfied with the results, others may be disappointed. This is true in all votes, regardless of what is at stake. Therefore, I ask you to please be considerate of each other’s views.

It is vital that we move forward united. The path forward is laid out for us; our next step is the 1113 motion before the Bankruptcy Judge to abrogate the M&R and Stores agreements. If the Bankruptcy Judge rules in favor of American Airlines, M&R and Stores will be working under the March 22 terms.

For those groups who voted to accept the LBO, familiarize yourselves with the language, which is available at www.twu514.org.

In solidarity,

Sam Cirri

Letter from Sam Cirri -Bulletin 2012-05-16 in PDF