If this timeline holds up, we expect to then announce a ratification vote schedule on the AA’s last ask. Such a vote could take place very soon. We cannot give exact dates until all the language is produced by AA, as it is their final offer.

Once we know and announce the exact dates, we will mail all members highlighted information and voting instructions. Members will vote electronically or by phone. We will also post for review the last term sheets of the AA offers of April 4, along with an electronic PDF full text contract. It is this language that goes into place if the bargaining unit votes “yes.”

We will additionally provide on-line copies of the Company’s 1113 court filing, which goes into place if we vote “no” and the judge rejects the contracts. You will be given side by side comparisons so you can analyze the differences and make an informed vote.

Please take note that the judge DOES NOT write a new contract. He does not rule on any individual contract items at all. He simply grants or denies the AA motion to completely reject and cancel our contracts.

As you know bankruptcy law is very labor unfriendly, and in the vast majority of cases large corporations win their 1113 cases. This is the harsh reality of the prior court rulings.

Finally, we will soon be posting information on the USAir terms. NOTE THAT THE AA 1113 RATIFICATION VOTE HAS NOTHING TO WITH THE POSSIBLE USAIR MERGER. The issues are legally unrelated. Even a yes vote on the AA final offer will not prevent a possible merger, which still faces many hurdles unrelated to labor issues.

Let our negotiators finish their work this week. We will then get our directions from the membership — you will soon be voting.

BANKRUPTCY COURT MOVES INTO THIRD DAY

AA continued with its 1113 case again in court today. The main AA witness yesterday was Beverly Goulet, the airlines’ Chief Restructuring Officer. She faced intense cross examination by the union lawyers.

The carrier’s case is expected to continue tomorrow and possibly through the rest of the week. AA continues to testify about its business model and its claim that management wants the airline to emerge as a stand-alone air carrier from bankruptcy.

After AMR’s 1113(c) filing yesterday, there has been continued action on both sides to reach an agreement. On multiple occasions TWU work groups have met with company negotiators. There has been some progress, slow at times, but the talks are often frustratingly complex. The TWU Negotiating Committee’s and the company continued to exchange proposals and counters today.

At the same time, our legal team is preparing to challenge the company’s 1113 motion to reject our contracts in court. If the parties cannot reach a consensual agreement, then the 1113 proceeding goes forward.

To address the serious concerns of our members, the TWU prepared a list of Q and A’s that may help explain the next steps in the 1113 process.

Q&A’s

1. What happened yesterday, March 27, 2012?
   The Company filed a motion to reject all CBAs. This motion leads to trial in front of a federal bankruptcy judge, who will rule on whether to reject each of our CBAs.
2. What happens next?
   While our bankruptcy attorneys prepare for litigation, the TWU will attempt to still reach consensual agreements.
3. Does the motion stop us from reaching consensual deals?
   No. The parties can always reach a deal before the judge makes a final ruling.
4. Where will the court proceedings take place?
   The bankruptcy proceedings are being held in the bankruptcy court in New York City.
5. When will the hearing be held?
   If a hearing is necessary, the law contains a fast timeline and we expect things to move at a rapid pace. The law provides for a hearing fourteen days from the filing of the motion, which the judge can agree to extend to twenty-one days. The parties may mutually agree to a schedule providing more time, but the motion was noticed for hearing on April 10, 2012. The trial schedule may be adjusted by the judge.
6. If there is a trial, when does the judge rule?
   The law provides that the judge has thirty (30) days from the date of a hearing to issue a final ruling, which may be extended by agreement of the parties. The schedule may be further clarified or adjusted by the judge.
7. What happens to our contracts during the court proceedings?
   Our collective bargaining agreements remain in effect. Other than a consensual agreement, no changes can be made to your contract before the judge issues a final ruling.
8. Are we still able to reach a consensual agreement?
   Even with the filing of the Company’s motion, the parties may still reach consensual agreements, which will go to the membership for a ratification vote.
9. If we can’t reach a consensual agreement, will the members be able to vote on the Company’s “last proposal” prior to the judge’s ruling?
   Yes. The members own the contracts. If we reach an agreement, you vote. Even if we don’t reach an agreement, you will vote on AA’s final offer prior to the judge’s ruling.
10. Will the membership have an opportunity to vote on the judge’s ruling?
    There is no vote on the judge’s ruling.
11. When will the membership have an opportunity to vote on either a T/A or last offer?
    We will be working on the full text language and an exact timeline for voting. We will continue to update you as we have further information.
12. What happens if we vote “Yes” on a TA?
    Subject to court approval, this will become our new CBA.
13. What happens if the membership does not vote to pass the TA?
    Any contract rejected by the membership will go in front of the bankruptcy judge, who will determine whether to reject our CBAs. Throughout this process, we are continuing to prepare on all fronts to protect our members.