AA Bankruptcy Update

Court Update

Today, the debtors (American Airlines) filed a motion seeking court approval and authorization of the recently ratified new collective bargaining agreements (CBA’s) with the TWU Mechanic & Related and Stores employee groups.

The agreements reached, came about after an extensive proceeding under section 1113 of the Bankruptcy Code, a lot of hard work by the TWU negotiating committees, during protracted negotiations with American that were extremely hard fought, and at times contentious.

The new CBA’s address all the key areas encompassed in American’s initial section 1113 proposal to the TWU, while at the same time providing for more TWU jobs, annual pay increases, an early out incentive, and enhanced 401(k) contributions. Today’s filing is posted online under Court Updates at: www.twubkfacts.org

A hearing on the motion is scheduled for September 12, 2012 at 10:00am ET. Objections are due on September 5, 2012 at 4:00pm ET.

Lowenstein Sandler PC
Sharon L. Levine
Paul Kizel