AMR Bankruptcy – Breaking News March 27, 2012

 American Airlines Files to Reject Labor Contracts under Bankruptcy Code Section 1113

We understand that sometime today AMR will file its 1113 motion with the U.S. Bankruptcy Court in New York to reject all seven TWU labor agreements. AA’s filing does not affect our contracts immediately, but is the next step in the legal process. This issue will be tried in front of Judge Lane in the bankruptcy court in New York City. Our TWU attorneys are continuing to prepare our case and will be ready to defend our contracts and challenge the company’s 1113 motion to abrogate our contracts.

Despite today’s action, the TWU Negotiating Committees continue working to save jobs, careers, pay and benefits. Addressing the drastic reductions sought by AA is the ultimate challenge for your union leaders in these bankruptcy negotiations.

1. Does today’s 1113 motion filing include TWU/American Eagle contracts?

No. Only the American Airlines agreements were the subject of the motion. The Eagle negotiations are on a different timeline.

2. How long before we know the outcome of AA’s filing to reject our contracts?

That depends on the legal briefing, discovery and trial schedule. The law contains a fast timeline and we expect things to move at a rapid pace.

3. By filing the 1113 motion, does that mean that the TWU cannot reach tentative agreements with AA?

The TWU intends to continue its efforts to negotiate with the company to reach consensual agreements for all title groups.