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.…
Category: American Airlines
AMR Bankruptcy Update for March 24-25, 2012
American Airlines During this weekend, the TWU’s legal and economic advisors worked tirelessly expediting last minute reviews of AA documents, company explanations and analysis of TWU counter proposals. These cost analysis and labor proposals will be ready for presentation this week. Tom Roth, TWU’s labor economist, met with AA financial analysts on Saturday, reviewing their…
Motion of Debtors for Entry of Order Extending Time to Assume or Reject Leases
The Debtors filed a motion asking the Court to extend the initial period granted by the Bankruptcy Code to assume (keep) or reject (terminate) nonresidential real property leases. Section 365(d)(4)(B) of the Bankruptcy Code gives a debtors 120-days to assume or reject unexpired leases of nonresidential real property (the “Lease Rejection Period”). Absent the requested…
AMR Bankruptcy Update for March 22, 2012
American Airlines The TWU Negotiating Committees continued meeting internally and with AA over the last two days. Although progress was made on some articles, there are many discrepancies between the company’s numbers and ours. TWUs financial analyst, Tom Roth, met with the Fleet Service and Maintenance and Related committee’s to review their numbers and counter…
AMR – Court Update 3/21/2012
On March 16, 2012, by an agreement between the Allied Pilots Association (the “Pilots”) and the Debtors authorized the Official Committee (the “Committee”) of Unsecured Creditors to intervene in the adversary proceeding commenced by the APA on February 28, 2012. The Pilots seek a determination that section 1113 of the Bankruptcy Code did not apply…
Letter from Sam Cirri, March 20, 2012
Your negotiating committee has been working on your behalf to make the company and the legal system understand the value you bring to this company. In doing so, we have enlisted many experts, i.e. Bankruptcy and Labor Attorneys, economists, Health Insurance specialists, etc. As you know, the Local 514 membership has a large stake in the outcome…
Tell us your story…
We are looking for families willing to have their picture taken and tell their story on how American Airlines’ bankruptcy has and could effect them. We are looking to use them for the “I Support American Jobs.com” Pledge site. Please contact the Union Hall at 918 437-4300 if you are interested. We will be setting…
PBGC Objection to Procedures
The PBGC filed an objection to the Debtors’ motion establishing procedures for settling certain claims. The PBGC objects to the provisions of the Debtors’ proposed procedures that would permit the Debtors to settle claims where the settlement amount is within 10% of the scheduled amount of the creditors claim, without court or creditor scrutiny, so…
AMR Bankruptcy Update for March 16, 2012
There were no scheduled negotiations between the TWU and AMR today. But, in a letter to the NMB late this afternoon, AMR rejected TWUs proffer of binding arbitration. In the letter, Senior VP Jeff Brundage made it clear that AMR would continue to seek consensual agreements with all of its labor groups through the 1113…
AMR Bankruptcy Update for March 15, 2012 – Negotiations
Today, many of the TWU negotiators broke into sub groups to work on their specific issues. There were multiple meetings that went back and forth with the company regarding costing out calculations, as well as discussing specific concessionary items. Our TWU Benefits sub-committee continued to question the company about its active healthcare proposal. The company…