On the evening of April 15, 2013, American Airlines, Inc. and its affiliates (“AMR”) filed their proposed plan of reorganization (the “Plan”) and related disclosure statement (“Disclosure Statement”) with the Bankruptcy Court along with a motion (the “Motion”) requesting the Bankruptcy Court to establish various deadlines and hearing dates leading up to approval and confirmation…
Category: Bankruptcy
Paid To Fail: Bankrupt American Airlines CEO Slated For $20 Million Severance
SOURCE: gnom.es national news service But alas, after further reading, I returned to my normal state of cynicism when learning of new deca-million dollar bonuses paid to corporate managers. Perched high on bench in his lower Manhattan courtroom, U.S. Bankruptcy judge Sean Lane sang the praises of the proposed AMR Corp. (parent of American Airlines) and U.S. Airways…
AA Bankruptcy Court Update March 27, 2013
By motion filed with the Court on February 22, 2013, the Debtors sought approval of AMR’s execution of and entry into an Agreement and Plan of Merger (the “Merger Agreement”) among AMR ,the so-called AMR Merger Sub, Inc. (“Merger Sub”), and US Airways Group, Inc. (“US Airways”), dated February 13, 2013. The Debtors submit that…
Scope Clause Language – TWU Versus The Other Unions
The TWU scope clause (Article I) has changed in the newly ratified September 12, 2012 M&R agreement. While the TWU negotiating committee pushed for maintaining the previous language that kept approximately 90% of maintenance spend in-house (includes TAESL as insourced work), the bankruptcy (BK) process made that an impossibility. Every airline that has gone through…
TWU President Announces New Merger Transition Agreement
TULSA –Ground workers employed at American Airlines, represented by the Transport Workers Union of America, will receive an across the board 4.3 percent raise — if American Airlines and US Airways merge. The increase in pay represents significant new money to TWU members. The wage increase and other items related to transition issues in the event…
Summary of January 23, 2013 Bankruptcy Court Hearing Regarding Retiree Benefits Issues
The bankruptcy court heard argument at a hearing held on January 23, 2013 at 2:00 p.m., to consider American Airline’s (“AA”) motion (the “Motion”) for summary judgment for a declaration that AA has the unilateral right to modify or terminate “retiree benefits” for all its retirees because the benefits were not legally “vested.” It should…
Court Update Jan 23, 2013
This morning the bankruptcy court approved four motions filed by American Airlines to assume, as modified, four prepetition aircraft purchase agreements with Airbus, Boeing, GE and Rolls Royce. These agreements, as modified, include agreements to fix the amount of claims to be allowed in favor of the four aircraft vendors as well as releases in…
Aircraft maintenance: Level the playing field
SOURCE: Tulsa World By JAMES C. LITTLE The Tulsa-based American Airlines mechanics and related work groups can outperform anyone else in the country when it comes to speed and quality. Even after all the heartache and sacrifice caused by the American Airlines’ bankruptcy, more maintenance work is done in-house in Tulsa than is performed at…
AMR Bankruptcy December 10, 2012 Update
As you may recall, on July 6, 2012. AMR filed a complaint asking the bankruptcy court to declare that none of AMR’s current retirees (both union or non-union) have a vested right to retiree medical benefits. AMR asserts that under ERISA, the health and welfare benefits the debtors provide to current retirees (including TWU retirees)…
Employee Prefunding Contributions FAQs
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