Jason Whitely tweets from the AMR bankruptcy hearing

WFAA reporter Jason Whitely is in New York City this week to cover the American Airlines bankruptcy hearing. He is live tweeting from the courtroom from his Twitter account, @JasonWhitely. We are compiling his tweets into this on-going blog, but follow Jason’s account for the latest.


8:20 a.m.

“A merger w/ @USAirways is the path we must take,” AA Flight Attendants Union Pres Laura Glading said at NY rally. “Get this merger done!”

8:26 a.m.

@AmericanAir Union Leader at rally in NYC: “We will not stand by and let the judiciary gut our families.”

8:50 a.m.

NOW: Large, loud rally of chanting @AmericanAir union employees marches, stands in front of NYC bankruptcy court

9:11 a.m.

AA BANKRUPTCY: TWU agreed to send @AmericanAir’s last offer to membership for a vote. Tally not known until next wk.

9:11 a.m.

Just got inside the NY Bankruptcy court. Courtroom is packed. Two overflow rooms w/ TV of proceedings are jammed as well.

9:13 a.m.

@AmericanAir atty: “We’re not seeking a win over our unions… we’re all on the same page. No one wins unless everyone wins.”

9:15 a.m.

@AmericaAir atty delivering opening statements now. AA to call 12 witnesses. Three are execs. Pres. Tom Horton will not testify.

9:19 a.m.

@AmericanAir has 20,000 non-union employees. All taking 20% pay cuts. “The non-union employees including up to sr mgmt will share the pain.”

9:20 a.m.

@AmericanAir atty in NYC bankruptcy court says: “There will be much more suffering and sacrifice if we don’t get this reorganization right.”

9:33 a.m.

AA BANKRUPTCY: Why is NYC hearing a big deal? Almost $1B in cuts on the line including 13K jobs. @AmericanAir is 1 of largest DFW emplyrs.

9:33 a.m.

Sources say at least one @USAirways executive attended the @AmericanAir union rally outside bankruptcy court.

9:35 a.m.

@AmericanAir atty says low-cost carriers, 9/11, recession, pricey fuel, and competitors who already restructured led AA to bankruptcy.

9:37 a.m.

@AmericanAir atty: AA has highest labor costs, most generous benefits than any competitor.

9:40 a.m.

@AmericanAir atty in NYC: “We have a labor cost problem. We also have a revenue problem.”

9:46 a.m.

@AmericanAir atty in NYC says current union rules are burdensome and limiting the company from maximizing resources, being profitable.

9:56 a.m.

@AmericanAir atty asking judge for 20% across the board pay cuts – from senior mgmt on down. Still, AA also plans to lay off 13K employees.

9:58 a.m.

AA BANKRUPTCY: @AmericanAir atty says management earns “below market” salaries while union employees earn above market pay.

10:32 a.m.

AA BANKRUPTCY: Pilots Union atty: “How we got here is more in the company’s declarations than Mr. Gallagher’s (AA Atty) presentation.”

10:32 a.m.

AA BANKRUPTCY: Pilots union atty says @AmericanAir pilots took 23% pay decrease in 2003. That’s 1992 levels.

10:35 a.m.

AA BANKRUPTCY: Pilots union atty tells NYC judge that labor has been betrayed with @AmericanAir executive bonuses & compensation.

10:45 a.m.

@AmericanAir pilots union atty says: Other than the companies paid witnesses, few say the company’s business plan is good.

10:46 a.m.

@AmericanAir pilots union atty added: “Everyone else says consolidation is the way to go.” He’s advocating @USAirways merger in court now.

10:50 a.m.

AA BANKRUPTCY: @AmericanAir pilots union atty expects AA to merge post-bankruptcy. Unions suggest do it now and save jobs.

10:52 a.m.

AA BANKRUPTCY: @AmericanAir pilots atty says these are draconian cuts. Continues to advocate merger w/ @USAirways to the bankruptcy judge.

10:55 a.m.

AA BANKRUPTCY: Atty for flight attendants giving opening now. Says avg age for @AmericanAir FA is 51. Avg salary is $45K.

10:57 a.m.

AA BANKRUPTCY: Flight attendants atty says labor went through ‘bankruptcy’ in 2003 – it was out of court. We gave AA exactly what it needed.

11:17 a.m.

@AmericanAir Flight Attendants union atty says if his group concedes $230M, it would push the flight attendants 30% below market.

1:18 p.m.

DEVELOPING: @AmericanAir says it offered TWU ground workers new offer that will save “substantial # of jobs.” Membership now voting on it.

1:20 p.m.

AA BANKRUPTCY: Attorneys representing all six sides (unions, airline, pension org, and unsecured creditors) finished opening statements.

1:21 p.m.

AA BANKRUPTCY: Airline now calling 1st of its 12 witnesses. It’s an analyst detailing @AmericanAir‘s performance against competitors.

1:38 p.m.

@AmericanAir CEO Tom Horton on @USAirways merger news: “I want you to know these developments in no way alter our course.”

1:40 p.m.

@AmericanAir CEO: “American is operating better than it has in many years, and our recent revenue performance … has been very strong.”

1:41 p.m.

@AmericanAir CEO’s comments come in a letter to employees just released re: @USAirways merger. He is not testifying in NYC Bankruptcy Court.

1:54 p.m.

DEVELOPING: @AmericanAir quietly made a new offer to TWU ground workers that would save several thousand jobs. Wrkrs voting on it this wk.

 

Source: http://www.wfaa.com/home/Jason-Whitely-tweets-from-the-AMR-bankruptcy-hearing-148575385.html