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