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…
Tag: Bankruptcy
AA Bankruptcy – Court Update Mar 19, 2013
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…
Testimony on Bankruptcy Reform
TWU Int’l President James C. Little spoke on Thursday, March 14, at the Field Hearing of the ABI Commission to Study the Reform of Chapter 11 addressing the airline companies’ use of bankruptcy laws to undermine their contractual obligations to the workers and urgency for reform. President Little testified, alongside other labor unions, that labor…
AA/AE Bankruptcy Court Update Mar 12, 2013
As we previously posted, AMR filed a motion for approval to enter into a 12-year capacity purchase agreement with Republic Airline Inc. (“Republic”). Capacity purchase agreements between major carriers and regional partners are one approach airlines use to provide regional feed services. Under such arrangements, the major carrier generally purchases the entire capacity of…
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…
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…
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)…
Exclusivity Extension Sought
In a document filed October 16, 2012, in Bankruptcy Court, The Unsecured Creditors Committee (UCC) and AMR filed a joint motion requesting a 30-day extension to the exclusivity period. The Motion cites the parties’ ongoing consideration of strategic alternatives as an important reason for this extension. A copy of the filing is available here.
Debtors’ Motion in Limine to Limit Scope of Hearing on Renewed 1113 Motion
0n August 23, 2012, the company filed a motion with the bankruptcy court seeking an order to limit the scope of evidence that may presented at the renewed hearing scheduled for September 4, 2012, to reject the collective bargaining agreement with the Allied Pilots Association. The company is seeking to limit evidence only to the…
AA Bankruptcy Update
Court Update Today, the debtors (American Airlines) filed a motion seeking court approval and authorization of the recently ratified new collective bargaining agreements (CBA’s) with the TWU Mechanic & Related and Stores employee groups. The agreements reached, came about after an extensive proceeding under section 1113 of the Bankruptcy Code, a lot of hard work…