March 29, 2012
This afternoon the TWU was in U.S. Bankruptcy Court to receive the judge’s ruling on the schedule of the hearing for AMR’s 1113 motion to reject AA’s labor agreements. The court did not set the trial date, but we know the case is moving rapidly. The court did indicate that the union’s responsive pleadings to AA’s 1113 motion are due April 10th.
A follow up hearing is set for this Monday April 2nd in New York to establish the trial schedule. As a result, we expect things to move quickly - bankruptcy law contains a fast 1113 timeline.
March 28, 2012
After AMR’s 1113(c) filing yesterday, there has been continued action on both sides to reach an agreement. On multiple occasions TWU work groups have met with company negotiators. There has been some progress, slow at times, but the talks are often frustratingly complex. The TWU Negotiating Committee’s and the company continued to exchange proposals and counters today.
To address the serious concerns of our members, the TWU prepared a list of Q and A’s that may help explain the next steps in the 1113 process.
- What happened yesterday, March 27, 2012?
The Company filed a motion to reject all CBAs. This motion leads to trial in front of a federal bankruptcy judge, who will rule on whether to reject each of our CBAs.
- What happens next?
March 27, 2012
This morning TWU’s economic and legal advisors were presented American Eagle’s in depth business plan by the company’s financial analysts. In addition, the company’s economic advisor reviewed Eagles cost gaps as compared to competitors, Pinnacle and Republic Airlines. The company claims they need to achieve a competitive cost structure similar to those airlines to become successful.