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(Dallas Morning News Airline Biz Blog) The three unions representing American Eagle’s employees asked the U.S. Bankruptcy Court to delay a deal in which competitor Republic Airlines would operate jets under the American Eagle brand.

The deal, signed Jan. 23, would have Republic Airlines operate 76-seat jets to feed American Airlines flights, primarily into and out of Chicago’s O’Hare International Airport. The initial deal involves 53 jets, although Republic could acquire another 47 to operate on American’s behalf in the 15-year deal.

The Association of Flight Attendants, the Transport Workers Union and Air Line Pilots Association filed by their objections before the 4 p.m. EDT deadline to respond to the AMR motion. U.S. Bankruptcy Judge Sean Lane is scheduled to consider the matter Thursday, Feb. 14.

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(Bloomberg) US Airways Group Inc.’s merger talks with bankrupt American Airlines are intensifying as the sides try to agree on control of a combined company before confidentiality accords expire next week, people familiar with the matter said.

No decisions have been made on how ownership would be split between creditors of American parent AMR Corp. and US Airways investors or who would lead the carrier, said four of the people, who asked not to be identified because the discussions are private.

A deal would create the world’s largest airline, vaulting it past the rivals that eclipsed American amid a consolidation wave during the past decade. A combined carrier would be valued at almost $13.1 billion, according to Dan McKenzie, a Buckingham Research Group Inc. analyst in New York.

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Q&A regarding the MOU
2/4/2013 11:08:04 AM by aa admin

PAY ISSUES

1. Was profit sharing eliminated? If so, what was it replaced by?

We eliminated profit sharing and replaced with a base pay increase that is substantially more valuable to our members. Profit sharing is a one-time bonus pay conditioned on profitability. It is not base pay which is a permanent part of compensation. We have not received any such profit "bonuses" since at least 2000, because AA has not been profitable since then US Airways strongly resisted agreeing to continuation of profit sharing because it does not provide such a program for most of its own employees. Under the circumstances, it was obvious that guaranteed pay raises, instead of variable non recurring bonuses, made better sense. This was underscored that we faced a one time, quickly closing, window to negotiate this deal before a decision was made in court on a possible merger. We seized the moment to get you real pay instead of dollars that may never come.  

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Court Updates

September 24, 2013

The Court conducted the thirty-sixth omnibus hearing today.  The main item on the agenda was  a pretrial conference in the case of Fjord v. AMR Corporation, Adv. Pro. No. 13-1392.  The plaintiffs in this action allege antitrust violations under section 7 of the Clayton Act.  This is a separate action from the one brought by the Department of Justice and the Attorneys General pending in the District Court in Washington D.C..  After extensive argument the Court determined that the District Court action should be heard and determined first, with this private action proceeding after the District Court has rendered a ruling.  In the event of a settlement of the District Court action, the parties are to return to the Bankruptcy Court to discuss scheduling. 

Press Releases

October 02, 2013

Transport Workers Seek a Seat at the Table in US Airways/American Airlines Merger Case
Case will go forward despite government shutdown

Washington, DC - Oct 2, 2013 – The Transport Workers Union has taken legal action in federal court to protect the jobs, pay and benefits of its members, TWU President Harry Lombardo said today.

The TWU, Lombardo said, is seeking intervenor status in a lawsuit filed by the U.S. Department of Justice (DOJ) against the proposed merger of American Airlines and U.S. Airways. The case will go forward despite the current government shutdown, under terms of an order issued on Oct. 1 by U.S. District Judge Colleen Kollar-Kotelly.