As American Airlines moves towards an exit from bankruptcy, there is still the issue of the Retiree Medical for current retirees. AA has proposed making modifications to the Retiree Medical Plan by shifting 100% of the cost of maintaining the plan to the current retirees.
On January 23, 2013, Judge Lane heard arguments in connection with AA's adversary proceeding (the "Retiree Adversary Proceeding") in which AA argued that it is entitled to unilaterally modify/eliminate all retiree benefits without meeting the requirements of section 1114 (g) of the bankruptcy code, including the requirement of demonstrating that the modifications are necessary to permit reorganization. read more...
By Terry Maxon; The Dallas Morning News ~ Jun 14, 2013 read more...
I’ve received several emails just in the past week from American Airlines/AMR retirees asking me what I’ve heard on the battle over retiree health and life benefits.
The short answer is that we’re still where we were on Jan. 23, 2013, the date that U.S. Bankruptcy Judge Sean Lane conducted a hearing on American’s motion. There’s been no decision, and no further hearings are scheduled.
American had asked Lane to rule that the company wasn’t obligated to continue offering the benefits. The Official Committee of Retirees had responded that American most certainly is obligated to do so.
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.
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.