Recent Posts

December 18, 2011

The airline industry consistently breaks the number one rule of business: The job of the company is to make money.

"The industry in aggregate has lost about $60 billion over the 32 years since deregulation, " says Severin Borenstein, an economist at the Haas School of Business at U.C. Berkley.


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December 17, 2011

WASHINGTON—Pension Benefit Guaranty Corporation Director Josh Gotbaum released the following statement today in response to comments made by American Airlines' Counsel Harvey Miller:

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December 14, 2011

(Reuters) - Buried deep in American Airlines' Chapter 11 bankruptcy filing is a striking asset -- a town house in one of London's most expensive residential streets that property experts say could be worth up to $30 million.

The five-bedroom house in London's high-end Kensington district is a throwback to the airline's expansion two decades ago and stands a 10 minute walk from the former home of Princess Diana, with gentry and diplomats as neighbors.

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December 12, 2011

Per the instructions of the IAC letter, the negotiating committees have appointed the following people to the Post 1113C Committee:

View the letter here

December 08, 2011

AMR Corporation, the parent company of both American Airlines and its regional carrier, American Eagle filed for bankruptcy in lower Manhattan on Nov. 28, 2011. Those two carriers employ well over 20,000 TWU airline division members across America in Fleet Service, Maintenance, Cabin Cleaning, Stores, Flight Dispatch, Meteorology and more. Other airlines have used bankruptcy proceedings to decimate collective bargaining agreements, destroy pension and health plans, and slash union jobs especially in overhaul maintenance.

Local 100 members took time at the union’s Dec. 3rd mass membership meeting to recognize this threat to our Brothers and Sisters at American and American Eagle by unanimously endorsing a resolution of support.  Prior to presenting the resolution, Local 100 President John Samuelsen said that the bankruptcy filing “is an enormous challenge for our entire TWU International union. It is crucial that we as an organization pull together in a truly unified fashion to meet this attack on TWU members at American and American Eagle.”

Read the entire resolution here

December 08, 2011

Dear Sisters and Brothers:

Since the AA/AE bankruptcy filing on November 29, 2011, we have been working diligently to provide thorough information to you regarding the bankruptcy process, as our legal team continues to navigate through the various court proceedings. We will also continue to provide you up to date information on our newly created website: http://aa.twu.org.

The Company has announced that it will be presenting “new [CBA] proposals” to “seek further changes to its TWU agreements pursuant to Section 1113 of the Bankruptcy Code.” (The Company will be employing the same approach in seeking changes to its other collective bargaining agreements with its other unions.) Section 1113 of the Bankruptcy Code governs whether a debtor company may reject a CBA and sets forth various substantive and procedural requirements. A Section 1113 motion to reject a CBA is ruled on by the Bankruptcy Judge.

December 08, 2011

Re: AA/AE Bankruptcy

Some questions apparently have arisen regarding your representations by TWU in American Airlines/American Eagle bankruptcy proceedings. I wish to respond and make our Union's position very clear: as your collective bargaining representative under the Railway Labor Act, TWU is the sole representative in Bankruptcy Court for representing the interests of TWU members and protecting, as best as possible, their collectively bargained rights and rates of pay benefits and working conditions.

December 08, 2011

Today the AA & AE negotiations teams are meeting with the International Administrative Committee and ATD Staff assigned, along with the hired Professionals to discuss the next steps in the process.


Please keep an eye on the website for updated information pertaining to the bankruptcy filing.

December 07, 2011

By Tom Hals
(Reuters) - The lawyer who piloted United Airlines through the largest Chapter 11 bankruptcy case in that industry's history cautioned that American Airlines cannot just rely on the restructuring path cut by competitors.

"Every case is different, and they should beware of assuming that past cases are a road map. They should be aware of their own set of facts," said James Sprayregen, a partner with Kirkland & Ellis LLP, in a telephone interview with Reuters on Sunday.

Read the entire story here

Union Scores Seat On AMR Creditors Committee
December 06, 2011

By Martin Bricketto
Law360, New York (December 05, 2011, 8:19 PM ET) -- The union for a majority of employees with bankrupt AMR Corp., the parent of American Airlines Inc., was among nine parties appointed Monday to a creditors committee that will help shape the company's Chapter 11 case.

Transport Workers Union President James C. Little said in a statement that the U.S. Trustee Program had made the right call in giving the AFL-CIO-affiliated union a seat on the official committee of unsecured creditors, noting AMR's short-term and long-term obligations to TWU members.

Read the entire story here

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