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March 29, 2012

American Airlines

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

American Airlines

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.


  1. 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.
  2. What happens next?       
March 27, 2012

American Eagle

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.

March 27, 2012

American Airlines Files to Reject Labor Contracts under Bankruptcy Code Section 1113

We understand that sometime today AMR will file its 1113 motion with the U.S. Bankruptcy Court in New York to reject all seven TWU labor agreements. AA’s filing does not affect our contracts immediately, but is the next step in the legal process. This issue will be tried in front of Judge Lane in the bankruptcy court in New York City. Our TWU attorneys are continuing to prepare our case and will be ready to defend our contracts and challenge the company’s 1113 motion to abrogate our contracts.

March 25, 2012

American Airlines

During this weekend, the TWU’s legal and economic advisors worked tirelessly expediting last minute reviews of AA documents, company explanations and analysis of TWU counter proposals. These cost analysis and labor proposals will be ready for presentation this week.

Tom Roth, TWU’s labor economist, met with AA financial analysts on Saturday, reviewing their methodologies and carryovers, while our bankruptcy and labor attorneys prepared for possible court hearings if a consensual deal is not met.

March 23, 2012

American Eagle

All TWU Negotiating Committees representing American Eagle work groups met internally today and began their pre 1113 data requests. Some committee’s are preparing questions regarding the term sheets presented by the company yesterday. The Eagle staff discovered one error in the Fleet Service term sheet regarding health benefit eligibility. The revised term sheet can be downloaded here, (page 5, V Benefits, Attachment E).

March 22, 2012

American Airlines

The TWU Negotiating Committees continued meeting internally and with AA over the last two days. Although progress was made on some articles, there are many discrepancies between the company’s numbers and ours. TWUs financial analyst, Tom Roth, met with the Fleet Service and Maintenance and Related committee’s to review their numbers and counter proposals.

American Eagle

American Eagle staff met with the TWU Negotiating Committees’ this morning and explained their document data system. Much of the material available there is highly confidential and cannot be shared outside of these bankruptcy negotiations. If specific information is approved for disclosure, it will be shared with the members.

March 21, 2012

American Eagle

American Eagle officers presented the company’s overview of the carrier’s status to all three labor groups this morning at Flagship University. The labor groups represent a majority of American Eagles employees. The TWU, AFA and ALPA accompanied by their attorneys and economic advisors gathered in the Flagship Auditorium to hear the company’s business reorganization plan under the pre 1113 bankruptcy guidelines. After reminding the parties they had signed a binding, non-disclosure statement, the company presented their “moving forward” business plan.

Below are the term sheets provided to the AE TWU Negotiating Committees.

Fleet Service

March 16, 2012

There were no scheduled negotiations between the TWU and AMR today. But, in a letter to the NMB late this afternoon, AMR rejected TWUs proffer of binding arbitration. In the letter, Senior VP Jeff Brundage made it clear that AMR would continue to seek consensual agreements with all of its labor groups through the 1113 process.

Next week will be extremely busy for TWU Negotiating Committee’s with American and American Eagle. American Eagle will present its 1113 "ask" to TWU and the other labor unions on Wednesday morning, March 21. AA/TWU Negotiations will resume as scheduled on Monday, March 19, 2012.

AMR Bankruptcy Update for March 15, 2012
March 15, 2012

Today, many of the TWU negotiators broke into sub groups to work on their specific issues. There were multiple meetings that went back and forth with the company regarding costing out calculations, as well as discussing specific concessionary items.

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