US Airways quietly became creditor of American Airlines (story & original tweet via @JasonWhitely of @wfaachannel8)
US Airways quietly became creditor of American Airlines (story & original tweet via @JasonWhitely of @wfaachannel8)
4:09 pm: DEVELOPING: Waiting to hear any minute from Allied Pilots Assoc. on whether it’ll send @AmericanAir‘s last best offer to its 10,000 pilots.
4:19 pm: BREAKING: Board for @AmericanAir‘s pilots union votes to send AA’s last best offer to its 10,00 pilots.
4:31 pm: .@AmericanAir says its pleased: “We believe this agreement addresses needs of our pilots while achieving the goals of our business plan.”
4:33 pm: BREAKING: Judge now delaying decision on voiding flight attendants, TWU contracts until pilots vote. Takes 6 wks to collect results.
4:35 pm: BREAKING: @AmericanAir says its last offer to pilots saves all 400 jobs to be cut, gives a pay raise & equity stake in restructured AA.
6:11 pm: UPDATE: Pilots union board voted 9 to 7 to pass @AmericanAir‘s last best offer to 10,000 pilots. Insiders said the room eupted in applause.
6:12 pm: UPDATE: August 8 is the new deadline for American’s pilots to have voted on AA’s last best offer. This gives other unions time to negotiate.
7:24pm: UPDATE: AmericanAir says it’s “disappointed” the board of its pilots union did not let AA’s 10,000 pilots vote on AA’s final offer.
7:25 pm: UPDATE: AA’s final offer included pay increases, furlough protection, profit sharing, a frozen pension and an equity stake in the new AA.
8:07 pm: UPDATE: Pilots say they’re close to a deal w/ AmericanAir but need clarity on scheduling. They hope to keep negotiating.
5:22 pm: BREAKING: Sources say AA, pilots talked to bankruptcy judge in NYC this afternoon. He was supposed to rule on canceling contracts in the AM.
5:24 pm: More than 7,000 union jobs at AA remain at stake in ruling. Pilots say they’re close to an agreement. AA wants to talk to TWU, flight attendants (APFAunity)
5:49 pm: BREAKING: AA bankruptcy judge has postponed ruling on American’s Section 1113 motion for all unions until June 29.
5:50 pm: BREAKING: AmericanAir says the extension will not change the terms of our final offer to the pilots union.
6:54 pm: UPDATE: Pilots union will vote again on @AmericanAir’s final offer on 6/27. AA not renegotiating but will answer questions & clarify.
8:22 am: Flight attendants to call at least two of their three witnesses today. Adam Condrick will talk about the retirement plan.
8:25 am: Daniel Akins, an air transport economist, also to testify saying AAs problems stem from mergers by its competitors.
[unfortunately @JasonWhitely will not be covering the USAirways / American Airlines merger today as he returns home to DFW. It is not yet known if he will be returning to NYC to cover more at a later date, but I'll do my best to keep up-to-date]
9:48 am: Cross-examination of Allison Clark is beginning. She testified to a lot of the proposals pilots made to AA.
951 am: AA STATEMENT: 5 TWU workgroups accepting agreements will save 1,300 jobs, get Early-Out pkg, future pay increases, & 401(k).
9:52 am: AA STATEMENT: “We realize this was a very difficult decision for our TWU-represented employees.”
9:56 am: AA STATEMENT: @AmericanAir disappointed the biggest TWU group opposed offer. AA to ask a judge to cancel their contracts.
9:59 am: UPDATE: If judge lets AA cancel TWU maintenance contracts, 4,600 jobs would be eliminated. AA says its offer would have saved almost 2,000.
11:13 am: TWU UPDATE: If Judge lets AA cancel contracts, these are projected job losses. #TULSA: 2,100 ALLIANCE FW: 1,200 And 1,300 others scattered.
11:16 am: Lawrence Rosselot testifying now for pilots. He’s an AA pilot and w/ the union. Will talk about airline stats, efficiency, and work rules.
11:57 am: Judge breaking for lunch. Cross-examination of Lawrence Rosselot continues in an hour.
[Breaking for Lunch hearing to resume in approx 1 hour]
12:44 am A NEW DEAL? AA tells me it will still try reach “consensual agreements” with two TWU groups that rejected its “final offer.” Talks continue.
12:46 am: UPDATE: The 5 TWU groups that accepted AA’s final offer still lose 2,900 jobs. Would have been worse. AA’s “final offer” offer saved 1,300.
01:16 pm: Back in court awaiting the judge to return from lunch. Most everyone is back. Fortunately the rain is moving out.
01:17 pm: …Tweeted too soon. Court is back in session. Lawrence Rosselot is back on the stand for cross-examination.
01:35 pm: UPDATE: AA revised job losses for TWU maintenance, store clerks if the judge lets the airline cancel contracts. Not 4,600. But about 4,475 .
2:28 pm: Rosselot done. James Eaton testifying now. He’s a Boston-based pilot. Testifying about outsourcing, codesharing. Saving mainline pilot jobs.
03:40 pm: Direct testimony on Eaton continues – deep discussion on codesharing. Uncertain how soon cross-examination will begin – if at all today.
03:46 pm: Eaton is defending APA’s stance against add’l codeshare flying. There’s also comparisons of how other airlines handle it.
03:50 pm: AA pilots have one more witness to call. It’s Christopher Heppner – exec from The Segal Comp. discussing pilot medical benefits.
03:53 pm: But AA objects to Heppner’s testimony as an expert on medical benefits. Judge to decide in the AM whether to let him testify.
03:54 pm: It now appears likely that AA flight attendants (APFA) will begin presenting their case to save contracts, jobs by tomorrow afternoon.
04:09 pm: Court recessed early. Cross-examination of Eaton continues in the morning. Heppner might go tomorrow. Flight attendants likely start Wednes.
04:10 pm: Flight attendants said their case will take about two days. TWU Maintenance and Store Clerks likely present cases Monday.
[My apologies, as I may have missed a few tweets.]
Monday May 14, 2012:
10:41 am: Direct-examination of Neil Roghair just completed. Court is in a ten minute recess.
10:44 am: ROGHAIR: “What’s been driving the decline of AA over the last couple years is the migration of business accts over to Delta and United.”
10:47 am: ROGHAIR ON @USAirways: ““We want to hitch our careers to a thriving and successful business plan.”
10:55 am: Judge Lane has returned. Cross-examination of Neil Roghair is beginning.
11:10 am: In cross-examination, @AmericanAir attorney grilling Neil Roghair on valuations, codesharing specifics.
12:01 pm: Judge taking a 1:15 lunch break. AA attorney has few more questions for Roghair when court resumes at 1:15p Central.
More to come…..
01:16 pm: Just got back up to court from a quick lunch. Awaiting Judge Lane to call court back to order. AA cross-examining Roghair a few more mins.
01:28 pm: Court resumes…
2:04 pm: Judge gave attorneys a brief recess to sort out a procedural issue.
2:25 pm: Both sides are done with Neil Roghair. Yearley and the NY firm he works for aid companies, employee groups in restructuring.
2:49 pm: Yearley on AA’s future profits, while slashing labor costs: “Analysts would be shocked at this level of profitability” in the future.
3:01 pm: Yearley said this isn’t the forum to weigh benefits a merger. But AA has a network problem. It’s never been an if but when AA consolidates.
3:08 pm: Yearley questions how AA decided this was the right time to invest in 460 new aircraft. And did AA consider alternatives to it?
3:10 pm: AA has said the largest aircraft order in history will reduce maintenance costs, be more fuel efficient & attract back high value customers.
3:18 pm: Yearley said no need canceling contracts should be rushed through the court right now especially as AA sits on $5-billion in cash.
3:19 pm: Yearley added AA has bragged recently that the airline’s recent performance [under existing labor contracts] has been the best in years.
3:57 pm: Yearley conceded that AA’s aircraft, products lack when compared to big competitors like Delta and United. Harder to attract biz customers.
3:58 pm: Yearley agreed with American Airlines attorneys that adding new aircraft and new amenities should help attract the high-value customer.
4:08 pm: With an hour left in the court day, AA attorney said he would not finish cross-examination of Andrew Yearley this evening.
4:09 pm: Pilots have four more witnesses to call after Yearley. Doubtful pilots will hand off to flight attendants by tomorrow.
4:11 pm: Judge taking a brief recess.
7:02 pm: Court recessed at 6:15p. Both sides done with Andrew Yearley. APA’s Allison Clark to testify Tues. about the company’s proposals.
7:05 pm: Big development Tues. will be whether the TWU ground wrkrs, mechanics accept or reject AA’s final offer. Results due at 8:30am-ish on Tues.
Will be continued in new post tomorrow 05/15/2012
@AmericanAir still expected to finish presenting its case to cancel labor contracts in NY Bankruptcy court this Friday.
@AmericanAir exec Jeff Brundage finished testimony in NYC bankruptcy court. He talked about need for cost reduction, history of negotiation.
@AmericanAir pilots, flight attendants, and ground workers unions begin presenting their cases against cancelling their contracts on May 14.
Will post as more available
9:26am Cross-examination of the airline analyst is mundane so far. Flight attendants atty is questioning Jerry Glass’ testimony, expertise. #aawfaa
9:37am AA atty objecting to Flight Attendants atty for not keeping questions on AA biz plan. The judge got a few laughs with his response. #aawfaa
9:38am JUDGE: “We’d like to finish this hearings sometime this calendar year. That’s why I want [attys] to connect the dots.” #aawfaa
9:41am JUDGE: “We seem to be hopscotching around.” APFA: “One of the probs the court is experiencing is you’re dealing with 3 diff groups.” #aawfaa
1:57am AA EXEC GOULET: “I think there are advantages to larger networks. Yes.” But she wouldn’t concede that AA must merge to grow. #aawfaa
Here is a transcript of the mornings posts (more will be posted as it is available)
8:20am “A merger w/ @USAirways is the path we must take,” AA Flight Attendants Union Pres Laura Glading said at NY rally. “Get this merger done!”
@AmericanAir Union Leader at rally in NYC: “We will not stand by and let the judiciary gut our families.”
@AmericanAir union wrkrs in NY chanting: “AA got bailed out. We got sold out.” Referencing concessions keeping AA out of bankruptcy in 2003.
9:11am AA BANKRUPTCY: TWU agreed to send @AmericanAir’s last offer to membership for a vote. Tally not known until next wk.
9:11am Just got inside the NY Bankruptcy court. Courtroom is packed. Two overflow rooms w/ TV of proceedings are jammed as well.
9:33am AA BANKRUPTCY: Why is NYC hearing a big deal? Almost $1B in cuts on the line including 13K jobs. @AmericanAir is 1 of largest DFW emplyrs.
9:58am AA BANKRUPTCY: @AmericanAir atty says management earns “below market” salaries while union employees earn above market pay.
10:32am AA BANKRUPTCY: Pilots Union atty: “How we got here is more in the company’s declarations than Mr. Gallagher’s (AA Atty) presentation.”
10:32am AA BANKRUPTCY: Pilots union atty says @AmericanAir pilots took 23% pay decrease in 2003. That’s 1992 levels.
10:35am AA BANKRUPTCY: Pilots union atty tells NYC judge that labor has been betrayed with @AmericanAir executive bonuses & compensation.
10:50am AA BANKRUPTCY: @AmericanAir pilots union atty expects AA to merge post-bankruptcy. Unions suggest do it now and save jobs.
10:55am AA BANKRUPTCY: Atty for flight attendants giving opening now. Says avg age for @AmericanAir FA is 51. Avg salary is $45K .
10:57am AA BANKRUPTCY: Flight attendants atty says labor went through ‘bankruptcy’ in 2003 – it was out of court. We gave AA exactly what it needed.
1:18pm DEVELOPING: @AmericanAir says it offered TWU ground workers new offer that will save “substantial # of jobs.” Membership now voting on it.
1:20pm AA BANKRUPTCY: Attorneys representing all six sides (unions, airline, pension org, and unsecured creditors) finished opening statements.
1:20pm AA BANKRUPTCY: Airline now calling 1st of its 12 witnesses. It’s an analyst detailing @AmericanAir’s performance against competitors.
1:54am DEVELOPING: @AmericanAir quietly made a new offer to TWU ground workers that would save several thousand jobs. Wrkrs voting on it this wk.