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Archive for the tag “Bankruptcy”

Breaking News on the US Airways/American Air Merger (via @JasonWhitely)

BREAKING: @USAirways quietly buys @AmericanAir debt and now has a seat at the table in AA’s reorganization.

US Airways quietly became creditor of American Airlines  (story & original tweet via @JasonWhitely of @wfaachannel8)

Update on the #AmericanAir Hearing (transcript via @JasonWhitely) – June 27, 2012

Transcript via @JasonWhitely from @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.


More on the USAir/American Airlines hearings

For those of you who’ve been following the US Airways / American Airlines merger  (Tweets are courtesy of @JasonWhitely from @wfaachannel8)

June 20:

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.

June 21

5:16 pm:BREAKING: Two sources tell WFAA that AmericanAir and its pilots asking bankruptcy judge to delay canceling union contracts for another wk.

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.

Apologies: no USAir/AA hearing transcript today…

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]


05/15/2012 US Airways/ American Airlines Merger continues…

Tweets are courtesy of @JasonWhitely from @wfaachannel8


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.

02:51pm: PICS: Here’s the NYC Bankruptcy Court in Lower Manhattan where AA hearings are underway. ow.ly/i/D1N7 ow.ly/i/D1Oa

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.


US Airways/ American Airlines Merger continues…

Tweets are courtesy of @JasonWhitely from @wfaachannel8

[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.

10:43 am: Before the break Roghair testified that pilots union agreed to $240M in cuts to @USAirways. Offering $270M to @AmericanAir. It wants $370M.

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.

11:55 am: AA attorney picking apart the pilots deal with @USAirways saying all details incldg seniority & $240M in savings have not been worked out.

12:00 pm: Pilots lead negotiator, Neil Roghair, admitted pilots gave @USAirways things it refuses to give to @AmericanAir.

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

More on the American Airlines / USAirways Merger

Source WFAA’s   @JasonWhitely

04/26/2012 ~4:26 @AmericanAir still expected to finish presenting its case to cancel labor contracts in NY Bankruptcy court this Friday.

04/26/2012 ~4:28 @AmericanAir exec Jeff Brundage finished testimony in NYC bankruptcy court. He talked about need for cost reduction, history of negotiation.

04/26/2012 ~04:28 @AmericanAir pilots, flight attendants, and ground workers unions begin presenting their cases against cancelling their contracts on May 14.

Will post as more available

Continuing Story: American Air Bankruptcy/Merger

This is the continuation of yesterday’s tweets via @JasonWhitely.  To see yesterday’s story go to http://wp.me/p2epql-6R

9:07am Judge entered courtroom. Allied Pilots Association cross-examining @AmericanAir witness Jerry Glass, an airline analyst. #aawfaa

9:26am Cross-examination of the airline analyst is mundane so far. Flight attendants atty is questioning Jerry Glass’ testimony, expertise. #aawfaa

9:31am PIC: Here’s a pic and bio of Beverly Goulet – @AmericanAir’s 1st of 3 executives who will testify this morning. bit.ly/IBCwI8 #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


1:29pm TWU sending @AmericanAir’s new contract offer to union membership vote next wk. Tally expected by May 14. Deal saves about 3k jobs. #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

AA Bankruptcy and AMR Merger

@JasonWhitely is in NYC tweeting live on the @AmericanAir Bankruptcy & AMR Merger

Here is a transcript of the mornings posts (more will be posted as it is available)

7:44am PIC: 300+ @AmericanAir flt attendants, TWU ground wrkrs staging in NY’s Battery Park b4 rally against contract cuts. http://ow.ly/i/A7S4

7:47am PIC: Laura Glading, pres. of @AmericanAir flt attendants union, 1 of several spkrs at NY rally against contract cuts. http://ow.ly/i/A7VI

7:54am PIC: US Bankruptcy Court in NYC where @AmericanAir will start making its case for canceling union contracts. http://ow.ly/i/A7Y4

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.”

8:30am PIC: An estimated 750 @AmericanAir flt attendants, ground wrkrs, mechanics rallying in NYC across from court. http://ow.ly/i/A8dl

8:35am PIC: Press of TWU, @AmericanAir’s mechanics & ground wrkrs: “This isn’t a bankruptcy process. This is a crime scene.” http://ow.ly/i/A8fK

@AmericanAir union wrkrs in NY chanting: “AA got bailed out. We got sold out.” Referencing concessions keeping AA out of bankruptcy in 2003.

8:50am NOW: Large, loud rally of chanting @AmericanAir union employees marches, stands in front of NYC bankruptcy court: http://ow.ly/i/A8nX

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.

9:33am Sources say at least one @USAirways executive attended the @AmericanAir union rally outside bankruptcy court.

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.

10:52am AA BANKRUPTCY: @AmericanAir pilots atty says these are draconian cuts. Continues to advocate merger w/ @USAirways to the bankruptcy judge.

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.

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