AMR Corp Gets Court Approval For New Agreement With Pilots | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 04.13.15

Airborne 04.14.15

Airborne 04.15.15

Airborne 04.16.15

Airborne 04.17.15

Airborne Hi-Def On YouTube

Airborne 04.13.15

Airborne 04.14.15

Airborne 04.15.15

Airborne 04.16.15

Airborne 04.17.15

Fri, Dec 21, 2012

AMR Corp Gets Court Approval For New Agreement With Pilots

Seen As Critical Move For Emerging From Bankruptcy

The U.S. Bankruptcy Court in Manhattan, NY, has approved a new collective bargaining agreement reached between American Airlines and its pilots' union. The plan eliminated lump-sum payments of retirement benefits for the pilots, which the airline said could hurt the company financially if a large number of pilots chose to retire shortly after it emerged from reorganization.

In a news release, AA said that along with the additional approval, the airline recently received from the Pension Benefit Guaranty Corporation (PBGC), the company is now able to take the final steps that will allow it to maintain the freeze of the pilot A Plan rather than pursue a termination.

American said that when the pension plan freeze was proposed, it knew the lump-sum option available under the pilot A Plan presented a unique operational challenge that needed to be addressed. To avoid this risk, the airline said it worked collaboratively with the APA, PBGC and the UCC on a solution that would allow it to maintain the freeze of the pilot A Plan, Wednesday, the Court ruled that removal of these benefit options is necessary to avoid termination of the A Plan.

The ruling has no impact on pension freezes for other employee groups, as this ruling was specific to the lump-sum distribution and installment option that was part of the pilot A Plan.

Reuters reports that while Judge Sean Lane seemed to empathize with the pilots, there was a reality to the situation that could not be denied. "Bankruptcy brings with it many hardships. The sacrifices of the other employees are one of those hardships," he said in ruling on the plan.

The move was opposed by a small group of former TWA pilots who said that the ruling changed the agreement they had made when American bought TWA out of bankruptcy years ago.

While AMR wants to emerge from its financial difficulties as a stand-alone airline, the pilots' union has made no secret that it wants the carrier to merge with US Airways.

The court on Wednesday also approved American's and the Unsecured Creditors' Committee's (UCC) joint request to extend exclusivity for AMR to file its Plan of Reorganization to March 11, 2013.

FMI: www.aa.com

Advertisement

More News

Airborne 04.17.15: DC Gyroplane Fallout, ICAS Airshow Update, Message To Space

Also: Blue Origin, Flying Cucumber?, BBJ Combi, NetJets Partners w/Ohio State, ExIm Helo Deal, Long-Range Navy UAS Obviously, the stunt pulled by Douglas Hughes of Ruskin, Florida >[...]

Aero-News: Quote Of The Day (04.19.15)

"Scientific literature is filled with papers on the characteristics of Pluto and its moons from ground based and Earth orbiting space observations, but we’ve never studied Pl>[...]

ANN's Daily Aero-Term (04.19.15): Air Navigation Facility

Air Navigation Facility Any facility used in, available for use in, or designed for use in, aid of air navigation, including landing areas, lights, any apparatus or equipment for d>[...]

India’s Heritage Aviation Acquires Two H125 Helicopters

Company Has Special Focus On Pilgrimage Tours In an acceptance ceremony held today in Marignane, India’s Heritage Aviation received two H125 helicopters acquired for charter >[...]

Boeing Supports Allen University, Provides Grant Award

Quarter-Million Dollar Investment To Help Restore Historic Chappelle Auditorium Boeing has presented a $250,000 grant for Allen University to support the restoration of an historic>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC