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 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.15.15

Airborne Hi-Def On YouTube

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.15.15

 

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 05.21.15: Unlawful Photography? REALLY?, VA Flt Benefits, Pilatus 5M

Also: Aerion Takes Orders, API Partner EAA, 'Fly Along' Case Resolved, BASE Jump Tragedy, Electromagnetic Catapult, Gulfstream G650ER, Piper M500 With the FAA still stuck in the mu>[...]

AD: Airbus Helicopters (Previously Eurocopter France) Helicopters

AD NUMBER: 2015-10-05 PRODUCT: Airbus Helicopters (previously Eurocopter France) Model AS365N3, EC155B, and EC155B1 helicopters with an external life raft in the footsteps with cer>[...]

ANN's Daily Aero-Linx (05.22.15)

MILAVIA MILAVIA, military aviation, is what you are going to find here! The site starts with modern combat aircraft, focusing on main fighters, ground attack aircraft and bombers t>[...]

ANN's Daily Aero-Term (05.22.15): Flap Deflection Angle

The angle between the deflected flap and the chord line.>[...]

Aero-News: Quote Of The Day (05.22.15)

“The restrictions that the town has adopted, by its own calculations, would prohibit a significant share of all airport operations.” Source: Excerpt from a complaint co>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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