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 04.25.16

Airborne 04.26.16

AEA2016 LIVE!!! 0830-1230ET

AEA2016 LIVE!!! 1400-1700ET

AEA2016 LIVE!!! 1100-1400ET

Airborne Hi-Def On YouTube

Airborne 04.25.16

Airborne 04.26.16

AEA2016 LIVE!!! 0830-1230ET

AEA2016 LIVE!!! 1400-1700ET

AEA2016 LIVE!!! 1100-1400ET

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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

True Blue Power and Mid-Continent Instruments and Avionics Power AEA2016!

True Blue Power Announces Series of High-Powered USB Charging Ports, Powers Current and Next-Generation Electronic Devices True Blue Power today announced the TA202 Series High Pow>[...]

L-3 Aviation Products Presents AEA2016 Special Event Coverage!!!

Innovative Avionics Powerhouse Showcases Latest Developments It's been a great year for L-3 Aviation Products. In less than six months, they've finetuned some ground-breaking produ>[...]

Aspen Avionics, True Innovators, Present AEA2016 Special Event Coverage!

AEA2016 Sponsor: Always-Innovative Aspen Avionics Based in Albuquerque, New Mexico, Aspen Avionics specializes in bringing the most advanced display and sensor technology from the >[...]

Avilution's Revolution: Designing Avionics' Next-Generation

Avilution Shows What 'Next-Gen' REALLY Looks Like! When ANN first saw the Avilution concept in real-life, we took a few moments to let the idea sink in... and when it did... wow. N>[...]

Airborne 04.26.16: Drone v Airplane-NOT!, eFusion Electric Plane, ANN@AEA-LIVE!!

Also: MU-2 AOA, AMA Responds To Senate FAA Reauthorization, ANN@AEA Live 04/27-0830ET, ANN@AEA Live 04/28-1400ET, ANN@AEA Live 04/29-1100ET A report of a drone possibly colliding w>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC