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

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 04.27.17

Airborne
04.24.17

Airborne
04.25.17

Airborne
04.26.17

Airborne
04.27.17

Airborne
04.28.17

Airborne-Unmanned 04.25.17

Airborne-YouTube

AMA 04.27.17

Airborne
04.24.17

Airborne
04.25.17

Airborne
04.26.17

Airborne
04.27.17

Airborne
04.28.17

Airborne-Unmanned 04.25.17

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

AMA Drone Report 04.27.17: Kitty Hawk Flyer, College Drones, DJI VR Goggles

Also: Airborne at XPONENTIAL, AMA On Mil-Airspace, Canadian Drones, AMA Legislative Efforts With an appearance not all that different than many of the multi-copters we’re all>[...]

AUVSI and Aero-News Announce Live Webcast Schedules for XPONENTIAL 2017

The World's Greatest Gathering Of 'All Things Unmanned' Will Get Expert Live Coverage! The Association for Unmanned Vehicle Systems International (AUVSI) and their "Airborne-Unmann>[...]

Airborne-Unmanned 04.25.17: UAS Broadcast, College Drone Racing, XPO17 LIVE!

Also: Aeryon Labs, Northrop Grumman, XTAR Connectivity, Bowling Green Drones The broadcast platforms of tomorrow may well be unmanned... and 360 Designs has just introduced the Fly>[...]

Airborne 04.27.17: HondaJet Records, More UAL Fallout, Avenger Gathering

Also: Peggy Whitson!, AUVSI 2017 Live, Air Medical Group, Canadian Airports, GLO Bankrupt, WestJet, Second T-X A HondaJet has officially secured its first speed records over two re>[...]

Airborne 04.28.17: Perlan Mission II, DJI VR Goggles, Pilot... NOT!

Also: American Airlines, Airborne-NextGen, Biofuel, ATR 72-600, Gogo, Drone Drive, L3 Aviation Airbus Perlan Mission II, an initiative to fly a glider to the edge of space to colle>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC