Cites Involvement Of Attorneys By 'Divergent Interests'

Pilots who retired from American Airlines just before it declared bankruptcy last month will not be represented by the Allied Pilots Association in court procedings. ANN has received a copy of a letter sent to retirees on December 22, informing them of the union's decision.

As ANN reported, lump sum checks distributed to AA pilots who retired in October are "viable" under their defined benefit plan, but as many as 67 other pilots who retired in November might become creditors to the airline, and might have to get in line in bankruptcy court with other creditors to receive all, or some portion of the payments they were promised. One source says that one of the reasons AMR chose November 29 to file for reorganization was to "preempt any mass exodus in December."

In the APA's letter, APA President Captain David Bates writes, in part, "Due to the nature of bankruptcy reorganization, various groups under the AMR umbrella have divergent interests and they retain counsel and financial advisors to protect their unique positions. APA has decided to follow the same course ALPA charted in the prior recent airline bankruptcies and will not represent retired pilots. However, we anticipate cooperating, to the extent that we can, with the committee's professional advisors."

FMI: www.alliedpilots.org