Unions to present lengthy cases in AA bankruptcy hearing

American Airlines

Credit: WFAA

Unions to present lengthy cases in AA bankruptcy hearing

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by JASON WHITELY

Bio | Email | Follow: @jasonwhitely

WFAA

Posted on May 4, 2012 at 5:13 PM

Updated Friday, May 4 at 5:57 PM

DALLAS - Attorneys for American Airlines and its three labor unions returned to a U.S. Bankruptcy Court in New York City for a brief hearing on Friday.

"There was a routine scheduling conference today to go over the details of the remainder of the 1113 hearing," said Bruce Hicks, American Airlines spokesman. "The judge urged the parties to continue negotiations in hopes of reaching consensual agreements. We anticipate meetings next week with the APA and APFA."

The Allied Pilots Association, Association of Professional Flight Attendants and Transport Workers Union will begin presenting their arguments on May 14 against American Airlines canceling their labor contracts.

The unions' cases will likely last more than a week, a source said.

Members of the Transport Workers Union are receiving ballots in the mail right now to vote on whether to accept or reject American's last, best offer to ground workers. The company revised its offer to the TWU to preserve several thousand jobs it had originally planned to eliminate. Sources from TWU said the vote should be tallied around May 15.

The airline said it needs the unions to give more than a billion dollars in concessions so the company can emerge from bankruptcy and return to profitability.

But the unions want American to consider a merger with US Airways, which that company said will save jobs.

American will get a rebuttal to the unions' case later in the month.

Judge Sean Lane indicated he will make a decision whether to cancel union contracts by June 8.

E-mail: jwhitely@wfaa.com

 

 

 

 

 

 

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