A federal bankruptcy judge should look at more than just AMR Corp.'s furlough policy and code-sharing agreements as he considers whether to terminate the pilots union contract, the union said in a court filing Thursday.
Instead U.S. Bankruptcy Judge Sean Lane should reconsider the airline's full proposal, which the union called a "charade" since the airline has renegotiated terms, the filing said. Lane is scheduled to hear arguments Tuesday on AMR's motion to cancel its contract with the Allied Pilots Association.The union said American's business plan and cost-cutting targets have changed since March, when it first asked the court to reject its labor contracts. For example, the carrier has lowered its target for employee-related cost cuts to 17 percent from 20 percent as part of its negotiations with pilots, flight attendants, mechanics and ground workers, the union said. All the other labor groups, except the pilots, have ratified new concessionary contracts and so don't face abrogation."American is punishing itself, its pilots and other stakeholders by engaging in a meaningless charade of clinging to some proposals that are no longer part of its genuine, current plan," the filing said.American has asked the court to reject its pilots' contract and allow it to impose concessionary work rules that it says are necessary to restructure in bankruptcy. On Aug. 15, the judge ruled that American could not reject the pilots' contract because it had overreached in its demands to expand code-sharing with other domestic airlines and change pilot furlough protections.Two days later, American refiled its request, modifying the two areas that Lane identified as problematic."Our revised term sheet withdrew the company's prior proposal to change pilot furlough protections, leaving the current contract terms in place, and proposed substantially less code-sharing," American spokesman Bruce Hicks said. "We maintain that the changes outlined in our term sheet are necessary for our successful restructuring and will help us reach our goal toward emerging as a stronger company."Also Thursday, the flight attendants unions at American and US Airways said they will work together in support of a merger.The Association of Professional Flight Attendants and the Association of Flight Attendants-Communication Workers of America issued a statement saying they will address merger issues."Both unions firmly believe that an American Airlines/US Airways merger is in the best interest of the flight attendants at both carriers, and are committed to working to further the goal of that merger," the statement said.The agreement says the unions will discuss collective bargaining agreements, share information, talk about representation and establish a protocol for seniority integration.US Airways is interested in merging with American while the carrier is in bankruptcy but has not signed a nondisclosure agreement.The American flight attendants union also announced how it will split up the 3 percent equity stake the union will receive as part of its newly ratified agreement. The union said that it will treat the equity similar to retroactive pay and that all attendants in service at American on Aug. 19 will be eligible. Claims will be distributed to attendants as stock.Andrea Ahles, 817-390-7631Twitter: @Sky_TalkHave more to add? News tip? Tell us
