Quite a show in court today and the dogs are still at it. UCC lawyer admits debtor needs a deal with pilots prior to chapter 11 exit. Seems the creditors are getting antsy about a long dragged out process and are even more concerned about the possibility of dealing with the pilots outside the chapter 11 process. AMR lackey on stand can't seem to provide necessary info on why the original 20% concession demand they are still seeking is appropriate vs. the revised figures claiming only 17% is needed. Appears AMR isn't going to get a slam-dunk today, but court still in session with no ruling from judge............yet.

 

Thx for the report.

 

Looks like judge grants AMR's 1113 request to abrogate. Ultimately, this was expected, though surprised judge ruled today considering all the issues raised. Interesting to see how AMR will make it out of BK though considering the UCC's attorney said that an agreement with the pilots is necessary for exiting C11.

My guess is there will be heavy pressure for AMR to strike a deal with the pilots or they'll get pushed aside in favor of Parker and his CLA's with labor. Meantime, the next move is AMR's to see what they implement going forward. Pilots here are none to interested in dealing with this management and would rather be the ones kicking the can for a change and see where we go. Now time is on the pilot's side instead of AMR's.

 

Report is in... judge allows AMR to toss pilot contract. Heard it moments ago on ABC news, but no links yet.

I'll try to find something. Hopefully the TV report is accurate and I'm not blowing smoke here.

 

Start the blaze a burnin......

Horton and his slobs can pick their bonuses out of the ashes.

Bottom line is they are going to need a agreement with the APA before they exit they might as well dish out some pain until the AMR Managment is chased off by the UCC as being unaffective in runnin the company any futher.

 

......and IMO, the only way a deal will happen is if that deal is better then Parker's CLA, otherwise the pilots will kick the can until the UCC terminates exclusivity. The APA BOD will not pass along anymore pointless garbage to the pilots they'll just reject anyway. I assume the strike ballots will be mailed after AMR announces it's intent to impose X, Y or Z, although it's very possible they'll elect not to impose anything yet and schedule negotiations with the APA.

 

Well, good luck to you guys and hopefully this will be a temporary setback.

 

Getting another "opinion" on what has happened and what this means. AMR wanted to use 20% concessions as a baseline for going forward which is the 1113. 17% would be the rejected TA. Looks like AMR may impose the rejected TA terms sans duration and that would be the starting point going forward for negotiations. If so this is not a victory for AMR, especially since the creditors sent a message in open court stating that they MUST have a contract with the pilots to exit BK. Many believe that message was to AMR more then anyone.

I guess we'll see. Waiting to hear AMR's press release to this. If it immediately refers to resuming negotiations, I think we can all get an idea of just where we are and who is applying the pressure and where. Nonetheless, it's clear that if the TA is imposed, it is a major victory for AA pilots going forward as with no duration and a clear statement by the creditors of the need for an agreement, the pilots can expect a better deal then had they taken the TA in the first place. The claim will have to be reincluded in any deal as well, otherwise AA pilots will have sore feet from kicking the can to the holidays.

 

I hope the best for you all, this is a blow to Eagle as well, since much contractual language requiring much of the RJ flying to be at Eagle, just went out the window.....Only upside I can see in any of this, is that AMR may have a very hard time securing RJ airplane orders or long term contracts, without firm contractual language allowing it. Might be a hanging chad that holds out the party at redheaded brother just a bit longer.

 

One of the many reasons a defined pilots contract is realistically necessary for successful exit of BK. The UCC's lawyer admitted as much today and as Adlai Stevenson said during the Cuban missle crises, we're prepared to "wait until hell freezes over" to get a fair deal.