AA pilot contract now officially ABROGATED
#1
AA pilot contract now officially ABROGATED
Real and significant work rule changes enacted as of today, 9/12. A fund to be frozen or terminated, B fund to be terminated Nov.1st. The war has started. AA has engaged in "self help".
#2
Flies With The Hat On
Joined APC: Aug 2006
Position: Right of the Left Seat
Posts: 1,339
AMR Risks Bankruptcy Delay on Pilot Rift as US Air Waits
By Mary Schlangenstein
September 12, 2012 4:28 PM EDT
Bloomberg
By Mary Schlangenstein
September 12, 2012 4:28 PM EDT
Bloomberg
#5
The B fund termination is actually a good thing....It's currently run by JP Morgan and the performance/fees are rediculous. Supposed to be replaced by 13.5% 401k match...after a T/A passes.
For now, "NO SOUP FOR YOU!!!!"
For now, "NO SOUP FOR YOU!!!!"
#6
Banned
Joined APC: Jun 2008
Posts: 8,350
Going to have to stick it out till next May, but maybe sooner if the UCC backs AMR's stand alone plan and it's accepted by the court leading to chapter 11 exit. Few have any interest in further negotiations with this management, although the APA may posture that, the pilots aren't interested in anything not industry leading now. I think the UCC and AMR are on their own now and the remainder of the BK process should be about legal recourse to the 1113 abrogation.
No hurry now for the pilots as we are where we are. The claim is still valid, although likely greatly reduced, but I'll happily take a 1/3 or 1/2 claim to kick this can past chapter 11. I think AMR will need one more exclusivity extention to put in place their stand alone POR and ensure the UCC is on-board for the crap game of crap games next summer.
Jack was indeed wrong when he told the court a consensual agreement was necessary to exit BK, as that is now all but impossible, so that is now what it is.
No hurry now for the pilots as we are where we are. The claim is still valid, although likely greatly reduced, but I'll happily take a 1/3 or 1/2 claim to kick this can past chapter 11. I think AMR will need one more exclusivity extention to put in place their stand alone POR and ensure the UCC is on-board for the crap game of crap games next summer.
Jack was indeed wrong when he told the court a consensual agreement was necessary to exit BK, as that is now all but impossible, so that is now what it is.
#7
Banned
Joined APC: Jun 2008
Posts: 8,350
I think it is VERY important NOT to roll your B-fund into the JPM 401(k). You will be FAR better off rolling that into a regular or Roth IRA through one of the reputable brokerages like Fidelity or Schwab.
#9
Gets Weekends Off
Joined APC: Dec 2007
Position: Window seat
Posts: 5,185
#10
Gets Weekends Off
Joined APC: Dec 2009
Posts: 129
Plenty of Soup. Just no one is eating it. Not to sure how accurate your 13.5% is. It would be like 17-18% to even out loss of A/B fund.
Last edited by Rider850; 09-13-2012 at 07:33 PM.
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