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Bloomberg: Some AMR debtholders are conducting their own review of merger

Bloomberg is reporting that some AMR debtholders "are organizing outside its unsecured creditors committee to determine whether the bankrupt company or potential suitor US Airways Group Inc. (LCC) can offer the best return," quoting "people familiar with the matter."

Here's a link to the story.


Publ.Date : Mon, 21 May 2012 19:22:55 +0000

Judge makes clear: 2003 is not relevant in bankruptcy case

American Airlines employees took a battering in 2003 when the airline secured major concessions from the unions and non-unionized employees, and the unions have brought up those employee sacrifices in bankruptcy court.

However, U.S. Bankruptcy Judge Sean Lane has made clear that what happened then doesn't affect American's current efforts to reject its labor contracts or the unions' efforts to fight American's motion.

Once again on Monday, Judge Lane interrupted testimony to point out that 2003 has historical significance, but no relevance to what is happening in the American bankruptcy case or American's current motion under Section 1113 of the bankruptcy code to reject the labor contracts.

"I'm having trouble again understanding why we're getting into this level of detail," Judge Lane told TWU counsel Paul Kizel as Kizel was questioning Don Videtich, a TWU international representative, about TWU's experience at American since 2001.

The judge wondered why the question of Videtich covered events in 2001, 2003, 2009 and 2011. "I'm trying to figure out the relevance before we go down a rabbit hole," Judge Lane said.

The judge had used the rabbit-hole reference last Thursday as Association of Professional Flight Attendants counsel Rob Clayman was trying to illustrate the sacrifices that flight attendants had made compared to other stakeholders like creditors.

"So you're asking me as a legal matter that in my 1113 analysis I have to go back to 2003 when measuring the sacrifice and how it should be shared equally? If that's your argument, I explicitly reject it," the judge told Clayman.

Clayman made a fresh effort to convince the judge that he should consider the relative sacrifices given up by employees - a lot - and that of creditors - little or nothing - as the judge considered whether American was treating employees fairly and equitably.

But the judge reiterated that he's not going to go back to 2003 as he looks at the case:

"I think that's the same argument you just made because you're asking me by using the words give up, you're asking me to use 2003 as the baseline and you're asking me then historically go back and look at all stakeholders from 2003.

"And I understand what I have is the bankruptcy. ... I'm not saying that 2003 is not relevant historically speaking, as a general matter. But what I'm saying is when you begin to provide deltas of here's what our numbers are, here's where our sacrifices are and begin to make that explicit argument, I just think it's untenable. I don't think it's what I'm supposed to be doing.

"I don't know anything in the case law where I'm asked to look at that delta going back almost a decade and how I'm supposed to figure that out, and how that would be any different than in analyzing the industry standard going back more than a decade, what were they doing at United, what were they doing at Delta, what were they doing at Northwest."

After complimenting the parties for pretty much staying on track, Judge Lane added: "What I'm trying to do is not give people false hope about what I want to be hearing about, what really the case is before. And since we went down this rabbit hole today, I'm just telling you I do not believe that 2003 is an appropriate baseline."


Publ.Date : Mon, 21 May 2012 18:28:39 +0000

Sentimental flight
My journey back to Sporty?s for their annual fly-in May 19 was a special one. I soloed and earned my recreational pilot certificate there almost 12 years ago, and I had been back a couple of times over the (yikes) decade. This flight was sentimental because my dad was flying with me. On the way [...]
Publ.Date : Mon, 21 May 2012 18:18:43 +0000

Museum wins grant

The International Women?s Air & Space Museum (IWASM) has received funding from the Wolf Aviation Fund for the conservation treatment of an Eric Sloane oil portrait of award winning balloonist Constance Wolf. During her lifetime, Constance Wolf (1905-1994) was the first woman to cross the Alps in a balloon and… Read More


Publ.Date : Mon, 21 May 2012 17:28:36 +0000

Coalition establishes Aviation Educator Hall of Fame

A group of more than 20 aviation organizations and individuals recently established the Aviation Educator Hall of Fame (AEHOF). According to the new organization’s charter, AEHOF’s purpose is twofold: The selection and recognition of qualified nominees who, through extraordinary achievement and service of either a sustained or a one-time nature,… Read More


Publ.Date : Mon, 21 May 2012 17:13:48 +0000


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