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- Dec 21, 2002
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Directors Update 03-02-03
American Airlines, Last week we continued to prepare....
March 2, 2003.
To: Local Presidents and Member 501-590.
Re: American Airlines
Last week we continued to prepare for a possible bankruptcy filing by the Company or, in lieu of such a filing, negotiations over our role in reorganization plan to avoid such a filing. To this end, I met with our financial advisors from Eclat to review the additional information needed to complete their analysis of the Company¹s business plan. There are still discrepancies in the plan and the back up information the Company provided to us. Despite this, the analysis will be completed by late next week.
In addition, as part of our preparations for either bankruptcy or pre-bankruptcy bargaining, the ATD staff along with our financial analysts has examined all eight of our contracts and cost out all economic provisions. We have retained two additional attorneys with experience in representing labor unions involved in bankruptcies - one is assigned to the Mechanic and Related Committee and one will be assigned to the Joint Committee. All counsel have advised that such data is necessary to represent our members in any proceeding involving a Company request to the Court to modify our agreements or in any negotiation associated with a potential bankruptcy.
The APA has advised us that they have retained Investment Bankers so they can have reasonable input in any restructuring of the Company. In order to make sure we have the same input we have also retained a group of Investment Bankers and have arranged for them to meet with the group representing the pilots early in the coming week. All experts involved in this process are listed on the website.
There is no doubt that the Company will make its proposals for contractual relief soon. When such proposals are made (and in the event the Company provides a viable business plan) we will bring in the Presidents and the Bargaining Committees to hear and discuss them. AA System Coordinator Gary Yingst has requested each local designate representative for the negotiating committees.
I again want to stress that under normal circumstances we would have no interest in modifying any of our agreements or engaging in any of the activity described above. These are not normal circumstances. The Company is fully prepared to file for bankruptcy to obtain relief from all of its labor agreements as well as its other creditors. If we fail to deal in good faith with American as it attempts to reorganize to avoid bankruptcy, or if we fail to deal in good faith during the negotiations required after a bankruptcy filing, our position before the Court and our ability to resist unfair demands will be deeply prejudiced. This would be an immense disservice to the membership, which we must do everything possible to avoid.
Sincerely and fraternally
James C. Little
Director Air Transport Division
International Administrative Vice President.
American Airlines, Last week we continued to prepare....
March 2, 2003.
To: Local Presidents and Member 501-590.
Re: American Airlines
Last week we continued to prepare for a possible bankruptcy filing by the Company or, in lieu of such a filing, negotiations over our role in reorganization plan to avoid such a filing. To this end, I met with our financial advisors from Eclat to review the additional information needed to complete their analysis of the Company¹s business plan. There are still discrepancies in the plan and the back up information the Company provided to us. Despite this, the analysis will be completed by late next week.
In addition, as part of our preparations for either bankruptcy or pre-bankruptcy bargaining, the ATD staff along with our financial analysts has examined all eight of our contracts and cost out all economic provisions. We have retained two additional attorneys with experience in representing labor unions involved in bankruptcies - one is assigned to the Mechanic and Related Committee and one will be assigned to the Joint Committee. All counsel have advised that such data is necessary to represent our members in any proceeding involving a Company request to the Court to modify our agreements or in any negotiation associated with a potential bankruptcy.
The APA has advised us that they have retained Investment Bankers so they can have reasonable input in any restructuring of the Company. In order to make sure we have the same input we have also retained a group of Investment Bankers and have arranged for them to meet with the group representing the pilots early in the coming week. All experts involved in this process are listed on the website.
There is no doubt that the Company will make its proposals for contractual relief soon. When such proposals are made (and in the event the Company provides a viable business plan) we will bring in the Presidents and the Bargaining Committees to hear and discuss them. AA System Coordinator Gary Yingst has requested each local designate representative for the negotiating committees.
I again want to stress that under normal circumstances we would have no interest in modifying any of our agreements or engaging in any of the activity described above. These are not normal circumstances. The Company is fully prepared to file for bankruptcy to obtain relief from all of its labor agreements as well as its other creditors. If we fail to deal in good faith with American as it attempts to reorganize to avoid bankruptcy, or if we fail to deal in good faith during the negotiations required after a bankruptcy filing, our position before the Court and our ability to resist unfair demands will be deeply prejudiced. This would be an immense disservice to the membership, which we must do everything possible to avoid.
Sincerely and fraternally
James C. Little
Director Air Transport Division
International Administrative Vice President.
