Management ready for more negotiations with pilots

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http://www.bizjournals.com/dallas/news/2012/09/19/american-airlines-says-its-ready-for.html

American Airlines says it's ready for more negotiations as pilots fume

Dallas Business Journal by Matt Joyce, Staff Writer
Date: Wednesday, September 19, 2012, 4:52pm CDT

Matt Joyce
Staff Writer- Dallas Business Journal

American Airlines said Wednesday that it’s ready to recommence negotiations with the Allied Pilots Association, as the pilots union fumes over the airline’s implementation of new cost-cutting terms.
Last week, the judge in the American Airlines bankruptcy case approved the Fort Worth-based carrier’s motion to throw out its pilots’ contract and implement new terms that provide lower costs and more work flexibility. The airline pursued the motion after APA members rejected a tentative contract agreement.
“We remain committed to reaching a consensual deal with the APA and stand ready to begin negotiations as soon as APA is prepared to do so,” American spokesman Bruce Hicks said Wednesday.
APA President Keith Wilson, who assumed his position after the ratification vote failed, told union members in a letter Tuesday that he’s in Washington, D.C., this week to make the case that American is overreaching with its new terms for pilots.
“I will be posing a related question in my meetings with the various policymakers and stakeholders:‘Is this any way to run an airline?’” Wilson said.
Wilson said the the APA Board of Directors was meeting in Chicago this week to evaluate their alternatives. Last week, the board called for strike authorization balloting. Results are expected Oct. 3.
Meanwhile, American Airlines this week trimmed its flight schedule through October, partly to account for the number of pilots calling in sick. The APA said the shortage is not an organized effort on their part.
Hicks said Wednesday that the airline’s implementation plan was “thoughtfully and methodically developed, ensuring changes to pilots’ terms and conditions of employment are in line with the cost savings Judge Lane agreed the company needed in order to successfully restructure.”
 
UPDATE 1-AMR bondholders demand payment, say planes neglected

Wed Sep 19, 2012 5:41pm EDT

By Nick Brown

(Reuters) - Holders of $450 million in American Airlines bonds plan to ask a U.S. bankruptcy judge for an order to help ensure they get paid, claiming that the 143 planes that are collateral for their investment could lose too much value.

The bondholders' agent, U.S. Bank, is expected to argue at a Thursday hearing in U.S. Bankruptcy Court in Manhattan that the airline unit of AMR Corp has neglected its planes, and failed to make hundreds of repairs.

They fear that this and other costs could force the value of the planes to sink too low to cover the bonds.

The value "will continue to erode as a result of the costs to insure, store, ferry, market and sell the aircraft," U.S. Bank said in court papers.

Most of the planes are older-model aircraft, including Boeing 757s and MD-82s and MD-83s made by McDonnell Douglas. Payment on the bonds is due Oct. 15.

Sean Collins, a spokesman for American Airlines, on Wednesday disputed the bank's claim, saying there has been "no change in American Airlines' maintenance policies and procedures that would impact the value of the aircraft."

I wasn't sure where to post this since there are pages of gloom and doom threads to choose from.