The pilots union said the bankruptcy judge should look at more than just furlough policies and code-sharing agreements at a hearing on the pilots' contract scheduled for Tuesday.
The argument that the court should consider more evidence was made by the Allied Pilots Association in a filing on Thursday. The APA was responding to American Airlines' request that the bankruptcy judge only consider the two areas where the judge deemed the carrier overstepped in its term sheets.
"To the extent that the Company’s August 16 proposal re-promulgates old Term Sheet demands from the first Section 1113 proceeding, the Court’s inquiry should focus on whether any of the facts the Court relied on in its first Decision have changed so as to warrant a different conclusion with respect to particular modifications sought in the Company’s New Application. Toward that end, APA will identify critical changes in the Company’s business strategy and labor concession targets, as well as significant developments in the industry, between May 25, 2012 and August 17, 2012, the filing date of American’s New Application. Those changes require updated analysis in the context of American’s New Application," the APA filing said.
American has asked the court to reject its pilots contract and allow it to impose concessionary work rules that are necessary for the company to restructure while in bankruptcy. On August 15, the judge ruled that American could not reject its pilot contract because it did not prove it was necessary to expand codesharing with other domestic airlines and change pilot furlough protections as part of its restructuring plan.
“Our focus right now is on moving forward with the process clearly delineated in Judge Lane’s decision, in which he identified only two areas – pilot furlough protection and codesharing – that needed to be modified before renewing our 1113 motion. Our revised term sheet withdrew the company’s prior proposal to change pilot furlough protections, leaving the current contract terms in place, and proposed substantially less codesharing," said American spokesman Bruce Hicks.
He added, “we maintain that the changes outlined in our term sheet are necessary for our successful restructuring, and will help us reach our goal toward emerging as a stronger company. If the Court approves the rejection of the contract, we will begin to implement the terms from the term sheet that will enable us to achieve our necessary cost savings and continue moving forward toward a successful restructuring.”