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August 31, 2012

Unsecured creditors committee supports American's request to limit Tuesday's hearing to two items

The Unsecured Creditors Committee said it agrees with American Airlines' request to limit Tuesday's court hearing on the pilots contract to only consider two items.

In a filing made on Friday, the committee said that it continues to support American's motion to have its pilot contract rejected by the bankruptcy court as concessionary work rules are necessary to help the carrier restructure successfully.

"The Committee's view is that the Debtors' judgment to pursue the Renewed Section 1113 Motion is sound, and that, absent a prompt consensual agreement, abrogation of the APA CBA is necessary to the Debtors' successful reorganization so that the Debtors can validate the assumptions in their stand-alone business plan, move forward to expeditiously compare that plan to available strategic alternatives, and implement the agreements American has already reached to modify eight of its nine CBAs," the filing said.

American and the Allied Pilots Association are scheduled for a 1 p.m. hearing on Tuesday to discuss American's refiled motion to reject its pilot contracts.

"We appreciate the confidence shown by the Unsecured Creditors’ Committee as we move through the 1113 process with our pilots. With all eight of our other agreements in place with the TWU and the APFA, changes for our independent employees underway and the completion of the management and support staff redesign, we need to move forward with our restructuring and returning American to industry leadership," said American spokesman Bruce Hicks.

-Andrea Ahles

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