2.09.12 – (LAA) – APFA Negotiating Table Team Began Meeting with NMB

Bankruptcy Update

February 9, 2012

The APFA Negotiating Table Team began today’s meeting with the National Mediation Board (NMB). “Later in the day, the session included the company where the first order of business was to discuss protocol for the meetings.

Next up APFA asked many questions pertaining to the company’s term sheet proposed last week. And additional information was requested.

Tomorrow we will meet with the NMB and the company for a presentation by the company on their Pension, Benefits and Sick proposals.

At the request of the NMB, both parties agreed to an initial 10 days of meetings.† We will begin next week on Wednesday February 15 through Friday February 24.

Next week we plan to begin these meetings going over each tentatively agreed to article that was achieved during the last almost three years of negotiations. In addition, we intend to present to the company our Early-Out Proposal.

As we have mentioned in previous communications, the Bankruptcy code does not impose any timetable for these negotiations. Only when negotiations are exhausted, and the company files a section 1113 motion with the court to reject our collective bargaining agreement, is a time limit imposed.

The first deadline is that the Court has to schedule a hearing on the motion within 14-21 days after the motion is filed or longer if the parties agree. In addition the court is required to make a decision on the Section 1113 motion within thirty days from the start of the hearing. This deadline can also be extended if the parties agree.