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DOJ Lawsuit & Settlement Archives

 

DOJ Merger Settlement

AMR Corporation and US Airways Settlement Conference Transcript – 11.13.13
A Message from Laura Glading, APFA President – 11.12.13
Press Release: American’s Flight Attendants Celebrate Settlement Announcement – 11.12.13
AMR Corporation and US Airways Announce Settlement with U.S. Department of Justice and State Attorneys General – 11.12.13
Merger Settlement Letter to Employees – 11.12.13
Merger Settlement Q&As for Employees – 11.12.13
Merger Settlement Talking Points – 11.12.13
DOJ Competitive Impact Statement – 11.12.13
DOJ Settlement Press Release – 11.12.13

 AA/US Antitrust Trial Date Set: November 25, 2013

IMPORTANT
 
  • ACTION ALERT: Contact Congress and ask them to support the merger through APFA’s online CapWiz tool.
  • To receive the most up-to-date information about the AA Bankruptcy, US Airways/AA Merger, and DOJ Antitrust Lawsuit, subscribe to our list.

Calendar

Dates and Deadlines by AA/US and DOJ in Antitrust Lawsuit:
September 30, 2013 – Exchange of Preliminary Witness Lists
October 1, 2013 – Status Hearing
October 25, 2013 – Close of Fact Discovery
October 30, 2013 – Deadline for Requests for Admissions to be Served
November 8, 2013 – AA/US Expert Disclosures
November 15, 2013 – Supplemental and/or Rebuttal Expert reports
November 20, 2013 – Close of Expert Discovery
November 21, 2013 – Pretrial Conference scheduled
November 25, 2013 – Antitrust trial begins in Judge Colleen Kollar-Kotelly’s courtroom
December 16-17, 2013 – Testimony projected to end
January 6, 2014 – Closing arguments due
January 10 Judge’s target date to issue decision

DOJ Trial Date Motions and Communication

DOJ Litigation News

APFA Special Hotline
 

APFA Special Hotline – November 2, 2013

Let Congress Know Whose Side You’re On
So far, 183 members of Congress, 26 local state and local chambers of commerce, 8 mayors of major cities we serve and 100,000 employees are among the entities in support of the merger between American Airlines and US Airways. Please take a few moments to visit APFA’s Capwiz site or the New American Arriving site and contact your Senators and Representative. Tell them the DOJ got this one wrong!

Here are a few of the interesting articles relating to our merger this week:

Over the past several weeks, we’ve seen an unprecedented amount of outside support for this merger. For details and a calendar on the court proceedings scheduled to begin November 25th, click here.

 

APFA Hotline – Merger Update – November 1, 2013

FT WORTH, TX (November 1, 2013) – As lawyers for American Airlines and US Airways prepare for the antitrust trial set to begin on November 25, the Association of Professional Flight Attendants is welcoming and encouraging an outpouring of support for the carriers’ proposed merger. In recent days, Oneworld Alliance, numerous chambers of commerce, airport authorities of many of the two airlines’ hubs, Attorney General Pruitt of Oklahoma, and the unsecured creditors’ committee of the AMR bankruptcy have asked permission to file “friend of the court” (amicus) briefs in support of the airlines’ case. Additionally, the mayors of six hub cities have voiced their support of the merger in a letter to the Justice Department.

“I’m not surprised by all the people and the entities we’ve heard from recently,” said APFA President Laura Glading. “Getting behind this merger is a no-brainer. Everyone is on board because everyone – consumers, employees, communities – stands to benefit. The Justice Department is the only place where you find skeptics.”

Unions were among the first groups to support the merger both in public and court. APFA, along with Allied Pilots Association, Association of Flight Attendants-CWA, Communications Workers of America, and Transport Workers Union will file a “friend of the court” brief.

The airport authorities supporting the merger include: CLT, DFW, PHL, and PHX.

A letter of support was signed by the mayors of Charlotte, Chicago, Dallas, Philadelphia, Phoenix, and Miami.

Finally, 68 Democratic members of Congress, led by Reps. Marc Veasey of Texas and Ed Pastor of Arizona, signed a letter in support of the merger to President Obama.

APFA Hotline – Merger Update – October 31, 2013

FT WORTH, TX (October 31, 2013) – As lawyers for American Airlines and US Airways prepare for the antitrust trial set to begin on November 25, the Association of Professional Flight Attendants is welcoming and encouraging an outpouring of support for the carriers’ proposed merger. In recent days, Oneworld Alliance, numerous chambers of commerce, airport authorities of many of the two airlines’ hubs, Attorney General Pruitt of Oklahoma, and the unsecured creditors’ committee of the AMR bankruptcy have asked permission to file “friend of the court” (amicus) briefs in support of the airlines’ case. Additionally, the mayors of six hub cities have voiced their support of the merger in a letter to the Justice Department.

“I’m not surprised by all the people and the entities we’ve heard from recently,” said APFA President Laura Glading. “Getting behind this merger is a no-brainer. Everyone is on board because everyone – consumers, employees, communities – stands to benefit. The Justice Department is the only place where you find skeptics.”

Unions were among the first groups to support the merger both in public and court. APFA, along with Allied Pilots Association, Association of Flight Attendants-CWA, Communications Workers of America, and Transport Workers Union will file a “friend of the court” brief.

The airport authorities supporting the merger include: CLT, DFW, PHL, and PHX.

A letter of support was signed by the mayors of Charlotte, Chicago, Dallas, Philadelphia, Phoenix, and Miami.

Finally, 68 Democratic members of Congress, led by Reps. Marc Veasey of Texas and Ed Pastor of Arizona, signed a letter in support of the merger to President Obama.

APFA Hotline – Merger Update – October 25, 2013

Just Do It
As the antitrust trial approaches, it is vital that we continue to make our voices heard. The new American has a bright future under the current Plan of Reorganization. The alternative to a successful merger is many more months spent in bankruptcy while current management creates a new Plan of Reorganization.

Please contact Congress now and tell them:

* Thousands of jobs are at stake;
* A merger between American Airlines and US Airways is the only path to success for these two companies;
* The new American will provide more choices and better service for our passengers;
* Our employer needs to be able to compete with Delta and United.

Every letter that is sent via Capwiz is logged into the recipient’s database. The more messages we generate, the more notice your representatives in Congress will take.

Click here to act now.

For a thorough accounting of the DOJ case including documents filed and news surrounding the antitrust suit, click here.

APFA Hotline – Merger Update – October 18, 2013

AA Bankruptcy / AA-US Antitrust Lawsuit Update
American and US Airways along with the DOJ made a joint submission yesterday to the Court outlining proposed procedures for the antitrust trial. The parties are mostly in agreement, including on the following dates. The parties agreed to file pre-trial briefs, limited to 50 pages, on November 15. The trial is scheduled to be held on November 25-27, December 2-6, 9-10, 13, and, if necessary, 16-20. The parties agreed to file proposed findings of fact and conclusions of law five days after the last day of the trial. Closing arguments are planned for January 6, 2014.

The parties also agreed to various procedures regarding the exchange of information before the trial, the marking of confidential information, and how witness testimony will be taken. The parties could not agree on two issues. The airlines requested a limit of 400 exhibits while the government requested a limit of 800. The airlines also requested a limit of 30 hours for each side to examine witnesses while the government opposed any limit. The Court should be expected to enter an order shortly resolving those two issues and approving the agreed upon procedures and schedule.

Notice of Lodging of Joint Proposed Trial Procedures Order – 10.17.13
Proposed Trial Procedures Order

Below are some of the news articles published this week and posted on the Merger page at www.apfa.org.
• American Airlines posts third quarter profit (USA Today) – 10.17.13
• American, US Airways won’t challenge ruling in merger lawsuit (Associated Press) – 10.15.13
• American, US Airways won’t appeal ruling on documents, names (Dallas Business Journal) – 10.15.13
• American, US Airways decides not to appeal ruling on DOJ documents (Fort Worth Star-Telegram) – 10.14.13
• Government Shutdown Slows Wheels of Justice (NBC Philadelphia) – 10.14.13

APFA Hotline – Merger Update – October 11, 2013

Merger Update
On Thursday, Special Master Richard Levie (appointed by Judge Kollar-Kotelly to assist in the expedition of the case) issued two rulings regarding discovery disputes. While they are only recommendations, they will likely be adopted by Judge Colleen Kollar-Kotelly. In the first dispute, American and US Airways sought various documents from the DOJ regarding its investigation and approval of other recent airline mergers. The Special Master ruled that, with one exception, the documents were privileged and did not have to be produced. In the second dispute, American and US Airways sought the names of everyone who the DOJ interviewed during its investigation of the challenged American-US Airways merger. The Special Master ruled this information was privileged and did not have to be produced under the work-product doctrine, which protects material prepared in anticipation of litigation or for trial.

Also this week, the TWU’s request to be an intervener in support of the airlines in the DOJ’s lawsuit was opposed by US Airways and AA and denied by the judge. The parties cited the possible delay of prompt resolution to this case if TWU were granted its amended motion. TWU agreed and requested to appear as “amicus curiae.” Click here to read more.

Below are some of the articles published this week and posted on the Merger page at www.apfa.org.

AMR-US Airways Merger Suffers New Setbacks (Wall Street Journal) – 10.10.13
Why airline mergers are inevitable (Reuters) – 10.09.13
Judge tells TWU it can be a friend of the court, but not an intervenor in American Airlines-US Airways case (Dallas Morning News) – 10.09.13
Early Turbulence Won’t Ground DOJ’s Airline Merger Fight (Law360) – 10.08.13
Airlines Fight TWU Bid to Join Merger Suit as Threat to Case (Bloomberg) – 10.08.13
Will More State AGs Drop Their Opposition to the Airline Merger? (Motley Fool) – 10.07.13
American unions continue to pressure state AGs to drop out of antitrust lawsuit (Fort Worth Star-Telegram) – 10.07.13

For more information on the merger, click here.

APFA Hotline – Merger Update – October 4, 2013

Merger Update
APFA President Laura Glading along with LAX-I Base Chair David Ransom and Beth Kilcran, APFA Division Representative met with Arizona Attorney General Tom Horne on Thursday in his office. General Horne was generous with his time and seemed genuinely interested in what we had to say. He requested we forward follow-up information to support the fact that AA and US Airways cannot compete against Delta and United as standalone companies and we are in the process of providing that information to him.

On the heels of the TX State Attorney General Greg Abbott’s withdrawal of support in the DOJ’s lawsuit, APFA has issued two press releases in as many days demanding that the Attorneys General from Virginia and Florida follow suit. We will continue to pressure the participants of this lawsuit in our continued efforts to see this merger through to completion.

Click on the links below to read some of the latest news regarding the antitrust case:

APFA Press Release: AA Flight Attendants Demand Florida AG Withdraw From Merger Lawsuit – 10.04.13
APFA Press Release: AA Flight Attendants Demand Virginia Att’y General Withdraw from Merger Suit – 10.03.13
Arizona AG Remains Firm on Antitrust Lawsuit; While AA FA Try To Budge Virginia’s AG – 10.03.13
Live video with clips of Abbott and Horton; interview with Julie Frederick and APA VP Neil Roghair (CBS 11 News, Dallas) – 10.01.13
Texas Attorney General drops out of AA merger lawsuit (USA Today) – 10.01.13
Texas Drops Opposition to AMR-US Airways Merger (The Wall Street Journal) – 10.01.13
AMR Judge Issues Order Denying U.S. Request for Halt to Case (Bloomberg) – 10.01.13

For an extensive summary of the ongoings with the DOJ case, click here.

APFA Press Release- AA Flight Attendants Demand Florida AG Withdraw From Merger Lawsuit- 10.04.13

FOR IMMEDIATE RELEASE

EULESS, TEXAS (October 4, 2013) – In the wake of Tuesday’s announcement by Texas Attorney General Greg Abbott that he would withdraw from the lawsuit to block the merger of American Airlines and US Airways, the flight attendants at American are calling on Pam Bondi and attorneys general from five other states to do the same.

“Florida, particularly South Florida, is home to about 2,500 American flight attendants that are in need of good wages and long term job security, but General Bondi is standing in the way of that,” said APFA President Laura Glading. “Pam Bondi’s participation in the Justice Department’s antitrust lawsuit demonstrates a lack of understanding of what the merger means for her constituents. Everyone – business travelers, tourists, and airline employees – stand to benefit from the new American. We were able to explain that to General Abbott in Texas and we’d like to do the same in Florida.”

Unable to compete with United and Delta, which had recently merged with Continental and Northwest, respectively, American Airlines was forced into Chapter 11 bankruptcy in November of 2011. It is clear that in order for American to be competitive, it needs to merge with US Airways. The merger plan has had the strong support of employees at both companies since its inception. Unfortunately, the US Department of Justice and attorneys general from seven states and the District of Columbia filed an eleventh-hour lawsuit to block the merger in August of this year.

The new American Airlines will offer consumers more destinations and a better product. It will also give flyers a third choice – in addition to Delta and United – for their travel needs. Finally, the merger will provide much-needed job security for approximately 100,000 employees nationwide, 11,650 of whom live in Florida.

Last week, members of Florida’s congressional delegation sent a letter to General Bondi urging her to support the merger. The letter was authored by Rep. Alcee Hastings and signed by Reps. Debbie Wasserman Schultz, Ted Deutch, Lois Frankle, Frederica Wilson, Joe Garcia, and Patrick E. Murphy.

 

APFA Hotline Update – AA Flight Attendants Demand Virginia Att’y General Withdraw from Merger Suit- 10.03.13

On Monday, APFA received a private briefing from the Federal Aviation Administration (FAA) prior to the Advisory Committee submitting their report on the expanded use of personal electronic devices (PED).

In January 2013, the FAA established the Aviation Rulemaking Committee (ARC) for Portable Electronic Devices. The FAA Administrator has jurisdiction and authority under Title 49 to review the policy. The PED ARC was charged with making recommendations to further clarify and provide guidance on allowing expanded use of PEDs without compromising the continued safe operation of the aircraft.

Under current FAA regulation, the aircraft operator is responsible for determining which PEDs may be used and when.

It was 1966, nearly five decades ago, that the Federal Aviation Administration (FAA) first published regulations to address the issue regarding the use of portable electronic devices (PED) on aircraft. PEDs have changed considerably in the past few decades. Since the initial rule making, the FAA has led four industry activities to study PEDs as they have evolved.

FAA Administrator Michael Huerta will make the final decision on the revised rules. APFA understands that the responsibility for enforcing an aircraft operators’ PED policy typically falls on the Flight Attendants. We remain actively engaged in the review of any changes that may result to our procedures.

When the FAA implements any changes to the current PED regulation, APFA’s Safety and Security Department will work closely with Flight Service on the necessary changes to our current procedures regarding PED use while on board the aircraft. We will ensure that all Flight Attendants receive the proper guidance and support needed while monitoring any new PED FAA regulation and the approved use of certain items during all phases of flight. Until any policy changes have been made and implemented, all Flight Attendants should continue to follow the current PED policy.

APFA Press Relase – AA Flight Attendants Demand Virginia Att’y General Withdraw from Merger Suit- 10.03.13

FOR IMMEDIATE RELEASE FORT WORTH, TEXAS (October 3, 2013) – In the wake of Tuesday’s announcement by Texas Attorney General Greg Abbott that he would withdraw from the lawsuit to block the merger of American Airlines and US Airways, the flight attendants at American are calling on Ken Cuccinelli to do the same.

“Anyone standing in the way of the merger is also standing in the way of hard-working Virginians. Ken Cuccinelli is trying to kill this deal at the expense of thousands of airline workers in his state,” said APFA President Laura Glading. “The antitrust suit is wrong both as a matter of fact and a matter of policy and I’m not sure why he joined it in the first place. I’m sure that if he had he discussed it with employees beforehand and given it more careful consideration he would have arrived at a different decision. On behalf of Virginia’s flight attendants and their families, I’m calling on General Cuccinelli to rectify his mistake.”

Unable to compete with United and Delta, which had recently merged with Continental and Northwest, respectively, American Airlines was forced into Chapter 11 bankruptcy in November of 2011. It was clear that in order for American to be competitive, it needed to merge with US Airways. The merger plan has had the strong support of employees at both companies since its inception. Unfortunately, the US Department of Justice and attorneys general from seven states and the District of Columbia filed an eleventh-hour lawsuit to block the merger in August of this year.

The new American Airlines will offer consumers more destinations and a better product. It will also give flyers a third choice – in addition to Delta and United – for their travel needs. The merger will also provide job security for approximately 100,000 employees nationwide, many of whom live in Virginia.

“There are thousands of Virginians depending on this merger. For them, finalizing the deal could mean the difference between good middle class job security and layoffs,” Glading said. “General Cuccinelli should welcome the new American, not stand in the way.”

 
APFA Hotline Update – TX AG Withdraws from Antitrust Suit, Government Shutdown, DOJ Lawsuit Update – 10.01.13

TEXAS AG WITHDRAWS FROM ANTITRUST SUIT
In a press conference at DFW today, Texas Attorney General Greg Abbott announced that he would withdraw from the antitrust suit to block the American-US Airways merger. General Abbott’s decision comes after six weeks of sustained pressure from Flight Attendants and other employees. APFA thanks General Abbott for his thoughtful new stance as well as the many federal, state, and local elected leaders that support the merger. In a statement issued just after the announcement, APFA President Laura Glading said, “The tide is turning. Flight Attendants and our colleagues are getting the facts out there and we’re changing minds.” APFA will continue to apply pressure in other states whose attorneys general remain on the suit, including: Arizona, Florida, Pennsylvania, Michigan, Tennessee, and Virginia.

GOVERNMENT SHUTDOWN
Today was day one of the much-anticipated government shutdown. As of today, at least 800,000 government employees are on furlough. Among the personnel that are affected are some working at the FAA, TSA, Department of Labor, NMB, Department of Justice, and federal courts. The shutdown is the result of political brinksmanship in Congress, where House Republicans have tried to attach a measure to defund the Affordable Care Act to legislation to fund the government. APFA has initiated a CapWiz to assist Flight Attendants in contacting their representatives in Congress to demand an end to the shutdown. Click here to participate.

UPDATE FROM ANTITRUST COURT
APFA is pleased to report that the Court in the DOJ antitrust lawsuit today ruled that the case will proceed on its expedited schedule despite the government shutdown. Early this morning, the DOJ had filed a motion to stay the case because of the lapse in appropriations. This afternoon, however, the Court denied the motion, highlighting that “particularly employees” of both American and US Airways have a “vested interest in the adjudication of this case without delay.”

The Court also held a Status Hearing to address procedural and scheduling matters. The parties agreed that by no later than October 15, 2013, they will submit a report to the Court governing various trial-related dates and procedures. The Court also scheduled another Status Hearing for October 28, 2013. Finally, the Court scheduled a Pre-Trial Conference for November 21, 2013.

APFA Hotline – AA Flight Attendants Applaud Texas State Attorney General’s Announcement- 10.01.13

In a press conference this afternoon, Texas Attorney General Greg Abbott announced that he would withdraw his support of the antitrust lawsuit seeking to block the merger of American Airlines and US Airways. Texas is one of seven states and the District of Columbia that joined the US Department of Justice in its eleventh-hour lawsuit against the merger, filed in August. The trial is set to begin on November 25.

“I applaud General Abbott for deciding to do what’s right for his constituents,” said Association of Professional Flight Attendants president Laura Glading. “We have over 3,500 flight attendants living in Texas and I’d venture to say the AG’s office heard from every one of them over the past two months. I’m proud of our efforts. Now on to the other six [states].”

Working in concert with other labor organizations at both carriers, APFA has mounted an aggressive campaign to convince the attorneys general supporting the lawsuit to reverse course. With Greg Abbott backing off, the focus will now be on Pam Bondi (FL), Robert Cooper (TN), Ken Cuccinelli (VA), Tom Horne (AZ), Kathleen Kane (PA), Irvin Nathan (DC), and Bill Schuette (MI).

“The tide is turning,” Glading said. “Flight attendants and our colleagues are getting the facts out there and we’re changing minds. The merger is good for consumers, it’s good for the companies, and it’s good for competition.”

APFA Hotline Update – Merger News- 9.27.13

 
Merger News
Over the past week, AA and US have asked the DOJ to produce documents in a motion to compel filed with the court pertaining to the airline mergers that were previously approved. The two airlines also asked the DOJ to identify all the people they interviewed leading up to their decision that brought about this lawsuit as well as what those individuals said.

The DOJ, in its response, stated that the information they sought prior to the filing of the lawsuit against this merger is privileged and a work product. AA and US provided a short response and the motions to compel are now in the hands of the court-appointed Special Master Richard Levie. We should receive a response in the next week or so.

Please click here for a complete history of the DOJ filing. Below are the most recent news articles pertaining to the merger and antitrust lawsuit:
Growth at Emirates Airlines Shows Need for US Airways/AA Merger (The Street) – 9.27.13
Justice officials: We don’t have to give up names to US Airways, American Airlines (Dallas Morning News) – 9.26.13
EU issues report on why it approved the US Airways-American Airlines merger (Dallas Morning News) – 9.25.13
American Airlines, US Airways discuss decision to extend merger’s fish-or-cut-bait deadline (Dallas Morning News) – 9.25.13
American Airlines, US Airways want names of people interviewed before antitrust lawsuit (Dallas Morning News) – 9.24.13

 

APFA Hotline Update – More Motions Filed in Antitrust Case – 9.24.13

On last Friday’s hotline, we reported the filing of AA and US Airways’ motion to compel the DOJ to comply with requests for discovery. In a civil case such as this antitrust litigation, the parties have the right to ask the opposing side for information regarding the claims and defenses that have been asserted in the lawsuit. This process is referred to as discovery and most typically takes the form of requests for information and documents.

Today, the airlines filed a second motion to compel; this time asking the court to require the DOJ to identify the third parties it interviewed prior to filing its lawsuit and to describe the content of those interviews. AA and US Airways argue the following:

“In preparing their case, Plaintiffs had the advantage of months of pre-filing investigation, including conducting numerous third-party interviews. Having chosen to file suit, Plaintiffs cannot now withhold the revenant facts they learned from those third-parties. Absent an order directing Plaintiffs to answer [this Interrogatory] in full, those facts – some of which may undercut the Plaintiff’s claims and support the merger – will remain locked away in the Plaintiffs’ files, a result directly at odds with the fundamental purpose of civil discovery.”

Earlier this month the court appointed magistrate Richard A. Levie as Special Master to resolve discovery disputes such as these. It is expected that he will rule on the motions very shortly.

Finally, yesterday, AMR and US Airways agreed to extend the date on which either AMR or US Airways may terminate their Merger Agreement. The original date was December 17, 2013.

It will now be either January 18, 2014, or (if the Court enters an order on or before January 17, 2014 in favor of American and US Airways) on the 15th day following the entry of such order. For example, if a favorable ruling is issued on January 10, the deadline would be January 25.

In the event of an unfavorable ruling by the Court, AMR or US Airways may terminate the merger agreement five days after the Court enters a final, but appealable, order permanently enjoining the merger.

APFA Hotline – AA/US Airways Merger News – 9.20.13

Today, legal counsel for AA/US Airways in the antitrust lawsuit filed a motion with the court seeking DOJ documents from past mergers. Despite previous requests for specifics on the four previous successful airline mergers, the DOJ has not been forthcoming. To read the Motion, click here:

A particularly interesting article from McClatchey sums up the Motion in detail:
“American Airlines and US Airways want the Justice Department to explain why it approved four previous mergers but filed an antitrust suit to block theirs.
The airlines sought in a federal court filing Friday to force DOJ to turn over documents related to those mergers. In the 111-page motion, the airlines accused the government of “a dramatic change in its view of consolidation.”

American and US Airways also wondered, incredulously, why the Justice Department considered the documents in the previous four mergers “off-limits” in the current case.
“DOJ seeks to prevent Defendants from learning the facts on which it approved the other four mergers,” the motion said.

The government filed suit last month against the $11 billion deal, which would create the world’s largest airline. The case is scheduled to go to trial in federal district court in Washington in late November.

An excerpt from the motion:

“Over the past eight years, DOJ has approved four airline mergers similar to the one at issue here. Each time, DOJ issued press releases explaining that, after careful consideration, it had determined that the merger would enhance competition in the airline industry and benefit the traveling public.

“Those mergers—the 2005 US Airways-America West Airlines merger, the 2008 Delta Air Lines-Northwest Airlines merger, the 2010 United Airlines-Continental Airlines merger, and the 2011 Southwest Airlines-AirTran merger—spurred competition and allowed United and Delta to create broad airline networks with global reach.

“But in the Amended Complaint, DOJ alleges that those mergers “hurt passengers” and that the American Airlines-US Airways merger would exacerbate the harm caused by the previous mergers.

“Even more remarkable than DOJ’s abrupt and unexplained reversal is the fact that it contends that the dramatic change in its view of consolidation in the airline industry is off-limits in the discovery process here. DOJ seeks to prevent Defendants from learning the facts on which it approved the other four mergers.

“But DOJ cannot assert that the American-US Airways merger should be blocked because it could cause the same results as the prior mergers, and, at the same time, contend that those mergers have no relevance here. Plaintiffs raised this line of inquiry themselves, and the discovery sought will be used to demonstrate that this merger offers significant procompetitive benefits. Accordingly, Plaintiffs should be compelled to provide the requested discovery.”

Below are some of the most recent news articles this week.
AMR, US Airways Seek Records on Past Airline Merger Approvals (Bloomberg) – 9.20.13
Papers, please: Airlines demand documents from Justice Department (McClatchey) – 9.20.13
IATA DG weighs in on DOJ AA/US merger lawsuit (ATWonline) – 9.20.13
US Airways/American Workers’ Merger Blitz Is Unique, Expert Says (The Street) – 9.20.13
AA US Airways employees lobby in DC for merger (Ft. Worth Star Telegram) – 9.19.13
AMR-US Airways Unions Meet U.S. Official on Merger Suit (Bloomberg Businessweek) – 9.18.13
US Airways, American Airlines looking for merger support on Capitol Hill (Charlotte Business Journal) – 9.17.13
DOJ Airline Lawsuit Is Much Ado About Nothing (The Motley Fool) – 9.16.13

To review documents and news related to the AA/US Airways merger, click here
To reach out to your Senators, Representative and the U.S. Attorney General, click here.

Merger Fly-In
This week, APFA members and union leaders along with APA, TWU and US Airways’ unions and employees took to Capitol Hill to meet with Congressional leaders and voice our support for the merger. The message, “Let us compete, together” was shared in more than 300 different meetings in House and Senate offices throughout both days.

While in Washington, APFA President Laura Glading, along with presidents from several other unions, met with Assistant Attorney General William Baer, head of the Justice Department’s antitrust division. Laura reiterated to the Ass’t AG that this merger is the only path to long-term viability for our airline which is why consumers and employees alike will benefit from it.

The events culminated in a widely attended and well-covered press conference in front of the Capitol at which representatives of both companies, the various unions, and members of Congress voiced their support. Among the distinguished guests were: Rep. Marc Veasey (D-TX), Rep. Michael Burgess (R-TX), Rep. Robert Brady (D-PA), Rep. Ed Pastor (D-AZ), Rep. Eddie Bernice Johnson (D-TX), Rep. Pat Meehan (R-PA), , Rep. Robert Pittenger (R-NC), and Rep. Joyce Beatty (D-OH).

Thank you to all the APFA members who participated and helped make the event a tremendous success. To see photos and read stories about this event, visit APFA’s Facebook and Instagram pages.

APFA Hotline – DOJ Lawsuit, Contact the Att’y Gen’l, DC Fly-In – 9.13.13

AA/US Merger
For complete, up-to-date information on the merger, visit www.apfa.org and click on AA/US Merger. Below are the most recent relevant hearing documents and news items:

DOJ Trial Date Motions and Communication
Defendant US Airways Group’s Answer to Plaintiffs’ Amended Complaint – 9.10.13
Defendant AMR Corporation’s Answer to Plaintiffs’ Amended Complaint – 9.10.13

DOJ Litigation News
Judge Approves American Airlines’ Bankruptcy Plan, With a Caveat (New York Times) – 9.12.13
Get politics out of American Airlines-US Airways merger (Jacksonville Business Journal) – 9.10.13
The Future of the Airline Industry (Eno Center for Transportation) 9.10.13
AMR, US Airways Defend Merger as Pro-Consumer in U.S. Suit (Bloomberg) – 9.10.13

Write U.S. Attorney General Eric Holder Now!
As the fight for a merger continues, APFA is asking you once again for your help. It is time to let the Department of Justice and Attorney General Eric Holder know that we stand together in requesting they withdraw their opposition to an AA/US Merger.

Take a moment to let US Attorney General Eric Holder know that our jobs and our livelihoods are at stake. We believe this merger will generate a more competitive industry by creating a third competitor for Delta and United. It is not only good for the employees; it is good for consumers! Click here to show your support.

If you’ve not already done so, please take a moment to contact your Congressional leaders and request their support for the merger.

DC Fly-In
Flight attendants in the DC area who are interested in attending a rally at the US Capitol on Wed. Sept. 18 at 1200 should contact [email protected]. Employees from all workgroups at both AA and US Airways will be on the Hill next Tues and Wed advocating for the merger. APFA leadership will be meeting with our supporters in Congress to shore up their support ahead of the antitrust case in late November.

APFA Merger Update – Judge Approves Plan of Reorganization – 9.12.13

Today, US Bankruptcy Court Judge Sean Lane confirmed American’s Plan of Reorganization. He overruled all objections to confirmation except he upheld the objection of the U.S. Trustee to Mr. Horton’s compensation stating that the payment was impermissible under the Bankruptcy Code.

Judge Lane indicated that he will issue a written ruling later this week in which he will explain the reasons for his decision. While the Plan is now confirmed it will not go into effect until the DOJ’s lawsuit is resolved either by a court decision or a settlement.

APFA Labor Day Capwiz Action – Contact Congress In Support of the AA/US Merger – 8.30.13
 
Labor Day marks an important day for all hard-working Americans. And for those in the aviation industry, every day is Labor Day.
 
As airline employees, we have suffered through years of turbulence: bankruptcies, layoffs, and significant cuts in salaries and benefits. Our sacrifices have been tremendous over the past decade. No one wants the success of American Airlines and US Airways more than the employees. We want our companies to be able to compete for the flying public’s business, but they cannot do that individually. In fact, employees, financial analysts, management, the American Airlines creditors, and shareholders from both companies all agree that a merger is the only path to success.

Now, the Department of Justice and attorneys general from six states and the District of Columbia have filed a lawsuit to try to stop the merger and what is good for both workers and passengers. Tell them they got it wrong by contacting your representatives in Washington. Ask them to support the merger through APFA’s online CapWiz tool.

Every letter that is sent via this platform is logged into the Senators’ or Congressperson’s database. The more messages we generate, the more notice your Representatives will take.

After you have completed this action, please spread the word via the “share option” contained within the Capwiz platform.

 

AA-US Airways Antitrust Lawsuit Court Date Set for November 25, 2013

APFA is happy to report that the judge assigned to the DOJ vs AA-US Airways merger lawsuit, Judge Colleen Kollar-Kotelly, set a trial date for November 25, 2013. Read the text of Judge Kollar-Kotelly’s order here

Meanwhile in bankruptcy court, APFA is hopeful that Judge Sean Lane will confirm the AA Plan of Reorganization (“POR”) on the next scheduled trial date in his court set for September 12th.

APFA is pleased with the progress related to the AA-US lawsuit preparation and scheduling. The antitrust trial will be completed in mid-December. It is possible that a decision will be rendered by the judge prior to the end of the year or soon thereafter.

We will continue to keep the membership apprised of all events surrounding the merger as they occur. For up-to-date merger/DOJ lawsuit information add your name to our mailing list here.

Antitrust Lawsuit Conference – Trial Date Set for November 25, 2013

APFA is pleased to announce that today Judge Colleen Kollar-Kotelly, the judge hearing the DOJ’s antitrust lawsuit, announced a court date. The antitrust trial is set to begin on November 25, 2013. Stay close to this hotline for further updates.

APFA Hotline Update – APFA President Laura Glading on Bloomberg and CNN August 29, 2013

Tune in to Bloomberg TV “Market Matters” on Friday morning at 11:00 a.m. Eastern where Laura Glading will be the appearing Live guest in the New York studio along with Neil Roghair, APA Vice President, via satellite.

On Labor Day, Monday, September 2, barring any unforeseen events that may impact the interview schedule, Laura is set to appear Live on CNN at 4:00 p.m. Eastern on “The Lead” with Jake Tapper.

To view the latest news and court filings on the AA-US Airways merger click here.

To receive the most up-to-date information about the AA Bankruptcy, US Airways/AA Merger, and DOJ Anti-trust Lawsuit, subscribe to our list.

APFA August 29, 2013

Meeting with Washington, D.C. Attorney General
A meeting has been scheduled for union representatives to discuss the antitrust case with the Office of the Attorney General for the District of Columbia on Tuesday, September 3.

Help us show the DC AG that his actions may hurt local families. Sign the following letter by emailing your name and base information to [email protected]. As we finalize appointments with the remaining Attorneys General, member participation will continue to be at the forefront of APFA’s plan of action.

Dear Attorney General Irvin Nathan,

On behalf of the hundreds of thousands of Americans whose livelihoods depend on the success of American Airlines and US Airways, we the undersigned respectfully request that you withdraw the antitrust suit intended to block the merger of those two companies.

We know firsthand that, contrary to the complaint you filed in federal court last month, our companies are not capable of competing in the current market on their own. The recent dramatic increase to the size and scale of Delta and United has put our carriers at an insurmountable competitive disadvantage. As you know, the dominance of Delta and United is the result of recent megamergers.

Thousands of DC-area workers, including the undersigned, depend on the stability and competitiveness of American and US Airways to make ends meet. You lawsuit stands between these workers and dependable jobs with decent wages. Please do not continue down this destructive path. Withdraw your suit and the new American Airlines to compete.

Sincerely,

[YOUR NAME]

Bankruptcy Judge Postpones POR Approval – August 29, 2013

Judge Sean Lane postponed his approval of the Plan of Reorganization (“POR”) in bankruptcy court this morning. He has called the parties back to court on September 12th.

Tomorrow morning APFA is hopeful that Judge Kollar-Kotelly, the judge assigned to the Antitrust litigation filed by the DOJ, will set an early trial date in November rather than wait until March 2014 as the DOJ requested earlier this week. We will update this hotline as events warrant.

 

A Message From Laura Glading – August 28, 2013

As the directly elected representative of flight attendants throughout the American Airlines system, I answer to more than 16,000 members and, by extension, their families. The job became significantly more complicated and demanding when American filed for Ch. 11 in late November 2011. Although this bankruptcy was more or less a foregone conclusion given the way American had been run for the ten plus years leading up to the filing, the subsequent wild ride APFA and the other unions on the property have taken has been completely unpredictable.


As a member of the bankruptcy’s unsecured creditors’ committee, I’ve been in the room since day one – on behalf of APFA and all AA employees – and the most vocal and unwavering supporter of the US Airways merger since its inception.

It’s not enough to say you’re in favor of something as big as this merger, however. You’ve got to do the work. And the work is not yet finished. While it has required an enormous amount of time, conviction and energy, I am confident that it will soon pay off.

I receive numerous questions on my flights, in operations, via social media and through calls and emails from many of you. So I sat down with APFA Communications to answer some of the most frequently asked questions.

Question: Earlier this month, the US Department of Justice filed an antitrust lawsuit to block the merger. Is the merger still going to happen?
LG: Yes. Short answer – yes. I’m still very confident that the merger will happen. The antitrust lawsuit filed by the Justice Department and a few attorneys general is an inconvenience and it will certainly postpone the merger, which is frustrating, but it won’t kill it. The DOJ got it wrong, plain and simple. Now it’s up to the companies – which are both totally committed to the merger – to prove it. Fortunately, most of the hard work is already done: over the past year and a half we’ve built a strong case for this merger. Everyone – Wall Street, American’s creditors, Congress, American management, and the flying public – everyone agrees that the merger is necessary. Now we just have to convince the judge hearing the antitrust case. It’s a challenge but by no means the biggest one we’ve faced in this bankruptcy. We’ll get past it.

Question: What can I do to help fight the DOJ?
LG: We all need to keep up the vocal public support of the merger. The DOJ and the attorneys general from Texas, Florida, Virginia, Pennsylvania, DC, Arizona, and – I’m missing one – Tennessee, that’s it, they need to know that they have got this wrong. Consumers are going to benefit from the merger because a competitive American Airlines gives them a third viable option. The industry will benefit because there will no longer be the Delta/United duopoly controlling everything. Last but not least, 100,000 employees stand to gain job security and decent wages when the merger goes through. We’ve been waiting a long time for American to be competitive again. The merger needs to be approved because American needs to be allowed to compete.

We’ll be calling Flight Attendants to action soon. We want to make sure these attorneys general and Congress know what a mistake the government is making. Flight Attendants will be asked to write and call these people in the days and weeks ahead. In the meantime, there’s a petition on the White House website that people can sign. If we get to 100,000 signatures we will get an official response from the Oval Office.

Question: When will we get rid of the LBFO and get a new contract?
LG: Immediately upon emerging from bankruptcy our LBFO will go away and the Bridge Agreement or Conditional Labor Agreement (CLA) will take its place. We thought that would be in early September but the DOJ’s case has thrown a wrench into that. Soon after the antitrust case is resolved, though, we’ll be emerging from bankruptcy and working under the CLA. Then the CLA will stay in effect until we can negotiate a Joint Collective Bargaining Agreement (JCBA) which is what we’re calling the long-term contract for the combined Flight Attendant group at the new American.

Although the CLA is a big improvement over the LBFO but it’s not the contract that we have been waiting so long for and that we deserve – not by a long shot. That’s why APFA agreed to binding arbitration following the merger. If we can’t get a contract during expedited negotiations, a panel of arbitrators will determine the fair value of a contract for Flight Attendants with the largest air line in the industry. No other labor group has ever come out of bankruptcy with a path to an industry contract. I think we’re all looking forward to tearing up the bankruptcy contracts.

Question: What’s the baseline for negotiations after the merger?
LG: Great question and one there’s been a lot of bad information out there about. We’re going to do a page-turn before going into negotiations and start with the best from both our contract and the contract US Airways’ Flight Attendants just ratified. In the aggregate, our contract is of course more valuable, but there’s language in both agreements that we’d like to keep. If we can’t reach an agreement in expedited bargaining, the arbitrators will look at our proposal and consider how Flight Attendants at Delta and United are compensated, and determine what’s fair.

Question: United is still in negotiations. What if they get a new contract right after we do?
LG: Another good question and a situation we have considered. If the United contract isn’t finished until after ours, we will get an adjustment to reflect a change in the industry. If United gets an increase, our contract will be modified to reflect an increase in the aggregate cost of the contract.

Question: How long will it take to get a new contract? How long will we be in negotiations following the merger?
LG: We will get a new contract very quickly after the merger is completed. Past mergers have taught us that it can take a long, long time to integrate a workforce under one fair contract. Look at US Airways: Flight Attendants worked under two separate agreements for 8 years. Like I said, Continental and United are STILL in negotiations. Look, in this industry, contract negotiations take a long time. We know it firsthand. Management has the ability to slow-walk negotiations and it always – ALWAYS – works to their benefit. That’s the beauty of our process. Our CLA calls for expedited negotiations and, if necessary, binding arbitration. Binding arbitration will force a new contract and take away the company’s ability to draw-out negotiations for years and years.

Question: How will the seniority lists be integrated?
LG: Our seniority lists will be integrated based on date of occupational seniority (which is called “date of hire” at US Airways). The only adjustment will be to ensure that American Flight Attendants get credit for initial training – as US Airways Flight Attendants do. APFA has done an enormous amount of research to determine the average number of days American Airlines Flight Attendants spent in training. We will be coming up with a number of days to adjust the seniority of American Flight Attendants to put them on an even footing with US Airways Flight Attendants. No changes will be made to APFA members’ seniority in relation to each other – what is referred to as ‘relative seniority.’

Question: What about representation?
LG: APFA and AFA-CWA are working on an agreement that will put Flight Attendants first. We’re fully committed to an arrangement that will strengthen our strategic partnership, make the transition smooth for US Airways Flight Attendants, and maintain APFA’s independence.

Question: When will we be flying with mixed crews? When will our workgroups be completely merged?
LG: Only after the FAA issues a single operating certificate to the new American will our workgroups be totally integrated. This could take as long as 18 months after American emerges from bankruptcy. Until then, we will continue to operate as separate carriers.

 

If you have a question you would like to see addressed here, please email [email protected].

 

APFA Hotline – August 27, 2013

 

APFA Merger Update – DOJ Requests March 2014 Trial Date

Today, the Department of Justice filed its response to the August 22nd AA-US Airways’ Motion requesting a November trial date.

The DOJ has requested a trial date of March 3, 2014, which was expected. Tomorrow, AA and US Airways will file its response to the DOJ’s March trial date by reconfirming a November 2013 trial date. This sets the stage for the court conference called by Judge Colleen Kollar-Kotelly on Friday, August 30, 2013, at 9:30 AM Eastern Time.

You can review the relevant documents as well as news articles relating to the DOJ’s lawsuit by clicking here.

APFA Hotline – August 24, 2013

Crandall Sends Letter to TX State Attorney General Against DOJ Lawsuit
“From: Robert Crandall
Sent: Friday, August 16, 2013 14:35
To: [email protected]
Subject: Your opposition to the AA-US merger

Mr. Abbott:
I was Chairman and Chief Executive of AA from 1985 to 1998. When I left the Company, it was the largest airline in the world – and arguably the most successful. As the Company grew, it employed more people, underwrote the expansion of the DFW airport, expanded business opportunities for thousands of businesses located in or attracted to DFW and had a major role in making it possible for the Metroplex to become a world class city.

I am dumfounded by your opposition to this merger. If you succeed in thwarting the merger, neither AA nor US will be successful in the years ahead, as neither is either large or ubiquitous enough to compete with Delta and United, each of which was created by a merger that was far more anti-competitive than the AA-US combination. I do not understand why you think that crippling one of Texas’s most successful companies will benefit anyone.

It will certainly not benefit consumers, who will be subject to price and service alternatives set by the Delta-United duopoly. It will disadvantage American’s employees, American’s shareholders and American’s customers – and it will severely disadvantage all Texas residents, who will rue the day they lost their world class airline.

I hope you will reconsider this ill conceived action.”

Read TX State Senator Wendy Davis’ Letter to President Obama in Support of Merger
Texas State Senator Wendy Davis (Texas, District 10) sent a letter to President Barack Obama last week asking that the DOJ reconsider its lawsuit against the merger. Among her concerns were the potential for job loss if the DOJ prevailed in its efforts to block the suit.

 

APFA Hotline – August 23, 2014

 
DOJ Hearing Update
In a joint press release issued last evening, APFA along with TWU, APA, USAPA, AFA and CWA called for a speedy trial date in the AA-US Airways merger litigation process. US Airways and AA filed a Motion yesterday afternoon to set a trial date as early as November 2013.
 
This morning, U.S. District Judge Colleen Kollar-Kotelly, the judge assigned to the DOJ’s merger lawsuit, ordered a scheduling conference for next Friday, August 30th in her courtroom. This conference, which will be attended by both US and AA’s legal teams as well as the DOJ will begin the process of setting a trial date. The judge has stated that she has a criminal trial set to begin January 14th that is expected to last up to two months. She noted no scheduling conflicts between now and January 14th.
 
APFA Statement to Bankruptcy Court in Support of Merger Filed Today
Click hereto read APFA’s pleading in support of the confirmation of AA’s Plan of Reorganization, as requested by Judge Lane on August 15th.
 
Joint “Amicus Brief” Supporting the Merger Filed Today
Today, APFA along with three other unions representing employees of American Airlines and American Eagle, filed an ‘amicus curiae” brief in support of American’s and US Airway’s motion asking the District Court to start the trial of the Justice Department’s lawsuit on November 12. (“Amicus curiae” means “friend of the court” and is a procedure which allows individuals or entities, who have an interest in the litigation but are not named parties, to advise the court of their position and unique perspective through the submission of pleadings.) DOJ and the six states plus Washington, D.C. which have joined the government want to delay the hearing until February 12, 2014.

 

Here, the Unions explained to the Court that the seventy thousand employees they represent want this case resolved as soon as possible; that their careers and livelihoods are “inextricably linked” to the outcome of the trial; and that the merger with US Airways is the linchpin which will enable American to compete effectively.

 

The Department of Justice’s action leaves these airlines in “competitive limbo”, not knowing with any certainty which strategic direction they are headed. As stated in the brief, “And American cannot adopt a long-term strategy until it knows whether or not it is going to be permitted to acquire a network to compete with United and Delta. The damage to competition in the airline industry as a result of a less competitive American must be minimized by a decision on the merits on as prompt as schedule as possible.”

 

The Unions also point out that American’s market share over the past several years has eroded as United’s, Delta’s and Southwest’s has expanded as a result of their government-approved mergers with Continental, Northwest and Airtran. That disparity will continue for as long as the Justice Department blocks American’s merger with US Airways and keeps these airlines from taking a competitive position on a playing field devised by DOJ.

 

It is anticipated that the Department will submit a response to the airlines’ motion early next week and the District Court will issue a scheduling order shortly thereafter.
 

APFA Hotline – August 19,2013

 

CALL TO ACTION: MOBILIZE AND FIGHT BACK!

      The Department of Justice has filed a lawsuit to block the merger with US Airways. As you know, there were six states’ Attorneys General who joined the DOJ lawsuit: Texas, Florida, Pennsylvania, Arizona, Virginia, and Tennessee. In addition, the District of Columbia also joined.

 

      Many of you have been asking what you can do to help in our fight.

 

      For our first call to action we are asking that every Flight Attendant please contact the above Attorneys General immediately and include the following points:

 

      “Dear Attorney General:

 

      1. I am contacting you to reconsider your opposition to the proposed merger between US Airways and American Airlines. As a Professional Flight Attendant since (insert year you started flying), I know what the merger means to me and to the thousands of other American Airlines employees. Never before have the employees and management worked so hard and well together all in an effort to save these two great companies. A merger is good for employees and it is good for U.S. consumers.

 

      2. The merger will provide job security for tens of thousands of workers across the country. Neither of these companies can adequately compete with Delta and United and failure of one or both would result in the decimation of jobs, less competition, higher airfares, and fewer options for the flying public.

 

      3. I hope you will reconsider your participation in this ill-advised lawsuit and instead support a stronger, more profitable, and consumer-friendly merged air carrier.

 

      Please join us in supporting the merger between American Airlines and US Airways; it is what’s best for our country.

 

 

      Please copy in the editors for the newspapers in your area. Letters should include your full name, address and daytime phone numbers for verification purposes only.

 

 

APFA Hotline – August 13, 2013


AA/US Airways Merger Delayed By US DOJ Antitrust Lawsuit

      This morning, the US Department of Justice along with the attorneys general of six states and the District of Columbia filed an antitrust lawsuit in federal court challenging the proposed merger between US Airways and American Airlines. The lawsuit will have the immediate impact of delaying the merger by at least 30-days and probably a few months, while the suit is litigated.
      While the lawsuit is somewhat surprising and certainly disappointing, APFA remains confident that the deal will be approved. American’s creditors, including the three labor unions on the property, recognize the merger’s value to the flying public, the aviation industry, and the employees of both carriers. Industry analysts expected certain challenges to the merger and companies are prepared to address those complaints in court.
      With this news, there is still more work to be done. APFA will continue to work to support the merger in the courtroom and elsewhere. Members will be called on in the coming weeks to assist in these efforts so please stay tuned to this hotline.

Flight Attendants Blast DOJ Over Merger Lawsuit – 8.13.13

Senate Judiciary Hearing on DCA Slots – June 19, 2013

 

The Senate Subcommittee on Aviation held a hearing in Washington on June 19 on the American-US Airways merger. It was the third and, in all likelihood, the last Congressional hearing on the issue. Representatives from the U.S. Department of Transportation, the Government Accountability Office, and the Consumer Travel Alliance testified alongside Doug Parker of US Airways and Gary Kennedy of AA. APFA members, including APFA Legislative Representative Julie Frederick attending the hearing along with Glen Hayataka, IMA; Deb Roland, DCA; and Juan Carlos Ayub, DCA.

Not surprisingly, the issue most Senators are focused on is service to DCA. The government is closely examining the market share the new American would hold at DCA and may force the new American to divest some of its slots before completing the merger. Members of Congress worry that small and medium sized markets would lose direct service to the nation’s capital as a result. Although no final ruling has been made, members of Congress have made clear they do not want any cuts to DCA service.

Senate Judiciary Hearing Recap – March 22, 2013


In Washington this week, APFA members and leadership attended a hearing before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights in support of the American Airlines/US Airways merger.

Read the testimony of the hearing’s witnesses
Read labor’s joint letter in support of the merger
Watch the recorded Senate hearing on C-Span


House Antitrust Subcommittee Hearing February 26, 2013

On Tuesday, the House Subcommittee on Regulatory Reform, Commercial, and Antitrust Law convened a hearing to examine the proposed merger of US Airways and American Airlines. Prior to the hearing, Laura Glading sent a letter supporting the merger to each of the Members of the Subcommittee. APFA’s support was reiterated in testimony given by Stephen Johnson of US Airways, as well as Laura Glading’s own testimony which was submitted for the record following the hearing. Finally, APFA members and national officers attended the hearing in uniform to demonstrate their support. They sat alongside our colleagues at APA as well as our future colleagues – the pilots and flight attendants of US Airways. Members of the Subcommittee expressed bipartisan support for the merger and cited the strong backing of the companies’ unions – more proof that unity pays!

Letter to Chairman Bachus 2.27.13
APFA President Laura Glading’s Testimony 2.26.13
US Airways/AA Joint Washington Post Ad 2.26.13
Hearing Transcript in its Entirety 2.26.13
Click here for Hearing Information from the “Committee on the Judiciary“


APFA Merger Announcement and Plan of Reorganization Timeline – February 14, 2013

APFA wholeheartedly welcomes the news that the management teams of US Airways and American have announced their collective decision to merge and that they are eager to get the merger process started. This transaction will be an integral part of American’s Plan of Reorganization, which it currently is required to file by April 15.

This development speaks to the courage and resolve of the APFA membership. Our union’s efforts to realize this merger began nearly a year ago, when we were quick to identify the benefits of this strategic alternative. Since then, there have been a series of tense negotiations and heroic stare-downs, but the Flight Attendants never blinked. As a result, we will soon find ourselves working at an airline that can compete with any in the industry, under an industry-rate contract, and for a new management team that appreciates our hard work.

Never before in a major airline bankruptcy has organized labor achieved such an outcome. The unions on American Airlines property banded together and forced an alternative on management that is better for the Company, the industry, our passengers, and the employees.

Though the highest hurdle is now behind us, there remain some significant challenges ahead. Fortunately, our team is already preparing for the next steps in this process and we are ready to press on. With this development, there will be lots of exciting changes and we still have much work to do. But the largest challenge is now behind us.

Typically, approval for the merger and an exit from bankruptcy can take anywhere from 4-6 months or possibly more. The following is an explanation of the several layers of approval that must be completed before the merger can be finalized.

What’s Left Before American Exits Bankruptcy?

      1. American files a Plan of Reorganization (“POR”) and Disclosure Statement that provides for, among other things, treatment of creditors and a merger transaction (Disclosure Statement includes an explanation of the Plan and the treatment of the various creditor classes)
      2. Disclosure Statement approved by court depending upon the requirements outlined by the US Bankruptcy Code
      3. Pursuant to a POR that provides for a merger of the two airlines, unsecured claims will receive a recovery in the form of equity in the new American
      4. Merger requires approval from the Department of Justice (DOJ) and would entail Hart-Scott-Rodino (“HSR”) review
      5. Bankruptcy Court approval is required at various stages and stakeholders (for example: UCC, creditors, labor, etc.) have an opportunity to object
      6. The POR must receive necessary votes from stakeholders to become “effective”
      7. More than 1/2 in number and at least 2/3 in dollar amount of impaired classes of creditors must vote in favor of the POR, among other requirements
      8. Once declared effective, a confirmed Plan will discharge the company’s outstanding debts and allow the company to emerge from Bankruptcy
      9. Typically, the process takes 3-4 months beginning with the filing of a POR, depending on whether there are stakeholders opposing the POR.*

Week 1: File POR/Disclosure Statement
Week 4: Hearing to approve Disclosure Statement
Weeks 5-7: Distribution of information and solicitation of votes (20 days)
Week 7: Voting deadline for POR, tabulation of votes
Week 9: Hearing to confirm POR
Week 12: POR becomes effective – Debtor emerges

*A merger transaction may entail additional time beyond a typical bankruptcy process given DOJ and Hart-Scott-Rodino requirements

Posted in AA/US Airways Merger

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1004 West Euless Boulevard
Euless, Texas 76040

M-F: 9:00AM - 5:00PM (CT)
Phone: (817) 540-0108

Call APFA

Contract & Scheduling Desk
M-F: 9:00AM - 5:00PM (CT)
Phone: (817) 540-0108

Chat APFA

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Weekends / Holidays: 9:00AM - 5:00PM (CT)

APFA Events

Currently, no scheduled events...

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