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American Airlines receives court approval for revised APFA, TWU labor pacts

The bankruptcy court overseeing the Chapter 11 proceedings of American Airlines today approved the company’s new labor deals with the Association of Professional Flight Attendants and two bargaining units of the Transport Workers Union, respectively, according to a court order filed in the case.

As reported, the company already had labor deals in place with the five other bargaining units of the TWU.

As also reported, the company had reached a tentative agreement with the Allied Pilots Association, but that union’s members voted not to ratify the deal. The company subsequently won court approval under Section 1113 of the bankruptcy code to reject its existing collective agreements with its pilots, and is currently in the process of imposing new labor terms on the pilots under that ruling.

Among other terms, under the new agreements flight attendants are to receive a 3% stake in the airline, while TWU members are to receive 4.8%. The APA’s tentative contract, had it been approved, would have left pilots with a 13% stake in the reorganized company’s equity. – Alan Zimmerman

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