Judge OK With Merger

March 27, 2013

U.S. Bankruptcy Court Judge Sean Lane approved the merger between American Airlines and US Airways on March 27, but balked at the proposal to give CEO Tom Horton $20 million in severance pay.

He indicated that the severance could still be approved as part of the AMR restructuring plan, but that it is inappropriate under current bankruptcy laws. AMR creditors would have to approve the restructuring plan, which will outline how and how much they would be paid.

Unionized employees at American Airlines have negotiated their own agreements with the management of the new merged airline, which will be headed by US Airways CEO Doug Parker. Horton would stay on in an advisory capacity initially before leaving the company.

Since American Airlines filed for bankruptcy more than a year ago with some $4 billion in cash, it has slashed jobs, pay and benefits for agents while spending millions of dollars to prevent us from gaining representation with CWA. US Airways agents are represented by CWA, and we are talking with them about how we can finally gain representation in the new American Airlines.

Meanwhile, we are still participating in CWA steward training at various American Airlines stations.