New Schedule for BK Hearings – 5.21.12

This should be the last week in the American Airlines hearings to reject union contracts

ByTerry Maxon/Reporter
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8:46 AM on Mon., May. 21, 2012 | Permalink

There’s a chance that final arguments may get delayed until after Memorial Day, but American Airlines and its three unions should wrap up their court battle over contract rejections this week.

Because of other matters on his docket. U.S. Bankruptcy Judge Sean Lane has delayed the start of Monday’s hearings until noon EDT. From there, we expect the judge to keep American, the Association of Professional Flight Attendants, Allied Pilots Association and Transport Workers Union in session late most days.

How late? It’s not unusual to have hearings go past 6 p.m. Last Thursday, that day’s hearing ended after 7 p.m.

So here’s the likely schedule:

A. TWU finishes its case Monday or perhaps Tuesday.

B. American immediately begins presenting its rebuttal witnesses and testimony.

C. If the unions decide to do so, they’ll offer their surrebuttal — their rebuttal to American’s rebuttal — after American is finished with its rebuttal.

D. Assuming all sides will want to offer final arguments, they’ll follow the rebuttal and surrebuttal.

E. Negotiators for American and the unions likely will sit down in mediated sessions with another U.S. bankruptcy judge, James Peck, beginning the week of June 4. Judge Lane has requested that the unions and company do so in hopes of getting consensual agreements. UPDATE APFA says it will go into mediation on Tuesday, May 29. We don’t have date for TWU mediation.

F. By June 6, all parties have to submit their final briefs to Judge Lane’s court, limited to 30 pages for each of the three unions, 75 pages for American Airlines.

G. By June 22, Judge Lane will make his ruling on American’s motion to reject the union contracts.

To be clear on the TWU, the motion to reject now just covers the contracts of mechanics and related employees and maintenance stores employees. Because the other five TWU units approved American’s last, best offer last week, those new contracts are not part of the motion to reject.