Bankruptcy judge approves $24.9 million settlement between American Airlines, FAA
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U.S. Bankruptcy Judge Sean Lane approved a $24.9 million settlement between American Airlines Inc. and the Federal Aviation Administration, which had investigated the airline and several subsidiaries for alleged safety violations.
The FAA originally had filed claims of more than $156 million, but negotiated the smaller amount with American, which did not admit any fault in agreeing to the settlement. The FAA and airline announced the compromise May 9.
Judge Lane, who is overseeing American’s bankruptcy case, also approved memoranda of understanding between American, merger partner US Airways Inc. and three unions.
The memos spell out how the merger will affect the Allied Pilots Association, which represents American Airlines pilots; the US Airline Pilots Association, which represented US Airways pilots; and the Transport Workers Union, which represents a number of work groups at both carriers.
With these agreements, “we take another step toward a more seamless integration with US Airways,” American spokesman Paul Flaningan said. “The agreements will go into effect when the merger closes.”
The flight attendants at American and US Airways aren’t included in those MOUs. Here’s a May 23 update from the Association of Professional Flight Attendants, which represents AA’s flight attendants:
On May 23, 2013, representatives concluded three days of discussions for a four-party Memorandum of Understanding. Attending the meeting were representatives of AFA, APFA, American Airlines management and US Airways management. The parties agreed to resume these discussions in the near future.
Keep reading for the TWU’s update to members about the approval of its MOU.
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