BUSINESS FEED

American Airlines workers submit petition to feds calling for end to antitrust lawsuit

By KYLE ARNOLD World Business Writer on Aug 30, 2013, at 2:23 AM  Updated on 8/30/13 at 3:34 AM


Jay Potter, recording secretary of Transport Workers Union Local 514, carries a box of petitions into Justice Department offices Thursday while other TWU members watch. The union wants an antitrust case against the American Airlines-US Airways merger dropped.  MIKE SIMONS / Tulsa WorldAmerican Airlines employee David Corbit (center) and fellow workers walk in front of the Justice Department's offices as petitions are delivered by the Transport Workers Union on Thursday in downtown Tulsa. The petition calls for the government to drop an antitrust lawsuit aimed at blocking the merger of American Airlines and US Airways.  MIKE SIMONS / Tulsa World

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Two dozen Transport Workers Union members delivered a box of petitions with 8,000 signatures to local U.S. Department of Justice officials Thursday, asking them to stop the antitrust lawsuit blocking the merger between American Airlines and US Airways.

"We are just trying to show the Department of Justice that we are here, too, and this impacts us," said Dale Danker, president of the TWU Local 514. "You do what you can do."

American Airlines maintenance workers delivered the petitions at the Federal Building on Boulder Avenue in downtown Tulsa. The petition, which was circulated at the American Airlines maintenance base in Tulsa and online, asks the Justice Department to drop the lawsuit, saying it threatens jobs and will actually hurt air fare competition.

"Your attempt to block the American-US Airways merger threatens our jobs and our future," the petition said. "The merger is the only viable plan that allows American Airlines and US Airways to compete against a duopoly where United and Delta will dominate U.S. commercial aviation."

Danker said the union had arranged with local Justice Department officials to deliver the petitions.

The department sued to block the merger on Aug. 13, claiming the deal was illegal on antitrust grounds because it would diminish competition and increase fares for consumers on hundreds of routes.

More than half of all TWU members at American are employed in Tulsa. The airline employs about 6,300 people in Tulsa, including more than 6,000 at the company's primary jet overhaul facility, located at Tulsa International Airport.

Also Thursday, U.S. Bankruptcy Judge Sean Lane of New York said the confirmation of American Airlines' reorganization plan will be put on hold until at least Sept. 12.

His court has been weighing what kind of impact the antitrust suit would have on the reorganization, since the plan hinges entirely on a merger with US Airways.

But American Airlines lawyers argued the court should confirm the reorganization, since the plan makes provisions for any changes stemming from the antitrust lawsuit.

Lane, however, did say he was persuaded by arguments in favor of confirming the plan.

The hearing was the second at which Lane considered the bankruptcy plan, but he again said he wanted to take more time to consider the impact of the Justice Department lawsuit.

In Tulsa, many TWU members said they were baffled as to why the Justice Department chose to block the merger, when past consolidations between Delta and Northwest as well as United and Continental were not opposed.

"I think the Department of Justice has made a miscalculation," said Marco Enriquez, an aircraft maintenance technician. "All of the professionals say this merger is necessary to create a third competitor against United and Delta."

State Rep. Jeannie McDaniel was one of four state representatives who joined union members and signed the petition, although nearly all of the other signatures were from TWU members.

"It seems like there has to be room for negotiations somewhere," said McDaniel, D-Tulsa.

Danker said American Airlines unions representing pilots and flight attendants will be organizing similar efforts.

Union members have been eager to get on with the merger after 21 months of bankruptcy reorganization proceedings. American Airlines has aggressively cut expenses and shed positions during the bankruptcy, including freezing the pensions of most employees.

But the merger with US Airways, announced Feb. 14, would give 4.3 percent raises to maintenance and related workers in Tulsa, as well as give equity shares that would result in $12,000 to $16,000 stock awards for many employees.

But none of that happens until the merger is completed, which could take months because of the antitrust lawsuit.

U.S. District Judge Colleen Kollar-Kotelly is scheduled to hold a conference with the parties Friday in Washington, D.C., to decide on a date for the antitrust trial. The airlines want to start arguments in November, while Justice Department officials are asking for a trial date in March.

The Associated Press contributed to this report.

An excerpt from the petition

To Attorney General Holder:

As workers at American Airlines and US Airways, we have struggled for more than a decade with reductions in wages, health care and pensions. Since American entered bankruptcy in November 2011, we've been forced to take additional unfair sacrifices. We've worked diligently to help shape the American-US Airways merger plan and restore the competitive position of the new company.

Your attempt to block the American-US Airways merger threatens our jobs and future. The merger is the only viable plan that allows American Airlines and US Airways to compete against a duopoly where United and Delta will dominate U.S. commercial aviation.


Kyle Arnold 918-581-8380
kyle.arnold@tulsaworld.com
Original Print Headline: TWU: End the lawsuit
Complete coverage of American Airlines
Find all the stories, photos, videos and a timeline about Tulsa's largest employer.

American Airlines

American Airlines' Airbus A319 jets poised to fly

Some travelers will encounter the most tangible evidence of the reboot of American Airlines on Monday when the airline begins flying its first Airbus A319 jets.

American Airlines CEO Tom Horton not entitled to $20 million severance, judge says

The American Airlines bankruptcy judge issued a written opinion Friday stating that he took the financial sacrifices made by union members into account when rejecting a $20 million severance deal for CEO Tom Horton.

CONTACT THE REPORTER

Kyle Arnold

918-581-8380
Email

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