Currently, AMR, the parent company of American Airlines is under bankruptcy protection. It has been under Chapter 11 protection for over one year—since November 2011. The company sought to save $1 billion in labor costs. It has found ways to cut these costs, but the bankruptcy has been complicated by a possible merger with US Airways Group Inc. Together, these two carriers would become the world’s largest airline as measured by passengers served per year.

However, the potential merger has met a challenge that may prevent it from becoming a reality until after AMR emerges from bankruptcy, according to a December 28, 2012 Bloomberg news article. The pilots union, American Pilots Association, would need to approve a temporary contract that would be valid until the merger when all of the pilots would sign joint contracts.

The problem with the contracts is the disagreement on seniority. Pilot seniority is an important issue because it says what types of planes the pilots can fly, their pay and their hours. If pilots cannot agree on seniority for the purposes of a merger quickly, then the merger will have to wait until after AMR leaves bankruptcy protection.

If you are considering bankruptcy, retaining a qualified attorney is important. The law office of Jayson Lutzky, P.C. is here for you. Mr. Lutzky has helped thousands of clients over the past 29 years with an excellent record of client satisfaction. If you need to learn more or wish to set up a free in person initial consultation, then do not hesitate to contact us by phone at 1-800-660-5299 or via our Website, www.MyNewYorkCityLawyer.com.