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US Airways signs tentative collective bargaining agreements with American Airlines unions

23-Apr-2012 12:06 PM

US Airways CEO Doug Parker stated (20-Apr-2012) it has signed tentative collective bargaining agreements with the Allied Pilots Association (APA), the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU) who represent a combined 55,000 American Airlines employees.

Union reaction:

Local reaction:

  • Fort Worth Chamber president and CEO Bill Thornton and Dallas Regional Chamber president and CEO Amb. James C Oberwetter, voiced concern on the "potential impact that American's union employees' support of U.S. Airways' intentions could have on both the bankruptcy proceedings and the local economy", and that they are "opposed to any mergers prior to American exiting bankruptcy"; [more - original PR - Fort Worth Chamber and Dallas Regional Chamber]

Ratings reaction:

  • Fitch Ratings: The rating agency upgraded (20-Apr-2012) US Airways Group to 'B-' from 'CCC', and assigned an Issuer Default Rating (IDR) of 'B-' to US Airways, Inc. with a rating outlook of 'stable'. Ratings apply to USD1.1 billion of term loan debt and USD179 million of convertible notes outstanding. [more - original PR - Fitch Ratings]