Representing the Flight Attendants
of American Airlines

Representing the Flight Attendants of American Airlines

12.04.11 – (LAA) – When Will AA Emerge from Bankruptcy, Women’s Leadership in Unions

Hotline Update for Sunday December 4, 2011

We’ve received questions regarding when AA will emerge from bankruptcy. American has stated that it will most likely remain in bankruptcy for 12-18 months. Its estimation of the bankruptcy’s duration is tied in part to the time that American has the exclusive right to file a Plan of Reorganization. A Plan of Reorganization (POR) is the blueprint for how a company – the debtor – in bankruptcy intends to emerge as a successfully reorganized business. It includes a business plan, projections of earnings and a description of†the creditors’ treatment, including how much of their claims will be paid, whether it will be in the form of cash, new stock or†new debt, and when these payments will be made.

The Bankruptcy Code provides the debtor a 120-day period from the bankruptcy filing to submit a POR and 180 days to have the court approve it. However,†these periods can be extended by the court up to 18 months for the filing of the POR and 20 months for its approval.

As a result of these limitations it is expected that American would have to conclude its Chapter 11 bankruptcy by no later than July 28, 2013.

On Monday APFA President Laura Glading and counsel will attend the meeting in New York with the US Trustee to petition for a seat on the Creditors’ Committee.

We’ll update you again tomorrow.


On November 20, the New York Times published an article titled “Redefining the union boss.” The piece delved into the careers of three significant leaders in the American labor movement. All three were women. Reading the article, I was reminded of some of the great leaders the APFA is so privileged to have across our organization, past and present. It also made me step back and think of the broader issues labor faces all over the country. I decided to write the editor about the APFA’s strength and resolve. Follow the links below to read the original article and my letter to the editor, published in today’s New York Times Business section:

New York Times Article: Redefining the Union Boss

Laura Glading’s Letter to the Editor

In Unity,
Laura Glading



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