American pilots group appeals court ruling

San Diego
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An American Airlines pilots group has appealed the US bankruptcy court's decision to approve a new contract between the carrier and its pilots.

The so-called "supplement B" pilots claim that the US Bankruptcy Court of the Southern District of New York cannot approve the contract and eliminate a lump sum pension payout benefit without their unanimous approval, according to a court filing on 28 December.

Supplement B includes pilots hired before 5 November 1983 who agreed to certain concessions in exchange for guarantees that American would not change their compensation and retirement benefits without their unanimous approval.

Bankruptcy court judge Sean Lane approved the new contact with American's Allied Pilots Association (APA)-represented pilots on 19 December. Most parties in the bankruptcy see the contract as critical to the carrier emerging from chapter 11 protection.

Lane said that his ruling in September approving American's section 1113 request to reject its existing agreement with its pilots ended any rights of the group to oppose the new contract.

The supplement B pilots also appealed the court's section 1113 decision in September.