North American Parent Company Emerges from Chapter 11
Last week, Global
Aviation Holdings Inc., the parent company of North American Airlines (NAA) and
World Airways, announced that its plan of reorganization (POR) became effective
on February 13, allowing the company to complete its financial restructuring and
emerge from Chapter 11. In connection with the POR, the company also secured $35
million in exit financing.
Global Aviation Holdings filed protection under Chapter 11
of the bankruptcy code in February 2012. Under threat of Section 1113 filing,
the pilots engaged in bankruptcy concessionary negotiations with management, and
ratified a tentative agreement in September. Reaching a consensual agreement
with the NAA pilots and other employee groups was key to the company’s
successful emergence from bankruptcy.
“NAA pilots are committed to preserving our jobs and helping to ensure our
company’s future financial viability,” said Capt. Rob Lewis, NAA MEC chairman.
“Now that our company is turning its focus to growth and business development,
NAA pilots stand ready to work closely with our management to help advance our
mutual goals going forward.”
To that end, NAA-ALPA pilot representatives and management have met several
times per the new collective bargaining agreement to discuss issues of mutual
interest and concern, including clarifying some of the contract language and
resolving outstanding grievances through the implementation of efficient dispute
resolution processes. As a result, the MEC ratified a memorandum of
understanding with management that streamlines the grievance process; and
members of the NAA MEC, Grievance and Scheduling Committees, and staff from
ALPA’s Representation Department recently met with management to deal with the
backlog of outstanding grievances. Future meetings to address these and other
issues of mutual interest are being scheduled as the pilot group continues to
implement its contract and letters of agreement.