Judge Mitchell initially scheduled S.1113© hearings between the company and the Mitchell told the company he has scheduled vacation from December 17 until early January. In both Bankruptcy I and Bankruptcy II, Mitchell made most of his rulings from the bench. For example, during the S.1113(e) hearings, Mitchell cut off union attorney’s early, and recessed the hearing for lunch. Prior to the recess, he told the parties that he would reconvene the court at 1:30 p.m. and he would then issue his interim concession ruling. Considering Mitchell has a reputation for a “rocket docket†and the urgency for additional cost cuts, in my opinion, Mitchell could issue his order agreeing with the company’s motion on December 17.
Meanwhile, the CWA and AFA “strike†press releases has contributed to passengers “booking away†from the carrier, which is compounding the airline’s financial problems. Thus, it would not surprise me to see history repeat it self and the company’s next proposal to the CWA, AFA, and IAM get worse. For example, the company could reduce the CWA “buy out†severance amounts to preserve cash flow. It is logical that the company will argue that the unions have hurt bookings and the cuts must be deeper to meet ATSB and possibly other financing requirements.
Do not be surprised before the contract abrogation hearings if the company announces a DIP financier who is willing to provide the airline with interim bankruptcy filing (at a premium), with a condition that labor cuts must occur per the company’s motion. Moreover, with fuel prices climbing again and soft loads the DIP financing may be required to sustain operations. Thus, Mitchell may have no option but to agree with the company’s position to save the business enterprise and he could rule as early as December 17, but he must rule within 30 days.
Best regards,
USA320Pilot
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