US Airways funding procedures request draws pilots union opposition

By Caroline Salls

Pittsburgh, May 27 - US Airway's Inc.'s request for approval of consideration of plan funding proposals in connection with its merger with America West Holdings Corp. drew objection from the Air Line Pilots Association, International, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The union said "there are various provisions of the collective bargaining agreements that are implicated, but not recognized, by the merger agreement."

The filing said these provisions include rights and protections relating to job security, scope, merger and successorship transactions, membership on the board of directors of US Airways Group and equity participation and profit sharing.

The pilots union also disputed a "broad provision" that says if the merger agreement becomes the approved funding proposal, parties would be prohibited from taking any action to prevent or interfere with transactions in the merger agreement.

Also, the plan investors and America West can seek injunctive relief to enforce the investment agreements in the merger agreement before confirmation of a plan of reorganization.

According to the objection, US Airways does not provide legal basis for the injunction and does not provide any proof of irreparable harm to justify their need for "such an extraordinary grant of injunctive relief."

A hearing on the plan funding procedures will be held May 31.

The Arlington, Va.-based airline filed for bankruptcy on Sept. 12. Its Chapter 11 case number is 04-13819.

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