CitationLover
Aw, Nuts!
- Joined
- Feb 26, 2003
- Posts
- 3,316
Well you Frontier folks that would rather see the company die than become part of Republic may get your wish. The bk court decision allowing the rejection of the mechanics contract has been overturned, which will increase the costs of running the Frontier operation. If this causes Republic to pull out, and you don't find another equity investor, then liquidation is the ultimate destination. Sorry to see that happen to you guys, but sometimes you better be careful what you wish for....you just might get it.
Frontier's union victory overturned.
The Denver Post
Posted: 07/22/2009 01:00:00 AM MDT
A federal district judge overturned a bankruptcy court decision allowing Frontier Airlines Inc. to reject a contract with unionized machinists represented by the International Brotherhood of Teamsters.
U.S. Bankruptcy Judge Robert Drain in New York ruled Oct. 31 that Denver-based Frontier could reject the contract as part of its restructuring in Chapter 11, after the company changed its proposal to make outsourcing aircraft maintenance less likely. On Monday, U.S. District Judge P. Kevin Castel overturned that ruling, saying the discount carrier shouldn't have made changes to its proposal to the union for new contract terms after seeking to reject the contract. He sent the case back to the bankruptcy court.
Good for the mechanics. A contract is a contract. We screwed the Indians out of a lot in this country on contract fine details, it's nice to see mgmt and their high priced attorneys lose one.