FORT WORTH, Texas--(BUSINESS WIRE)--The president of the Allied Pilots Association (APA), certified collective bargaining agent for the 10,000 pilots of American Airlines, expressed his gratitude for bipartisan legislation designed to enable the carrier’s front-line workers to defer taxes on equity they are receiving as unsecured creditors.
“We are pleased that Republican and Democratic lawmakers have shown a willingness to help our pilots and fellow employees defer taxes on this equity,” APA President Captain Keith Wilson said. “The equity stake we will receive is designed in part to mitigate the pension losses we have sustained in American Airlines’ Chapter 11 bankruptcy.”
The legislation, known as H.R. 2591, is intended to amend certain provisions of the FAA Modernization and Reform Act of 2012. American Airlines is expected to exit bankruptcy later this year, which will trigger distribution of the equity.
U.S. Rep. Michael Grimm (R-NY) is the bill’s sponsor. It is co-sponsored by U.S. Rep. Tim Bishop (D-NY), along with U.S. Rep. Michael Burgess (R-TX), U.S. Rep. Peter DeFazio (D-OR), U.S. Rep. Richard Hanna (R-NY), U.S. Rep. Eddie Bernice Johnson (D-TX) and U.S. Rep. Peter Roskam (R-IL).
“Most of these lawmakers represent districts that encompass large numbers of American Airlines employees,” Wilson said. “They all recognize that an issue of basic fairness is at stake.”
If approved, the legislation would provide American Airlines’ workers the same ability to defer taxes on their equity as other airline employees in previous Chapter 11 bankruptcy restructurings.
“We are hopeful that lawmakers will move to prevent a serious inequity by approving this legislation promptly,” he said.
Founded in 1963, the Allied Pilots Association—the largest independent pilots’ union in the United States—is headquartered in Fort Worth, Texas. APA represents the 10,000 pilots of American Airlines, including several hundred pilots on full-time military leave of absence serving in the armed forces. The union’s website address is www.alliedpilots.org. American Airlines is the nation’s largest international passenger carrier and fifth-largest cargo carrier.
