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TWA PILOTS UNION REACHES RESTRUCTURING ACCORD WITH CREDITORS, PAVES WAY FOR REVITALIZED AIRLINE, ALPA SAYS

 TWA PILOTS UNION REACHES RESTRUCTURING ACCORD WITH CREDITORS,
 PAVES WAY FOR REVITALIZED AIRLINE, ALPA SAYS
 ST. LOUIS, Aug. 25 /PRNewswire/ -- After nearly six weeks of intense negotiations with TWA and its creditors committee, the airline's pilots union today reached an agreement clearing the way for TWA to proceed with a plan to revitalize operations and restore viability.
 Under this agreement, the pilots will provide financial relief to the airline by reducing the cost of their wages and benefits by 15 percent, with offsets, for three years. In return, the union received contractual language to transfer pilots' jobs in the event of future asset sales, to set requirements for addressing TWA's pension shortfall and to ensure appropriate changes to TWA's operational structure.
 The TWA pilots' Master Executive Council (MEC), a branch of the Air Line Pilots Association, will present the agreement to TWA's 2,800 pilots for a ratification vote as soon as practicable.
 Bill Compton, chairman of the pilots union at TWA, provided the following comments:
 "The TWA pilots' Master Executive Council (MEC) is hopeful that this restructuring will lead to a rebirth of TWA. By signing this agreement in principle, the pilots' representatives have demonstrated their commitment to preserving TWA as an ongoing enterprise. With agreements involving the flight attendants and machinists recently accomplished, our agreement will, upon ratification, complete TWA's needed cost reductions and enable labor and the creditors to assist in implementing the required improvements to TWA's revenue-generating capacity.
 "One of our requirements in these negotiations was the establishment of an independent board of directors and installment of a new senior management team. As a result of this accord, when TWA emerges from this restructuring, its new board of directors will include labor representation. Furthermore, a transition management team and a Labor Advisory Committee will be immediately formed to begin the process of selecting a new, professional senior management team.
 "We believe a newly motivated employee group, rallying behind a professional airline management that is committed to TWA's long-term viability, can reap huge dividends for TWA. With a new corporate vision, TWA can begin the process of rebuilding a proud airline.
 "By agreeing to contribute approximately $540 million during the three-year term of the agreement with TWA, the employees have shown their dedication to an airline in which they will now hold a large ownership stake. We are hopeful that the flying public will embrace our efforts and join us in rebuilding TWA."
 -0- 8/25/92
 /CONTACT: David Berkley of the Air Line Pilots Association, 314-644-1624/ CO: TWA; Air Line Pilots Association ST: Missouri IN: AIR SU:


MH -- DC020 -- 3152 08/25/92 16:21 EDT
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Publication:PR Newswire
Date:Aug 25, 1992
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