US Airways/American Airlines
O’Melveny obtained dismissal of a US$100 million complaint brought by USAPA, the union for US Airways’ pilots, regarding pilots’ pay rates. USAPA initially submitted a grievance regarding pilots’ pay rates, claiming that the parties’ agreements provided that pilot pay rates would “snap-back” to pre-bankruptcy rates after a certain date. After losing twice before an arbitrator, USAPA filed a complaint in the Western District of Pennsylvania alleging that the arbitrator exceeded his jurisdiction and that the arbitrator failed to comply with the requirements of the Railway Labor Act. The court’s decision adopted all of US Airways’ arguments and dismissed the complaint without leave to amend. O’Melveny also represents US Airways and American Airlines in labor arbitrations resulting from the recent merger between the two companies. O’Melveny won two arbitrations initiated by union grievances over new policies instituted by the combined company that unions claimed violated collective bargaining agreements. In both cases, an arbitration panel denied the claims in their entirety.