IN RE US AIRWAYS, INC. (Bankr.E.D.Va. 2005)

In re: US AIRWAYS, INC., et al., Chapter 11, Debtors.

Case No. 04-13819-SSM (Jointly Administered).United States Bankruptcy Court, E.D. Virginia, Alexandria Division.
January 28, 2005

ORDER
STEPHEN MITCHELL, Bankruptcy Judge

A hearing was held in open court on January 27, 2005, on the motion (Doc. #1490) of the debtor in possession for a determination that the automatic stay applies to the vesting of certain common stock rights. The debtor in possession and the Air Line Pilots Association (“ALPA”), the sole objecting party,[1] were present by counsel.

Upon consideration of the pleadings, testimony, exhibits, and argument of counsel, and for the reasons stated on the record, the court determines that the automatic stay does not prevent the vesting of stock rights on January 1, 2005, as provided for under the terms of the collective bargaining agreement between the debtor and ALPA.[2] It is, accordingly,

ORDERED:

1. The motion is denied.

Page 2

2. The clerk shall mail a copy of this order, or give electronic notice of its entry, to the parties listed below.

[1] The Communications Workers of America (“CWA”) and the Association of Flight Attendants (“AFA”) also filed objections to the motions but withdrew their objections orally on the record after entering into agreements with the debtor to extend the vesting date.

[2] Even if the court had determined that the automatic stay applied, the court would have sua sponte lifted the stay retroactive to January 1, 2005, with respect to those furloughed pilots from whom tax withholding had already occurred and would have considered lifting the automatic stay as to the remaining pilots covered by the collective bargaining agreement.