"aa Better Off In Bankruptcy"

[FWAAA]

j7915,

If the cash was really running out as you claim, and there have been no profits to speak of, then where did the money come from to take delivery of 42 RJ's for Eagle this year, and the bid of $310 Million for USAir Shuttle?

I think an independent review, instead of ECLAT company finance firm is on order.

Why did the TWU hire the same firm (ECLAT) that AMR was using anyway?

Where did all the money come from, you ask? Why, from the secret vault of cash that Carty kept (and Arpey now keeps) in his office, that's where. B)

Don't confuse the dire times of last March and April with the improving finances of today. Just because the company was almost out of cash then doesn't mean it doesn't have money now.

Seriously, AMR was obligated to maintain a minumum unrestricted cash balance of $1 billion or else AA would default on its fully drawn $834 million line of credit (which AMR drew down in the fall of 2001). Default on that line would have meant automatic default on almost every dollar of AMR/AA debt (nearly $20 billion).

As of March 31, 2003, AMR had $1.3 billion of unrestricted cash and nobody would loan the company any more money unless concessions were obtained. At December 31, 2003, AMR had $2.6 bllion of unrestricted cash.

So where did all the newfound cash come from?

In 2003 (after the concessions were finalized), AMR (and/or its subs) borrowed $1.7 billion and in 2004, the company has already borrowed an additional $504 million. On top of that, a tax refund and the government reimbursement for security fees received in 2003 totaled another $930 million. And the sale of Hotwire, Worldspan and a portion of its Orbitz stake brought in yet another $330 million. That's a lot of cash.

That's where the cash came from. And don't forget the nearly $16 billion in passenger and cargo revenues the company took in during 2003.

Oh, and I nearly forgot - Embraer and Canadair financed much of the 2003 and 2004 RJ deliveries, so airplane deliveries have required minimal cash anyway. The jet builders are so desperate that they will finance AA's purchases. Boeing financed $554 million of last years' deliveries of 777s and 763s, while the RJ manufacturers financed $473 million of RJ deliveries in 2003. Both manufacturers are doing the same thing with this year's shipment of new RJs.

From the 10-K:

The Company has pre-arranged financing or backstop financing for all of its aircraft deliveries through June 2005 (42 aircraft in 2004 and 20 aircraft in 2005).

http://www.amrcorp.com/investor/AMR0310k.pdf

or if you don't trust AMR's PDF version, here it is from the SEC (HTML):

http://secfilings.nasdaq.com/filingFramese...F27%2F2004&pdf=]

That means that either the manufacturers or others have already agreed to provide financing for all of AMR's new airplanes this year and next. So once again, the new planes don't require cash out of pocket. Just an IOU.

Your comment about an independent review is odd. Isn't an audit by Ernst & Young sufficient for you or do you think that other auditors would uncover hidden money?

If you think another audit would be worthwhile, try selling that idea to AMFA or the TWU. I'm confident that both unions (for that matter, any union you could name) would disagree that spending millions for a separate audit would be money well-spent.

 

[twuer]

!!!!!!DEFEND YOUR LEADER AMFA WANNABES. . .WE ARE STILL WAITING!!!!!!
COME ON!! HOW DOES THAT SONG GO??. . ."STAND BY YOUR MAN"

The "letter" should be posted today some time. Be sure to look for it.


How's that card audit coming?????

 

[twuer]

Well, just as promised. And please notice the letter head and the signature!!! (for all you Doubting Thomas's!!!! )

It contains the usual amfa BS ,and, just a word of caution, a couple of unprofessional comments from Mr. Professional himself!!!

Enjoy!!!!!!!



http://www.THE-MECHANIC.net/pdf/feb_24-04_ovdell.PDF

 

[Johnny Lunchbox]

I wonder who wrote it for him? I didn't notice a stutter in his type, must have been his secretary. What a guy.

 

[Hopeful]

Well, just as promised. And please notice the letter head and the signature!!! (for all you Doubting Thomas's!!!! )

It contains the usual amfa BS ,and, just a word of caution, a couple of unprofessional comments from Mr. Professional himself!!!

Enjoy!!!!!!!



http://www.THE-MECHANIC.net/pdf/feb_24-04_ovdell.PDF

March 31, 2003







James C. Little

Administrative Vice President, Air Transport Division

Transport Workers Union of America, AFL-CIO

1791 Hurstview Dr.

Hurst, Texas 76054





Re: Summary of the 2003 Contract changes



This will confirm our understanding reached during the negotiations leading up to the agreement signed on (DOS), 2003. During these negotiations, we discussed many changes intended to achieve sustained long-term financial relief from the current provisions of the TWU labor agreements. This letter is intended to recap the majority of the agreed upon changes. Changes are listed by Title groups: I (Mechanics and Related), II (Facilities, Automotive, Cabin Cleaners, Utility and Building Cleaners), III (Fleet Service), IV (Fuelers), V (Stock Clerks), T/S (Technical Specials), Disp (Dispatch), Metro (Meteorologists), Sim Techs (Simulator Technicians) and Instrs (Ground School and Pilot Instructors).



Pay Related

Effective May 1, 2003:

§ Base wage pay reduction, varying percentages (all groups)

§ Elimination of all longevity pay(I & II)

§ Modified longevity pay, start after 17 years, current rates (III, IV, V,T/S)

§ Reduced Sim Tech Coordinator premium by $.75/hour

§ Reduced Sim Tech Skill pay to $.10/hour

§ Reduced Pilot Simulator Instructors premium to $10.00/month

§ Reduced Ground School/Pilot Simulator Instructors standardization coordinator pay to $150.00/month

§ Reduced Pilot/Simulator Instructors work unit experience premium

§ Modified shift differential to $.01, $.02, $.03 (I, II, III, V, T/S, Sim Techs)

§ Elimination of weekend differential (I, II, V, at AFW, TUL, MCI)

§ Elimination of midnight skill retention premium (Sim Techs)

§ Training pay at straight time for off shift and day off (I, II)

§ Elimination of penalty lunch payment (I, II, III, IV, V)

§ Elimination of OT meal allowance (I, II, III, IV, V, T/S)

§ Penalty hours pay for actual time worked @ 1.5x (I, II, III, IV, V, T/S)

§ Reduce OT rate from 2x to 1.5x (I, II, III, IV, V)

§ Work 40 hrs to reach OT rate for day off overtime (III, V)

§ Elimination of debrief pay (T/S)

§ Elimination of Stock Clerk driver premium

§ Elimination of AMT premiums when displacing OSM employee

§ Elimination of Early Call-In guarantees (I, II, III, IV)

§ Elimination of short turn penalty due to shift bids (Art 21 d) (III, IV)

§ Elimination of CC premium when not working as CC (III,V)







Work Rules/ Other changes and effective dates:

Effective April 15, 2003:

§ Combine Systems/Structures into Generals (Title I)

§ Added 7 day labor loan provision (Bases only)

§ Increased AMT productivity through multiple work assignments/training

§ Holidays reduced from 10 to 5. The five (5) observed holidays will be: New Year’s Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day (all groups)

o Holidays- 5 days with roll @ 1.5x (I, II, III, IV, V, T/S, Sim Techs)

o Holidays- 5 days (no roll) @ 1.5x (Disp, Metro, Instrs)



Effective May 1, 2003


§ Reduce annual SK accrual to 5 days @ 100% (all except I & II)

§ Reduce annual SK accrual to 5 days, 1st two at 50% (I & II)



Effective May 3, 2003

§ 4/10s at Overhaul docks/TUL, duration of agreement

Effective within sixty (60) days of ratification:

§ Outsource RON/Ultraclean (II/III)

§ One time System protection credit for headcount reductions realized from work rule changes (all groups except Metro)



Effective thirty (30) days from ratification:



§ Reduce uniform provisioning and eliminate laundering (I, II, III, IV, V)

§ Outsource stores function at HDQ (6 Stock Clerks)

§ Relocate 4 Stock Clerks at ORD/GEM to ORD/M & E hanger



Effective as soon as practicable after DOS:

§ Change work schedule to 5 on, 2 off (T/S)

§ Reduced VC accrual one week (all groups)

§ Modify Crew Chief ratios:

AMT- 1:11.5

FSC- 1:9

Fuelers- eliminated ratio

Stores- 1:12

Benefits:

§ Medical & Dental plan modifications (all groups) Effective 1/1/04



§ SLOA Benefit Coverage reduced from 24 to12 months (all groups)

Effective 5/01/03



§ Eliminate STD Plan (all groups) Effective 1/1/04



§ Discontinue subsidized medical benefits RIF’d employees (all groups)

Effective 4/15/03





§ Modify IOD to 10 days (all groups) Effective 5/01/03 with the following transition:



o If the injury was incurred prior to 4/15/03, remaining applicable salary continuation through the end of the month up to the current 80 days

o If the injury is incurred on 4/15/03 or before 4/30/03, salary continuation for 10 days up to the current 80 days

o If the injury is incurred after 5/01/03, salary continuation for 10 days



Sincerely,










James B. Weel

Managing Director

Employee Relations



Agreed to this date:



________________________________

James C Little

Transport Workers Union, AFL-CIO


Attached Image

 

[The Dissident]

You attribute the quote aa woud have been better off in bankruptcy to Delle. Once again you misquote he wrote exactly the following:



If AA filed for bankruptcy then the company under section under 1114 had to sit down and negotiate with your union. You would have been in a better position, because you would have to show the bankruptcy judge that you were negotiating in good faith and would have come away with a better concessionary contract. I guess you blindly followed the twu and got the shaft.

No where in the letter does he state that AA would have been better off in bankruptcy.

I guess it gets kinda hard to remember which lies you tell after you tell so many. Then you go and post the very info which disproves your own lie.

 

[twuer]

You attribute the quote aa woud have been better off in bankruptcy to Delle. Once again you misquote he wrote exactly the following:



If AA filed for bankruptcy then the company under section under 1114 had to sit down and negotiate with your union. You would have been in a better position, because you would have to show the bankruptcy judge that you were negotiating in good faith and would have come away with a better concessionary contract. I guess you blindly followed the twu and got the shaft.

No where in the letter does he state that AA would have been better off in bankruptcy.

I guess it gets kinda hard to remember which lies you tell after you tell so many. Then you go and post the very info which disproves your own lie.

Hey Dissident. . .you might want to put the kool-aide down. That's pretty plain and simple to me.

So do you defend his statement?? I can't get any of the other wannabes to.

 

[TWU informer]

twuer,

The question is, can you disprove what the man said?

Or are you going to take your opinion and run with it?

Go ahead, the membership agrees him, that is why Jim Little refused us the re-vote as promised!

Try walking the floor and asking the member's opinions on this matter, you will see they agree with Delle-Femine.

You guys have been so busy trying to force feed your thoughts on the members, you don't even know what they are really thinking.

By the Way, Thanks for posting the PRO-AMFA material on the web. Can we credit you with the next 125 cards?

 

[TWU informer]

twuer,

"The Dissident is exactly right, you are a liar and it is now documented.

Your exact quote reagrding this letter:

Delle in all his wisdom while trying to convince this TWU supporter how good amfa is actually told him that AA WOULD HAVE BEEN BETTER OFF IN BANKRUPTCY!!!!!!! What the hell does he know about AA that gives him the right to make such a comment??

Here is a screen capture that proves your previous statement:

In fact O.V. Delle-Femine made no such statement in that letter. You are either incapable of the skills required to read and comprehend. Or you are just an outright LIAR! On top of being a common liar, you even provide the letter which proves you lied. Thus, I can only conclude that you are not only a liar, you should also be classified as an absolute dumbass.

 

[mojo13]

There goes the name calling again :down:

 

[TWU informer]

There goes the name calling again :down:

The truth is the truth.

You tell me mojo, what definition do you place on someone who lies and then proves it with his own posting?

Name calling is the only way to accurately define such non-sense in my mind. If you have an easier, softer, way, then fell free to educate me. I am humble enough to accept criticism.

 

[mojo13]

You and I both spend way to much time on these boards and it is only eating away at us. Perhaps a vacation from the boards will do us both good. What do you think?

 

[TWU informer]

You and I both spend way to much time on these boards and it is only eating away at us. Perhaps a vacation from the boards will do us both good. What do you think?

I would love to mojo,

However, I lost five days of vacation and cannot afford to go anywhere because of an industry leading paycut.

The TWU concessions have been "eating" at me and others for 20 years now.

I have had patience crammed down my throat waiting for this union to alter it's leadership and Constitution.

Game Over, we are going to get new leadership and a new Constitution. This would have been the easier, softer way to begin with, but learning the hard way is the story of my life.

BTW, real soon, I will use some vacation time to appear at the National Mediation Board HQ's in Washington D.C. And what a wonderful use of vacation time that will be! And then, somtime later this year, I will appear there again for a vote count. I hope to see you there for that one?

 

[mojo13]

I suppose your right, you may as well spend those lost vacation days here on the keyboard.

 

[mojo13]

I would love to mojo,

However, I lost five days of vacation and cannot afford to go anywhere because of an industry leading paycut.

The TWU concessions have been "eating" at me and others for 20 years now.

I have had patience crammed down my throat waiting for this union to alter it's leadership and Constitution.

Game Over, we are going to get new leadership and a new Constitution. This would have been the easier, softer way to begin with, but learning the hard way is the story of my life.

BTW, real soon, I will use some vacation time to appear at the National Mediation Board HQ's in Washington D.C. And what a wonderful use of vacation time that will be! And then, somtime later this year, I will appear there again for a vote count. I hope to see you there for that one?

You beat me to it

Later this year? the way your guys talk here it will happen next month.