ALPA MEC CODE-A-PHONE UPDATE - November 23, 2002
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chipmunn
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MEC CODE-A-PHONE UPDATE - November 23, 2002
This is Roy Freundlich with a US Airways MEC update for Saturday, November 23, with three new items:
Item 1. The MEC reconvened its special meeting in Herndon yesterday and continued receiving a report from the Negotiating Committee in open and closed sessions. The Committee discussed the small jet negotiations with management during the past two weeks and management’s position to now want to put 70-seat small jets at wholly own carriers instead of MidAtlantic Airways.
Kelly Ison, ALPA’s member on the Unsecured Creditors’ Committee, also provided an update on the creditors’ committee actions in closed session.
The MEC received an update from ALPA’s Economic and Financial Analysis Department on the current economic status of airline industry and of the Company. The Retirement and Insurance Committee also briefed the MEC on management’s meeting with the PBGC. These briefings also occurred in closed session.
The MEC recessed the meeting at 5:00 pm. and is planning to reconvene next week in Crystal City at the Crystal Gateway Marriott on Tuesday and Wednesday.
Item 2. Management has requested a meeting with all US Airways labor leaders on Tuesday, November 26, to update labor on the Company’s status and to present management’s ideas on potential solutions to the current problems the Company is facing.
Item 3. The MidAtlantic Negotiating Committee resumed negotiations this week with MidAtlantic management. The negotiations entered the facilitation phase on Thursday with Arbitrator Robert Harris. Negotiations continued Friday and focused on scheduling issues. Negotiations are scheduled to resume next week. An updated Progress Sheet is being posted on the MidAtlantic pilots website available through your personal home page at alpa.org.
Please remember we have 1,356 pilots on furlough, with 326 pilot furloughs scheduled for January 7, and 145 additional pilot furloughs anticipated through April 2003.
This is Roy Freundlich with a US Airways MEC update for Saturday, November 23, with three new items:
Item 1. The MEC reconvened its special meeting in Herndon yesterday and continued receiving a report from the Negotiating Committee in open and closed sessions. The Committee discussed the small jet negotiations with management during the past two weeks and management’s position to now want to put 70-seat small jets at wholly own carriers instead of MidAtlantic Airways.
Kelly Ison, ALPA’s member on the Unsecured Creditors’ Committee, also provided an update on the creditors’ committee actions in closed session.
The MEC received an update from ALPA’s Economic and Financial Analysis Department on the current economic status of airline industry and of the Company. The Retirement and Insurance Committee also briefed the MEC on management’s meeting with the PBGC. These briefings also occurred in closed session.
The MEC recessed the meeting at 5:00 pm. and is planning to reconvene next week in Crystal City at the Crystal Gateway Marriott on Tuesday and Wednesday.
Item 2. Management has requested a meeting with all US Airways labor leaders on Tuesday, November 26, to update labor on the Company’s status and to present management’s ideas on potential solutions to the current problems the Company is facing.
Item 3. The MidAtlantic Negotiating Committee resumed negotiations this week with MidAtlantic management. The negotiations entered the facilitation phase on Thursday with Arbitrator Robert Harris. Negotiations continued Friday and focused on scheduling issues. Negotiations are scheduled to resume next week. An updated Progress Sheet is being posted on the MidAtlantic pilots website available through your personal home page at alpa.org.
Please remember we have 1,356 pilots on furlough, with 326 pilot furloughs scheduled for January 7, and 145 additional pilot furloughs anticipated through April 2003.
C
chipmunn
Guest
[FONT face=Times New Roman size=3]The US unions have an organization or forum where they get together to discuss issues of common concern called the Labor Coalition. This is comprised of the Labor Leaders so the phrase Labor Leaders or Labor Coalition is often interchanged.[BR][BR]Regardless, ALPA distributed a union non-confidential voice mail message first announcing the meeting before it was made public knowledge and also spoke of the one-week timeline.[BR][BR]On November 15, the ALPA MEC Chairman wrote a letter to all pilots and said: [/FONT][BR][BR][FONT face=Times New Roman size=3]In late October, the Company stated in an SEC filing that it wanted to cut annual costs by nearly $100-$300 million more a year than previous estimates—bringing cuts up to $1.6 billion annually—to achieve profitability. When the Company filed its application with the ATSB for a $900 million loan guarantee, it had to present a business plan that included projected revenue, which would help the ATSB determine if the loan could be repaid. The business plan satisfied the ATSB, and the loan was conditionally approved in July. The funds will be made available to US Airways upon emergence from bankruptcy—but only if the business plan still meets the conditions for issuance of a guarantee. [/FONT][BR][BR][FONT face=Times New Roman size=3]US Airways’ July and August revenue figures were near the projections contained in US Airways’ business plan filed with the ATSB. However, the industry-wide September and October downturn (which looks to be continuing through the end of this year and well into the next) has led to a revenue short fall. When US Airways reported its third quarter financial figures, operating revenues for the third quarter were $1.75 billion, down 11.9 percent from the third quarter of 2001, and operating expenses were $1.93 billion, down 29.4 percent. US Airways’ pre-tax loss was $373 million for the third quarter 2002, compared to a pre-tax loss of $766 million last year. [BR][/FONT][FONT face=Times New Roman size=3][BR]Management plans to make up for this shortfall by decreasing its expenses, as it has conditions attached to the ATSB loan. The Company has said publicly that if it doesn’t meet those conditions, it stands the risk of losing the loan, and has made a formal request to all US Airways labor groups in an attempt to again reduce costs.[BR][BR]I understand the company has scheduled a Board meeting, where ALPA and the IAM will be present, to discuss the final Plan of Reorganization that must be submitted to the bankruptcy court by December 9 and possibly a potenital interesting corporate transaction. [BR][BR]Again, the company does not meet the 7 percent profit requirements established by the OMB for loan guarantee approval. The company is working day and night to increase revenues and will include in the plan accelerated Star alliance revenue and is working with ALPA to increase RJ flying in two critical areas: resolving the Freedom Air dispute by creating a Freedom Air East Division and placing 70-seat RJs at the three current wholly owned carriers because these airlines can spool up quicker than MDA.[BR][BR]To make up the difference from the added revenue and 7 percent profit margin requirement the company is expected to formally seek productivity changes from all labor groups and retirement changes from those employee groups who have defined benefit pensions, where reports indicate the unions could have one week to respond to consensual contract changes. Without these changes, management could take other actions, which may be unpleasant.[BR][BR]Chip [/FONT]
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[BLOCKQUOTE][BR][FONT size=1]Chip, I'm not Shooting the Messenger here, but when you say this:[/FONT][BR][BR][BR]----------------[BR][FONT face='Times' size=3 Roman" New][BR]However, the industry-wide September and October downturn (which looks to be continuing through the end of this year and well into the next) has led to a revenue short fall.[BR][BR][FONT size=1]-------------[BR][BR]Doesn't it conflict with this almost immediately?[BR][BR][BR]-------------[BR][/FONT][BR][/FONT][FONT face='Times' size=3 Roman" New]Include in the plan accelerated Star alliance revenue and is working with ALPA to increase RJ flying in two critical areas: resolving the Freedom Air dispute by creating a Freedom Air East Division and placing 70-seat RJs at the three current wholly owned carriers because these airlines can spool up quicker than MDA.[BR][BR][BR]Chip[BR][/FONT]----------------[BR][BR][FONT size=1]Wouldn't the continuing industry downturn make the projected Star Alliance revenue figures subject to change almost with the wind?[BR][BR]I have another question, if the whole argument against Freedom Air is their non union status, how is an East Cost Division of this non union airline going to settle things down?Wouldn't that just bring the problem into your backyard so to speak?[BR][BR]Again, I am not shooting the messenger here, I am just curious.Thanks.[/FONT][/BLOCKQUOTE][BR][BR]
[BLOCKQUOTE][BR][FONT size=1]Chip, I'm not Shooting the Messenger here, but when you say this:[/FONT][BR][BR][BR]----------------[BR][FONT face='Times' size=3 Roman" New][BR]However, the industry-wide September and October downturn (which looks to be continuing through the end of this year and well into the next) has led to a revenue short fall.[BR][BR][FONT size=1]-------------[BR][BR]Doesn't it conflict with this almost immediately?[BR][BR][BR]-------------[BR][/FONT][BR][/FONT][FONT face='Times' size=3 Roman" New]Include in the plan accelerated Star alliance revenue and is working with ALPA to increase RJ flying in two critical areas: resolving the Freedom Air dispute by creating a Freedom Air East Division and placing 70-seat RJs at the three current wholly owned carriers because these airlines can spool up quicker than MDA.[BR][BR][BR]Chip[BR][/FONT]----------------[BR][BR][FONT size=1]Wouldn't the continuing industry downturn make the projected Star Alliance revenue figures subject to change almost with the wind?[BR][BR]I have another question, if the whole argument against Freedom Air is their non union status, how is an East Cost Division of this non union airline going to settle things down?Wouldn't that just bring the problem into your backyard so to speak?[BR][BR]Again, I am not shooting the messenger here, I am just curious.Thanks.[/FONT][/BLOCKQUOTE][BR][BR]
