Name: Unwilling AMFA member
Email:
Employer: Loser UAL
Station: SFO
Date: Wednesday November 10, 2004
Time: 03:55:31 AM
Comments
I want to hear from all the stupid, knuckle dragging, low forehead, bone brained, bastard morons that was here a few years ago that saying, AMFA will save everyone, your pay will be better, management will back off and we "professional aircraft mechanics" will walk tall above all others. WHERE ARE YOU AT??? WHERE IS THAT SON OF A #### DELL FEMMINE??? Why isn't there anyone here saying AMFA will get us $40.00 an hour? Where are the ones saying MANAGEMENT will bow to AMFA? You a$$holes started this frigging cult and now your so called savior is nothing but a carnival con man. This carnival ride is over and we are doomed to fail because of all you whiney low IQ, back stabbing, blind cult following mentality. All your AMFA card carry, AMFA chanting, brain dead morons fell into the divide and conquer trap. You divided us and the companies has conquered all of us. Thank you AMFA!!! Thank you for more lay offs. Pay cuts, lack of representation. No political clout or support. Getting all the other legitimate unions NOT to support us. Thank you for concessions, no pensions and an even more shaky future!!! WHERE ARE YOU MORONS AT??? WHERE ARE THE DIE HARD AMFA ASS@#OLES THAT ARE GOING TO SAY HOW WRONG WE ALL ARE AND WE ARE STILL TOO BLIND TO SEE WHAT'S GOING ON??? WHERE ARE THE BLOW HARDS THAT SAID YOU WILL SEE HOW WRONG WE ALL ARE WHEN AMFA STEPS IN? THE ROAD TO HELL IS PAVED WITH GOOD INTENTIONS AND AMFA MEMBERSHIP CARDS!!!
Ah yes, they would have been so much better off if they were at the 100% AFL-CIO affiliated USAIR right? By the way werent they AFL-CIO affiliated when they lost everything? Or they could be working all their Holidays for nothing like the TWU represented workers at AA, you know the ones that gave everything up to "save their company". Like the MCI guys that are headed out the door. Funny but while there are scores of dissatified TWU members that post with their real names the only posts that you can find against AMFA are from unidentified posters on "the-mechanic.com. Why is that? Could it be because unlike this website where you have an account, at the Mechanic, Drippy and the few other TWU supporters could post under as many aliases as they can think of?
Airlines
The Airlines' New Solution To Pension Costs
Mark Tatge, 11.10.04, 6:00 AM ET
CHICAGO - UAL's United Airlines plan to dump $6 billion to $8 billion in pension liabilities could trigger a cascade of airline bankruptcies.
Strange as it seems, all eyes are on UAL's (otc: UALAQ - news - people ) Chief Executive Glenn Tilton. United's pensions, legacies from when the airline was a regulated carrier are a big drain on cash. Pension costs, including curtailment charges, amounted to $693 million last year.
Dumping the pension expense in bankruptcy greatly alters the carrier's cost structure. Paired with $1 billion in new cost savings, United would be able to significantly underprice its big-five legacy competition and narrow the 30% gap with low-cost carriers like Southwest Airlines (nyse: LUV - news - people ), JetBlue Airways (nasdaq: JBLU - news - people ), America West Holdings (nyse: AWA - news - people ) and AirTran Holdings (nyse: AAI - news - people ).
The airline industry already stands to lose $5.5 billion this year after being pounded by low-fare competitors and skyrocketing oil prices. Analysts are predicting that some 70% of the industry capacity could be in bankruptcy next year if current trends continue and oil prices stay above $45 per barrel.
All this worries executives at the other five big legacy carriers: AMR (nyse: AMR - news - people )--parent of American Airlines--Delta Air Lines (nyse: DAL - news - people ), Continental Airlines (nyse: CAL - news - people ), Northwest Airlines (nasdaq: NWAC - news - people ) and bankrupt US Airways Group (otc: UAIRQ - news - people ). Several of them are seriously discussing whether to file a pre-packaged bankruptcy to dump or restructure their own pension plans. No small task. Underfunded pensions total: $20 billion.
Pension Funding Status Overfunded And (Underfunded)
figures in millions 1999 2000 2001 2002 2003
American ($346) ($703) ($1,940) ($3,434) ($2,664)
Continental (287) (282) (587) (1,190) (1,079)
Delta 148 1,135 (2,353) (4,907) (5,659)
Northwest 519 (486) (2,275) (3,950) (3,748)
United 1,320 (741) (2,520) (6,380) (6,156)
US Airways (722) (301) (2,344) (2,445) (922)
Total 632 (1,378) (12,019) (22,306) (20,228)
Source: Company reports and AirlineForecasts LLC.
Vaughn Cordle, who runs AirlineForecasts, says the figure is really closer to $30 billion since the industry has relied on outdated mortality data and has been too aggressive in its investment assumptions. The full impact of the pension deficit isn't even hitting all the carriers since they are able to defer a portion of that expense under an emergency law passed by Congress to help keep the industry solvent.
By Cordle's analysis, United could lower its 9.99 cent cost per available seat mile, or CASM, about half a cent, by discontinuing its pension plans. That may not seem like a lot. But Tilton won't stop there. After making $5 billion in cuts, Tilton has identified $755 million in labor cuts and another $655 million in non-labor cost savings beyond the pension savings. These cost cuts would drop United's CASM to 8.7 cents, making it competive with low-cost carriers, Cordle says.
Defined Benefit Plan Pension Expense (as of Dec. 31, 2003)
figures in millions Net Benefit Expense Available Seat Miles Benefit Cost Per ASM *
American** $635 164,700 $0.39
Continental 328 74,968 0.44
Delta**** 636 119,912 0.53
Northwest 491 88,572 0.55
United*** 693 135,867 0.51
US Airways 52 51,583 0.10
Total 2,835 635,602
* in cents per Available Seat Mile (ASM) ** $46 million curtailment charge included*** $125 curtailment charge included **** $47 million curtailment charge included Source: Company reports and AirlineForecasts LLC
Last week, United asked the bankruptcy court for permission to terminate its pension plans. Under federal bankruptcy law, a debtor has to negotiate in good faith with retirees and show that the termination is key to implementing a plan of reorganization, said Baker & McKenzie bankruptcy attorney Anthony Stamato.
That shouldn't be a problem for United. After being denied up to $2 billion in federally guaranteed loans three times., United has been unable to secure exit financing. United's huge pension liability, ($8 billion by conservative assumptions) was viewed as the major reason why the carrier's application was denied.
If United is given the green light to dump its plans, the airline will undoubtedly replace these plans with some sort of less costly 401(k) defined contribution plan funded by both employees and the airline. The old plans will be turned over to the Pension Benefit Guaranty Corp.
Bear Stearns analyst David Strine sees a destructive domino effect if United gets permission to shed its pension bill. "Given that the industry has become a commodity business with no pricing power, what happens to costs inside bankruptcy must then be adopted by the players outside of bankruptcy," Strine wrote in a recent report.
