Doug Parker's Letter to employees

[777 / 767 / 757 Love]

So, you're against?

Yes, as a customer I fear this day.......every time I am on a flight to PVG, DEL, LHR, etc, I talk to the crews, the crews I have come to love. ON a trip back from PVG thru LAX last month I told two FAs upfront where I was sitting that "After a long week, and many times two weeks in Asia, as soon as I walk around that corner and see the AA on the tail, I begin to feel like I am almost home. Once I walk on to the plane, I truly feel like I am home." That was not some stupid slogan, its how I feel.

AA has its share of problems, and I have little respect for its management team, but to wrongs don't make a right. I have flown EMirates, and BA, and a host of others, and I never feel at home when I fly those airlines until I have landed in the U.S. and gotten off the plane.

Finally, NO ONE, and I mean NO ONE rewards loyalty like AAdvantage Program. Its far from perfect, but when compared to others, its light years ahead.

I understand the unions need to protect themselves, but the grass is not always greener.......TRUST ME.

Cheers,
777 / 767 / 757

 

[777 / 767 / 757 Love]

Lotta talk for a guy who doesn't have a dog in the fight. Money talks and BS walks. Why would the unions at AA, or for that matter - any employee group at AA get behind AA management? To get sucked into a 6 year contract that keeps us at the bottom of the industry for the duration. If Doug Parker wants to merge employee groups, and keep them happy - better pay and benefits are the answer. So, if this deal torpedoes Tom Horton and company from screwing us even more - well then I'm all for it. Let's see the deals now, and fine tune them.

You are absolutely right, I don't derive my paycheck from AA, so I don't have a dog in the fight. Can't argue you with that point.....but I fly 200k+ actual miles (not bonus or others) on AA a year, and the thought of losing AA makes me very sad, and stressed. All I ask you to think about is, if Parker and his team is so much better at labor relations then AA, why has he not be able to in 7.....count them 7 years been able to finish the America West / US Air merger? That is right, there are still two pilot "unions / sections" with two different contracts.

He is offering the AA unions a sunny approach so that he and his team can get what they want, not because they give a #### about saving AA jobs. He has a vested interest.......he is a M&A specialist, not a airline specialist........be careful of the wolf in sheep's clothes.

Cheers,
777 / 767 / 757

 

[767one]

A merger reduces the risk of future BKs, not increases it for both and while I am sure some US jobs will be cut we are all still much better off in the long run being employed by one of the big 4.

I would agree with your statement for the most part but it must be a good merger not just a merger.

 

[ALPO NO MO]

Dear Dougie,

Where's the WIN WIN?

Win: Doug gets $$$$$$ to knit this thing together and the total debt goes sky high
Win: A lot a blather, finally a public offering with a big stock price,
Win: Doug and his cronies get a butt-load of stock and cash out to go on their merry way

Losers: everyone else

stock sinks, unhappy employees stagger on

 

[wings396]

Yes, as a customer I fear this day.......every time I am on a flight to PVG, DEL, LHR, etc, I talk to the crews, the crews I have come to love. ON a trip back from PVG thru LAX last month I told two FAs upfront where I was sitting that "After a long week, and many times two weeks in Asia, as soon as I walk around that corner and see the AA on the tail, I begin to feel like I am almost home. Once I walk on to the plane, I truly feel like I am home." That was not some stupid slogan, its how I feel.

AA has its share of problems, and I have little respect for its management team, but to wrongs don't make a right. I have flown EMirates, and BA, and a host of others, and I never feel at home when I fly those airlines until I have landed in the U.S. and gotten off the plane.

Finally, NO ONE, and I mean NO ONE rewards loyalty like AAdvantage Program. Its far from perfect, but when compared to others, its light years ahead.

I understand the unions need to protect themselves, but the grass is not always greener.......TRUST ME.

Cheers,
777 / 767 / 757

So what to you fear will go away? You will still see the AA on the tail, and I would expect the the superior FT program to stay intact.

 

[DCaf]

Yes, as a customer I fear this day.......every time I am on a flight to PVG, DEL, LHR, etc, I talk to the crews, the crews I have come to love. ON a trip back from PVG thru LAX last month I told two FAs upfront where I was sitting that "After a long week, and many times two weeks in Asia, as soon as I walk around that corner and see the AA on the tail, I begin to feel like I am almost home. Once I walk on to the plane, I truly feel like I am home." That was not some stupid slogan, its how I feel.

AA has its share of problems, and I have little respect for its management team, but to wrongs don't make a right. I have flown EMirates, and BA, and a host of others, and I never feel at home when I fly those airlines until I have landed in the U.S. and gotten off the plane.

Finally, NO ONE, and I mean NO ONE rewards loyalty like AAdvantage Program. Its far from perfect, but when compared to others, its light years ahead.

I understand the unions need to protect themselves, but the grass is not always greener.......TRUST ME.

Cheers,
777 / 767 / 757

My first overseas trip many years ago was on AA, and I understand the feeling on getting to the airport to see a familiar sight. But post-merger, should it come to pass, AA is still going to be there.

 

[MCI transplant]

You mean it can't be both? I honestly believe that Horton wants to reorganize AA (which, by necessity, involves tremendous pain on the part of some employees and a bunch of pain inflicted on all the other employees). And of course, nobody does that for free; if he's successful at reorganizing AA, there will be a large payday consisting of at least several percent of the new stock for the executive team.

<_< ------ That's "IF" the present executive team is still around after the smoke clears!!!

 

[Bob Owens]

So what to you fear will go away? You will still see the AA on the tail, and I would expect the the superior FT program to stay intact.

As a consumer he should fear higher prices via a more consolidated industry. Now instead of the top four airlines controlling 70% of the market it will only be three.

 

[Bob Owens]

press on with the 1113 process unless all of the creditors believe their needs are best met by considering other alternatives - and then if that happens, open the bidding to all potential bidders - and then pick the plan that provides the best return, including AA emerging as a standalone carrier.

In 2003 we (the employees) made what has turned out to be a nine year investment in keeping AA a stand alone carrier, now they want even bigger concessions. Time to write it off. USAIR is by no means a "white knight" but the team we have in place must go. Like I said before if the best they can do, the only way they can survive, is for us to subsidize their plan then I'd rather see AA liquidate, well this is merely an alternative to both.

 

[Mrs. McFly]

You are absolutely right, I don't derive my paycheck from AA, so I don't have a dog in the fight. Can't argue you with that point.....but I fly 200k+ actual miles (not bonus or others) on AA a year, and the thought of losing AA makes me very sad, and stressed. All I ask you to think about is, if Parker and his team is so much better at labor relations then AA, why has he not be able to in 7.....count them 7 years been able to finish the America West / US Air merger? That is right, there are still two pilot "unions / sections" with two different contracts.

He is offering the AA unions a sunny approach so that he and his team can get what they want, not because they give a #### about saving AA jobs. He has a vested interest.......he is a M&A specialist, not a airline specialist........be careful of the wolf in sheep's clothes.

Cheers,
777 / 767 / 757

This is the what I feel in my gut and can't help but wonder what on earth was promised, and what is being said to US employees? Good grief, you read their leadership statements and they are very much not the cheerleaders of this thing. Tepid at best. Same with the TWU. If only we were flies on the wall and truly knew what kind of bill of goods we were being sold, by both out management and US.

 

[Bob Owens]

I have to think AA management is talking to US management behind the scenes at this point. I just don't see this being "hostile" at the end of the day.

I agree, I think its been a consideration for a long time even though I still think there are several varible outcomes out there and helps explain some of the positions AA has taken during negotiations such as demanding $1.25 billion in concessions to close what they said was a $600 million labor cost disadvantage, the fact that throughout negotiations the company keeps increasing their demands thus making it impossible to come to an endorsable TA.

My belief is that the overall objective is lower labor costs, which names survive really doesnt matter, as long larger and larger shares of the billions of dollars this industry generates continues to go to the big boys and not the people who actually perform the work.

We need to proceed with caution. Management has basically done everything they possibly can to alienate the union in these talks. They really didnt leave any reason for us to believe there was a future for us ubder their business plan. Courting USAIR could simply be a part of their plan. Sure Horton will act as if he is insulted but maybe this is what he wants. Lets face it, either way he walks away a rich man.

What do we have here? We have the two bottom feeders in the industry possibly merging into what would now be the largest carrier in the country with the lowest wages in the industry, just as other contracts at competitors are coming due. What did we have in 2003? AA had recently merged with TWA and the combined airline was the largest in the country, and they also had just agreed to 25% concessions. The combined USAIR -AA would also have significantly lower wages than Delta or UAL.

In 2005 NWA enterred BK with $1billion in cash

In 2011 AMR enterred BK with over $4 billion

In 2012 Hostess enterred bK with the sole objective of only voiding their labor contracts.

in 2013 there is nothing stopping UAL from entering BK with billions in the bank, jump into BK to try and impose new terms more inline with the new US-AA pay rates. Then with the lower terms imposed simply ride out 4 years of section 6 talks, posting profits while the labor unions tell us how we need to vote in democrats and how they will make it all better.

We need to shuit it down.

Enough is enough.

 

[BoeingBoy]

If only we were flies on the wall and truly knew what kind of bill of goods we were being sold, by both out management and US.

So far it sounds like a very expensive bill of goods promised to the unions. Just cutting the number of furloughs is about $350 million a year. But making promises to the AA employees is only half of a POR - the other half is how to pay for those promises and still show a better return for the creditors than AA's stand alone plan. That means more revenue to pay for all those promises plus offer the creditors a better return. The $500 million in extra synergies that have been leaked won't go far when the bills come due...

Jim

 

[700UW]

He has a vested interest.......he is a M&A specialist, not a airline specialist........be careful of the wolf in sheep's clothes.

Cheers,
777 / 767 / 757

Really?

Parker has only done one merger in the industry.

Doug Parker is chairman and chief executive officer of US Airways Group, Inc. and US Airways, its principal subsidiary company. He is based at the airline’s headquarters in Tempe, Ariz.

Parker became chairman and CEO following the merger of US Airways and America West Airlines in September 2005. Prior to the merger, he was chairman, president and chief executive officer of America West Holdings Corporation. Parker joined America West in June 1995 as senior vice president and chief financial officer and was elected chairman, president and chief executive officer in September 2001.

Prior to joining America West, Parker spent four years with Northwest Airlines as vice president and assistant treasurer, and vice president of financial planning and analysis. From 1986 to 1991, he held a number of financial management positions with American Airlines.

Parker received a Bachelor of Arts degree in economics from Albion College in 1984 and a Master of Business Administration degree from Vanderbilt University in 1986. He serves as chairman of the board of directors for Valley of the Sun United Way. He and his wife, Gwen, have three children and reside in Paradise Valley, Ariz.

 

[Bob Owens]

I would ask the AA Unions this:
3) If you think your management team controls your destiny, YOUR WRONG, the frequent flyers do.

Ok, so I guess we can thank you for Four years of no-gotiations. I guess we should be willing to give up even more so you can enjoy AA superior First class while we get inferior wages and benefits.

Tell me this, if AA abrogates our contracts and we resort to self help, are you going to just stay home?

Enough is enough.

 

[luvthe9]

Mark my words, you will not get what Parker promised you. You will learn the hard way.