MEC CODE-A-PHONE UPDATE
March 18, 2003
This is Roy Freundlich with US Airways MEC update for Tuesday, March 18, with two new items.
Item 1. At the Bankruptcy Court hearing today on the confirmation of the Company’s plan of reorganization the judge approved the reorganization plan following yesterday’s creditors’ approval. The plan of reorganization requires that the conditions of the ATSB loan be satisfied, which stipulates that the pilot pension funding issue be resolved. Final approval of the ATSB loan is necessary to satisfy RSA DIP and exit financing agreements. The Company requested that the court reserve time on Friday, March 28, to consider possible incremental funding changes to the plan, which could amend the plan of reorganization for cost increases associated with a follow-on pilot defined contribution plan.
Per ALPA’s and other creditor positions the plan of reorganization was amended to maintain US Airways’ ability to make claims against any insiders for supplemental retirement payouts. The reconstituted US Airways BOD will now have ability to recover the 35 million dollar payout to Stephan Wolf, Rakesh Gangwal and Larry Nagin. Management’s original position was to exclude US Airways from being able to recover Wolf’s and Nagin’s payouts, with no intention of recovering Gangwal’s.
Item 2. The MEC reconvened its special meeting in Herndon, VA and received a report from the Negotiating Committee on the progress of negotiations. ALPA and Company actuaries are doing a cost analysis on ALPA’s and the Company’s proposed defined contribution plans.
Open items include management’s position that it wants ALPA to agree that if the PBGC rejects a negotiated DC plan, then we default to the Company’s original proposed plan, and the financial assumptions used to obtain a target benefit for pilots on active pay status, pilots on LTD status, furloughed pilots upon recall, and new hire pilots.
Other issues proposed by ALPA include obtaining equitable pay and vacation snapback provisions, resolving grievance issues, governance on corporate committees, and reserve scheduling of immoveable days.
The MEC will reconvene tomorrow at 1 p.m. at the Days Inn Conference Center Dulles Airport to receive an update from the Negotiating Committee.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
March 18, 2003
This is Roy Freundlich with US Airways MEC update for Tuesday, March 18, with two new items.
Item 1. At the Bankruptcy Court hearing today on the confirmation of the Company’s plan of reorganization the judge approved the reorganization plan following yesterday’s creditors’ approval. The plan of reorganization requires that the conditions of the ATSB loan be satisfied, which stipulates that the pilot pension funding issue be resolved. Final approval of the ATSB loan is necessary to satisfy RSA DIP and exit financing agreements. The Company requested that the court reserve time on Friday, March 28, to consider possible incremental funding changes to the plan, which could amend the plan of reorganization for cost increases associated with a follow-on pilot defined contribution plan.
Per ALPA’s and other creditor positions the plan of reorganization was amended to maintain US Airways’ ability to make claims against any insiders for supplemental retirement payouts. The reconstituted US Airways BOD will now have ability to recover the 35 million dollar payout to Stephan Wolf, Rakesh Gangwal and Larry Nagin. Management’s original position was to exclude US Airways from being able to recover Wolf’s and Nagin’s payouts, with no intention of recovering Gangwal’s.
Item 2. The MEC reconvened its special meeting in Herndon, VA and received a report from the Negotiating Committee on the progress of negotiations. ALPA and Company actuaries are doing a cost analysis on ALPA’s and the Company’s proposed defined contribution plans.
Open items include management’s position that it wants ALPA to agree that if the PBGC rejects a negotiated DC plan, then we default to the Company’s original proposed plan, and the financial assumptions used to obtain a target benefit for pilots on active pay status, pilots on LTD status, furloughed pilots upon recall, and new hire pilots.
Other issues proposed by ALPA include obtaining equitable pay and vacation snapback provisions, resolving grievance issues, governance on corporate committees, and reserve scheduling of immoveable days.
The MEC will reconvene tomorrow at 1 p.m. at the Days Inn Conference Center Dulles Airport to receive an update from the Negotiating Committee.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
