USA320Pilot
Veteran
- May 18, 2003
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According to the WSJ, the Glanzer report, which had intended to poke holes in US Airways' assumptions, turnaround plan and requests for labor concessions, didn't find many. US Airways' plan, which calls for it to model itself after discounters such as America West Holdings, JetBlue Airways and AirTran Holdings, "is a thoughtful effort to devise a viable business plan, considering the company's assets and financial condition," the report said.
The bankers also concluded that the labor savings that US Airways is seeking aren't out of line, and "only on such basis would such a [turnaround] plan be potentially workable." They said the company seems to have taken full advantage of its first bankruptcy to reduce costs, and said they didn't see other significant opportunities for expense cutting, save for further employee givebacks, terminating other unions' pension plans or throttling back capital expenditures, the WSJ noted.
If the company is unable to extract new concessions from workers, the report concludes, US Airways has 180 to 270 days left of operation, because next month it must make several large payments to a pension fund and creditors. On Sept. 30, it also faces a crucial review by the federal government, which gave the company $900 million in federally backed loan guarantees.
Complete Story
Absent new contracts with its pilots and three other major unions, Glanzer said, US Airways may have to file for bankruptcy, resulting in severe cutbacks for the pilots and less in return. A worst case, he said, would be a liquidation of the company and elimination of all 28,000 jobs within five months to eight months.
Complete Story
Joe Tiberi, spokesman for the International Association of Machinists said late Thursday that he had not seen the report. He said the union, which represents mechanics and fleet service workers, remains unwilling to open its contract for concessionary talks, though it will suggest other cost-saving measures to the company.
Complete Story
USA320Pilot comments: Michael Glanzer's report indicates that all of labor must participate in the new business plan or US Airways may have to file for bankruptcy, resulting in severe cutbacks for the pilots and less in return. Therefore, if the IAM or any other union does not participate then the company has no option but to seek cuts made by "imposition", which will be more "painful" on that employee group. If what the IAM publicly says is true, the union has given US Airways no option but to make the unions rank-and-file members irrelevant to the process.
As I have said before, the company has hired bankruptcy advisors and there is significant bankruptcy planning occurring with some of those plans "how to deal with the naysayers."
Respectfully,
USA320Pilot
The bankers also concluded that the labor savings that US Airways is seeking aren't out of line, and "only on such basis would such a [turnaround] plan be potentially workable." They said the company seems to have taken full advantage of its first bankruptcy to reduce costs, and said they didn't see other significant opportunities for expense cutting, save for further employee givebacks, terminating other unions' pension plans or throttling back capital expenditures, the WSJ noted.
If the company is unable to extract new concessions from workers, the report concludes, US Airways has 180 to 270 days left of operation, because next month it must make several large payments to a pension fund and creditors. On Sept. 30, it also faces a crucial review by the federal government, which gave the company $900 million in federally backed loan guarantees.
Complete Story
Absent new contracts with its pilots and three other major unions, Glanzer said, US Airways may have to file for bankruptcy, resulting in severe cutbacks for the pilots and less in return. A worst case, he said, would be a liquidation of the company and elimination of all 28,000 jobs within five months to eight months.
Complete Story
Joe Tiberi, spokesman for the International Association of Machinists said late Thursday that he had not seen the report. He said the union, which represents mechanics and fleet service workers, remains unwilling to open its contract for concessionary talks, though it will suggest other cost-saving measures to the company.
Complete Story
USA320Pilot comments: Michael Glanzer's report indicates that all of labor must participate in the new business plan or US Airways may have to file for bankruptcy, resulting in severe cutbacks for the pilots and less in return. Therefore, if the IAM or any other union does not participate then the company has no option but to seek cuts made by "imposition", which will be more "painful" on that employee group. If what the IAM publicly says is true, the union has given US Airways no option but to make the unions rank-and-file members irrelevant to the process.
As I have said before, the company has hired bankruptcy advisors and there is significant bankruptcy planning occurring with some of those plans "how to deal with the naysayers."
Respectfully,
USA320Pilot