PilotAction US Airways & American Airlines Trial & Other News Update

[USA320Pilot]

ilotAction Merger News for US Airways & American Airlines #1: August 27, 2013

Bankrupt American Air posts record monthly profit

"We're ready to make our case in court for the merger's significant benefits to all of our stakeholders and the communities we serve," AMR CEO Tom Horton said in his memo Monday.

See Story:[background=rgb(250, 250, 250)] [/background]http://money.cnn.com/2013/08/26/news...ce=yahoo_quote


What's Being Said About the DOJ's Decison on the Merger (Click on the arrow to advance comments)

See Story:[background=rgb(250, 250, 250)] [/background]http://newamericanarriving.com/


Editorial: Early, early score in the guv race: Davis 1, Abbott 0

See Story:[background=rgb(250, 250, 250)] [/background]http://fwbusinesspress.com/fwbp/arti...-Abbott-0.aspx


APA Merger Talking Points: August 26, 2103

See Story: https://public.alliedpilots.org/APA/...=1042&mid=2085

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: August 27, 2013

DOJ suit against airline merger further alienates unions

AFL-CIO’s Transportation Trade Department recently joined the fight, putting some added muscle behind opposition to the administration's case

See Story:[background=rgb(250, 250, 250)] [/background]http://www.foxnews.c....s-unionsobama/


Despite merger limbo, US Airways moves to AA's JFK terminal (tomorrow)

The terminal shift also would move US Airways away from its Star Alliance partners United, Air Canada and ANA

See Story: http://www.usatoday.....minal/2706045/


US Airways Is Ignoring A Federal Lawsuit And Moving In With American Airlines

See Story: http://finance.yahoo....164912473.html


Demand, cost cuts help American Airlines' profit double

"We're ready to make our case in court for the merger's significant benefits to all of our stakeholders and the communities we serve," AMR CEO Tom Horton wrote.

See Story: http://www.usatoday.....-cuts/2704975/


Antitrust-trial judge has big cocaine trial that starts Jan. 14

See Story: http://aviationblog.....s-jan-14.html/


American's workforce shrunk 8.5 percent in the past year, BTS says

See Story: http://blogs.star-te....-bts-says.html


[background=transparent]Oracle, PeopleSoft Merger Suggests AMR Corp and US Airways Can Beat DoJ, Wolfe Research Says

See Story: [/background][background=transparent]http://blogs.barrons....research-says/[/background]


[background=transparent][background=rgb(250, 250, 250)]J[/background]etBlue Takeover Appeal Grows Amid AMR Limbo: Real M&A[/background]

[background=transparent]“American Airlines has a strong, unwavering belief in the benefits our merger with US Airways will bring,” Michael Trevino, an American spokesman, said in an interview, while declining to comment on JetBlue. “We are focused on achieving antitrust clearance so we can build the new American.”

“We are proposing a merger with American Airlines,” said Ed Stewart, a spokesman for Tempe, Arizona-based US Airways. “Speculation about JetBlue is not on our radar at all.”

There’s still more than a 50 percent chance that American and US Airways complete their union, according to the Raymond James analysts. [/background]

[background=transparent]See Story: [/background][background=transparent]http://www.bloomberg....tml?cmpid=yhoo[/background]


[background=transparent]Should American Air Tout Record Profit as It Seeks a Merger?

See Story: [/background][background=transparent]http://www.thestreet....o&cm_ven=YAHOO[/background]

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #3: August 27, 2013

Bankruptcy Costs Weighing on AMR’s Profits

The company said Monday it expects to continue to report “at least” another $15 million a month in such charges as it languishes in Chapter 11 bankruptcy protection, based on assuming that it will pay fees of $500,000 a day.

See Story:[background=rgb(250, 250, 250)] [/background]http://blogs.wsj.com/cfo/2013/08/27/.../?mod=yahoo_hs


DOJ: November trial date in US Airways-American Airlines antitrust case would rush things, so let’s start in March 2014

See Story:[background=rgb(250, 250, 250)] [/background]http://aviationblog.dallasnews.com/2...rch-2014.html/


MEMORANDUM OF THE UNITED STATES AND PLAINTIFF STATES
IN OPPOSITION TO DEFENDANTS’ PROPOSED SCHEDULING ORDER (FOR THE MERGER TRIAL): August 27, 2013

See Story:[background=rgb(250, 250, 250)] [/background]http://blogs.star-telegram.com/files...ief_082713.pdf

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #4: August 27, 2013

American Airlines and US Airways: A March 2014 trial date is ‘entirely unreasonable’

See Story:[background=rgb(250, 250, 250)] [/background]http://blogs.star-telegram.com/sky_t...easonable.html


Here’s the DOJ memo that explains why it needs until March 2014 to try the antitrust case against US Airways and American Airlines

See Story:[background=rgb(250, 250, 250)] [/background]http://aviationblog.dallasnews.com/2...airlines.html/


U.S. asks for March trial in airline merger challenge

See Story:[background=rgb(250, 250, 250)] [/background]http://finance.yahoo.com/news/u-asks...211015964.html


APA Information Hotline [background=rgb(250, 250, 250)]([/background]DOJ Call to Action): August 27, 2013[background=rgb(250, 250, 250)] [/background]

[background=rgb(250, 250, 250)]As a follow-up to yesterday's Information Hotline, APA suggests visiting your respective attorney general's Facebook page to politely voice your opposition to the lawsuit. This will help counter their official commentary read by people who are not aware of what's going on with the DOJ lawsuit and the merger. Please always be respectful while representing APA online.[/background]

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #6: August 27, 2013

Arizona Republic: Uncle Sam on wrong course for air travel

See Story:[background=rgb(250, 250, 250)] [/background]http://www.kearneyhub.com/news/opini...a4bcf887a.html


AMR Corporation: Re-organized Plan Must Be Approved Otherwise "Destabilizing" Transpires

The challenge of the government has amazed the industry executives and analysts and also marking a break with the past policy. The Justice Department permitted six airlines, seeking for cost cuts and end losses, to merge during the past five years.

See Story:[background=rgb(250, 250, 250)] [/background]http://www.efinancehub.com/amr-corpo...re/122211.html


In Antitrust Fairy Tales, Bad Things Come In Threes

The DOJ may simply be operating in a fairy-tale world where competition magically disappears as soon as there are only three competitors. But the truth is that American and US Airways are not only weak competitors to United and Delta; they barely compete with one another. They have few overlapping routes. US Airways does offer connecting service on many of the routes where American has direct flights, and it does compete for travelers along these routes by offering lower fares to travelers willing to make a connection along the way.

The DOJ's argument involves a misunderstanding, or misrepresentation, of how travelers actually behave.

See Story:[background=rgb(250, 250, 250)] [/background]http://www.palisadeshudson.com/2013/...ome-in-threes/


APFA[background=rgb(250, 250, 250)] [/background]Merger Update (DOJ Requests March 2014 Trial Date) - August 27, 2013

[background=rgb(250, 250, 250)]Today, the Department of Justice filed its response to the August 22nd AA-US Airways' Motion requesting a November trial date.[/background]

[background=rgb(250, 250, 250)]The DOJ has requested a trial date of March 3, 2014, which was expected. Tomorrow, AA and US Airways will file its response to the DOJ's March trial date by reconfirming a November 2013 trial date. This sets the stage for the court conference called by Judge Colleen Kollar-Kotelly on Friday, August 30, 2013, at 9:30 AM Eastern Time.[/background]

[background=rgb(250, 250, 250)]You can review the relevant documents as well as news articles relating to the DOJ's lawsuit by [/background]clicking here[background=rgb(250, 250, 250)].[/background]

AmericanAirlines[background=rgb(250, 250, 250)] [/background]+ US Airways
"On Our Way"

 

[snapthis]

DOJ suit against airline merger further alienates unions

The Obama administration is again facing criticism from Big Labor, one of the president's top political supporters, this time for trying to block the American Airlines-US Airways merger.

At least four labor unions have joined in opposition to the Justice Department's Aug. 13 anti-trust suit that essentially argues the proposed, $11 billion merger could reduce the number of flight choices for customers, allow the two airlines to control pricing, and increase fares and fees.
Unions representing American pilots and flight attendants from both airlines were, as expected, the first to criticize the administration and the suit.
But the AFL-CIO’s Transportation Trade Department recently joined the fight, putting some added muscle behind opposition to the administration's case.
“It’s going further than just a few unions that really don’t represent a lot of people,” Marc Scribner, a transportation policy expert with Washington-based Competitive Enterprise Institute, told FoxNews.com on Monday.
In just the past several months, unions have criticized the president’s signature health care law as a jobs killer, claiming the law's mandate on employers to provide insurance to full-time workers is forcing them to cut jobs or send people into part-time status. They've also ripped the administration for not approving the Keystone XL pipeline and for a proposal to allow small knives in plane cabins, which representatives for pilots and flight attendants helped defeat.
The Allied Pilots Association, which represents 10,000 American Airlines pilots, argues the merger would make the two airlines competitive with industry leaders Delta and United, help bankrupt American Airlines and “significantly expand the choices of travel destinations.”
Further, they question why the federal government is attempting to block this merger after approving similar ones.
"It makes no sense for the Justice Department to conclude now that the airline industry consolidation is somehow undesirable,” argues the pilot’s union, which has the backing from unions representing flight attendants from both airlines.
Assistant Attorney General Bill Baer said in filing the suit: "We determined that the merger -- which would create the world’s largest airline and leave just three legacy carriers remaining in the U.S. -- would substantially lessen competition for commercial air travel throughout the United States. Importantly, neither airline needs this merger to succeed. We simply cannot approve a merger that would result in U.S. consumers paying higher fares, higher fees and receiving less service."
The Association of Flight Attendants, which represents US Airway attendants, called the suit a “war on workers.”
Scribner thinks Obama’s course of action on the recent issues is “definitely a risk,” considering Big Labor has long supported Democratic candidates.
The AFL-CIO contributed more than $9 million in 2011-12, and transportation unions gave roughly $11 million, second only to public sector unions over the same period, according to the website OpenSecrets.gov.
“There have been a number of various issues about which unions rightly feel upset,” Scribner added. “The president is doing things that don’t cater to the interests of labor.”
However, Big Labor abandoning Democrats in large numbers is not expected any time soon.
An internal poll by the AFL-CIO on election night 2012 showed Obama got roughly 65 percent of the union vote, compared with 33 percent for Mitt Romney, with larger margins in battleground states.
The federal suit was joined by the District of Columbia and six attorneys general -- including Virginia's Ken Cuccinelli and Greg Abbott of Texas, both Republicans, who are both running for governor.
The airlines have filed a motion in court seeking a November trial date.

Read more: http://www.foxnews.com/politics/2013/08/27/obama-administration-blocking-airline-merger-further-alienates-unionsobama/#ixzz2dEVGzWUO

Which union was noticeably quiet?

 

[MUTATIS MUTANDIS]

Even if it were only one thread... why is he quoting all these news sources, analysts, and experts.. he is spending hours pouring over every word.... aren't they the ones that have been telling us all along that it was a done deal, but obviously they had no clue....

What? Now they have a clue? Not a chance.

What a moron, did he buy all that stock again? Just like in 2001, especially if the DOJ trial ends up in MARCH with a new MOU vote a lot of us would want bags full of more cash up front from DUI DOUG!

 

[swamt]

I will predict a date set after the big murder trial. And it very well could and more than likely will be in March 2014. The DOJ took almost 170 days after filing to bring to court the ATT and T-Mobil case. It took well over 300 days to bring to court the Northwest and Continental purchase back in 1998. There are time sensitive issues that the DOJ will need time to investigate, fact finding, interviews and industry analysis etc... that will be forwarded to them SINCE the suit was filed that they did not have access to prior to suit being filed. The suit itself allows access to the DOJ more information and facts than if they never filed. This is why the DOJ will be granted more time than Nov for trial. The airlines knows that this suit opens a huge door for the DOJ to investigate, as I am sure there is much more evidence that the airlines do not want the DOJ to find in their investigation and bring to light, and this is why the airlines want a speedy trial, so they all can rush to and thru the trial before any other evidence is found. If this particular judge is too busy to accommodate then she should pass it off to another judge to handle. But I still say it will be in 2014.

 

[nycbusdriver]

I will predict a date set after the big murder trial. And it very well could and more than likely will be in March 2014. The DOJ took almost 170 days after filing to bring to court the ATT and T-Mobil case. It took well over 300 days to bring to court the Northwest and Continental purchase back in 1998. There are time sensitive issues that the DOJ will need time to investigate, fact finding, interviews and industry analysis etc... that will be forwarded to them SINCE the suit was filed that they did not have access to prior to suit being filed. The suit itself allows access to the DOJ more information and facts than if they never filed. This is why the DOJ will be granted more time than Nov for trial. The airlines knows that this suit opens a huge door for the DOJ to investigate, as I am sure there is much more evidence that the airlines do not want the DOJ to find in their investigation and bring to light, and this is why the airlines want a speedy trial, so they all can rush to and thru the trial before any other evidence is found. If this particular judge is too busy to accommodate then she should pass it off to another judge to handle. But I still say it will be in 2014.

...or, the judge may just tell the DOJ they have no case, nor basis for an injunction whether it is heard in November, or March.

 

[PullUp]

...or, the judge may just tell the DOJ they have no case, nor basis for an injunction whether it is heard in November, or March.

Reality Check, please!

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: August 28, 2013

U.S. government, two airlines say open to settling merger fight

American Airlines, US Airways, and the U.S. Justice Department said on Wednesday they were open to settling a court fight over whether the two companies should be allowed to merge, but there was no sign of an imminent agreement. The two airlines said in the joint filing with the district court in Washington, D.C., that they had tried to settle the case before the complaint was filed "and continue to believe there ought to be a realistic possibility of settlement."

See Story: http://finance.yahoo...-225308660.html


Both sides in antitrust lawsuit tell judge they are open to a settlement, but haven’t gotten anything from the other side

A couple of readers had seen those statements, and were encouraged that a settlement might be in the works. That’s not how I read it. I think each side is telling the judge that they’re trying but it’s not their fault that there’s no settlement.

See Story: http://aviationblog....ther-side.html/


The Deal: AMR Resists Pondering Life Without US Air

See Story: http://www.thestreet...oo&cm_ven=YAHOO


American Airlines and US Airways: A March 2014 trial date is ‘entirely unreasonable’

See Story: http://aviationblog....easonable.html/


AMR Says March Trial Could Put US Airways Merger at Risk

See Story: http://www.bloomberg...html?cmpid=yhoo


A 2014 trial date endangers the US Airways-American Airlines merger, the airlines say

See Story: http://aviationblog....lines-say.html/


Airlines to antitrust judge: A Nov. 12 trial date is perfectly reasonable and plenty of time to prepare

http://aviationblog....o-prepare.html/


Reply in Support of Defendants’ Motion to Set Trial Date

See Story: http://blogs.star-te...-doj-filing.pdf


American, US Airways reiterate request for November anti-trust trial date

FORT WORTH (Star-Telegram) - American Airlines and US Airways reiterated their request to a federal judge for a November anti-trust trial date.
In a filing made on Wednesday, the two carriers said the U.S. Department of Justice's suggestion of a March 2014 trial date puts its merger in jeopardy.

"Whether plaintiffs just don’t understand the industry or choose to misleadingly focus on the trees instead of the forest, the fact is that American today continues to be fully subject to the ebbs and flows of the airline industry, and is even more vulnerable until it can emerge from bankruptcy," the filing said.
Judge Colleen Kollar-Kotelly has scheduled a conference between the airlines and government attorneys for Friday where she may decide on when the anti-trust trial will occur.

Also in the filing, American and US Airways refuted the DOJ's assertions on why it needed 180 days before going to trial.

• “Six months to a full trial on the merits is in keeping with timetables in comparable merger cases.” (Opp’n at 8.) As the table below demonstrates, of the 23 cases cited by the parties, only 3 had trial schedules as long as plaintiffs’ request, whereas 14 had schedules that were actually shorter than what defendants propose. Moreover, not a single case cited by plaintiffs or defendants in which the schedule went longer than 110 days actually made it to a final adjudication after a trial on the merits. That is exactly what drives the Airlines’ concern here: that a trial delayed according to the plaintiffs’ schedule would knock the bottom out of this merger.

• “nterested parties knew what should have been clear: that a merger of two large firms competing in already highly concentrated markets might draw an antitrust challenge.” (Opp’n at 3.) In fact, the DOJ approved three large airline mergers in the last five years using criteria that, if applied here, would demonstrate that US Airways/American Airlines is even more pro-competitive than the others.

• “American reported record profits in the second quarter of this year.” (Opp’n at 3.) In fact, prior to its restructuring, American lost $10 billion in the last decade.
• “American’s restructuring efforts have been extraordinarily successful and have positioned the company to compete as a strong and vibrant standalone firm.” (Opp’n at 3.) Although American has made progress in restructuring, it has not yet presented an alternative plan to the bankruptcy court.

• The harm of delay is merely costs that American “may incur” and “some uncertainty” that “employees will face.” (Opp’n at 5.) This is a significant understatement of the harm attendant to a delayed trial. The Airlines conservatively estimate that this merger will result in net direct consumer benefits of conservatively $500 million annually. The pay raises and benefits improvements that have been promised to both airlines’ employees are put on hold―amounting to $400 million annually. That translates to nearly $2.5 million permanently lost for every day of delay. And American’s employees, entitled to an equity stake worth about $2 billion (at today’s valuations) when the merger is closed, would have to stand by and watch as the value of that equity is buffeted by the market.


Motion of Official Unsecured Creditors Committee (UCC) For Leave to File Amicus Curiae Brief in Support of Defendants’ Motion to Set Trial Date: August 28, 2013

The (UCC) Statutory Committee has consulted with the DOJ, Plaintiff States and Defendants regarding the filing of the amicus brief. The DOJ and Defendants have consented to this filing, and the Plaintiff States have no objection to the filing.

See Story: http://blogs.star-te...deral-court.pdf


Unsecured creditors committee says DOJ is “completely wrong” to think American can survive on its own

In a filing made on Wednesday, the UCC characterized the government's anti-trust arguments as "completely wrong," "fanciful," and "factually unsubstantiated."

"The government is completely wrong to suggest that exacerbating the uncertainty regarding AMR's future is of no moment because AMR has a standalone plan of reorganization. On the contrary, AMR's current plan of reorganization, which is based on the Merger Agreement, is the only plan proposed to and voted on by creditors and stakeholders that is before the United States Bankruptcy Court for the Southern District of New York ("the Bankruptcy Court") presiding over AMR's pending Chapter 11 cases; there is no "Plan B" with regard to reorganization," the filing said.

See Story: http://blogs.star-te...m.com/sky_talk/


American Airlines, US Airways warn that a long delay in antitrust trial could kill merger

See Story: http://www.dallasnew...kill-merger.ece


AA maintenance workers to protest Justice officials in Tulsa Thursday

See Story: http://www.menafn.co...ursday?src=main


Tulsa Union Asks Government To Drop American-US Airways Merger Lawsuit

See Story: http://www.newson6.c...-merger-lawsuit


TWU members to deliver petition with 8,000 signatures to DOJ offices in Tulsa on Thursday

See Story: http://blogs.star-te...n-thursday.html


Speak Up for the New American Airlines!

The new American is about growth, improved service, a broader network and giving consumers another global choice. Tell government and elected officials to let American Airlines and US Airways compete together.

Below is a template letter that you can use as a base for your own letter to your government and elected officials. The letter can be personalized with your own message by updating the entry box.

See Story: http://newamericanar...g.com/speak-up/


Cooper: ‘False Promises’ Prompted Airline Merger Challenge

Tennessee Attorney General Robert Copper said the state joined the U.S. Justice Department and five other states in opposing the proposed $11 billion merger of U.S.Airways and American Airlines, because of the state’s experience with past airline mergers. The effect would be “another blow to Memphis air traffic,” said Cooper, adding that past mergers also have had a negative impact on Tennessee’s three other major airports.

See Story: http://www.memphisda...rger-challenge/


APFA Hotline (Special Merger Update): August 28, 2013

As the directly elected representative of flight attendants throughout the American Airlines system, I answer to more than 16,000 members and, by extension, their families. The job became significantly more complicated and demanding when American filed for Ch. 11 in late November 2011. Although this bankruptcy was more or less a foregone conclusion given the way American had been run for the ten plus years leading up to the filing, the subsequent wild ride APFA and the other unions on the property have taken has been completely unpredictable.

As a member of the bankruptcy’s unsecured creditors’ committee, I’ve been in the room since day one - on behalf of APFA and all AA employees - and the most vocal and unwavering supporter of the US Airways merger since its inception.

It’s not enough to say you’re in favor of something as big as this merger, however. You’ve got to do the work. And the work is not yet finished. While it has required an enormous amount of time, conviction and energy, I am confident that it will soon pay off.

I receive numerous questions on my flights, in operations, via social media and through calls and emails from many of you. So I sat down with APFA Communications to answer some of the most frequently asked questions.

Question: Earlier this month, the US Department of Justice filed an antitrust lawsuit to block the merger. Is the merger still going to happen?

LG: Yes. Short answer – yes. I’m still very confident that the merger will happen. The antitrust lawsuit filed by the Justice Department and a few attorneys general is an inconvenience and it will certainly postpone the merger, which is frustrating, but it won’t kill it. The DOJ got it wrong, plain and simple. Now it’s up to the companies – which are both totally committed to the merger – to prove it. Fortunately, most of the hard work is already done: over the past year and a half we’ve built a strong case for this merger. Everyone – Wall Street, American’s creditors, Congress, American management, and the flying public – everyone agrees that the merger is necessary. Now we just have to convince the judge hearing the antitrust case. It’s a challenge but by no means the biggest one we’ve faced in this bankruptcy. We’ll get past it.

Question: What can I do to help fight the DOJ?

LG: We all need to keep up the vocal public support of the merger. The DOJ and the attorneys general from Texas, Florida, Virginia, Pennsylvania, DC, Arizona, and – I’m missing one – Tennessee, that’s it, they need to know that they have got this wrong. Consumers are going to benefit from the merger because a competitive American Airlines gives them a third viable option. The industry will benefit because there will no longer be the Delta/United duopoly controlling everything. Last but not least, 100,000 employees stand to gain job security and decent wages when the merger goes through. We’ve been waiting a long time for American to be competitive again. The merger needs to be approved because American needs to be allowed to compete.

We’ll be calling Flight Attendants to action soon. We want to make sure these attorneys general and Congress know what a mistake the government is making. Flight Attendants will be asked to write and call these people in the days and weeks ahead. In the meantime,there’s a petition on the White House websitethat people can sign. If we get to 100,000 signatures we will get an official response from the Oval Office.

Question: When will we get rid of the LBFO and get a new contract?

LG: Immediately upon emerging from bankruptcy our LBFO will go away and the Bridge Agreement or Conditional Labor Agreement (CLA) will take its place. We thought that would be in early September but the DOJ’s case has thrown a wrench into that. Soon after the antitrust case is resolved, though, we’ll be emerging from bankruptcy and working under the CLA. Then the CLA will stay in effect until we can negotiate a Joint Collective Bargaining Agreement (JCBA) which is what we’re calling the long-term contract for the combined Flight Attendant group at the new American.

Although the CLA is a big improvement over the LBFO but it’s not the contract that we have been waiting so long for and that we deserve – not by a long shot. That’s why APFA agreed to binding arbitration following the merger. If we can’t get a contract during expedited negotiations, a panel of arbitrators will determine the fair value of a contract for Flight Attendants with the largest air line in the industry. No other labor group has ever come out of bankruptcy with a path to an industry contract. I think we’re all looking forward to tearing up the bankruptcy contracts.

Question: What’s the baseline for negotiations after the merger?

LG: Great question and one there’s been a lot of bad information out there about. We’re going to do a page-turn before going into negotiations and start with the best from both our contract and the contract US Airways’ Flight Attendants just ratified. In the aggregate, our contract is of course more valuable, but there’s language in both agreements that we’d like to keep. If we can't reach an agreement in expedited bargaining, the arbitrators will look at our proposal and consider how Flight Attendants at Delta and United are compensated, and determine what’s fair.

Question: United is still in negotiations. What if they get a new contract right after we do?

LG: Another good question and a situation we have considered. If the United contract isn’t finished until after ours, we will get an adjustment to reflect a change in the industry. If United gets an increase, our contract will be modified to reflect an increase in the aggregate cost of the contract.

Question: How long will it take to get a new contract? How long will we be in negotiations following the merger?

LG: We will get a new contract very quickly after the merger is completed. Past mergers have taught us that it can take a long, long time to integrate a workforce under one fair contract. Look at US Airways: Flight Attendants worked under two separate agreements for 8 years. Like I said, Continental and United are STILL in negotiations. Look, in this industry, contract negotiations take a long time. We know it firsthand. Management has the ability to slow-walk negotiations and it always – ALWAYS – works to their benefit. That’s the beauty of our process. Our CLA calls for expedited negotiations and, if necessary, binding arbitration. Binding arbitration will force a new contract and take away the company’s ability to draw-out negotiations for years and years.

Question: How will the seniority lists be integrated?

LG: Our seniority lists will be integrated based on date of occupational seniority (which is called "date of hire" at US Airways). The only adjustment will be to ensure that American Flight Attendants get credit for initial training – as US Airways Flight Attendants do. APFA has done an enormous amount of research to determine the average number of days American Airlines Flight Attendants spent in training. We will be coming up with a number of days to adjust the seniority of American Flight Attendants to put them on an even footing with US Airways Flight Attendants. No changes will be made to APFA members’ seniority in relation to each other - what is referred to as 'relative seniority.'

Question: What about representation?

LG: APFA and AFA-CWA are working on an agreement that will put Flight Attendants first. We’re fully committed to an arrangement that will strengthen our strategic partnership, make the transition smooth for US Airways Flight Attendants, and maintain APFA’s independence.

Question: When will we be flying with mixed crews? When will our workgroups be completely merged?

LG: Only after the FAA issues a single operating certificate to the new American will our workgroups be totally integrated. This could take as long as 18 months after American emerges from bankruptcy. Until then, we will continue to operate as separate carriers.

If you have a question you would like to see addressed here, please email[email protected].

AmericanAirlines + US Airways
"On Our Way"

Leslie Mayo
APFA National Communications Coordinator


APA Negotiating Committee Update: August 28, 2013

Your Negotiating Committee continues to work with AA on contract implementation. With the contractual month of September, there will be changes with the procedures for month-to-month pick-up, rapid reaccrual, the IMAX and negative CPA banks.

Pick-up (Make-up) Month-to-Month Procedures

The 2012 CBA's scheduling system was designed to accomplish a number of things. A few of those were:

Move away from a hard number for a monthly maximum to an average monthly maximum (IMAX) over a rolling 12-month period. The IMAX rolling average concept eliminates the perishability of available pick-up hours for a pilot at the end of the month — the "use it or lose it" issue. Hours not picked up in a given month may now be picked up in a subsequent month.

Eliminate, to the greatest degree possible, any distinction from one month to the next (month/month overlap).

Reduce the percentage of pilots on reserve.

Consistent with the above, and as part of the 2012 CBA implementation process, effective with the contractual month of September, the rules for pick-up (old make-up) of fly-through sequences will be treated the same as the middle of the month. That is: A pilot will not be able to pick up a sequence in the current month that conflicts with a sequence in the next month.

Note: Crew Schedule can, at their discretion, authorize a pick-up with conflict transaction. When this occurs, the conflicted sequence is removed unpaid/uncredited with no sequence protection obligation.

This procedure is part of the new Filling of Open Time process (section 15.L.4.c).

Rapid Reaccrual

With the 2012 CBA, the provisions for rapid reaccrual of sick time changed. In the old contract, rapid reaccrual continued until the pilot's sick bank balance reached the number of hours accrued before the sick leave charge began. In the 2012 CBA, rapid reaccrual will continue until the pilot has accrued the number of sick hours he/she used in connection with the qualifying absence(s) triggering eligibility for rapid reaccrual. Based on the new provisions, AA has completed its analysis to determine which pilots should still be on rapid reaccrual and which pilots should not.

Pilots who should no longer be on rapid reaccrual will be reset to normal accrual; any sick bank hours accrued incorrectly at the rapid rate since Jan. 1 will be deducted from the pilot's YTD sick accrual. If it is determined a pilot was incorrectly on rapid reaccrual in any month in 2013, that pilot will have 2.5 hours deducted from his/her YTD sick accrual for each month in error. This adjustment will take place during the contractual month of September.

IMAX

In the old contract, any month you did not completely fill up was a missed opportunity. With the 2012 CBA, in any given month, extra time not picked up is no longer perishable. The pilot's ability to pick up time is no longer based on a monthly maximum but on an averaged individual maximum (IMAX). This IMAX is based on a rolling average of a pilot's PROJ. The pilot is able to average 90 hours PROJ over the course of a year. Hence, time not picked up in one month may be picked up in a following month(s) as long as FAR flight time limits are still honored. As of today, 182 pilots are effectively exceeding their IMAX limit.

Beginning with the contractual month of October, AA will apply the IMAX principle. Automated FOS programming for IMAX is still TBD; however, a process will be implemented in the upcoming contractual month of October to effectively accomplish the purpose of the IMAX. Additional details will be forthcoming.

Negative CPA Bank Balances

The 2012 CBA transitions us to an environment without CPA. As a part of that transition, pilots with negative CPA balances will begin to have those balances transitioned to zero. The agreed-on methodology is to begin a recoupment of the negative balances beginning with the contractual month of September (Oct. 25 paycheck). The rate of recoupment will be four (4) hours per month (or fewer if appropriate) until such pilot's negative CPA balance is recovered. Affected pilots will see a remark added at the bottom of their previous month's activity record (HI-2), showing that month's recoupment, a few days after the month has concluded.


USAPA’s What’s Up on the Line?: August 28, 2013

Q – I heard that the Addington II hearing, originally set for September 24 before Judge Silver in Phoenix, has been rescheduled to October 22-23.

A – That's correct, on August 26, Judge Silver issued an order rescheduling the hearing from September 24 to October 22-23 because of “a conflict in the Court’s calendar.” That order was posted and a corresponding email was sent on August 26 to the Legal Postings distribution list.

Note - If you want to receive future legal posting notices, sign up for the Email Subscription "Legal Postings". (To sign up, go to the MEMBERS Tab>Email Subscriptions, Legal Postings, and click Yes.)

Q – How can I find a Member's telephone number?

A – On the USAPA Web site's home page, there is a MEMBER SEARCH box on the right hand side. If that member has opted-in to allow their contact information to be visible (MEMBERS Tab>Account Settings), simply type in that member's last name or full first name. Additionally, if that member is on a USAPA committee, see the CONTACT Tab>USAPA Directory, and look under the specific committee, or search on the last name.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #1: August 29, 2013

There are two positive developments in American Airlines & US Airways’ desire to complete their corporate combination. Dallas News reporter Terry Maxon just tweeted from the bankruptcy court that Judge Lane finds the case compelling to approve, but he postponed POR confirmation until September 12, 2013 or earlier in a written order.

Earlier today Judge Kollar-Kotelly issued a Scheduling Conference Pre-order, which is favorable to the two companies. It was previously reported the parties had a discovery dispute. In particular, “the DOJ wants to take depositions from up to 50 people and the airlines want to limit it to 10.” In addition, the “DOJ wants to be able to take two-day depositions from up to two executives from each airline. The airlines want to limit any one person’s deposition to a maximum of seven hours.”

Kollar-Kotelly ordered that written discovery begin immediately and that the DOJ shall be permitted up to 10 interrogatories (including subparts) to each Defendant. The companies shall be permitted up to 10 interrogatories (including subparts) to the DOJ collectively.

In my opinion, Judge Kollar-Kotelly is placing the antitrust lawsuit on the fast track after reading initial briefs, whe could rule in favor of the airline’s November 12[sup]th[/sup] trial date, and both courts are providing leg room for a settlement.

See Story: http://www.apfa.org/...nference-082913

​

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: August 29, 2013

AMR bankruptcy judge leaning toward approving reorganization plan

See Story: http://finance.yahoo...-163224578.html


AMR Judge Says Arguments for Plan Approval `Persuasive'

See Story: http://www.bloomberg...html?cmpid=yhoo


Judge indicates he’s leaning toward confirming the American Airlines bankruptcy plan

See Story: http://aviationblog....ptcy-plan.html/

The Argument for and Against AMR-US Airways Merger
Judge likely to approve AMR bankruptcy exit

Bankruptcy judge says he is leaning toward approving American Airlines' restructuring plan

See Story: http://finance.yahoo...-163239175.html


Bankruptcy judge delays ruling on confirming AMR restructuring plan to Sept. 12

FORTH WORTH (Star-Telegram) - U.S. bankruptcy judge Sean Lane said he plans to rule on whether or not to confirm AMR's restructuring plan on September 12.

It appears that Lane is leaning towards confirming the plan which includes a merger with US Airways.

"I’m finding the arguments in favor of confirmation fairly persuasive," Lane said from the bench, according to an Associated Press report.

Lane heard oral arguments from airline attorneys and other interested parties at a hearing in New York on Thursday. Written arguments were submitted to Lane last week on the restructuring plan.

"We are pleased the judge found our arguments in favor of confirmation persuasive. While we await the Court’s decision on our Plan of Reorganization, we are focused on the need for a mid-November trial and challenging the DOJ’s position so we can complete our planned merger with US Airways," said American spokesman Mike Trevino in a statement.

American Airlines' attorneys have argued that the judge can confirm the plan even though the Department of Justice has filed an anti-trust suit to stop the merger. There is a hearing scheduled inWashington D.C. to determine when the anti-trust trial will be scheduled.


The Argument For and Against AMR-US Airways merger

See Story: http://www.bloomberg...html?cmpid=yhoo


Analyst: We don’ t see much chance for a settlement in the American Airlines-US Airways antitrust lawsuit

See Story: http://aviationblog....t-lawsuit.html/


Will the judge decide anything, any time soon?

See Story: http://aviationblog....time-soon.html/


Why Doug Parker's Legacy Hangs on a US Airways/American Merger

See Story: http://www.thestreet...oo&cm_ven=YAHOO


US Airways’ Washington Airport Prize Hobbles AMR Merger

See Story: http://www.bloomberg...html?cmpid=yhoo


U.S. District Court Scheduling Order: August 29, 2013

See Story: http://www.apfa.org/...nference-082913


Oil retreats from 2-year high, falls below $110 per barrel

See Story: http://www.star-tele...-year-high.html


APFA Merger Update (Bankruptcy Judge Postpones POR Approval): August 29, 2013

Judge Sean Lane postponed his approval of the Plan of Reorganization ("POR") in bankruptcy court this morning. He has called the parties back to court on September 12th.

Tomorrow morning APFA is hopeful that Judge Kollar-Kotelly, the judge assigned to the Antitrust litigation filed by the DOJ, will set an early trial date in November rather than wait until March 2014 as the DOJ requested earlier this week. We will update this hotline as events warrant.

AmericanAirlines + US Airways
"On Our Way"

 

[Freighterguynow]

What is your lack of self worth that only a merger can provide?

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #3: August 29, 2013

Antitrust judge gives DOJ, American Airlines and US Airways homework before Friday’s hearing

See Story: http://aviationblog.dallasnews.com/2013/08/antitrust-judge-gives-doj-american-airlines-and-us-airways-homework-before-fridays-hearing.html/


Judge likely to approve AMR bankruptcy exit

See Story: http://finance.yahoo...-163239175.html


[background=transparent]Will US Airways See a Rise from a Potential Deal?[/background]

See Story: http://wallstcheatsheet.com/stocks/will-us-airways-see-a-rise-from-a-potential-deal.html/?ref=YF


Don't Count on Lower Airfares if the American-US Airways Merger Tanks

See Story: http://www.bloomberg...rger-tanks.html


USAPA Governmental Affairs Committee Update: August 29, 2013

Tuesday, August 27, USAPA Governmental Affairs and Communications Committee members, along with other Labor Coalition members from American Airlines and US Airways, participated in a Conference Call with Management dealing with merger-related events being planned in Washington, DC.

Here's a summary:

• A “Fly-In and Lobby Day” is being planned for Tuesday, September 17, and Wednesday, September 18. This will educate and solicit support from key Congressional delegations regarding the merger. Along with the Allied Pilots Association, our GAC members are available to organize and lead the scores of meetings on Capitol Hill that are being planned.
• AMR will likely fly aircraft to Washington, DC with DFW employees for this event. US Airways employees are invited to join them.
• USAPA DCA Representatives have been contacted by their local APA Counterparts asking for support. They are developing plans to work together for the “Fly-In and Lobby Day” event.
• The event will also include a mid-day media and employee rally at the Capitol, along with the disbursement of dozens of delegations to visit Congressional Offices.
• The Company is also developing several other ways for employees to support the merger. Details will be announced in the next few days.
• The theme of these activities will be “Let Us Compete Together” and will be echoed in media outreach and op-ed pieces.

[background=transparent]We will keep you updated as we learn more. This is a critical moment in our history – and we welcome your participation.

USAPA Government Affairs Committee[/background]


PilotAction American Airlines & US Airways Proposed Merger Miscellaneous Key Comments of the Day: August 29, 2013

• The DOJ said it would be open to allowing the merger to go through if the airlines make antitrust concessions
• See Story: http://wallstcheatsh...html/?ref=YFThe Department of Justice was particularly concerned that the newly-combined airline would have 69 percent of the takeoff and landings at Ronald Reagan Washington National Airport. It also — for the first time — looked beyond non-stop routes, saying connecting flights between 1,043 city pairs would no longer have an acceptable level of competition. Some of those routes see very few passengers. For instance, there are five people, on average, each day flying between Little Rock, Ark. and Harrisburg, Pa., and another five flying in the other direction, according to government data.
• See Story: http://finance.yahoo...3239175.htmlS Capital IQ raised its rating on US Airways to "strong buy" from "buy", citing reports the two carriers and the Justice Department were open to settling the government complaint seeking to block the merger. "We think the merger should not have been blocked, and believe it is feasible that the divestiture of slots at Reagan National will help reach a settlement," equity analyst Jim Corridore said in a note to clients.
• http://finance.yahoo...-163224578.html

Petition Support

Speak Up for the New American Airlines!

The new American is about growth, improved service, a broader network and giving consumers another global choice. Tell government and elected officials to let American Airlines and US Airways compete together.

Below is a template letter that you can use as a base for your own letter to your government and elected officials. The letter can be personalized with your own message by updating the entry box.

See Story: http://newamericanarriving.com/speak-up/


White Petition to Withdraw the Lawsuit: https://petitions.whitehouse.gov/petition/withdraw-department-justices-suit-block-planned-merger-between-american-airlines-and-us-airways/hqZ3gs9v


APA Merger Talking Points: https://public.alliedpilots.org/APA/LinkClick.aspx?fileticket=Bc8gPYJlF_Q%3d&tabid=1042&mid=2085