PilotAction US Airways & American Airlines Trial & Other News Update

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 11, 2013

US Airways-AMR Not Backing Down on Airline Merger

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


American Airlines: DoJ Is ‘Ignoring the Realities of the Airline Industry’

See Story: http://wallstcheatsh...-industry.html/


US Airways files answer to DoJ's amended antitrust complaint

See Story: http://centreforavia...omplaint-263174


Airlines say US case against big merger is flawed

American, US Airways say government lawsuit shows failure to understand the industry

See story: http://finance.yahoo...-170949826.html


American Airlines and US Airways reportedly seek merger extension

American and US Airways yesterday in court filings responding to the DOJ suit staunchly defended their proposed merger and criticized the suit. The airlines said the deal does not violate antitrust laws and that the government’s challenge showed a lack of knowledge about their industry.

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


United Pilot Seniority List Reflects Turmoil After US Airways Ruling

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

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: September 11, 2013

US Airways Poised to Prosper Alone

See Story: http://www.fool.com/investing/general/2013/09/11/us-airways-poised-to-prosper-alone.aspx


Airlines say US case against big merger is flawed

American, US Airways say government lawsuit shows failure to understand the industry

See Story: http://finance.yahoo.com/news/airlines-us-case-against-big-170949826.html


AMR in Merger Should Lose All Washington Slots: Jetblue

See Story: http://www.bloomberg.com/news/2013-09-11/amr-in-merger-should-lose-all-washington-slots-jetblue.html?cmpid=yhoo


American Airlines and US Airways reportedly seek merger extension (Update at 12:10 p.m.)

See Story: http://aviationblog.dallasnews.com/2013/09/american-airlines-and-us-airways-reportedly-seek-merger-extension.html/


American, US Airways to seek extension of merger deadline

The airlines are eager to show the Justice Department that the merger won’t die just because the lawsuit has delayed it, two of the sources said. The people spoke on condition of anonymity because the plan to extend the merger agreement came up during private discussions between US Airways CEO Doug Parker, the CEO of American parent AMR Corp., Tom Horton, and AMR’s bankruptcy creditors.

See Story: http://www.star-telegram.com/2013/09/11/5154484/american-us-airways-to-seek-extension.html


Airlines say US case against big merger is flawed

DALLAS (AP) -- American Airlines and US Airways say that the government's opposition to their planned merger shows that it doesn't understand the airline industry. The Justice Department and several states sued last month to block the merger, on the grounds that it would hurt consumers. The airlines said in court filings that the U.S. Justice Department's analysis of the merger ignores competition that now exists from low-cost carriers such as Southwest. American says that the government instead relies on "anecdotes involving small numbers of passengers" and an idealized but outdated vision of the industry.

See Story: http://finance.yahoo.com/news/business-highlights-221928528.html


Eno Center: Get politics out of American Airlines-US Airways merger

See Story: http://www.bizjournals.com/jacksonville/news/2013/09/10/eno-center-get-politics-out-of.html


USAPA's What's Up on the Line?: September 11, 2013

Q – I heard the arbitration panel rendered a decision on the United-Continental Pilot integration. Was this part of a McCaskill-Bond process like we will go through with the US Airways-American merger?

A – No; both United and Continental pilot groups were represented by ALPA, so the integration was conducted in accordance with the provisions of ALPA Merger Policy in effect at the time of the merger. On September 3, 2013, the arbitration panel of arbitrators – Dana Eischen, Roger Kaplan, and Dennis Nolan – issued its decision. As with every seniority list integration arbitration award, this decision was decided on the unique facts presented.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 12, 2013

US bankruptcy judge approves American Airlines' plan that includes merger with US Airways

[background=rgb(250, 250, 250)]See Story: http://finance.yahoo.com/news/judge-...160308768.html[/background]

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: September 12, 2013

The Deal: AMR Secures Plan Confirmation at Last

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


Judge Approves American Airlines’ Bankruptcy Plan, With a Caveat

The court’s involvement may not be over yet. A settlement with the Justice Department that requires a divestiture of routes or airport slots by the airlines would have to be reviewed by the bankruptcy court. And if antitrust authorities prevailed in blocking the merger, American would have to submit a new restructuring plan to the court.

See Story: http://dealbook.nyti...hoofinance&_r=0


Bankruptcy judge approves Amercan's restructuring

"The judge's ruling today shows that American is heading in the right direction,'' American spokesman Mike Trevino, said in a statement. "This is yet another important milestone in completing one of the most successful turnarounds in commercial aviation. We are focused on the antitrust case and will show that our planned merger with US Airways is good for consumers and competition."

See Story: http://www.usatoday....-court/2806675/


American Airlines’ Merger Plan Approved by Bankruptcy Judge (4)

Tom Horton will ask American’s board at a Sept. 18 meeting to drop the payment from the plan to ensure it can be implemented, the carrier said in statement after the hearing. Horton “feels that any delay or uncertainty places a further burden on those who have worked so hard to achieve one of the most successful restructurings in aviation history,” American said in a statement. Removing the severance “will allow the plan and merger agreement to move forward.”

See Story: http://www.businessw...ge-s-approval-1


USAPA Update (Judge Lane Approves POR): September 12, 2013

Today, September 12, 2013, with USAPA representatives in attendance, US Bankruptcy Judge Sean Lane approved the AMR Plan of Reorganization (POR), which includes the merger of US Airways and American Airlines. The reorganization still will not take place until the merger is approved, as a result of a decision or settlement in the pending antitrust case. We believe Judge Lane's approval is another positive step on the road to the merger. As a reminder, this does not constitute the POR "effective date" cited in the MOU (see below).

From What's Up On The Line of September 4, 2013:

The ‘Effective Date’ does not occur until all aspects of the merger have been approved. In earlier publications associated with the MOU education process we stated: “As you review the MOU you will see many references to the ‘Effective Date’. The ‘Effective Date’ is the date that the merger is actually complete after all government, regulatory, shareholder and bankruptcy court approvals have been obtained. This is the trigger for the new pay rates, protections and other elements of the MOU affecting us.”

Generally the Bankruptcy Court’s approval of the POR would be the last step in the process, but due to the DOJ action, the Effective Date will not occur until the pending antitrust case is resolved. Considering the November 25th trial date, we do not expect the ‘Effective Date’ to occur prior to mid-December at the earliest, and it could easily take place after the beginning of the year. If a settlement is reached out of court with the DOJ and their lawsuit is dropped, then it’s possible it could occur sooner. The Company has stated they would like to close the deal before year's end if possible.


APFA Merger Update (Judge Approves Plan of Reorganization): September 12, 2013

Today, US Bankruptcy Court Judge Sean Lane confirmed American's Plan of Reorganization. He overruled all objections to confirmation except he upheld the objection of the U.S. Trustee to Mr. Horton's compensation stating that the payment was impermissible under the Bankruptcy Code.

Judge Lane indicated that he will issue a written ruling later this week in which he will explain the reasons for his decision. While the Plan is now confirmed it will not go into effect until the DOJ's lawsuit is resolved either by a court decision or a settlement.

AmericanAirlines + US Airways
"Merge!"

Leslie Mayo
APFA National Communications Coordinator

 

[robbedagain]

usa320 is there a way you dont have to put soo many of the same or similar topics together every one of those articles is basically the same thing just titled differently i do appreciate it that you post those articles but theyre all the same with different titles

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 13, 2013

Judge explains denying $20M severance for AMR CEO

See Story: http://finance.yahoo.com/news/judge-explains-denying-20m-severance-205307200.html


Bankruptcy judge OKs American’s reorganization plan

“This [bankruptcy court] ruling is very important,” said Vaughn Cordle, an aviation consultant at Ionosphere Capital. “That step is out of the way and [American] can focus their entire efforts and resources on defeating the DOJ and its attorneys. I think the American executives will literally eat [the DOJ’s] lunch,” analyst Cordle said. “The DOJ’s figures are not based on hard analysis, they’re based on anecdotes.”

See Story: http://www.dallasnews.com/business/airline-industry/20130912-bankruptcy-judge-oks-americans-reorganization-plan.ece


APFA Hotline (DOJ Lawsuit, Contact the Att'y Gen'l, DC Fly-In, Benefits Enrollment, Reserve FAs, Electronic Devices, 9/11, Thresholds): September 13, 2013

AA/US Merger
For complete, up-to-date information on the merger, visit apfa.org and click on AA/US Merger. Below are the most recent relevant hearing documents and news items:

DOJ Trial Date Motions and Communication
Defendant US Airways Group's Answer to Plaintiffs' Amended Complaint - 9.10.13
Defendant AMR Corporation's Answer to Plaintiffs' Amended Complaint - 9.10.13

DOJ Litigation News
Judge Approves American Airlines’ Bankruptcy Plan, With a Caveat (New York Times) - 9.12.13
Get politics out of American Airlines-US Airways merger (Jacksonville Business Journal) - 9.10.13
The Future of the Airline Industry (Eno Center for Transportation) 9.10.13
AMR, US Airways Defend Merger as Pro-Consumer in U.S. Suit (Bloomberg) - 9.10.13

Write U.S. Attorney General Eric Holder Now!
As the fight for a merger continues, APFA is asking you once again for your help. It is time to let the Department of Justice and Attorney General Eric Holder know that we stand together in requesting they withdraw their opposition to an AA/US Merger.

Take a moment to let US Attorney General Eric Holder know that our jobs and our livelihoods are at stake. We believe this merger will generate a more competitive industry by creating a third competitor for Delta and United. It is not only good for the employees; it is good for consumers! Click here to show your support.

If you’ve not already done so, please take a moment to contact your Congressional leaders and request their support for the merger.

DC Fly-In
Flight attendants in the DC area who are interested in attending a rally at the US Capitol on Wed. Sept. 18 at 1200 should contact [email protected]. Employees from all workgroups at both AA and US Airways will be on the Hill next Tues and Wed advocating for the merger. APFA leadership will be meeting with our supporters in Congress to shore up their support ahead of the antitrust case in late November.

2014 Benefits Enrollment
It’s almost that time again! Benefits Enrollment for 2014 will open on November 1, 2013 and close at midnight central time on November 15, 2013. While the changes to our medical benefits for 2014 will not be nearly as extensive as they were last year, there will be some differences, along with the inevitable price increases. It is time to start thinking about you health care needs and whether the plan that you are currently enrolled in is working for you. Here is some general information about the plan changes. More specifics will be coming soon.

This year the primary source for benefits enrollment information will be via my.aa.com. Although the union representatives from all work groups have told the company that employees like to have an enrollment guide mailed to their home, AA has not yet decided whether they are going to do so this year – we will let you know.

Health Insurance: What changes to expect:
Co-pays will now be applied to the out-of-pocket max in both the Standard and the Value plans
The In-Network out-of-pocket max for the Value Plan will increase to $2000 (single)/ $5000 (family) – this matches the out-of-pocket max for the Standard Plan
The preferred provider in AZ will change from UHC to BCBS
The cost for Spectera Vision Insurance will decrease by 20%
There will be three new voluntary benefit options: Critical Illness Insurance, Accident Insurance, and Veterinary Pet Insurance
Health Insurance: What stays the same?
The cost for the following benefits will not change for 2014:
Dental
Life Insurance
AD&D and VPAI
Optional Short Term Disability and Long Term Disability
MetLife Pre-paid Legal
In-network preventive care for active employees will still be covered at 100%
Health Insurance: Changes as a Result of Health Care Reform
In 2014 additional health insurance options will be available through the Health Care Exchanges. It is a requirement of the Affordable Care Act for AA to provide notice to all employees explaining that the company sponsored health plans exceed minimum government requirements for being adequate, affordable based on current wages, and available to all employees. Because of this, AA employees will be unlikely to qualify for government subsidies / tax credits available through Health Care Exchanges. This required notice must be delivered to employees by October 1 2013.

The implementation of the “Individual Mandate” also goes into effect in 2014. This means that if you can afford health insurance, but choose not to sign up for it, you could incur a fee. In 2014, the annual penalty will be $95 per adult and $47.50 per child, up to a family maximum of $285 or one (1) percent of family income, whichever is greater.

Reserve FAs
Reserves Scheduled for November and December
For FAs scheduled to serve Reserve in October, don’t forget that it’s entirely possible that a senior FA(S) could bump you from your Reserve rotation. In order to avoid being pulled onto Reserve in November and December, one option is to bid onto Reserve in October.

Also, If you are near the bottom of the Reserve list, it’s always a good idea to back yourself up with some regular bids. If you are bumped off Reserve, you are subject to Reserve the following month (seniority requiring). Please review Article 10.S.2 for the contractual language.

If you are considering bidding onto Reserve, you must indicate as much on your bid ballot as well as actually bidding Reserve selections. Simply bidding Reserve selections is not enough. Also, as a reminder: bidding onto Reserve in a month with a known planned absence (vacation or bid leave) will not satisfy your Reserve obligation.

For Pursers and Language Qualified FAs Serving Reserve
Reserve FAs can now be awarded Voluntary Purser and Voluntary Language flying as pay, no credit on their DFP periods. The “VR” code is used for Reserve Voluntary Purser awards and the “VL” code is used for Reserve Voluntary Language awards. Reserve Fas will use the same HISEND ballot forms as line holders to request VR/VL flying It is granted in seniority order, regardless of status. While not credited towards Reserve hours it is paid on top of Reserve guarantee.

AM/PM Reserve Option
When you are awarded the AM Reserve option, you will hear: “You are released until 2358” on the tape. “RLSD 1301-2358” will appear on your HI1. You are not released for the day. You are available from 0000-1300 and may be contacted at 2200 for a 0000 report.

Adjacent Base Flying
Adjacent Base flying is being offered at MIA/IMA and LAX/LAX-I each day throughout September. Please refer to the APFA Scheduling Page and scroll to the Adjacent Base links on the bottom of the page for more information.

Onboard Electronic Devices
As you know, the debate over the use of electronic devices (ED) in the aircraft has been widely studied and debated. In August 2012, the FAA asked for public comment on current ED policies, guidance and procedures for operators. In January 2013, the FAA formed a government-industry group, established through an Aviation Rulemaking Committee (ARC), to review the public comments and examine the current PED policies and procedures aircraft operators use to determine when EDs can be used safely during flight. The 28-member ARC Committee is expected to issue its report to the Administrator at the end of September, two months later than their original deadline.

A draft report has been leaked and it appears that the ARC will endorse a wider use of EDs, such as tablets, iPods, and smart phones - used only for data - during takeoff and landing. This would essentially allow for “gate to gate” use of certain devices. The use of cell phones for voice communications will not be discussed in the report because that issue comes under the purview of the Federal Communications Commission (FCC). The FCC currently prohibits the use of cell phones on aircraft through its regulation of the radio spectrum and no change is currently anticipated.

The FAA has stated that a final decision will not be made regarding this matter until after the ARC report and recommendations are received and reviewed. Changes by the FAA regarding the wider use of EDs could, however, be in place by the end of the year.

9/11
Flight 93 Memorial
APFA members along with the Flight Attendant Union Coalition, representing nearly 100,000 Flight Attendants at carriers nationwide, joined forces on Capitol Hill this week to request that members of Congress make voluntary personal contributions to close a $1.5 million funding gap for the Flight 93 National Memorial. Flight Attendants distributed a letter to every member of the United States Congress asking them to make a personal contribution towards funding the memorial’s Tower of Voices and educational programs.

Twelve years ago, 25 Flight Attendants took action as first responders in a war we didn’t know we were fighting. These heroes were among the first to relay the intelligence that alerted our country and our flying partners on Flight 93, who in turn sacrificed their own lives to save countless others on the ground. Since that fateful day, our country’s history has been changed forever. As our work continues and evolves, the role of first responder has been added to our responsibilities as aviation’s last line of defense. Our heroes will forever unite us and we will never forget.

9/11 Memorial Card
If you haven’t already, please take a moment to sign APFA’s online tribute to our heroes we lost on September 11, 2001. To do so, visit neverforget11-77-93-175.com.

Thresholds: Employment, Sick, Vacation and Health
APFA continues to receive questions regarding thresholds for employment, sick and vacation accrual and benefits due to the delay in our emergence from bankruptcy as a result of the DOJ lawsuit. Due to the high likelihood that we will not merge prior to December 31, 2013, all FAs should be focused on meeting the current thresholds.
For the Employment Threshold this means: You must have 420 paid hours (or an average of 35 paid hours per active month) during the 2013 calendar year.

For Sick and Vacation accrual eligibility this means: You must have 600 paid hours (or an average of 50 paid hours per active month) during the 2013 calendar year.

Due to the delay of the merger the decision has been made not to apply the July 31, 2013 look back for 2014 Health Benefits. Rather the threshold for benefits will remain the current 420 paid hours (or an average of 35 hours per active month) on a rolling 12-month look-back basis.

AmericanAirlines + US Airways
"MERGE"

Leslie Mayo
APFA National Communications Coordinator

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 16, 2013

Charlotte US Airways employees join push for merger

See Story: http://www.charlotteobserver.com/2013/09/15/4316192/charlotte-us-airways-employees.html#.Uje7AsaTjTo


US Airways Cuts Planned Phoenix-Maui Flight Due to Merger Delay

See Story: http://www.thestreet.com/story/12038496/1/us-airways-cuts-planned-phoenix-maui-flight-due-to-merger-delay.html


DOJ Airline Lawsuit Is Much Ado About Nothing

See Story: http://www.dailyfinance.com/2013/09/16/doj-airline-lawsuit-much-ado-about-nothing/


Proposed airline merger could prevent fare increases

American Airlines and US Airways are unlikely to raise fares because it would give the U.S. another reason to oppose their merger, analyst says

See Story: http://www.latimes.com/business/la-fi-travel-briefcase-20130916,0,983089.story


Merged AMR Corp should relinquish all DCA airport slots - JetBlue

See Story: http://www.ch-aviation.ch/portal/news/21825-merged-amr-corp-should-relinquish-all-dca-airport-slots-jetblue


APA Update (Interim Implementation of IMAX): September 14, 2013

See Story: https://public.alliedpilots.org/apa/AboutAPA/APAPublicNews/tabid/843/articleType/ArticleView/articleId/3453/New-Individual-Monthly-Max.aspx


APA INFORMATION HOTLINE: September 13, 2013

This is APA Communications Committee Chairman First Officer Tom Hoban with the APA Information Hotline for Friday, Sept. 13.

DCA FLY-IN: The APA national officers and board of directors will take part in lobby day and rally activities Sept. 17-18 on Capitol Hill, along with 40 other pilots who are flying in, pilots who live locally and members of other employee groups from American Airlines and US Airways. The APA board will use the opportunity to convene in the D.C. area for a one-day meeting focusing primarily on the governance project.

Thanks to the many APA members who volunteered to participate in the lobby day and rally. At last count, the airlines had arranged more than 310 House and Senate office appointments, with meetings slated with more than 50 percent of the entire Senate and almost half of the House.

As noted in the latest editions of "Arrivals," you may send a message to your members of Congress expressing your support for the merger via the newamericanarriving.com website.

BANKRUPTCY JUDGE RULES ON U.S. TRUSTEE'S OBJECTIONS: U.S. bankruptcy Judge Sean Lane issued a written decision today regarding two objections raised by the U.S. Trustee in AMR's case: the proposed payment of professional fees of individual members on the Unsecured Creditors' Committee and a proposed severance payment to AMR CEO Tom Horton. In his ruling, Judge Lane approved the professional fees and disallowed the severance payment under the plan of reorganization. Judge Lane found that the severance payment did not comply with the bankruptcy code.

That's it for now. Thanks for checking this hotline.

 

[USA320Pilot]

[background=rgb(250, 250, 250)]PilotAction Merger News for US Airways & American Airlines: September 17, 2013[/background]

[background=transparent][background=rgb(250, 250, 250)]

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American CEO Horton sends "thank you" video to employees

See Story: http://blogs.star-te...-employees.html


US Airways Could Prosper Without Merger, Analyst Says

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


American Eagle fight attendants wonder about their future

See Story: http://aviationblog....ir-future.html/


American Eagle ALPA MEC Chairman Letter: September 6, 2013

Fellow American Eagle pilots,

This is another disappointing week. We have now read the tentative agreement that PSA has reached with their management and with US Airways management and it is ugly. Here are a few lowlights. First and most significantly, it limits their Captain pay scales to year twelve and limits their First Officer pay scales to year four. In addition, this TA will extend their existing contract for an additional five years, until 2023 with no interim contract amendments. It limits their per diem to $1.75 for the duration of the agreement and the only pay raises PSA pilots will see for a decade will be the annual cost of living calculation that is already in their contract. By year three, the deal also raises their pilot medical benefit contribution from 27% to 35% of the annual cost with no language on deductibles and co-pays.

In exchange for these concessions, the PSA pilots might receive 30 of American Airlines’ future CRJ-900 aircraft (assuming the AA/US Airways merger occurs). Amazingly, it appears that the company is only contractually required to place one of these aircraft into service at PSA by 2016 in order to fulfill its obligation and to make this new agreement binding on the pilot group. On the other hand, if ratified, pilot concessions begin this January. These 30 aircraft are for American feed and are part of the same aircraft order over which we were negotiating with US Airways.

The PSA pilots will also receive an “enhancement” to their current guaranteed interview at US Airways.

Interviews will be offered to PSA pilots in PSA seniority order but US Airways is under no obligation to offer employment to any particular PSA pilot. A pilot who does not receive an offer of employment from US Airways can interview again but if he is declined again, his longevity at PSA is immediately frozen for the remainder of his career. The “enhancement” to the guaranteed interview provision is that US Airways must hire four per month, rather than three PSA pilots. It also appears however, there are multiple scenarios where US Airways can determine they have met that obligation without actually hiring anyone.
This tentative agreement represents the direction the American Eagle MEC was unwilling to go. As you know, your MEC has been committed to finding an agreement that does not gut the regional industry only to further the careers of senior Eagle pilots at the expense of everyone that will follow us. The MEC could not have been clearer on this position when it elected to end negotiations with US Airways and pushed for all of the ALPA-represented regional carriers to sign the “No B-Scale” letter. Although, this PSA deal does not contain a “B Scale” it is a massive step backwards for existing and future regional pilots.

If ratified, this new paradigm will be used against our brothers and sisters at ASA/ExpressJet, Republic, and SkyWest, all of whom are currently in challenging negotiations, not to mention it being used against us when management returns for additional discussions on future aircraft. Along with the Pinnacle (Endeavor Air) bankruptcy contract, the new PSA agreement will become management’s new “target”.

There are additional distasteful elements to this TA, not the least of which is the fact that this negotiation is over future AA feed at the exact time that the Department of Justice is opposing the merger of AA and US Airways. AA made it overwhelmingly clear that “large” RJs were an essential component of their restructuring plan, whether merged or stand alone. Now, AA’s future feed has been promised to a pilot group who will have to wait an indeterminate period of time to see if the merger will ever be approved, which is a precursor to AA’s regional aircraft being placed at PSA. During that delay, these essential aircraft will be withheld from AA’s feed operation, where it is already significantly behind its competition in “large” RJ deployment. This further confirms our position that AA needs to order large regional aircraft now and place them at American Eagle, the only constant irrespective of the mainline merger.

Additionally, by removing all Captain pay scales above step twelve, PSA’s tentative agreement eviscerates all the gains made over the last twelve years focused on making regional airlines a viable career choice for experienced pilots.

Both American and US Airways’ managements clearly know that withholding replacement aircraft from American Eagle works in opposition to cost savings elements that management committed to, making it more challenging for Eagle to compete.

Lastly, we are stunned by the lack of resistance exhibited from ALPA’s national officers, with the sole exception of Vice President of Administration and Eagle Captain Bill Couette. Our National Leadership has not led the way in this effort to “Stop the Whipsaw”.

With months to go until new flight time and duty time regulations that will result in a five-to-ten percent increase in pilot staffing to cover existing schedules, and despite months of regional airlines missing hiring targets industry-wide, it is absurd that our national leadership has not supported the outcry from regional MECs to collectively set a higher bar and simply say, “no” to this last ditch effort by US Airways’ management to drive this industry into compensation models from twenty years ago when we were piloting Metroliners, rather than aircraft significantly larger and more complex that what used to be entry-level aircraft at mainlines.

We all know that airlines need to compete based on costs. Eagle, as well as other MECs, have proven time and time again a willingness to work with management in a mutually agreeable way to rein in costs and find better and cheaper ways to do business. But it is one thing to decide to place aircraft at an airline because they are cheaper, it is another for an already inexpensive pilot group to voluntarily accept decade-long concessions to facilitate it. We hope the PSA pilots will realize that the race to the bottom simply is not worth the carrot and that ALPA’s national officers will ultimately agree that regional pilot jobs are worth protecting with the same vigor as mainline jobs. There will be another meeting next week with all the MEC Chairmen and I am confident your new MEC Chairman will carry this message.

I cannot describe how disconcerting it is that this is the last hotline I will likely send to you. Nonetheless, I would be remiss if I closed without stating that I am proud of the Eagle MEC. Along with tremendous pilot support, we have weathered the proposed divestiture of American Eagle, the AMR bankruptcy, and a vicious negotiation with another company’s management, which as of now, has resulted in a bleak future for American Eagle employees. Despite record profits and a healthy parent company, ready to exit bankruptcy except for the current DOJ dispute, the $43 million that the American Eagle pilots conceded under a mutually agreeable negotiation is apparently not enough to satisfy management’s need to achieve “cheaper” labor before it can feel that it has wrestled enough from the expert workers who actually perform the job being purchased by our customers.

It has been a great honor to serve you in this capacity and I look forward to continuing this battle alongside you on the flight deck.

Fraternally,

Captain Tony Gutierrez


ALPA President Letter: September 16, 2013

Fellow Pilot,

On September 6, you received a letter from your former MEC Chairman on his final day in office as the EGL MEC Chairman. His letter expressed many concerns, but focused most on recent negotiations at PSA and on ALPA’s response to your company requests for concessions.

I will not respond to his letter point-by-point; however, I feel that it is important for you to understand the Association’s perspective with regards to the future of the regional industry.

It is my belief that our approach should be to always deliberately discuss and understand the world we live in, carefully weigh all the facts and alternatives, and respond thoughtfully and without emotion to ensure that we protect existing work and build career paths for the future of our members.

Today, the Fee-For-Departure (FFD) pilots and their companies are facing intense industry pressure similar to that faced by legacy pilots in the last decade following 9/11. The external factors present during that period resulted in downward modification to collective bargaining agreements. Mainline contracts are returning more closely to an appropriate standard for pay, benefits, work rules and job security provisions.

Prolonged economic downturn, consolidation, high fuel prices, and an increased focus on capacity discipline has led mainlines to constrain affiliate capacity, focus on larger more fuel efficient jets, and reduce the overall costs they pay to FFD carriers. This includes an increased focus on FFD pilot block hour costs. With stagnation in the industry increasing longevity costs at some carriers, there is a wide disparity in pilot block hour costs.

The economic factors listed above, along with an increase to the regulated retirement age, have limited career growth opportunities as well as slowed hiring. This resulted in increased longevity among FFD pilots during the past 10 years. At some airlines — Eagle and Endeavor (formerly Pinnacle), for example — higher average longevity has been one of the biggest cost drivers in those contracts. Pilot longevity also played a huge role in making Comair financially uncompetitive.

While actual Year 15 rates between two carriers may only be as little as 2% apart, one carrier will have much higher average longevity than the other and this longevity component can raise pilot block hour costs from approximately $275 to $350 per hour.

Consider these current realities:

· Mainline carriers are now re-equipping their FFD affiliates where large capital expenditures are needed.
· We are in a bargaining cycle where overcapacity exists and mainline airlines have choices over where to allocate this flying.
· Mainline carriers don’t need our help to achieve lower block hour costs; they can achieve this simply by using existing lower cost partners to do the flying.

I’m confident that consolidation at FFD carriers, an improving economic picture, and more fuel efficient and larger jets will improve our negotiating leverage in the next few years. We will again be in a stronger bargaining position in the near future, just like at mainline carriers and like the robust and favorable bargaining during FFD negotiations between 1999 and 2004.

Normal turnover, increased hiring at mainline carriers as a result of increased number of retirements, and new hiring at the regional level, will eventually lower longevity costs. But what do we do in the meantime?

We have tough choices to make about how to protect our members’ work at existing carriers, and where necessary, to provide soft landings for pilots at FFD carriers that may not survive rather than force fellow pilots to start over at the bottom of someone else’s seniority list. We also need to continue to pressure the brands to take more responsibility for their affiliates as well.

ALPA pilots have never been afraid of tough choices or hard work to protect our profession. We discuss the issues, weigh the pros and cons, and make decisions that are deliberate and thoughtful rather than emotional.

FFD carrier representatives gathered a few weeks ago and again last week to discuss these issues, and they’ll meet again in November to make collective decisions. As always, they will have the support of my office and the Association’s resources to carry out their mission.

Fraternally,

Capt. Lee Moak, President

 

[Phoenix]

The external factors present during that period resulted in downward modification to collective bargaining agreements [at the regional airlines]. Mainline contracts are returning more closely to an appropriate standard for pay, benefits, work rules and job security provisions.




Why didn't he say that the mainline contracts are improving by abandoning scope clauses, i.e. by allowing mainline jobs to be outsorced to more and more regional airlines? Why do people bother to spend dues to a national organization that by very definition cannot possibly represent your interests without undermining other pilot groups? They rob Peter to pay Paul and take a cut for themselves on each transaction.

 

[nycbusdriver]

The external factors present during that period resulted in downward modification to collective bargaining agreements [at the regional airlines]. Mainline contracts are returning more closely to an appropriate standard for pay, benefits, work rules and job security provisions.




Why didn't he say that the mainline contracts are improving by abandoning scope clauses, i.e. by allowing mainline jobs to be outsorced to more and more regional airlines? Why do people bother to spend dues to a national organization that by very definition cannot possibly represent your interests without undermining other pilot groups? They rob Peter to pay Paul and take a cut for themselves on each transaction.

ALPA is inexorably headed for the dungheap of history.

They sealed their fate starting in 1978 when, in light of the Airline Deregulation Act, they failed to implement a national seniority list. Pre-degregulation, they were able to whipsaw airlines against each other in contract improvements. Now, the airlines have learned that lesson well, and turned the tables.

 

[Phoenix]

ALPA is inexorably headed for the dungheap of history.

They sealed their fate starting in 1978 when, in light of the Airline Deregulation Act, they failed to implement a national seniority list. Pre-degregulation, they were able to whipsaw airlines against each other in contract improvements. Now, the airlines have learned that lesson well, and turned the tables.

Agreed. A national union without a national agreement, including a national list, simply isn't national.

They, like management, have been able to get away with exploiting 49% of the pilots (to various degrees) by getting 51% to be complacent. Its a profitable strategy.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: September 17, 2013

American and US Airways Employees Join Members of Congress for Rally in Support of Merger

See Story: http://newamericanarriving.com/news-and-updates/american-and-us-airways-employees-join-members-of-congress-for-rally-in-sup


American Airlines, US Airways employees head to Washington to lobby for merger

See Story: http://www.dallasnews.com/business/airline-industry/20130917-american-airlines-us-airways-employees-head-to-washington-to-lobby-for-merger.ece


Watch out, Congress — here comes American Airlines and US Airways employees with merger on their minds

See Story: http://aviationblog.dallasnews.com/2013/09/watch-out-congress-here-comes-american-airlines-and-us-airways-employees-with-merger-on-their-minds.html/


American workers head to DC to rally in support of merger with US Airways

See Story: http://blogs.star-telegram.com/sky_talk/2013/09/american-workers-head-to-dc-to-rally-in-support-of-merger-with-us-airways.html


Greg Bentley, US Airways flight attendant in Phoenix

See Story: http://aviationblog.dallasnews.com/2013/09/greg-bentley-us-airways-flight-attendant-in-phoenix.html/


Billy Nolen, American Airlines pilot

See Story: http://aviationblog.dallasnews.com/2013/09/billy-nolen-american-airlines-pilot.html/


Avril Taylor, American Airlines flight attendant

See Story: http://aviationblog.dallasnews.com/2013/09/avril-taylor-american-airlines-flight-attendant.html/


Zack Minter, American Airlines premium services representative

See Story: http://aviationblog.dallasnews.com/2013/09/zack-minter-american-airlines-premium-services-representative.html/


Kimberly Payne, American Airlines customer service manager

See Story: http://aviationblog.dallasnews.com/2013/09/kimberly-payne-american-airlines-customer-service-manager.html/


American Eagle flight attendants oppose proposed airline merge

See Story: http://www.latimes.com/business/money/la-fi-mo-american-eagle-flight-attendants-20130917,0,5559007.story


American Eagle flight attendants worried by merger

See Story: http://finance.yahoo.com/news/american-eagle-flight-attendants-worried-221459147.html


JP Morgan upgrades US Airways, Delta, citing break in oil prices, revenue trends

See Story: http://finance.yahoo.com/news/jp-morgan-upgrades-us-airways-202203959.html


Hunter Keay (Wolfe Research): AMR/LCC Merger Confirmed; Quick Thoughts from Court: September 12, 2013

We attended today’s confirmation hearing in NYC, at which Judge Sean Lane confirmed the AMR/LCC merger. This was unsurprising, following comments Judge Lane made at the last hearing on 8/29. Still, it removes another procedural hurdle required to be completed before the merger becomes effective, and this is noteworthy because the alternative outcome (Judge Lane again deciding to not confirm) would have been a slight negative. Of course, the pacing item now becomes whether or not DoJ will lose in court or settle with the airlines. Again, we think this merger occurs late this year or early next year.

 

[jimntx]

The last thing any American should want is for Congress to interfere with the proceedings of the judicial branch. There is a reason why the U.S. system is based upon a separation of powers.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 18, 2013

Let Us Compete. Together! (American Airlines & US Airways YouTube Video)




American Airlines and US Airways - Stronger Together as the New American

See Video: http://newamericanar...he-new-american


American Airlines and US Airways Team Members Say: ‘Let Us Compete. Together.’

See Story: http://newamericanar...mpete.-together


AMR-US Airways Unions Meet U.S. Official on Merger Suit

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


American, US Airways employees to rally for merger

Attending the rally will be representatives of airline labor unions and members of Congress from Texas, North Carolina, and Pennsylvania.

See Story:
http://www.philly.co...for_merger.html


American Eagle flight attendants concerned over US Air merger

See Story: http://www.bizjourna...attendants.html

 

[700UW]

Sorry you cant get a raise, we have to spend money to lobby which wont make a difference.