PilotAction US Airways & American Airlines Trial & Other News Update

[ChockJockey]

[background=transparent]Today Judge Silver issued her an Order in the Addington II DFR case and USAPA lost on all counts.[/background]

 

[Pi brat]

US Airways employees met with over 300 congressional staff members, labor leaders met with Asst. AG Baer, and there was the rally. The rally was well done; although, I'm not sure how much the rally will effect the two companies effort to settle with the regulators or win at trial.

ZOOM! Right over your head.

 

[Pi brat]

You can't change a seniority list without a reason. "Majority rules" isn't one of them.
It's over. Silver understands clearly what the USAPA scabs are all about, todays order clearly shows what the court thinks about the scab union, truly a great read!

LMAO at the USAPA clowns tonight!!!

So it's over? Or wait, it will be over by April?

 

[Phoenix]

Uh yeah, Jude Wake reacts to news that Judge Silver thinks she is immune from the spanking he got from the 9th.

 

[ChockJockey]

Uh yeah, Jude Wake reacts to news that Judge Silver thinks she is immune from the spanking he got from the 9th.

Mmm...pretty sure that's Charleton Heston laughing heartily at the latest failure of what is the most consistently unsuccessful union to represent airline pilots in the history of ever.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 27, 2013

Growth at Emirates Airlines Shows Need for US Airways/AA Merger

See story: http://www.thestreet.com/story/12050241/1/growth-at-emirates-airlines-shows-need-for-us-airwaysaa-merger.html?puc=yahoo&cm_ven=YAHOO


Justice officials: We don’t have to give up names to US Airways, American Airlines

It appears that the airlines want to find out which of their competitors urged the DOJ to file a lawsuit. US and AA also want to get DOJ’s internal conclusions when it decided not to try to stop the other mergers so that they can use the DOJ’s conclusions against the DOJ in court, we presume.

See story: http://aviationblog.dallasnews.com/2013/09/justice-officials-we-dont-have-to-give-up-names-to-us-airways-american-airlines.html/


DOJ says American-US Airways shouldn't get to see government analysis of merger

See story: http://blogs.star-telegram.com/sky_talk/2013/09/doj-says-american-us-airways-shouldnt-get-to-see-government-analysis-of-merger.html


American, US Airways says it doesn't want DOJ's "attorney mental impressions"

See story: http://blogs.star-telegram.com/sky_talk/2013/09/american-us-airways-says-it-doesnt-want-dojs-attorney-mental-impressions.html


US Airways, American Airlines say (again) why Justice should give them names and facts

See Story: http://aviationblog.dallasnews.com/2013/09/us-airways-american-airlines-say-again-why-justice-should-give-them-names-and-facts.html/


PSA Airlines' Pilots Ratify Letter Of Agreement To Amend Collective Bargaining Agreement

See story: http://finance.yahoo.com/news/psa-airlines-pilots-ratify-letter-175700479.html


PSA Pilots Ratify Agreements Guaranteeing the Placement of Large Regional Jets at PSA

See story: http://finance.yahoo.com/news/psa-pilots-ratify-agreements-guaranteeing-180400691.html


USAPA BPR Regular 3rd Quarter Meeting Recap - Day 1 (President Report): September 27, 2013

President Hummel briefed the Board on an issue with the PSA proposed Contract's Scope Language, and he has spoken with the President of the PSA pilots' union. Basically, their proposed contract language says they can fly 70-90 seat aircraft, but our contract says a maximum of 76 seats. Although 76 seats are within the 70-90 range, a clarification that there is a 76-seat maximum was needed. A letter has been sent to the V.P. of Legal Affairs at US Airways and a copy sent to ALPA (PSA’s bargaining agent) to confirm these aircraft will meet our Scope restrictions contained in the MOU.


APA Negotiating Committee Update: September 27, 2013

The company has indicated its intentions to significantly downsize the St. Louis pilot base over the next six months. The company has communicated to APA that it envisions transitioning to:

Seventy-five S80 Captains and seventy-five S80 First Officers in St. Louis.

Eighty-six domestic 767 Captain and First Officer protected positions in MIA.

One hundred eighty-five S80 protected positions in DFW.

The number of protected positions can be adjusted depending on the number of TWA pilots bidding to other Captain or Group IV First Officer positions using system seniority.

The magnitude of this move will have impacts across the system as flying is reallocated to other bases and as some pilots currently in the SLT bid statuses proffer/displace into other positions. Concerns arose over how this would play out under the normal monthly bidding process. To provide more certainty and visibility for all pilots potentially impacted, APA requested a change to the process for effecting Supplement C. The company has agreed to our request and plans to proceed as follows:

In the current bid run, which closes Oct. 5, for Dec. 1, 2013, effective dates, there will be no displacements out of SLT, and there will be no awards into any protected positions in MIA or DFW. In this bid run and in the future, former TWA pilots can bid for any vacancy system-wide that the pilot can hold using system seniority.

In late October, the company will conduct the Supplement C Transition vacancy run for all former TWA pilots, as well as the AA pilots currently flying as SLT First Officers. This bid run will determine:

Those pilots who will occupy the protected pilot positions at SLT.

Those pilots who will occupy protected positions at MIA and DFW.

Where the remaining pilots will displace to in the system.

TWA pilots have priority for bidding to protected positions. Pilots not awarded protected positions will be displaced based on displacement preferences and system seniority. The Supplemental Bid Run is expected to close at the end of October, with a goal of having pilots assume these positions over the following months (based on training availability and the reallocation of flying) but ideally no later than May 1, 2014.

Rather than forcing a significant number of pilots (both inside and outside of St. Louis) to live with month-to-month uncertainty as the normal bidding process plays out, the Supplement C Transition vacancy run will provide a six-month forward look at what things will look like for several hundred pilots who will be affected by the downsizing of the St. Louis pilot base. The normal monthly bid runs will continue without interruption. More details will be provided in the weeks ahead. As in every bid run, we strongly encourage pilots to review their bidding and displacement preferences.


U.S. Rebuffs Data Request From AMR, US Airways

CHICAGO (WSJ.com) - The Justice Department says it is permitted to withhold information about those interviewed for its analysis of AMR Corp.'s merger with US Airways Group Inc., information the airlines are seeking in their fight against a federal suit to block the deal.

In a filing Thursday, the department said U.S. Supreme Court precedent protects it from a "naked, general, demand" for the facts the two airlines want. Such information could "necessarily reveal the opinions and mental processes of counsel, and therefore is improper," it said in the filing with U.S. District Court in Washington, D.C.

The airlines on Tuesday said they want a court order forcing the Justice Department to turn over information about third parties that were interviewed, including their names and what they said. The carriers want the information, which they describe as "routine," in order to determine how the department reached it decision to block the merger.

In their filing, lawyers for the airlines said the Justice Department "has tried this tactic before" in antitrust cases and lost each time. They cited three cases, including a 1999 suit against AMR and subsidiary American Eagle accusing the airlines of "predatory" pricing against low-cost carriers, a suit won by the airlines.

The Justice Department says it won on a similar argument in two recent antitrust cases.

"Defendants do not address these cases and incorrectly assert that no court has upheld the antitrust division's objections to similar discovery requests," Justice Department lawyers said.

The department is also balking at the airlines' request for information about how prior airline mergers were evaluated, saying in a filing, "government decisions not to challenge different airline mergers are irrelevant to whether this merger is lawful."

The Justice Department in August filed an antitrust suit to block AMR's merger with US Airways to create the world's largest airline, saying it would stifle competition and create higher fares and fees for customers, as well as fewer flying options. The merger proposal was presented as part of AMR's plan to exit Chapter 11.

A bankruptcy judge has already approved the plan, which has broad support among the companies, their creditors and shareholders. But regulatory approval is needed for that proposal to become effective, and the antitrust suit is set to start Nov. 25.

The argument over the third-party information could come up at the next pretrial status conference in the antitrust case, which is set for Oct. 1.

The merger in its current form would repay AMR bondholders in full and give the company's existing shareholders at least 3.5% of the combined airline, a rare outcome in Chapter 11 cases.

In all, the proposal would give 72% of the combined airline to AMR shareholders, unsecured creditors, labor unions and some employees. The rest would go to US Airways' shareholders.

AMR filed for bankruptcy protection in November 2011, citing the need to cut operational and labor costs. The company negotiated deep concessions from its main labor unions after a lengthy trial, cutting about $1 billion in annual labor costs.

AMR initially planned to exit bankruptcy as an independent airline, but the company eventually succumbed to the advances of suitor US Airways. The Justice Department suit, filed in August, threw both the merger and AMR's future into uncertainty.


AMR Eagle MEC Chairman Letter: September 27, 2013

Fellow Eagle Pilots:

It is with profound disappointment that we learn of the ratification of the concessionary TA at PSA. While we respect the right of the PSA pilots to determine what is best for them and their families, we believe it was a colossal mistake to unnecessarily drive the industry standard to such a miserable level. This deal in some ways mimics what was negotiated by Endeavor Air (formerly Pinnacle Airlines Inc.), a wholly owned subsidiary of Delta Air Lines, during their effort to avoid liquidation in bankruptcy. One significant difference is that the Endeavor pilots were compensated for many of the concessions they provided. The only potential gain for the PSA pilots in this deal is the possibility of new aircraft.

It is unclear whether this deal is contingent upon the pending lawsuit filed by the U.S. Department of Justice challenging the merger, but it appears unlikely to occur without one. The next step in the process is for the ALPA President to decide whether the agreement conforms to the direction and goals of the Association membership. Our MEC strongly encourages him to be deliberate in his examination of the agreement prior to signing it. If it takes effect, this new low bar will make it more difficult for other pilot groups, including us at Eagle, to have fair and livable pay and work rules. Everyone likes shiny new jets, but they must not be financed by cutting the pay and benefits that we have worked so hard to achieve. We believe this is exactly what the PSA pilots have signed the industry up for.

Please try to keep your efforts and actions positive, constructive and oriented toward drawing us together as a team. It is critical that we stand together as a unified group while we navigate the difficult road ahead. Please communicate all ideas, suggestions and offers of assistance to your local reps as one of our strengths is having the perspective and experience of 2900 airline pilots.

We remain open to any reasonable proposal from management which could bring airplanes to Eagle to replace the ones we’re retiring and ensure Eagle’s viability. We look forward to an earnest discussion with management about how best to proceed.

Sincerely and in unity,

Bill Sprague, MEC Chairman
Matt Rettig, MEC Vice-Chairman

 

[robbedagain]

usa why do u post same articles just titled differently? it still interestin to find out what gonna give if there gonna be a settlemnt

 

[700UW]

Cause he is a ego maniac, have you not seen what he has written in the past?

ALPA disavowed him and US fired him before for his posts.

 

[USA320Pilot]

700UW - Why do you misrepresent information and purposely mislead people? When would now be a good time for you to get your facts straight?

Robbed - It takes a lot of time to create my updates, which are posted to five different groups. I don't have the time to create separate information to separate groups. People can pick and choose which articles they want to read. None of them are the same article.

 

[USA320Pilot]

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

What These Legal Requests Mean for Airline Investors

See Story: http://www.fool.com/investing/general/2013/09/27/what-these-legal-requests-mean-for-airline-investo.aspx


This Union Isn’t Happy With DoJ Suit Against American-US Airways

The DOJ’s blocking of the merger has already led to layoff notices in Tulsa where we represent aircraft maintenance workers and blocked raises and the distribution of stock to more than 20,000 hard-working TWU ground workers at American

See Story: http://wallstcheatsheet.com/stocks/this-union-isnt-happy-with-doj-suit-against-american-us-airways.html/?ref=YF


Justice officials: We don’t have to give up names to US Airways, American Airlines

DALLAS (Dallas News) - There’s no legal basis for forcing the U.S. Department of Justice to disclose the names of people it talked to before filing a lawsuit to block American Airlines Inc.’s merger with US Airways Inc., the agency’s attorneys argue.

In addition, the department said in a filing Thursday that it doesn’t have to explain its decision not to try to block four other airline mergers since 2005.

US Airways and American in recent days have demanded to know who talked to the department before it filed an antitrust lawsuit Aug. 13. The airlines want to find out which of their competitors may have urged the department to file the lawsuit, which contends the merger would be anti-competitive and would hurt consumers.

The carriers also want to get Justice Department documents that would show why it decided not to try to stop the four mergers between 2005 and 2011: US Airways-America West Airlines Inc., Delta Air Lines Inc.-Northwest Airlines Inc., United Airlines Inc.-Continental Airlines Inc. and Southwest Airlines Co.-AirTran Airways Inc.

In filings Thursday in U.S. District Court in Washington, Justice attorneys presented their case to a special master who heard disputes about what information each side must surrender.

On the names issue, the department cited legal precedents that it said would let Justice attorneys withhold the information.

The argument that the airlines should know the identities of people interviewed by the department “has been directly rejected in recent antitrust enforcement actions, which defendants fail to address,” the Justice filing stated.

As for the question about the previous mergers, the department’s filing said the airlines “have made clear that they do not seek mere facts — such as the number of overlap routes between merging airlines or numbers of passengers on particular routes.”

Instead, the airlines want the department’s “own analysis of facts when evaluating the legality of the proposed mergers and determining whether to challenge them in court,” Justice argued.

“Such confidential assessments and internal deliberations are plainly privileged, and no court has ever ordered similar disclosures by federal antitrust enforcement officials (or by state officials), as far as we know,” the filing stated.

Among its arguments, the department said its decisions not to challenge previous mergers “are irrelevant to whether this merger is lawful.” It said that its internal analyses are privileged and protected from disclosure, and that the airlines “cannot demonstrate substantial need for the analyses.”

The government and the airlines sit down Monday with special master Richard Levie to discuss their disagreements. They go before U.S. District Judge Colleen Kollar-Kotelly on Tuesday for a status hearing, including a discussion on the unresolved issues of discovery and disclosure. The case is set to go to trial Nov. 25.


Key Points from USAPA's BPR Update on the Proposed Merger & MOU: September 27, 2013

The Company has advised that if they receive a favorable decision in the DOJ trial, they expect a POR effective date on or about Jan. 6, 2014.

General Counsel Brian O'Dwyer then addressed the Board about the merger and the DOJ’s position. He advised that analysts are all over the spectrum with whether or not the merger will occur. Regardless what you might have heard, there are huge stakes for all parties to not lose this litigation, and therefore, settlement becomes an interesting option. If a settlement does occur, it would probably not be until very close to trial. Also, as part of a settlement, there is a mandatory requirement for a 60-day waiting period before the POR can occur, which can be modified for good cause shown (shortened), and a fairness hearing to give the public an opportunity to comment. Further, the mandate of this law is to allow for comment, so it is highly unlikely that the DOJ would simply withdraw the lawsuit.

President Hummel briefed the Board on an issue with the PSA proposed Contract's Scope Language, and he has spoken with the President of the PSA pilots' union. Basically, their proposed contract language says they can fly 70-90 seat aircraft, but our contract says a maximum of 76 seats. Although 76 seats are within the 70-90 range, a clarification that there is a 76-seat maximum was needed. A letter has been sent to the V.P. of Legal Affairs at US Airways and a copy sent to ALPA (PSA’s bargaining agent) to confirm these aircraft will meet our Scope restrictions contained in the MOU.

 

[700UW]

From the July 26, 2002 Charlotte Observer:

UNIONS CAN SINK US AIRWAYS
WITHOUT AGREEMENTS FROM ALL ITS UNIONS, AIRLINE'S FUTURE IS BLEAK
In recent days US Airways has made much progress toward ensuring that it
will have a future. It has reached tentative contract restructuring
agreements with its pilots, flight attendants and the Transport Workers
Union, which represents the dispatchers, simulator engineers and flight crew
training instructors, and with subsidiary PSA Airlines' pilots and flight
attendants.

The International Association of Machinists (IAM) unit representing
mechanics is close to a deal, and the IAM Fleet Service negotiators are
making good progress.

But that's not enough.

The Communication Workers of America (CWA), which represents customer
service and reservation agents, remains far from agreement with the company.
US Airways is on the brink of court-ordered bankruptcy because its situation
is "unsustainable." Failure to improve the situation will have devastating
effects on employees, customers and companies that depend on US Airways.

The airline has received a "conditional" federal loan guarantee approval,
but can't use those funds unless it gets restructuring agreements with all
labor groups, in accordance with the business plan submitted to the Air
Transportation Stabilization Board (ATSB).

Needed for loan guarantees

Major obstacles remain in the way of a voluntary restructuring.

US Airways may not be able to reach agreements with lenders without
tentative agreements with the remaining unions. Unless it has those
agreements the company wouldn't get final ATSB loan guarantee approval,
government sources believe.

How bad is the situation? The carrier continues to burn cash during what is
historically the best-performing time of year. Ten months after Sept. 11, US
Airways has not resolved its cost problems, the economy remains sluggish,
revenue is off 20 percent and low-cost competitors are aggressively
attacking its market share. The industry has not recovered as expected.
Domestic fares are at 15-year lows. Shifts in buying patterns and travel
options indicate airlines may never get the revenue per available seat mile
they previously enjoyed.

Disturbing reports

US Airways needs restructuring agreements for either a voluntary
restructuring or successful bankruptcy reorganization. If the company gets
union concessions and qualifies for government financing, then if it's
forced into bankruptcy, it probably could get in and out of bankruptcy
quickly.

What's disturbing are reports that the CWA leadership is misleading its
members. Last Friday, company negotiators asked the union to meet, to try
and resolve their differences. The union said its negotiators couldn't meet,
but its advisers would be available. However, I'm told that when management
tried to schedule a meeting, they were told the advisers had other
commitments. Meanwhile, the CWA issued a report telling its members the
company met with the advisers last weekend - which management disputes.

Brinkmanship by any union could push the airline into bankruptcy. It's
disappointing to see a relatively small group of employees risk the
destruction of a viable company, with a devastating effect on 40,000
employees and their families.

No one can be sure what will happen in bankruptcy, but it's certain that if
the company reorganizes and successfully comes out of bankruptcy, the labor
groups that don't have tentative agreements with the company prior to
bankruptcy will lose.

As in other union negotiations, the parties that reach savings targeted in
the business plan will get a bankruptcy protection letter, which protects
against even deeper salary and benefit cuts if the company enters
bankruptcy.

Some may face pay cuts

If the company files for bankruptcy, workers in labor groups without that
bankruptcy protection letter may face deep cuts in pay and benefits, loss of
unused sick and vacation time, slashed retirement benefits and a crash in
the value of common stock in 401(k) accounts. In addition, they'll work for
a smaller airline that will hand out layoff notices at once with no
severance pay, and will pay members of unprotected unions significantly
less.

Each day the company moves nearer bankruptcy. New chief executive officer
David Siegel has brought a breath of fresh air to management. US Airways'
best chance to survive is for unions and creditors to bet on him and his
team. Employees wanting to keep their jobs must impress upon union
rank-and-file employees the importance of ordering union leaders back to the
bargaining table at once, to reach an agreement that is 85 percent of the
targeted concessions.

The choice is simple: Either all stakeholders move past their anger,
frustration and denial to obtain and ratify restructuring agreements, or the
carrier will almost certainly enter bankruptcy.

History has shown only two major airlines have successfully restructured in
bankruptcy - not good odds for this company to continue operation.

Chip Munn is a US Airways captain

 

[robbedagain]

ok usa just thought may be you could post articles of the same thing w one title but i understand

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 29, 2013

U.S. Rebuffs Data Request From AMR, US Airways

CHICAGO (WSJ.com) - The Justice Department said it is allowed to withhold information about whom it interviewed in its analysis of AMR Corp.'s merger with US Airways Group Inc., information the airlines are seeking in their fight against a federal suit to block the deal.

In a filing Thursday, the Justice Department said U.S. Supreme Court precedent protects the government from a "naked, general, demand" for the facts the airlines want. Such information could "necessarily reveal the opinions and mental processes of counsel, and therefore is improper," the government said in the filing with U.S. District Court in Washington, D.C.

US Airways and AMR, the parent of American Airlines, on Tuesday said they wanted a court order forcing the Justice Department to turn over information about third parties that were interviewed, including their names and what they said. The carriers want the information, which they described as routine, to determine how the department reached it decision to block the merger.

Lawyers for the airlines said in their filing that the Justice Department "has tried this tactic before" in antitrust cases and lost each time.

The airlines cited three cases, including a 1999 suit against AMR and subsidiary American Eagle that accused the airlines of "predatory" pricing against low-cost carriers.

AMR won that case.

The Justice Department said it won on a similar argument in two recent antitrust cases.

"Defendants do not address these cases and incorrectly assert that no court has upheld the antitrust division's objections to similar discovery requests," the Justice Department said.

The department also balked at the airlines' request for information about how previous airline mergers were evaluated. "Government decisions not to challenge different airline mergers are irrelevant to whether this merger is lawful," the Justice Department said in its filing.

The Justice Department in August filed suit to block AMR's merger with US Airways, saying the deal to create the world's largest airline would stifle competition, reduce flying options and create higher fares and fees for customers. The merger proposal was presented as part of AMR's plan to exit Chapter 11 reorganization in bankruptcy court.

A bankruptcy judge has approved the plan, which has support among the companies' creditors and shareholders. But regulatory approval is needed for that proposal to become effective. The antitrust trial is set to start Nov. 25.

The argument over the third-party information could come up at the next pretrial status conference in the antitrust case, which is set for Tuesday.

The merger in its current form would repay AMR bondholders in full and give the company's existing shareholders at least 3.5% of the combined airline, a rare outcome in Chapter 11 cases.

In all, the proposal would give 72% of the combined airline to AMR shareholders, unsecured creditors, labor unions and some employees.

The rest would go to US Airways' shareholders.

AMR filed for bankruptcy protection in November 2011, citing the need to cut costs. The company negotiated deep concessions from its main labor unions after a lengthy trial, cutting about $1 billion in annual labor costs.

AMR had planned to exit bankruptcy protection as an independent airline, but the company eventually agreed to US Airways' advances.


US Airways partner PSA Airlines pilots ratify labor agreement

The US Airways-PSA agreement is contingent on the merger of US Airways Group and AMR Corp. by Dec. 31, 2015.

See Story: http://atwonline.com/labor/us-airways-partner-psa-airlines-pilots-ratify-labor-agreement

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: September 30, 2013

American Airlines parent AMR earns $71 million in August

See Story: http://aviationblog....in-august.html/


American Plans to Hire 1,500 pilots over the next five years

FORT WORTH (Star-Telegram) - American Airlines said on Monday it will begin the recruiting process to hire 1,500 new pilots over the next five years.

The Fort Worth-based carrier had previously announced in fall 2012 that it planned to recall and hire 2,500 pilots in the next five years as more pilots reach the mandatory retirement age and the government introduces new pilot rest rules.

American said the job posting on its website for its first new-hire class will open on Tuesday, October 1.

"Today marks an important step toward a bright future at the new American," said American's vice president of flight, Capt. John Hale.

"We’re providing our current pilots with the strongest career advancement and growth opportunities in more than a decade, while continuing to build a premier airline and world-class employer they can be proud to fly for throughout their careers."

American began recalling 650 furloughed pilots in January with the last furloughed pilot, who had been laid off in late 2001, returning to the carrier in May.

The carrier has close to 500 pilots who are over 60 and will need to retire within five years when they reach the Federal Aviation Administration's mandatory retirement age of 65. American has previously said it expected to create 1,500 pilots jobs and replaced 1,000 others lost through retirement and attrition.

New federal regulations requiring more rest time for pilots will also go into effect next year and will require airlines like American to have more pilots available to fly.

American said it plans to initially hire 45 to 50 pilots per month through next summer. Some of the pilots will be hired from American Eagle as part of an arbitration ruling made in 2010 that requires American to hire a certain number of Eagle pilots in each hiring class.


Tom Horton to American Airlines employees: You can look forward to profit sharing, probably

We are making good progress on the merger front, as we continue to prepare a strong case for the trial in November and remain open to discussions with the Justice Department regarding a settlement on appropriate terms. I will keep you updated on the merger as we go.

See Story: http://aviationblog....-probably.html/


Lawsuit over American Airlines-US Airways merger has produced nearly two million documents

Unresolved are two demands from the airlines: 1) to know the names of third parties that DOJ interviewed before filing the lawsuit, and 2) documents from DOJ’s review of four previous airline mergers between 2005 and 2011. Justice did not challenge those mergers.We believe both sides are scheduled to meet Monday with special master Richard Levie, who will decide the dispute over whether Justice has to supply the names and documents. In general, the government and airlines said, “Fact discovery is proceeding expeditiously and is on track to end by October 25, 2013.” That is one month before Judge Kollar-Kotelly begins hearing the case on Nov. 25.

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


Retirements will prompt about half the 1,500 American Airlines pilot hires over next five years

See Story: http://aviationblog....ive-years.html/


American Airlines plans to hire 1,500 pilots over the next five years

See Story: http://aviationblog....ive-years.html/


American Airlines aims to hire 1,500 pilots over 5 years; reports August profit of $71 million

See Story: http://finance.yahoo...-144905313.html


AMR CEO Message: September 30, 2013

Dear American Team:

This continuing string of record-setting results is testament to the hard work of the entire American team. So I’m especially pleased to report that the August results included an additional $50 million set aside for an expected profit sharing payout for 2013. As you probably know, our current labor agreements include profit sharing for eligible employees and we have similar profit sharing plans in place for our agents, representatives, planners, support staff and some management employees. While the year isn’t over, and profit sharing is based on full-year results, I’m optimistic that in March 2014 we’ll be able to make profit sharing payments for the first time in many years.

We are building a strong, competitive and profitable new American which will create more opportunity for our people. In fact, later today we’ll share details of our plans to hire 1,500 new pilots over the next five years. We have offered recall to all of our furloughed pilots and will begin the new recruiting later this fall. This is in addition to the hiring and training underway for 1,500 new flight attendants, and the more than 1,200 agents and representatives who have joined our team this year.

We are making good progress on the merger front, as we continue to prepare a strong case for the trial in November and remain open to discussions with the Justice Department regarding a settlement on appropriate terms. I will keep you updated on the merger as we go. In the meantime, congratulations and thanks for another great month. Let’s keep the focus on our customers and keep the momentum building.

Thanks for all you do!

Tom

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 1, 2013
​

Texas Attorney General Announces Agreement To Support American Airlines, US Airways Merger

Combined Airlines Re-Affirm Commitment to Texas Operations

See Story: http://finance.yahoo.com/news/texas-attorney-general-announces-agreement-190700943.html


Video: Texas AG announces settlement to pull out of American-US Airways antitrust suit

See Story: http://blogs.star-telegram.com/sky_talk/2013/10/-video-texas-ag-announces-settlement-to-pull-out-of-american-us-airways-antitrust-suit.html


Texas Drops Opposition to AMR-US Airways Merger

Meanwhile, U.S. Judge Says Airline Antitrust Case Should Proceed Despite Government Shutdown

CHICAGO (WSJ.com) - Texas Attorney General Greg Abbott, who joined the U.S. Department of Justice's August lawsuit to block the planned merger of American Airlines parent AMR Corp. and US Airways Group Inc., on Tuesday said he is dropping his opposition to the plan.

At a news conference in an American Admirals Club at Dallas/Fort Worth International Airport, the Republican candidate for Texas governor said he reached an agreement with the two carriers that they would maintain scheduled daily service to 22 airports in the state. In addition, DFW would remain a large hub for the "new American" and the company will keep its headquarters in the Dallas/Fort Worth area, the parties said in a news release.

Mr. Abbott, in a press release, said the settlement with American and US Airways "secures common-sense concessions that are in the best interests" of the state. Of particular concern was the potential for reduced service to several of the state's smallest airports and the possible effect that would have on a large contingent of military personnel who rely on American Eagle regional flights to small airports near their bases, he added.

With this deal agreed, Mr. Abbott said he would withdraw his participation in the Justice Department's lawsuit. Tom Horton, AMR's chief executive, and Doug Parker, his counterpart at US Airways, both thanked the attorney general and said they are grateful for his support.

Still, five other states—Arizona, Florida, Michigan, Pennsylvania and Tennessee—and the District of Columbia remain parties to the Justice Department's complaint. American operates a hub in Miami and US Airways has hub airports in Phoenix and Philadelphia. Both carriers have a big presence at Reagan National Airport, near the District of Columbia in Arlington, Va.

Mr. Abbott, a former judge who is in his second term as Texas' top lawman, is running to succeed Republican Gov. Rick Perry. Mr. Abbott has said in the past that he opposed the merger because he thought the diminished competition would lead to higher prices and reduced service. He has taken the rap for that position from his Republican rival in the gubernatorial race and from a Democratic state senator who is expected to join the run for governor, as well as from other Texas politicians and communities.

AMR employs about 73,000 workers, is based in Fort Worth, and has a major hub at DFW Airport. It is an important employer and taxpayer in the state. If the merger occurred, the combined company would retain the current headquarters and add about 30,000 US Airways employees to the rolls. Of the 100,000 combined employees, about a quarter would be based in Texas.

Last week the Texas Association of Business, an influential lobbying group representing 3,000 employers and 200 local chambers of commerce, said its board voted to support the airline merger and oppose the federal lawsuit attempting to block it. "We realize that there is a political aspect to this issue," Bill Hammond, the group's chief executive, said in a statement. "This vote is strictly about supporting the interests of Texas businesses, which is our core mission."

In stock market trading Tuesday afternoon, US Airways shares were up 3.4% to $19.6 on the New York Stock Exchange. AMR's shares trading on the OTC Bulletin Board were up 7.3% to $4.41.

The Justice Department case is scheduled to go to trial in U.S. District Court in Washington, D.C., on Nov. 25. Due to the government shutdown on Tuesday, the department asked the judge to stay all proceedings until government spending resumes. Judge Colleen Kollar-Kotelly on Tuesday ordered the trial to go ahead on schedule. She also set another status hearing for Oct. 30.

The government closed at the end of the day Monday because Congress failed to approve spending legislation to fund government operations.

The Justice Department said that under the shutdown, its employees were generally prohibited from working, even on a voluntary basis, except in limited circumstances such as "emergencies involving the safety of human life or the protection of property."

Department lawyers had said that if the judge denied the postponement request, they would continue to work on the case because her action would "constitute express legal authorization" for them to stay on the job.

The Justice Department argues the deal would harm industry competition and result in higher airfares, higher fees and fewer choices for consumers. The airlines say their merger will allow them to offer more flights to more destinations, reduce costs and offer lower prices and better service.

Justice Department lawyers made a similar postponement request Tuesday in a San Francisco federal court that is holding trial proceedings in the government's challenge to a merger of two Internet technology companies. The judge in that case also denied the request.


Judge Won't delay the antitrust trial of American airlines and US Airways

See Story: http://aviationblog.dallasnews.com/2013/10/judge-wont-delay-the-antitrust-trial-of-american-airlines-and-us-airways.html/


Abbott pulls Texas out of lawsuit to block American Airlines-US Airways merger

See Story: http://www.dallasnews.com/business/airline-industry/20131001-abbott-pulls-texas-out-of-lawsuit-to-block-american-airlines-us-airways-merger.ece


What folks are saying about Texas AG dropping out of antitrust suit against American-US Airways merger

See Story: http://blogs.star-telegram.com/sky_talk/2013/10/what-folks-are-saying-about-texas-ag-dropping-out-of-antitrust-suit-against-american-us-airways-merg.html


Let’s group the huzzahs into one item on the American Airlines-US Airways settlement

See Story: http://aviationblog.dallasnews.com/2013/10/lets-group-the-huzzahs-into-one-item-on-the-american-airlines-us-airways-settlement.html/


The Deal: Merger Enforcers Working During Government Shutdown

See Story: http://business-news.thestreet.com/dallas-morning-news/story/the-deal-merger-enforcers-working-during-government-shutdown/12055515


Greg Abbott’s office files note that it has settled lawsuit with American Airlines and US Airways: October 1, 2013

submitted via ECF

The Honorable Colleen Kollar-Kotelly
United States District Court for the District of Columbia
333 Constitution Avenue, NW
Washington, DC 20001

Re: United States, et al. v. US Airways Group, Inc., and AMR Corporation

Case No. 1:13-cv-01236-CKK

Notice of Settlement of the Claims of the State of Texas

Judge Kollar-Kotelly:

The State of Texas wishes to notify the Court that it has entered into a settlement agreement with US Airways Group, Inc. and AMR Corporation. The agreement resolves the claims of the State of Texas, but it does not purport to address the claims of the other plaintiff states or the Department of Justice.

The State of Texas is in the process of meeting and conferring with all parties to the litigation to notify them of the settlement. Once we can assure the court that no party opposes our position, the State of Texas will file its Motion to Voluntarily Dismiss its Claims with Prejudice.

Regards,

/s/

Mark A. Levy
Assistant Attorney General
Office of the Attorney General of Texas
Consumer Protection Division – Antitrust Section


District Court Order to Deny DOJ's Stay: October 1, 2013

"Currently before the Court is Plaintiff the United States of America’s [92] Motion for a Stay of Litigation in Light of Lapse of Appropriations. Plaintiff has requested a stay due to the lapse of appropriations to the Department of Justice, stating that absent an appropriation, Department of Justice attorneys and employees are generally prohibited from working, except in very limited circumstances, including “emergencies involving the safety of human life or the protection of property.” 31 U.S.C. § 1342. Defendants have opposed Plaintiff’s motion for a stay.

"The Court concludes that a stay would be inappropriate here for a number of reasons. This case involves a pending merger agreement between two major airlines, with a deadline for completion of January 18, 2014. The closing of this merger has been delayed by the affirmative actions of Plaintiffs in filing this case and seeking injunctive relief to block the merger. In light of these considerations, and the amount of money at stake in this merger, this case is clearly significant for both sides. Furthermore, the resolution of Defendant American Airline’s pending bankruptcy proceedings hinges on the proceedings in this case. In addition, various amici – particularly employees of the Defendants – have a vested interest in the adjudication of this case without delay. Indeed, because of the need for the prompt resolution of this matter, the Court has set an expedited discovery and trial schedule. A stay at this point would undermine this schedule and delay the necessary speedy disposition of this matter. It is essential that the Department of Justice attorneys continue to litigate this case.

"Accordingly, for the reasons set forth above, it is, this 1st day of October, 2013, hereby ORDERED that Plaintiff the United States of America’s [92] Motion for a Stay of Litigation in Light of Lapse of Appropriationsis DENIED.

"SO ORDERED."


S&P Report (Airline Analyst Jim Corridore): October 1, 2013

The court overseeing the Justice Department (DOJ) suit to block the merger between LCC and AMR has denied the DOJ’s move to delay the Nov. 25 trial date, which we see as a positive for the chances of a settlement of the suit. Also, unconfirmed Bloomberg and other media reports say that Texas has reached a settlement with the carriers and will drop its objection to the suit. We see these two items as significantly increasing the odds the merger will be approved. We remain positive on the potential for it to help increase LCC’s ability to compete with larger rivals.


USAPA Update Regarding DOJ Lawsuit: October 1, 2013

This morning, October 1, the DOJ filed a request to stay, or pause the lawsuit proceedings until such time Congress appropriates funds. In the motion (click here to view), the DOJ acknowledges that American and US Airways object to the motion. The DOJ said if the Judge ordered them to proceed they will consider it an order from her and they will proceed.
USAPA President Gary Hummel and USAPA General Counsel Brian O’Dwyer were in Washington, DC this morning for the Scheduling Conference regarding the DOJ lawsuit. In a hearing prior to the conference, Judge Colleen Kollar-Kotelly denied the DOJ’s request to stay the case. The Judge indicated she is aware of the merger expiration deadline of January 18, 2014 and will do her best to render a decision prior to that time. The trial will proceed as planned beginning on November 25, 2013.

On Thursday, October 3, USAPA attorneys, along with attorneys from all of the labor groups at US Airways and American, will attend a meeting with the Company’s Antitrust lawyers. This will be a briefing as well as a strategy session where they will discuss any request for future union involvement opposing the DOJ lawsuit.

Finally, should a settlement be reached with the DOJ, there is a 60-day subsequent public comment period. The Company can, and they have indicated they intend to, proceed with the merger without delay during that 60-day period.



APA INFORMATION HOTLINE: October 1, 2013

This is APA Communications Director Gregg Overman with the APA Information Hotline for Tuesday, Oct. 1.

TEXAS ATTORNEY GENERAL ANNOUNCES MERGER SUPPORT, WITHDRAWS FROM DOJ SUIT:

Texas Attorney General and gubernatorial candidate Greg Abbott announced today that the state is withdrawing from participation in the Justice Department lawsuit opposing the pending American Airlines–US Airways merger. The announcement, detailed in a press release issued by American, occurred during a press conference at the DFW International Airport Admirals Club.

Abbott's change of position is based on an agreement between AMR, US Airways and the state of Texas. Under the terms of the agreement, the new American Airlines will maintain scheduled daily service to more than 20 airports in Texas. In addition, the agreement provides that DFW International Airport will be maintained as a large hub airport for the combined airline and that the new American will maintain its headquarters in the DFW area.

In his own press release, Abbott stated, "The settlement is good for American Airlines' customers, the communities it serves and its employees. Our negotiations confirmed that the airline will preserve competition in the marketplace, maintain important routes in Texas and protect jobs."

APA applauds Abbott's decision. The American Airlines–US Airways merger would be pro-consumer and pro-competition, and we are pleased Abbott now agrees the combination of the two carriers would represent sound public policy.

APA and other unions at American Airlines and US Airways released a joint statement of appreciaion this afternoon regarding Abbott's change of position, emphasizing that the merger "makes sense for competition, customers and our members we represent who want nothing more than to compete aggressively."

U.S. DISTRICT COURT JUDGE INDICATES TRIAL WILL GO FORWARD:

During a short status conference this morning, U.S. District Court Judge Colleen Kollar-Kotelly considered a Justice Department motion to stay the trial pending resolution of the government shutdown. In an order issued this afternoon, Judge Kollar-Kotelly denied the motion, which means the trial will begin as scheduled Nov. 25.

In the order, Judge Kollar-Kotelly wrote, "The court concludes that a stay would be inappropriate here for a number of reasons. This case involves a pending merger agreement between two airlines, with a deadline for completion of January 18, 2014. The closing of this merger has been delayed by the affirmative actions of plaintiffs in filing this case and seeking injunctive relief to block the merger. In light of these considerations, and the amount of money at stake in this merger, this case is clearly significant for both sides. Furthermore, the resolution of defendant American Airlines' pending bankruptcy proceedings hinges on the proceedings in this case."

The motions to compel that the airlines previously filed as part of the discovery process remain under advisement.

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



AA Flight Attendants Applaud Texas State Attorney General's Announcement (APFA President Laura Glading Turns Attention to Remaining States on Antitrust Suit): October 1, 2013

In a press conference this afternoon, Texas Attorney General Greg Abbott announced that he would withdraw his support of the antitrust lawsuit seeking to block the merger of American Airlines and US Airways. Texas is one of seven states and the District of Columbia that joined the US Department of Justice in its eleventh-hour lawsuit against the merger, filed in August. The trial is set to begin on November 25.

“I applaud General Abbott for deciding to do what’s right for his constituents,” said Association of Professional Flight Attendants president Laura Glading. “We have over 3,500 flight attendants living in Texas and I’d venture to say the AG’s office heard from every one of them over the past two months. I’m proud of our efforts. Now on to the other six [states].”

Working in concert with other labor organizations at both carriers, APFA has mounted an aggressive campaign to convince the attorneys general supporting the lawsuit to reverse course. With Greg Abbott backing off, the focus will now be on Pam Bondi (FL), Robert Cooper (TN), Ken Cuccinelli (VA), Tom Horne (AZ), Kathleen Kane (PA), Irvin Nathan (DC), and Bill Schuette (MI).

“The tide is turning,” Glading said. “Flight attendants and our colleagues are getting the facts out there and we’re changing minds. The merger is good for consumers, it’s good for the companies, and it’s good for competition.”


APFA Hotline Update (TX AG Withdraws from Antitrust Suit, Government Shutdown, DOJ Lawsuit Update) #2: October 1, 2013

EXAS AG WITHDRAWS FROM ANTITRUST SUIT

In a press conference at DFW today, Texas Attorney General Greg Abbott announced that he would withdraw from the antitrust suit to block the American-US Airways merger. General Abbott’s decision comes after six weeks of sustained pressure from Flight Attendants and other employees. APFA thanks General Abbott for his thoughtful new stance as well as the many federal, state, and local elected leaders that support the merger. In a statement issued just after the announcement, APFA President Laura Glading said, “The tide is turning. Flight Attendants and our colleagues are getting the facts out there and we’re changing minds.” APFA will continue to apply pressure in other states whose attorneys general remain on the suit, including: Arizona, Florida, Pennsylvania, Michigan, Tennessee, and Virginia.

GOVERNMENT SHUTDOWN

Today was day one of the much-anticipated government shutdown. As of today, at least 800,000 government employees are on furlough. Among the personnel that are affected are some working at the FAA, TSA, Department of Labor, NMB, Department of Justice, and federal courts. The shutdown is the result of political brinksmanship in Congress, where House Republicans have tried to attach a measure to defund the Affordable Care Act to legislation to fund the government. APFA has initiated a CapWiz to assist Flight Attendants in contacting their representatives in Congress to demand an end to the shutdown. Click here to participate.

UPDATE FROM ANTITRUST COURT

APFA is pleased to report that the Court in the DOJ antitrust lawsuit today ruled that the case will proceed on its expedited schedule despite the government shutdown. Early this morning, the DOJ had filed a motion to stay the case because of the lapse in appropriations. This afternoon, however, the Court denied the motion, highlighting that “particularly employees” of both American and US Airways have a “vested interest in the adjudication of this case without delay.”

The Court also held a Status Hearing to address procedural and scheduling matters. The parties agreed that by no later than October 15, 2013, they will submit a report to the Court governing various trial-related dates and procedures. The Court also scheduled another Status Hearing for October 28, 2013. Finally, the Court scheduled a Pre-Trial Conference for November 21, 2013.

AmericanAirlines + US Airways
"MERGE!"

Leslie Mayo
APFA National Communications Coordinator


Unions Representing 70,000 American Airlines and US Airways Employees Applaud Decision by Texas Attorney General Greg Abbott to Support the Combination of the Two Airlines

Charlotte, NC, Euless, TX, Fort Worth, TX, and Washington, DC – September 30, 2013 -- The Association of Flight Attendants-CWA (“AFA&rdquo, the Allied Pilots Association (“APA&rdquo, the Association of Professional Flight Attendants (“APFA&rdquo, the Communications Workers of America (“CWA&rdquo, the International Brotherhood of Teamsters (“IBT&rdquo, the Transport Workers Union (“TWU&rdquo and the US Airline Pilots Association (“USAPA&rdquo, unions representing 70,000 American Airlines, American Eagle and US Airways employees, including pilots, flight attendants, mechanics, technicians, aircraft dispatchers, call center representatives, and others, today commented on Texas Attorney General Greg Abbott’s decision to support the combination of American Airlines and US Airways and to withdraw his participation in the US Department of Justice’s (“DOJ&rdquo lawsuit.

The unions issued the following statement:

We appreciate Texas Attorney General Greg Abbott for supporting the combination of American Airlines and US Airways, adding his name to a long list of elected officials in Texas who support the merger. Over the past few weeks our members have shown – and continue to show – unprecedented support for this combination. Our message “Let us compete. Together.” is being heard loud and clear.

This combination will allow our members to compete on a fair basis in the airline industry and to better serve customers with a stronger airline that will fly more people to more places. Moreover, this combination enhances job security for employees of both airlines because they will be allowed to compete fairly with other merged carriers in the industry.

Attorney General Abbott clearly recognizes the benefits this transaction will bring to Texas. The Dallas-Fort Worth hub will continue to be a key hub of the new American and travelers coming in and out of Texas will benefit from greater connectivity and enhanced service. The combined networks will employ nearly 25,000 people throughout the state of Texas, supporting economic growth in all of its communities.

This combination makes sense for competition, customers, and our members we represent who want nothing more than to compete aggressively. We will continue to make our voices heard.