PilotAction US Airways & American Airlines Trial & Other News Update

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 2, 2013

Federal judge tosses pilots' US Airways lawsuit

See Story: http://www.seattlepi...uit-4857762.php


AMR Scores Win as Texas Quits Merger Suit

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


Why Texas Won't Mess With American Airlines

See Story: http://www.fool.com/...n-airlines.aspx


Bombardier Need Grows for Jet Order From AMR’s American

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


TWU asks to intervene in the American Airlines-US Airways antitrust lawsuit

U.S. District Judge Colleen Kollar-Kotelly had already granted permissions to a number of AA and US Airways unions, including the TWU, to file amicus curae briefs in support of the airlines and merger.

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


Tax evasion sentence handed down for ex-Army Ranger and US Airways pilot

See Story: http://www.post-gaze...s-pilot-705815/

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 3, 2013

Why Arizona Might Not Mess With American Airlines

See Story: http://www.fool.com/...n-airlines.aspx


How about this – an industry analyst has an ‘out-perform’ rating on bankrupt AMR’s shares

“Our conviction is based on our analysis of antitrust precedent, recent favorable decisions from Judge Kollar-Kotelly, a compressed discovery process for regulators, the recent settlement with the TX AG and, most importantly, the frail complaint on which the DoJ’s case is based.”

See Story: http://aviationblog....rs-shares.html/


JetBlue CEO Eyes Gains at Reagan National

JetBlue CEO Dave Barger says the planned American/US Airways merger would give one carrier 70% of DCA slots."We don't think that's right for our nation's capital," he said.

See Story: http://www.thestreet...E&cm_ite=NA&s=1


US Airways September revenue jumps 6 percent

See Story: http://www.abc15.com...jumps-6-percent


American Airlines airport agents and reservation employees are getting a pay increase

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


US Airways Flight Attendants Continue To Push For Merger As Texas Withdraws From DOJ Lawsuit

See Story: http://www.marketwat...nk=MW_news_stmp


USAPA’s What’s Up on the Line?: October 3, 2013

Q – I’ve read that if the antitrust case that’s blocking the merger is settled without going to trial, there may be a 60-day waiting period before the merger is actually approved and before there is an “Effective Date.” Is that true?

A – As everyone knows, the “Effective Date” is the date when the 2012 APA Contract pay rates, defined contribution payments, retrospective pay, and other provisions go into effect. We also know that the “Effective Date” does not occur until the antitrust case is resolved. There is much speculation that despite the strongly opposed litigation positions taken by the companies (US Airways and American) and the government, that it is in the interests of both sides to settle the dispute rather than roll the dice on a court decision.

The question is, what happens if there is a settlement? When does the merger happen and how soon after a settlement can we expect the “Effective Date?” Because the case is an antitrust dispute between the government and the companies, a federal law known as the Tunney Act applies. The Tunney Act, whose official title is the Antitrust Procedures and Penalties Act, 15 USC §16, generally requires a 60-day notice period before any settlement becomes final. The waiting period is designed to provide time for interested parties and the public to comment on the settlement, so those comments can be taken into account by the court before the settlement is approved. The Tunney Act, however, allows this period to be shortened but only “by order of the district court upon a showing that (1) extraordinary circumstances require such shortening and (2) such shortening is not adverse to the public interest." 15 U.S.C. Section 16(d). (The full text of section 16(d) is included below.) There is also the possibility that if a settlement is reached, the companies could go ahead with the merger even before the end of the comment period.

The short answer, like so many others in the law, is that whether we will need to wait 60-days after a settlement for an Effective Date “depends.” It could be 60 days, but it could be shorter. It depends on whether the court shortens the time period, and on whether the companies decide to go ahead before final approval of the settlement. While we all hope the case is resolved in favor of the merger, and that the resolution comes sooner rather than later, we’ll have to wait to see what the court and the companies decide to do.

Tunney Act, Section 16(d), 15 USC §16(d):

(d) Consideration of public comments by Attorney General and publication of response During the 60-day period as specified in subsection ( B) of this section, and such additional time as the United States may request and the court may grant, the United States shall receive and consider any written comments relating to the proposal for the consent judgment submitted under subsection ( B) of this section. The Attorney General or his designee shall establish procedures to carry out the provisions of this subsection, but such 60-day time period shall not be shortened except by order of the district court upon a showing that (1) extraordinary circumstances require such shortening and (2) such shortening is not adverse to the public interest. At the close of the period during which such comments may be received, the United States shall file with the district court and cause to be published in the Federal Register a response to such comments. Upon application by the United States, the district court may, for good cause (based on a finding that the expense of publication in the Federal Register exceeds the public interest benefits to be gained from such publication), authorize an alternative method of public dissemination of the public comments received and the response to those comments.

Q – With the government shut-down will we still receive PBGC checks?

A – Obviously, the actions of the government and the PBGC are beyond our control. However, here is a message from the PBGC’s official website, www.pbgc.gov: "We will continue to pay benefits to the retirees."

Message from the Director, Josh Gotbaum

During the current government shutdown, PBGC will stay open for business. All of us at PBGC — federal employees and contractors — will remain on the job. We will continue to pay benefits to the retirees who depend on us, to do our other work, and to honor our obligations.
This is not new. PBGC stayed open throughout the government shutdowns in 1995-96. That's because PBGC is different from most government agencies: Our funds are paid for by insurance premiums and plan assets, not taxpayer dollars.

As always, PBGC regards it as especially important to continue to do our work well, diligently, and with the dedication America's workers and retirees deserve.


APFA Update (AA Flight Attendants Demand Virginia Att'y General Withdraw from Merger Suit - APFA President Laura Glading: Lawsuit jeopardizes Virginia jobs): October 3, 2013

FOR IMMEDIATE RELEASE

FORT WORTH, TEXAS (October 3, 2013) – In the wake of Tuesday’s announcement by Texas Attorney General Greg Abbott that he would withdraw from the lawsuit to block the merger of American Airlines and US Airways, the flight attendants at American are calling on Ken Cuccinelli to do the same.

“Anyone standing in the way of the merger is also standing in the way of hard-working Virginians. Ken Cuccinelli is trying to kill this deal at the expense of thousands of airline workers in his state,” said APFA President Laura Glading. “The antitrust suit is wrong both as a matter of fact and a matter of policy and I’m not sure why he joined it in the first place. I’m sure that if he had he discussed it with employees beforehand and given it more careful consideration he would have arrived at a different decision. On behalf of Virginia’s flight attendants and their families, I’m calling on General Cuccinelli to rectify his mistake.”

Unable to compete with United and Delta, which had recently merged with Continental and Northwest, respectively, American Airlines was forced into Chapter 11 bankruptcy in November of 2011. It was clear that in order for American to be competitive, it needed to merge with US Airways. The merger plan has had the strong support of employees at both companies since its inception. Unfortunately, the US Department of Justice and attorneys general from seven states and the District of Columbia filed an eleventh-hour lawsuit to block the merger in August of this year.

The new American Airlines will offer consumers more destinations and a better product. It will also give flyers a third choice – in addition to Delta and United – for their travel needs. The merger will also provide job security for approximately 100,000 employees nationwide, many of whom live in Virginia.

“There are thousands of Virginians depending on this merger. For them, finalizing the deal could mean the difference between good middle class job security and layoffs,” Glading said. “General Cuccinelli should welcome the new American, not stand in the way.”

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 4, 2013

Oklahoma attorney general asks DOJ to drop American-US Airways antitrust lawsuit

See Story: http://www.tulsaworl...37484269c1.html


Arizona AG stands firm on antitrust lawsuit, while American Airlines flight attendants try to budge Virginia’s AG

See Story: http://aviationblog....ginias-ag.html/


Imperial Capital Resumes US Airways Group (LCC) at Outperform

See Story: http://www.streetins...rm/8751007.html


US Airways Group PT Raised to $24.00 (LCC)

See Story: http://www.wkrb13.co...d-to-24-00-lcc/


3 idle thoughts for Friday

See Story: http://aviationblog....riday-290.html/

 

[RowUnderDCA]

Does the merged US/AA really need a hublet at DCA? What's wrong with 100 r/ts a day to its major markets?​

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 5, 2013

US Air CEO 'Highly Confident' Merger Will Close

See Story: http://www.nasdaq.co...-20131004-00489


US Airways Jet Delivery Delayed by FAA Shutdown

CHICAGO (WSJ.com) - US Airways Inc. said an A330 jetliner it ordered from Airbus is stranded in France because of furloughs in a key Federal Aviation Administration office, the latest example of the U.S. government shutdown causing hitches for airlines.

Airbus has had trouble delivering some aircraft to U.S. customers because the FAA office in Oklahoma City that processes registrations and title transfers has been closed since the partial government shutdown began Tuesday.

"We eagerly await their reopening in order to process our paperwork so we can bring this aircraft home," a US Airways spokesman said.

JetBlue Airways Corp. said Tuesday a delivery of its first new Airbus A321 jet was delayed in Germany because of the FAA furloughs. BoeingCo. and Bombardier Inc. have said their deliveries could be affected if the FAA furloughs drag on.

US Airways was to ferry the new Airbus jet to its hub in Charlotte, N.C. on Saturday, the spokesman said. Around 30 US Airways staff are in Toulouse, France where the jets are built, chosen after winning a charity event to fly on the ferry flight back to the U.S. and will now fly back on scheduled airline service this weekend, the spokesman said.

US Airways has two more A330s scheduled for delivery later this year from Airbus, a unit of European Aeronautic Defense & Space Co.


Delta to provide documents in American-US Airways case

See Story: http://www.flightglo...ys-case-391337/


APFA leans on another AG to give up the American Airlines-US Airways lawsuit

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


Political pressure on DOJ comes from Oklahoma congressional delegation

See Story: http://www.tulsaworl...19bb30f31a.html


Other states not dropping legal challenge to AMR-US Airways merger

See Story: http://www.star-tele...ping-legal.html


American-US Airways Merger: Who’s Supporting the DoJ?

See Story: http://wallstcheatsh...oj.html/?ref=YF


AAMRQ: Establishing an Outperform Rating and $11 Target Price: October 3, 2013

Wolfe Research - When AMR filed for bankruptcy we suspended our rating without dropping coverage. Due to our belief that an AMR/LCC merger will occur (to which we roughly assign a 75% probability), we establish an OP rating and an $11 target price. Our conviction is based on our analysis of antitrust precedent (see our notes from 8/26 & 9/9), recent favorable decisions from Judge Kollar-Kotelly, a compressed discovery process for regulators, the recent settlement with the TX AG and, most importantly, the frail complaint on which the DoJ’s case is based.


DAL & LCC Update and more from busy week: October 4, 2013

Wolfe Research - Both DAL and LCC reported very strong September PRASM and provided bullish guidance. DAL and LCC both reported about 6% PRASM growth in Sept while growing capacity modestly. This, while fuel prices were declining. We believe airline stocks will generally outperform as long as EBIT margins continue to expand on a y/y basis. We tweak our estimates for both DAL and LCC.


APFA Hotline - Merger Update, Seniority Integration, Roadshows, Scheduling and Reserve: October 4, 2013

Merger Update

APFA President Laura Glading along with LAX-I Base Chair David Ransom and Beth Kilcran, APFA Division Representative met with Arizona Attorney General Tom Horne on Thursday in his office. General Horne was generous with his time and seemed genuinely interested in what we had to say. He requested we forward follow-up information to support the fact that AA and US Airways cannot compete against Delta and United as standalone companies and we are in the process of providing that information to him.

On the heels of the TX State Attorney General Greg Abbott's withdrawal of support in the DOJ's lawsuit, APFA has issued two press releases in as many days demanding that the Attorneys General from Virginia and Florida follow suit. We will continue to pressure the participants of this lawsuit in our continued efforts to see this merger through to completion.

Click on the links below to read some of the latest news regarding the antitrust case:

APFA Press Release: AA Flight Attendants Demand Florida AG Withdraw From Merger Lawsuit- 10.04.13
APFA Press Release: AA Flight Attendants Demand Virginia Att'y General Withdraw from Merger Suit - 10.03.13
Arizona AG Remains Firm on Antitrust Lawsuit; While AA FA Try To Budge Virginia's AG - 10.03.13
Live video with clips of Abbott and Horton; interview with Julie Frederick and APA VP Neil Roghair (CBS 11 News, Dallas) - 10.01.13
Texas Attorney General drops out of AA merger lawsuit (USA Today) - 10.01.13
Texas Drops Opposition to AMR-US Airways Merger (The Wall Street Journal) - 10.01.13
AMR Judge Issues Order Denying U.S. Request for Halt to Case (Bloomberg) - 10.01.13

For an extensive summary of the ongoings with the DOJ case, click here.

AA/US Seniority Integration Process

A question that still pops up every now and then is how the seniority lists will be integrated once our companies are combined. Here is the response Laura gave in a recent interview published on this Hotline:

Question: How will the seniority lists be integrated?

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

Negotiating Team Base Visits Starting in October

As we announced last week, Laura Glading and the new APFA negotiating team, along with APFA representatives and advisors will embark on system wide roadshows later this month. Location information will be published as the dates draw closer. Please note - dates are subject to change. All meetings will start at 11:00 a.m. local base time except for the SFO meeting, which will begin at 10:00. The meetings are scheduled for three hours but as is the practice when Laura hits the road, the meetings won't end until all questions are answered.

DFW—October 22
11:00 a.m. to 2:00 p.m.

RDU—October 28
11:00 a.m. to 2:00 p.m.

STL—October 30
11:00 a.m. to 2:00 p.m.

DCA—October 31
11:00 a.m. to 2:00 p.m.

LAX—November 5
11:00 a.m. to 2:00 p.m.

SFO—November 6
10:00 a.m. to 1:00 p.m.

JFK—November 12
11:00 a.m. to 2:00 p.m.

MIA—November 13
11:00 a.m. to 2:00 p.m.

ORD—November 19
11:00 a.m. to 2:00 p.m.

BOS—November 20
11:00 a.m. to 2:00 p.m.

SCHEDULING
AM/PM

Beginning October 8, 2013, the AM/PM Option will also be available for SFO, BOS and JFK. This means that you will submit your ballot on the 7th for an AM/PM slot on the 8th, and so on.

For now, AM/PM awards will be processed manually until AA's computers are programmed to accommodate this new procedure system wide. Information explaining the details of the AM/PM option and ballot is available on apfa.org. Click here, then scroll to Reserve and click on the appropriate links.

It is important to note that when AM is awarded, the tape states simply that the FA is released until 2358. This does not mean the FA is released for the entire day. It means that the FA is released from 1300-2358 (due to the AM period of availability). Crew Scheduling may contact you two hours prior to the beginning of your period of AM/PM availability with an assignment but such assignment must depart within your obligation period.

Adjacent Base Flying

Adjacent Base Flying ("AB"), allows a regularly-scheduled flight attendant at MIA/IMA and LAX/LAX-I, who is qualified in both operations, to request a trip at the adjacent base. Open time will be awarded to FAs at the restrictive base before it is offered to FAs at the adjacent base. AB flying is subject to the company's option and may not be offered every day. Check the RF 8803A CCS file which is updated daily by Crew Scheduling.

For more information, click here and scroll to the Adjacent Base information at the bottom of the page.

Reserves Scheduled for November and December

Are FAs scheduled to serve Reserve in November, 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 December, one option is to bid onto Reserve in November.

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.

AmericanAirlines + US Airways
"MERGE!"

Leslie Mayo
APFA National Communications Coordinator

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 7, 2013

Will More State AGs Drop Their Opposition to the Airline Merger?

See Story: http://www.fool.com/...n-to-the-a.aspx


Odds of AMR Merger Becoming Far More Favorable Again

See Story: http://finance.yahoo...-175904023.html


Will The Government Shutdown Affect The US Airways-American Airlines Merger?

See Story: http://seekingalpha....er?source=yahoo


Judge sets clock ticking on TWU intervention request in American Airlines-US Airways case

See Story: http://aviationblog....ways-case.html/


TWU: If we can’t intervene in American Airlines-US Airways lawsuit, can we still be friends?

See Story: http://aviationblog....e-friends.html/


American unions continue to pressure state AGs to drop out of antitrust lawsuit

See Story: http://blogs.star-te...st-lawsuit.html


APA Press Release Published in the Tallahassee Democrat Newspaper: October 7, 2013

See Story: https://public.allie...d=1042&mid=2085


APA INFORMATION HOTLINE: October 7, 2013

This is APA Communications Director Gregg Overman with the APA Information Hotline for Monday, Oct. 7.

APA BOARD OF DIRECTORS CONVENES FOR FALL MEETING: The APA board of directors convened this morning for its regularly scheduled fall meeting. In his opening remarks, APA President Capt. Keith Wilson recapped last Tuesday's news that Texas has withdrawn from the Justice Department lawsuit, noting that APA has placed an open letter to Florida Attorney General Pam Bondi in today's Tallahassee Democrat urging her to rethink her opposition to the pending American Airlines–US Airways merger. Capt. Wilson also briefed last week's quarterly meeting of the Coalition of Airline Pilots Associations' board of directors, noting that CAPA recently added Teamsters Union Local 357 — which represents Republic Airlines, Frontier Airlines, Shuttle America and Chautauqua Airlines — as a member union.

Secretary-Treasurer FO Pam Torell reported that the annual financial audit of APA is not yet complete because of uncertainty created by the DOJ lawsuit. Director of Finance and Accounting John Lawrence updated the board on the union's current financial state, and KPMG senior manager Morgan Souza gave an overview of the Form LM-2 that unions are required to file annually with the Labor Department.

Negotiating Committee member Capt. Dave Brown gave a briefing on Supplement C. Outgoing Negotiating Committee Chairman and current APA Vice President FO Neil Roghair presented his recommendations for Negotiating Committee elections, which are required annually by policy during the fall meeting. FO Roghair recommended that the committee be comprised of five full-time members, emphasizing the importance of continuity and bringing on new talent and the value of committee members remaining current. In addition, Negotiating Committee member Capt. Norm Miller briefed issues associated with management's rapid re-accrual audit.

The board spent part of the afternoon in executive session for a Bankruptcy Advisory Committee briefing and discussion. In addition, the board voted to approve the following resolutions: R2013-35, "Domicile Officer Election Ballots," which stipulates that domicile officer elections "may be conducted using an electronic voting system," and R2013-36, "National Officer Election Ballots," which stipulates that national officer elections "may be conducted using an electronic voting system." These resolutions modify the relevant sections of the APA Policy Manual.

The board will reconvene at 9 a.m. Central Daylight Time tomorrow. The meeting is scheduled to continue through mid-day Friday, Oct. 11.

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

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 8, 2013

TWU Bid to Join AMR-US Airways Trial Opposed by U.S.

“The airlines greatly value the interests of TWU’s members and support TWU’s participation in this case as amicus curiae,” American and US Airways wrote in their response to the union’s request to jump in. The carriers and the Justice Department said that the union’s concerns are shared by the airlines and that the TWU’s entry as a full participant could delay the trial’s Nov. 25 start date.

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


DOJ doesn’t want court to allow TWU to intervene in US Airways-American Airlines lawsuit

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


Airlines, Justice agree union shouldn’t intervene in antitrust lawsuit

See Story: http://www.dallasnew...ust-lawsuit.ece


US Airways and American Airlines: Thanks, TWU, but we don’t need your help in the antitrust case

See Story: http://aviationblog....rust-case.html/


American says passenger traffic rose 1.3 percent in September

FORT WORTH (Star-Telegram) - Passenger traffic increased 1.3 percent for American Airlines in September as the carrier grew its capacity by 1.9 percent.

Its consolidated load factor dropped 0.4 percentage points to 80.7 percent. Unit revenues rose 3.2 percent when compared to September 2012.

The Fort Worth-based carrier said its international traffic grew 2.0 percent as it added 3.0 percent capacity. Domestic traffic was also higher, up 0.5 percent on a 0.9 percent increase in capacity.


Delta to AMR Jet Deliveries Stall on Government Shutdown

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

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 9, 2013

Cream Rises to the Top in the Airline Industry

See Story: http://www.fool.com/investing/general/2013/10/09/cream-rises-to-the-top-in-the-airline-industry.aspx


Union allowed to file brief in American, US Airways merger case

See Story: http://finance.yahoo.com/news/union-allowed-file-brief-american-224119417.html


Judge rules TWU can be a friend of the court, but no intervenor

FORT WORTH (Star-Telegram) - Federal Judge Colleen Kollar-Kotelly ruled Wednesday that the Transport Workers Union will be granted "amicus curiae" or friend of the court status but will not be allowed full intervenor status.

The union, which represents 23,000 workers at American Airlines, had asked for intervenor status in the antitrust suit the U.S. Department of Justice filed to stop the merger of American and US Airways.
Both the government and airlines objected to the TWU gaining intervenor status, saying it would slow down the trial schedule. Currently, the suit is scheduled to go to trial on November 25.


U.S. District Court for the District of Columbia Order on TWU's Motion to Intervene in DOJ Antitrust Lawsuit filed Against American Airlines and US Airways: October 9, 2013

Presently before the Court is the [98] Amended Motion of Transport Workers Union to Intervene as of Right or, Alternatively, to Appear as Amicus Curiae.

The Transport Workers Union’s request to intervene as of right has been opposed by both Plaintiffs and Defendants. See Plaintiffs’ Statement in Opposition to Transport Workers Union’s Motion to Intervene, ECF No. [99]; Defendants’ Response to Amended Motion of Transport Workers Union to Intervene, ECF No. [100]. Both Plaintiffs and Defendants, in the process of raising a host of arguments against intervention as of right, point out that granting the Transport Workers Union’s request to intervene as of right would stand in the way of the prompt resolution of this litigation on the expedited schedule set by this Court.

Recognizing the importance of this concern, the Transport Workers Union has subsequently filed a response in which it no longer pursues intervention as of right, but instead requests that the Court grant its alternative request to participate as amicus curiae.

See TWU’s Response in Further Support of Its Amended Motion to Intervene or, Alternatively to Appear as Amicus Curiae, ECF No. [102]. Neither Plaintiffs nor Defendants have indicated an opposition to the Transport Workers Union’s participation as amicus curiae.

Accordingly, pursuant to its “broad discretion to permit . . . participation in [a]suit as an amicus curiae,” National Ass’n of Home Builders v. U.S. Army Corps of Engineers, 519 F.Supp.2d 89, 93 (D.D.C. 2007), this Court will permit the Transport Workers Union to participate as amicus curiae in this matter.

Accordingly, for the reasons set forth above, it is, this 9th day of October, 2013, hereby ORDERED that the [98] Amended Motion of Transport Workers Union to Intervene as of Right or, Alternatively, to Appear as Amicus Curiae is GRANTED-IN-PART AND DENIED-IN-PART. The Transport Workers Union’s request to intervene as of right is DENIED. However, the Transport Workers Union’s request to appear as amicus curiae is GRANTED.

SO ORDERED.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 10, 2013

AMR-US Airways Merger Suffers New Setbacks

CHICAGO (WSJ.com) - US Airways Group Inc. and American Airlines parent AMR Corp. suffered a pair of setbacks Thursday in their trial preparations for the Justice Department’s case against their proposed merger.

A special master overseeing some pretrial portions of the case largely rejected the airlines’ request for internal Justice Department materials about the department’s review of past airline deals that received antitrust approval.

The special master also rejected the airlines’ request that the Justice Department turn over information about which third parties it interviewed while deciding whether to challenge the US Airways-AMR merger.

The airlines believe the Justice Department used different standards in evaluating their merger than it used in several past airline deals that received the government’s blessing.

US Airways and AMR argued that access to Justice Department materials from the past reviews would enable them to show that their merger was good for competition when evaluated under the type of models the government used previously.

The Justice Department argued that what it did in past airline merger cases couldn’t be used as a defense to the current merger.

Special Master Richard Levie said in a written report that the government materials were relevant to the airlines’ defense, but he said most the information was protected from disclosure because it involved internal Justice Department deliberations. He did find that the Justice Department must turn over one document to the defense. Details of the document in question weren’t disclosed.

In a second report, Mr. Levie, a retired judge, rejected the airlines’ request for the identities of third parties interviewed by the Justice Department. Again, he found the information was protected from disclosure and added that the airlines hadn’t demonstrated a significant need for the information.

The airlines said in a joint statement that they were reviewing the rulings and considering their options. “We are confident in our legal position and our ability to win this case,” the airlines said.

Mr. Levie’s findings were presented as recommendations to U.S. District Judge Colleen Kollar-Kotelly, who is presiding over the case.

A trial is scheduled to begin on Nov. 25.


Court official says US Airways, American Airlines shouldn’t get names of people interviewed by DOJ

See Story: http://aviationblog....ed-by-doj.html/


American, US Air say reviewing 'all options' on document ruling, Bloomberg says

See Story: http://finance.yahoo...-153412151.html


Court official says government doesn't have to identify sources for airline-merger lawsuit

The market, which has pushed US Airways Group Inc. shares higher since merger speculation began in late 2011, shrugged off the (Special Master) news.

See Story: http://finance.yahoo...-161936713.html


Here’s the special master’s report on American Airlines-US Airways request for information on third parties interviewed by DOJ

The Special Master concludes that this material is protected opinion work product.

Plaintiffs have provided Defendants with the names of persons having discoverable information. Requiring Plaintiffs to also disclose the names of individuals who Plaintiffs interviewed, but found not to have discoverable information, would force Plaintiffs to disclose “which individuals [Plaintiffs’ counsel] consider more or less valuable as witnesses and how [he or she] [is] preparing for trial.”

Noting Defendants’ need to prepare, Plaintiffs represent that they have provided Defendants with the “names of individuals likely to have discoverable information and all nonparty documents and data received during Plaintiffs investigations.” (Opp. at 3). In light of the substantial discovery already provided to Defendants, Defendants have not established that the specific information Plaintiffs obtained in the third party interviews is so significant that it would justify overcoming the very strong preference for protecting work product.

See Story: http://aviationblog....ed-by-doj.html/


Here’s the special master’s ruling on production of documents about past mergers

A brief summary of the documents at issue[sup]11[/sup] confirms that they consist largely of subjective opinions, and not merely facts.

Defendants aver that they need the information in order to defend the soundness of their own models and to rebut Plaintiffs’ claim that the anticompetitive outcomes of the earlier mergers are likely to be replicated if the instant merger is approved. (See Mot. at 4, Reply at 2- 3).[sup]12[/sup] Plaintiffs, however, have offered to provide to Defendants all of the material which the other airlines provided to DOJ when DOJ considered those earlier mergers. Using this material, Defendants may complete their own analyses of the earlier mergers and may rely on those analyses defend their own analysis of the current merger and to rebut Plaintiffs’ claims.

The Special Master expects that Plaintiffs, as they have represented, will provide Defendants all basic factual material, not already produced, gathered during Plaintiffs’ consideration of the earlier mergers.

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


Does LAX Hold the Key to American Airlines' Future in Asia?

See Story: http://business-news...n-asia/12062684


AMR and US Airways’ Equities Outperform Other Major Airlines: October 10, 2013

See Story: http://finance.yahoo...ource=undefined;


Why Airline Mergers Are Inevitable

See Story: http://www.chicagotr...0,5238340.story


USAPA’s What’s Up on the Line?: October 10, 2013

Q – It’s been rumored that the Addington II case in Phoenix, in which several former America West Pilots are suing USAPA over the Memorandum of Understanding, could potentially interfere with the merger and could hold up our pay and benefits even if the merger goes through. Is there any truth to the rumor?

A – No truth to that rumor whatsoever. The Addington II case makes allegations that concern only the seniority integration process that would occur if the merger goes through. None of the currently pending allegations affect the merger or would in any way delay the pay and benefit improvements contained in the MOU.

Q – What happens to the seniority integration proceeding and the MOU if Judge Silver issues a decision in Addington II and there is an appeal? Does the proceeding go forward or is it delayed until the appeal is heard?

A – It is very early to speculate about this. But, we can say the following. Currently the hearing in Addington II is scheduled for October 22-23. It might be delayed if the government shutdown continues. Whenever the hearing is held, we do not expect the Court to issue a decision until there is some likelihood that the merger will go forward, as a result of a settlement or decision in the DOJ case. Whatever the decision, we expect an appeal to the Ninth Circuit. We won’t be able to tell whether the decision has any effect on the seniority integration process until we see what it is. There is, of course, the possibility that the decision will affect the process and, if it does, either side can ask for a stay of the decision. Normally a decision is effective immediately. A “stay” is a way to ask the court (first the district court and the court of appeals) to delay the effect of the decision until the court of appeals has time to rule on the appeal. If there is no stay, the seniority integration process will go forward, taking into account whatever decision might be made in the District Court in Phoenix. If there is a stay, then the seniority integration process will go forward without regard to whatever the decision says.

 

[USA320Pilot]

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

US Airways, American should not get merger papers: U.S. special master

Special Master did recommend that the judge order the department to turn over documents related to the approval of the 2008 merger between US Airways and America West.

See Story: http://finance.yahoo...-214352754.html


American Airlines, US Airways lose bid to make Justice name names

Washington, D.C.-based lawyer David Balto, who handled antitrust cases when he was with the Department of Justice and the Federal Trade Commission, said Levie’s decision was not a surprise. It also wasn’t a big setback for the carriers, Balto added. “I think it was pretty much what was expected and not a significant loss for the airlines,” he said. “There’s still a ton of discovery left to be done. Kollar-Kotelly obviously wants the parties to have a full trial in court.”

See Story: http://www.dallasnew...-name-names.ece


Hedge Fund Yield Capital Management's Top Stock Picks

See Story: http://seekingalpha....ks?source=yahoo


APA information Hotline: October 10, 2013

This is APA Communications Director Gregg Overman with a follow-up APA Information Hotline for Thursday, Oct. 10.

APA BOARD OF DIRECTORS FALL MEETING: Today's session began with presentations by Communications Committee Chairman Capt. Tom Hoban, Family Awareness Committee Chairman FO Christine Daniel and members of the Communications Department about a variety of communications-related items. Capt. Hoban recapped the unprecedented level of APA communications activity since AMR filed Chapter 11 bankruptcy. FO Daniel detailed how her committee is using Facebook to connect with APA member families and introduced LGA FO Doug Hancock, who lives in Charlotte and is serving as our Family Awareness liaison with the US Airline Pilots Association (USAPA). I briefed recent video projects, additional social media efforts and other ongoing department activities. In addition, Safety Committee Deputy Chairman FO Bill Walsh discussed the "trip book" iPad app he is developing with IT and communications.

Jumpseat Committee Chairman FO Tim Knutson briefed US Airways' jumpseat policies and discussed joint collective bargaining agreement priorities if the American Airlines–US Airways merger goes forward.

Check Airman Committee Chairman Capt. Jeff Mayer recounted the recent meeting his committee had with their USAPA counterparts, which included a comparison of training procedures at American Airlines and US Airways.

International Affairs Committee Chairman Capt. Tony Chapman detailed recent developments affecting Oneworld Cockpit Crew Coalition member pilot groups. Pilots at Iberia have experienced a reduction in flying because of that carrier's joint business agreement with British Airways, while JAL pilots have gone to court to protest what they view as age discrimination in their management's handling of pilot layoffs.

Also today, the board waived election procedure policy to re-elect Capt. Hoban as Communications Committee chairman, re-elect FO Daniel as Family Awareness Committee chairman and elect eight members to the Seniority Integration Committee: FO David Durham, Capt. Mark O'Grady, Capt. Mark Stephens, Capt. Mickey Mellerski, FO Tim Daudelin, Capt. Bruce Case, FO Steve Conlon and FO Tom Duncan. In addition, the board approved a motion to appoint Capt. Stephens as Seniority Integration Committee chairman.

The board spent a portion of the afternoon receiving an update on negotiations with the Allied Pilots Staff Employees Association representing the hourly headquarters employees.

The meeting is scheduled to resume at 9 a.m. Central Daylight Time tomorrow. We will recap the remainder of the meeting in tomorrow's APA News Digest, including details of the recipients of this year's APA Safety Award for Excellence.

 

[FWAAA]

Nothing from man-crush Hunter Keay about how the discovery defeats this week affect the odds that US-AA will win in the antitrust lawsuit?

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 14, 2013

Out Of Spite, Charlotte Targets Airport Chief At Biggest US Airways Hub

See Story: http://www.forbes.com/sites/tedreed/2013/10/12/spite-triumphs-as-charlotte-targets-airport-chief-at-biggest-us-airways-hub/?partner=yahootix


Airport commission to meet Nov. 7; Orr to retire by 2015

See Story: http://www.charlotteobserver.com/2013/10/14/4385387/airport-commission-to-meet-nov.html


Airlines won't challenge ruling in merger lawsuit

American, US Airways won't appeal setback in ruling on evidence behind US anti-merger lawsuit

See Story: http://finance.yahoo.com/news/airlines-wont-challenge-ruling-merger-221825127.html


American Airlines, US Airways won’t appeal special master’s ruling on documents, names

The case is on track to go to trial Nov. 25. The judge has indicated she wants testimony to wrap up Dec. 16 or 17 and final arguments Jan. 6. She said she intends to issue a ruling by Jan. 10.

See Story: http://aviationblog.dallasnews.com/2013/10/american-airlines-us-airways-wont-appeal-special-masters-ruling-on-documents-names.html/


Why US Airways-American merger should fly: OpEd Column

See Story: http://www.usatoday.com/story/opinion/2013/10/13/us-airways-merger-american-airlines-column/2977033/


Arizona should leave US Airways-American Airlines lawsuit

Former airline CEO: Merger is best for Arizona

See Story: http://www.azcentral.com/opinions/articles/20131013us-airways-american-merger-best-arizona.html


7 Members of Congress Ask Florida Attorney General Pam Bondi to Back Airline Merger

See Story: http://www.nbcmiami.com/news/7-Members-of-Congress-Ask-Florida-Attorney-General-Pam-Bondi-to-Back-Airline-Merger--225710531.html


USAPA President's Message: October 14, 2013

Fellow Pilots,

Allow me to update you on some of the activities we’ve been involved with over the past two weeks.

As you are aware, The U.S. Department of Justice asked for a stay on the November 25th trial for the merger, due to the Country's funding issues. Fortunately in her two-page ruling, Judge Kollar-Kotelly denied the stay and said it would be inappropriate, and that there is a "need for the prompt resolution of this matter." The case is scheduled to proceed. If there would be a settlement offer, there would then be a required 60 day public comment period. However, this does not mean the merger would be delayed for an additional 60 days.

On October 3rd, General Counsel O'Dwyer attended a meeting with anti-trust lawyers from US Airways and American, as well as attorneys from the unions of both companies. We have an on-going dialog with these parties regarding the up-coming DOJ court case. Rest assured we are staying on top of this activity and will be keeping the BPR and you informed.

Last week, I worked with the NAC on iPad implementation procedures. The NAC continues to have discussions with the Company regarding these procedures and will brief the BPR on their progress later this week. We will keep you posted on this subject and will let you know when we have reached an agreement with Management on the implementation policies and procedures for the iPads.

I've recently spent some time in Washington working with Randy Dopp and the Government Affairs Committee on our Pension Bill, and things are going well. Additionally, Randy and CAPA have stepped up efforts in regard to employment rights and benefits for our pilots who are also serving in the military. We continue a big push with CAPA on FAR 117 and the cargo cut out issue. CAPA is considering teaming up with passenger advocacy groups to promote “one level of safety.” You may have seen media reports that the cockpit-voice recorder on UPS Flight 1354 apparently captured the Captain and First Officer discussing how tired they were before their predawn approach to Birmingham, and how fatiguing they felt UPS overnight schedules could be.

As expected, this news will fuel the flames for our cause to have cargo flights included in all of the new FAR rest rules.

In the coming weeks, Vice President Steve Bradford will continue to coordinate the preparation with the Officers for the Addington II Hearing before Judge Silver in Phoenix on October 22 and 23. There have been numerous document filings over the past couple of weeks covering this matter and they are all available for your review in the Legal Library section of the USAPA website.

Finally, this week I will be in the hospital for a surgical procedure. While I’m in the hospital, Vice President Steve Bradford will have the helm. I am expecting a full recovery and return to work as your President next week.

 

[USA320Pilot]

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

US Airways Third Quarter 2013 Financial Conference Call To Be Webcast

See Story: http://finance.yahoo.com/news/us-airways-third-quarter-2013-202100707.html


American Airlines to add flights to Asia from Dallas/Fort Worth

Our Tokyo/Haneda flight has been quite unprofitable, largely because we are allowed to operate only during severely restricted hours, limiting our customers' options for connecting flights to and from other Asian markets

See Story: http://finance.yahoo.com/news/american-airlines-add-flights-asia-190207971.html


American Airlines Adding Shanghai Nights With Expanded Asia Presence

Tom Horton, American chairman and CEO, noted that the expansion into Asia is helping to build an “even stronger foundation” to help its merger with US Airways succeed.

In addition to the news about the added Shanghai and Hong Kong service, American also released its outlook for 2014 on Wednesday, a highlight of which was some news about fully-flat seats: “We will offer fully lie-flat seats in all premium cabins on the 17 daily New York-London flights we operate jointly with British Airways. Together, we’ll offer the most fully lie-flat seating between New York/JFK and London/Heathrow,” Vahidi said.

“All of these investments lay an important foundation for our pending merger with US Airways, as we prepare a strong case for our November trial,” Vahidi added.

See Story: http://www.forbes.com/sites/maggiemcgrath/2013/10/16/american-airlines-adding-shanghai-nights-with-expanded-asia-presence/?partner=yahootix


Really small news for people interested in the US Airways-American Airlines antitrust case

See Story: http://aviationblog.dallasnews.com/2013/10/really-small-news-for-people-interested-in-the-us-airways-american-airlines-antitrust-case.html/


American CEO: We’re open to a “sensible, common sense settlement” with the DOJ

See Story: http://blogs.star-telegram.com/sky_talk/2013/10/american-ceo-were-open-to-a-sensible-common-sense-settlement-with-the-doj.html


Democratic congressmen urge DOJ to drop its antitrust lawsuit against American-US Airways merger

See Story: http://blogs.star-telegram.com/sky_talk/2013/10/democratic-congressmen-urge-doj-to-drop-its-antitrust-lawsuit-against-american-us-airways-merger.html


68 Congresman Send Joint Letter To President Obama To Urge Administration To Reconsider Its Efforts To Prevent The American And US Airways Merger From Going Forward
October 15, 2013

The Honorable Barack Obama
President of the United States
1600 Pennsylvania Ave. NW
Washington, DC


Dear President Obama:

As Members of Congress representing thousands of American Airlines and US Airways employees, we are writing to express our respectful disagreement with the U.S. Department of Justice’s (DOJ) lawsuit against the proposed merger of American Airlines and US Airways. We believe DOJ’s legal challenge puts at risk the future economic security of our constituents, tens-of-thousands of unionized workers at both airlines, and the economic well-being of communities that we represent.

The proposed merger will not only increase competition, but will also increase opportunities for airline workers and the communities serviced by both American Airlines and US Airways. The combination will make both airlines a much stronger competitor against other airlines like United, Delta, and Southwest that have benefitted from recent mergers as well as a growing number of air carriers like Virgin America, JetBlue, and Spirit.

The new American will provide millions of consumers’ with new choices onboard a premier global airline with a much broader network that will be a viable alternative to other large, global carriers – both domestic and foreign. In doing so, the new American will provide financial stability for its workers, vendors, suppliers and communities who all rely on a healthy airline.

We are concerned that the DOJ’s lawsuit creates an atmosphere of uncertainty for our respective congressional districts and constituents. While we share your concern regarding any potential impact on consumers as consolidation in any industry is contemplated, we believe that DOJ’s concerns as outlined in the complaint filed last month are not an adequate representation of all of the facts.

We urge your administration to reconsider its efforts to prevent the American and US Airways merger from going forward. It is our hope that all parties involved can reach an amicable resolution that will not jeopardize the significant economic benefits this merger provides for the employees and communities of both carriers and the constituents we represent.

Thank you very much for your consideration.

Sincerely,

Representative Marc Veasey
Representative Alcee Hastings
Representative Gregory W. Meeks
Representative Robert Brady
Representative Eddie Bernice-Johnson
Representative Mike Quigley
Representative Ruben Hinojosa
Representative Ed Pastor
Representative Joe Garcia
Representative Ann Kirkpatrick
Representative Joyce Beatty
Representative Frederica Wilson
Representative Chaka Fattah
Representative Kyrsten Sinema
Representative Tim Ryan
Representative Yvette Clarke
Representative Janice Hahn
Representative Danny K. Davis
Representative Jared Polis
Representative Henry C. Johnson, Jr.
Representative Karen Bass
Representative David Scott
Representative Jan Schakowsky
Representative Ron Barber
Representative Tammy Duckworth
Representative Dina Titus
Representative Luis Gutierrez
Representative Gloria Negrete McLeod
Representative Steven Horsford
Representative Matt Cartwright
Representative Robert E. Andrews
Representative Charlie Rangel
Representative Loretta Sanchez
Representative Gene Green
Representative Brad Schneider
Representative Nick Rahall
Representative Dan Maffei
Representative John Delaney
Representative Mike McIntyre
Representative Patrick Murphy
Representative Pete Gallego
Representative Raul Grijalva
Representative Tony Cardenas
Representative Ted Deutch
Representative Filemon Vela
Representative Richard Neal
Representative Dan Lipinski
Representative Frank Pallone
Representative Bill Owens
Representative Donald M. Payne, Jr.
Representative Julia Brownley
Representative Cheri Bustos
Representative John Barrow
Representative Alan Lowenthal
Representative Carol Shea-Porter
Representative Joe Crowley
Representative George Miller
Representative John Lewis
Representative Sean Patrick Maloney
Representative Carolyn Maloney
Representative Robin Kelly
Representative Sheila Jackson Lee
Representative Grace Meng
Representative Lois Frankel
Representative Paul Tonko
Representative Elijah Cummings
Representative Maxine Waters
Representative Donna Christensen

cc: United States Attorney General Holder
United States Department of Transportation Secretary Anthony Foxx
Texas State Attorney General Gregg Abbott
Arizona State Attorney General Tom Horne
Michigan State Attorney General Bill Schuette
Tennessee State Attorney General Robert E. Cooper, Jr.
Virginia State Attorney General Ken Cuccinelli
Pennsylvania State Attorney General Kathleen Kane
Florida State Attorney General Pam Bondi
District of Columbia Attorney General Irvin B. Nathan


USAPA’s President’s Message: October 14, 2013

Fellow Pilots,

I am writing to let you know there is a dispute between me and certain members of our Board of Pilot Representatives as to the interpretation of our USAPA Constitution and Bylaws. This dispute arises out of an interpretation of the duties of the President under Article III, Section 8, (3), of the USAPA Constitution.

That Section of our Constitution pertaining to the duties and responsibility of the President states:

3. He shall, subject to approval of the Board of Pilot Representatives, appoint and remove committee members; employ, discharge, and fix the compensation of all servants, agents, and employees of USAPA other than duly elected officers; and cause to affix his signature to USAPA membership cards.

As your President, I read this to mean that I appoint and remove committee members and that my appointments and removals are subject to the approval of the Board of Pilot Representatives. Simply put, this is how we’ve always done business. This is a necessary balance of power incorporated into our Constitution and is similar to the President of the United States appointing Cabinet Secretaries and Justices, subject to the approval of the Senate.

At our last BPR meeting, the PHL Domicile Chairman brought to the BPR a resolution directing the President to appoint an individual as Chairman to a committee. I ruled this resolution out of order because appointments to committees are the duty and privilege of the President and not a duty vested with the BPR. My ruling was challenged by the PHL Chairman and his challenge was sustained by a 6-5 vote of the BPR.

The USAPA BPR, acting in their majority capacity, has overruled the President with a 6 to 5 vote. This “challenging or overruling” is referred to in Roberts Rules as a “Challenge to the ruling of the Chair,” and while it is a legitimate and appropriate tool to be used when the chair commits an error in parliamentary procedure, it was never designed for, and can never be used to overrule our Constitution and system of governance.

Your USAPA Constitution, like the Federal Constitution, envisioned the possibility of disputes within the organization and safeguards were put in the document to preserve the orderly conduct of our affairs. One of these provisions is a balance of power arrangement between the three branches of our union’s governance. We have three separate branches of governance just as the Federal Government does.

They are the Executive, the Legislative and the Judicial. As an example, the Officers do not vote; only the BPR can vote. This is exactly as it is in the Federal House and Senate. The President has specific enumerated powers as does the BPR. The elected Appeal Board can hear disputes submitted to it by the membership or any branch of the union leadership.

The USAPA Officers, the BPR, and the Appeal Board have all been elected by you, our membership, and their elected positions give them distinct representational authority under our Constitution. A dispute has arisen between the BPR and me over the interpretation of our Constitution, and that is why I have filed a complaint with the USAPA Appeal Board and asked for a ruling on the validity of the resolution in question.

Under the leadership of our prior bargaining agent, ALPA, disputes such as this simply went to majority rule. The Officers in that organization simply had to bow to the majority legislative rule of the MEC, not necessarily the line pilots. Unlike that organization, in USAPA only you, the USAPA members, can change the makeup of the elected leadership of this union. Only you, the membership of this union, can ratify an agreement or change the Constitution. The final authority rests with the line pilot. You can always petition your representatives for a recall ballot of any Officer or BPR member.

If two branches of this union are in some kind of dispute, the third branch, the Appeal Board, can render a decision. Even then, the collective voice of the line pilots can override that decision of the Appeal Board and recall an Officer or BPR member if the majority of the line pilots deem this to be in the best interests of the union. Ultimate power rests with the membership. To that end the Officers support the contention that the line pilots have ultimate control over the union and not any particular branch of the leadership.
The most important thing to understand is that an orderly process of dispute resolution was designed into our Constitution to deal with situations such as this. As your President, I will not allow this dispute to interfere or derail the important business and work of this union. We are closely monitoring the proposed American and US Airways merger, the attending litigation filed by the Department of Justice, and many other areas of important work for our pilots.

An example of our dedication to the work for our membership lies in the fact that we have been involved in litigation with members of the West pilot class for several years, in several forms, and that dispute lies in the Federal Courts; not in our union headquarters. West pilots serve all USAPA pilots on many committees and other positions of leadership. Because of this separation and an orderly dispute resolution method via the courts, we have been able to negotiate an MOU and manage many other important aspects of this merger and new contract that benefit everyone.

Rest assured that your union will resolve this issue in an orderly and timely manner while we continue to deal with important issues of the day.

Regards,

Gary Hummel
President


USAPA Vice President’s Message: October 16, 2013

Fellow Pilots,

Many of you have expressed concern regarding President Gary Hummel’s medical condition, so I want to give you an update. I saw Gary Tuesday night October 8[sup]th[/sup], in the PIT Airport. Gary was having dinner with his FAA Aviation Medical Examiner. The next day, a series of medical tests were scheduled at the University of Pittsburgh Medical Center. I later learned that Gary was experiencing complications resulting from his body’s rejection of the stent that had been implanted several months ago, and it was recommended that he undergo bypass surgery.

Gary had been working from the cardiac care unit of the hospital from the 9th until his bypass surgery on the 14th. I am happy to report that his team of physicians has declared the operation a success, and Gary is expected to be released from hospital by the end of this week. The doctors have advised he cannot travel for up to six weeks.

I will provide an additional update as soon as more information is available.

Steve Bradford
USAPA Vice President


USAPA’s What’s Up On the Line?: October 16, 2013

Q – I don't know if there is a place on the website for it (I did not find it) but I think it would be appropriate to have photos of all our reps from all the bases available for viewing so the average line pilot would have a face to place with the name.

A – Now available on the Member's website, go to the CONTACT tab>USAPA Leadership, for the photos of the Officers and BPR, including their email addresses. Previously, photos of the BPR were published in the April 2013 USAPA Bulletin, and the Officers were depicted in the May 2012 USAPA Bulletin (both editions are available on the website, NEWS tab>USAPA Bulletins).

Q – I thought the retro pay distribution method was decided by the BPR back on June 7. Then I read a BPR Meeting Recap from a July 11 meeting that said the BPR changed their initial thoughts on distribution. Also, the amount that was originally estimated to be about $10,000/pilot ended up being a little over $8700.00 for those receiving a full share. Why?

A – The BPR wanted the distribution to benefit more pilots, and therefore, they included more recipients than originally planned. Based on previous Profit Sharing methodology, the $10,000 would have been fairly accurate, but by including more pilots, the total amount was reduced. The final $40 million resolution and vote are shown below.

On July 11, 2013, the following resolution was moved/seconded by Stein/Dugstad and passed 10-1 (No - PHL DiOrio).

BE IT RESOLVED THAT the $40 million dollars contained within the MOU will be disbursed based on a per capita basis to all pilots holding US Airways system seniority and active on February 8th 2013, with the following exceptions:

Pilots defined as “management pilots” (as defined by the Profit Sharing Methodology) will not be included in the disbursement

Pilots on military leave shall receive a full share

Pilots placed on LTD after January 1, 2003 and who remain on LTD as of February 8, 2013, or were medically retired as per AWA Contract 13.D.2, or were transitioned to VPL shall receive $2,500.

Pilots on LTD for less than 12 months as of February 8, 2013 receive a full share.

If a pilot is eligible for more than one distribution method, he/she may only receive one distribution and that will be the one with the highest value.

Pilots on furlough as of February 8, 2013, shall receive $2500, provided they return to employment no later than January 1, 2015. An escrow account will be established to pay the furloughed pilots upon their return. Any remaining funds in this escrow account will be donated to the US Airways Pilots Emergency Assistance Fund no later than January 1, 2015.


ALLIED PILOTS ASSOCIATION EXPRESSES SUPPORT FOR REPUBLIC AIRWAYS PILOTS, VOWS "CLOSE COOPERATION"

FORT WORTH, Texas (Oct. 15, 2013) — The president of the Allied Pilots Association (APA), certified collective bargaining agent for the 10,000 pilots of American Airlines, expressed strong support for the pilots at Republic Airways Holdings (NASDAQ: RJET).

"The pilots of Republic Airways have been trying to secure a fair contract since 2007, when their current agreement dating back to 2003 became amendable," said APA President Capt. Keith Wilson. "It shouldn't take six years — and counting — to negotiate a new collective bargaining agreement, especially when the current agreement is already 10 years old."

Under the Railway Labor Act governing airline labor negotiations, contracts do not expire but instead become amendable on an agreed-upon date.

"APA supports our brother and sister pilots at Republic in their efforts to bargain in good faith," Wilson said. "We will continue working in close cooperation to help ensure a prompt resolution to their protracted negotiations."

APA and Teamsters Local No. 357, the union representing the Republic pilots, are both members of the Coalition of Airline Pilots Associations.

In a vote conducted from Sept. 30 to Oct. 7, 97.5 percent of Republic pilots signaled "no confidence" in Republic Chief Operating Officer Wayne Heller and his senior management team. Previously, the Republic pilots voted overwhelmingly in favor of exercising their right to strike.

"The Republic pilots have shared with us their concerns about their management's efforts to operate larger equipment at substandard rates of pay," Wilson said. "The pilots' preference is for these aircraft to be operated by mainline carriers to prevent any further degradation of our profession.

"APA looks forward to continuing our efforts on behalf of Teamsters Local 357 Executive Board President Craig Moffatt, the negotiating team and the entire Republic pilot group," he said.

Along with improved pay and working conditions, the Republic pilots are seeking to address the high pilot attrition rate at the carrier and the impact of new Part 117 flight-time/duty-time regulations.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 17, 2013

American Airlines' record profit could hurt merger plans

See Story: http://money.cnn.com...rce=yahoo_quote


Horton talks a little bit about a settlement in the American Airlines-US Airways lawsuit (but no news here)

See Story: http://aviationblog....news-here.html/


J.P. Morgan Upgrades AMR Corporation on Likelihood of US Airways Merger

See Story: http://www.benzinga....-on-likelihood#


American Air profit aided by cost cuts, record revenue

Merger partners open to settlement of U.S. suit, CEO says

Horton, who would be nonexecutive chairman of the merged American, said the companies were open to "a reasonable and common-sense settlement" of the U.S. lawsuit. He added that the recent agreement reached with Texas under which that state withdrew its merger opposition showed that "cooperation can produce results."

See Story: http://www.reuters.c...ype=companyNews


American Airlines Parent AMR Corp. Surges 6% on Earnings, JPMorgan Upgrade

JPMorgan, meanwhile, raised AMR Corp. to Overweight from Neutral on the increased likelihood of the merger being improved. JPMorgan’s Jamie Baker and Mark Streeter explain: “We are boosting our estimated likelihood of a merger by AMR/US Airways this winter from 50% to 60%, with a verdict expected no later than January 18, 2014.”

See Story: http://blogs.barrons...arrons&ru=yahoo


AMR Swings to Profit on Lower Costs, Record Revenue - Government Shutdown Doesn't Seem to be Sapping Travel Demand: CEO

CHICAGO (WSJ.com) - American Airlines parent Corp. swung to a third-quarter profit on record revenue and cost savings achieved in its bankruptcy restructuring, and doesn't see much effect on travel demand due to the government shutdown that just ended.

AMR Chief Executive Tom Horton said in an interview Thursday that bookings in the current quarter "appear to be quite strong," compared with the level achieved at this time a year ago. "Demand for travel is outpacing our capacity increases, which is good news."

While he said the nation's third-largest airline by traffic continues to keep an eye on the effects of the government shutdown, oil prices "have been fairly tame" and the industry "has been disciplined with respect to the supply and demand balance." This is leading to a fourth-quarter outlook about which "we feel pretty good," Mr. Horton said.

The Fort Worth, Texas, company posted net income of $289 million, compared with a year-ago net loss of $238 million. But if $241 million in special items related to its bankruptcy reorganization, financings and expenses related to its pending merger with US Airways Group Inc. are stripped out, the latest quarterly profit would have been $530 million, a company record.

A year ago, AMR reported a profit of $110 million, excluding $348 million for such items.

AMR, which hopes to leave its nearly two-year stay in bankruptcy protection via a merger with US Airways, first must prevail in an antitrust trial slated to begin Nov. 25. The U.S. Department of Justice in August sued the companies to stop the combination, contending it would drive up ticket prices and rob consumers of choices in air travel. The airlines disagree, saying the combination—which would form the largest U.S. airline by traffic—would give fliers new choices and act as a counterweight against United Continental Holdings Inc. and Delta Air Lines Inc., two carriers that recently bulked up through mergers.

Several state attorneys general joined the Justice Department in the complaint. Mr. Horton said the airlines "are talking" to them in the hopes of changing their minds. The Texas attorney general recently withdrew his opposition, something Mr. Horton said was "the result of a lot of hard work."

More than 60 Democratic members of Congress recently wrote President Barack Obama to show their support for the combination. "I don't know what helps and what doesn't," the CEO said of that letter. "But there is overwhelming support for the merger."

Until the trial is over, AMR must remain in bankruptcy-court protection, which is costing it about $50 million per quarter in professional fees. "It's a lot of money, which is why we think it's important to get the company out of restructuring as soon as possible," Mr. Horton said.

Moreover, some vendor and supplier contracts that were redone in the bankruptcy case to reduce costs won't kick in until AMR leaves Chapter 11, he said. If AMR and US Airways lose at trial, the larger carrier is expected to have to craft a new plan or reorganization and poll its creditors on their support before it can emerge.

AMR said it expects to increase its fourth-quarter capacity by 3.5% year-over-year. Much of that growth will come from flying its planes longer distances and by adding new destinations in Latin America and Asia. For the full year, capacity is expected to increase just 1.5% compared with all of 2012.

Revenue in the third quarter was $6.83 billion, up 6.2% from a year ago and marking the highest quarterly revenue figure in the company's history. Unit revenue, a key metric of the amount of money taken in for each passenger flown a mile, rose 3.4% in the quarter, compared with a year earlier, and also reached a company record. AMR said it filled 84% of its seats. The quarter was the seventh consecutive three-month period in which the company improved its pretax margins.

Consolidated unit costs, excluding fuel and special items, were down 5%, primarily driven by AMR's restructuring efforts.

AMR is the first U.S. airline to report its third-quarter results. Other carriers will release their numbers in the coming days and the general expectation is for strong profits, based in robust unit revenue gains for most of them and the fact that the third quarter seasonally is the strongest of the year.


American Airlines posts third quarter profit

But Vicki Bryan, senior high yield analyst for Gimme Credit, gives a more tepid assessment." AMR's results were nicely improved, but the bar was set extremely low versus a particularly weak quarter last year when revenue was stalled and losses continued to mount while the carrier fought vigorously to fend off the bid from US Airways,'' Bryan says. " AMR's prospects seemed to have improved immediately when and only because it finally accepted the merger....plus the substantial cost savings gained from significant cuts in jobs, pay and benefits.''

See Story: http://www.usatoday....rofits/3001749/


More Than A Third of House Dems Oppose Obama’s American-US Airways Merger Lawsuit; What Real Pro-Competition Policy Looks Like

See Story: http://www.openmarke...icy-looks-like/

 

[USA320Pilot]

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

Sky Writer: American Airlines-US Airways antitrust trial could end after New Year

Of course this is all assuming that the two sides don't come to a settlement, which the airlines seem to be encouraging more and more in recent days

See Story: http://www.tulsaworl...19bb30f31a.html


American Airlines and US Airways and Justice officials set out timeline for trial

See Story: http://aviationblog....?nclick_check=1


American Is Doing Great But US Airways Merger Still Needed, CEO Says

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


American CEO Horton: Now it's our time

See Story: http://blogs.star-te...s-our-time.html


Antitrust Lawsuit Pre-Trial Schedule: October 17, 2013

November 8- Parties exchange final witness lists
November 12 - Parties exchange final exhibit lists, deposition designations/designation summaries, and proposed stipulations
November 15 - Parties exchange amendments to final witness lists, amendments to final exhibit lists, objections and counter-designations for depositions, trial briefs, non-Daubert motions in limine, supplemental and/or rebuttal expert reports (per prior order)
November 15 - Amici file briefs
November 17 - Parties exchange objections to exhibit lists
November 18 - Parties meet and confer re: objections to exhibit lists, exchange objections to counter-designations for depositions, and file oppositions to non-Daubert motions in limine
November 20 - Parties file final witness lists as amended, replies in support of non-Daubert motions in limine, final exhibit lists as amended, stipulations, and close of expert discovery (per prior order)
November 21 - Pretrial conference at 10:30 a.m. (per prior order), parties lodge joint compilation of all deposition designations (noting outstanding objections and reflecting agreed confidentiality redactions) with Chambers, and lodge electronic copies of trial exhibits (reflecting agreed confidentiality redactions) with Chambers
November 22 - Parties file responses to trial briefs and/or amicus briefs
November 25 - First day of trial (per prior order)
December 16 or 17 - Estimated last day of trial
December 21 (est.) - Parties file proposed findings of fact and conclusions of law five days after the last day of trial (but if the fifth day is a federal holiday, then six days after the conclusion of trial)
December 30 (est.) - Parties file post-trial briefs, including oppositions to proposed findings of fact and conclusions of law fourteen days after the last day of trial (but if the fourteenth day is a federal holiday, then fifteen days after the conclusion of trial) [If the Court is amenable, Parties waive the filing of replies to proposed findings of fact and conclusions of law.]
January 6, 2014 - Closing arguments


USAPA's Motion to Delay the DFR Trial due to President Gary Hummel's medical condition is denied by the federal court: October 17, 2013

Full docket text for document 231:

MINUTE ENTRY for proceedings held before Senior Judge Roslyn O Silver: Status Conference held on 10/17/2013. Discussion is held regarding the testimony of Gary Hummel. IT IS ORDERED denying the [221] Motion to Continue Trial.

APPEARANCES: Marty Harper (telephonically) and Andrew Jacob (telephonically) for Plaintiffs. Susan Martin, Jennifer Kroll, Brian ODwyer (telephonically), Patrick Szymanski (telephonically), Chris Hollinger (telephonically), and Robert Siegel (telephonically) for Defendants. (Court Reporter Elaine Cropper.) Hearing held 1:07 PM to 1:37 PM. This is a TEXT ENTRY ONLY. There is no PDF document associated with this entry. (CLB)