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USA320Pilot
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PilotAction Merger News for US Airways & American Airlines: October 20, 2013
American, US Air execs hush-hush on whether a deal is in the works
American Airlines CEO Tom Horton and US Airways CEO Doug Parker sat down with The Dallas Morning News editorial board on Friday. American Airlines Inc. and US Airways Inc. face a Nov. 25 trial that could derail their planned merger. But might there be a settlement in the works?
See Story: http://www.dallasnews.com/business/airline-industry/20131018-american-us-air-execs-hush-hush-on-whether-a-deal-is-in-the-works.ece
The Risk/Reward Potential Is Looking Better for American Airlines
See Story: http://www.fool.com/investing/general/2013/10/19/the-riskreward-potential-is-looking-better-for-ame.aspx
Cramer's Lightning Round - I'm Steadfast On The Airlines (10/18/13)
See Story: http://seekingalpha.com/article/1755662-cramers-lightning-round-im-steadfast-on-the-airlines-10-18-13?source=yahoo
Why US Airways-American merger is good for us
See Story: http://www.statesmanjournal.com/article/20131019/OPINION/310190012/Why-US-Airways-American-merger-good-us
APA Update (Dollars and Sense): October 18, 2013
I'd like to address a couple of items that relate to APA's financial situation; specifically, our fiscal year 2014 budget and membership dues and our flight pay loss methodology.
APA's Fiscal Year 2014 Budget and Membership Dues: During its regularly scheduled spring meeting in May, the APA board of directors approved a fiscal year 2014 budget based on a return to 1 percent dues as soon as American Airlines concludes Chapter 11 restructuring. At that time, airline management expected to exit bankruptcy and consummate the American Airlines–US Airways merger in early fall.
APA's fiscal year 2014 began July 1, 2013, so if management's expectation had proven accurate, the additional one-half percent dues would have remained in effect for only a few months. The lawsuit by the Justice Department, several state attorneys general and the District of Columbia has obviously delayed American Airlines' exit from restructuring.
The APA Constitution and Bylaws, Article III, Section 6.H. . stipulates that during contract negotiations and bankruptcy proceedings, membership dues will increase by one-half percent to compensate for the additional costs APA incurs. Consequently, the half-percent dues will remain in effect until American Airlines completes its restructuring to cover our bankruptcy-related expenses, which continue to be significant.
Flight Pay Loss Methodology: During last week's regularly scheduled fall meeting, the APA board of directors voted to approve R2013-37, Rev. 1, "Pay to Max of 90 Hours Flight Pay Loss for APA business," which acknowledges that "the prime directive behind the payment of flight pay loss and expenses for Association work is that those who serve the Association should neither lose nor gain income." FO Todd Hooper, ORD domicile vice-chairman, introduced the resolution; CA Sam Mayer, LGA domicile chairman, seconded it. This resolution also acknowledges that APA "needs a streamlined, definable, and accountable pay loss protection methodology that is both fair and equitable to all board members and the membership." The vote reduced the PTMAX cap from 97 to 90 hours. I encourage you to familiarize yourself with this resolution so that you may better understand the rationale behind APA's flight pay loss methodology for pilots who perform official union work.
Also, please note that we have posted the minutes from the July and August board of directors meetings for your reference. We will continue posting the minutes on a timely basis as board meetings take place. Committee reports from the fall meeting are also posted.
If you have any questions about current dues, flight pay loss, meeting minutes or any other matter pertaining to APA's finances, I encourage you to contact me.
Thank you.
APA Update #2 (Reserve Pilots Flying on Days Off): October 19, 2013
One of the new features in the 2012 CBA is the ability for a reserve pilot to volunteer to fly on days off. Section 15.L (DOTC) of the 2012 CBA in several places concerning sequence pick-up states:
"at Company option, eligible reserve pilots volunteering to fly on a DFP. DFP will not be replaced."
A reserve pilot desiring to fly on days off will be considered by the company and may be, at the company's option, awarded such flying. This flying may be a regular sequence or a premium pay sequence.
The value of flying performed on days off is paid above reserve guarantee.
If a reserve pilot voluntarily accepts a reserve assignment that begins on a reserve available day and continues into that pilot's days off, the flying performed on the reserve available day(s) is treated as regular reserve flying and the flying performed on days off is paid above guarantee.
Similarly, if a reserve pilot picks up flying on days off that flows into a reserve available day(s), the flying performed during the reserve available day is treated as part of that pilot's regular reserve flying and the flying performed on days off is paid above guarantee.
At this point, the company has not completed programming for a reserve pilot to fly on days off for straight pay, but the capability for reserve pilots to fly on days off for premium pay has been implemented. Again, the flying on days off, whether for regular pay or premium pay, is paid above guarantee.
APFA Merger Update: October 19, 2013
AA Bankruptcy / AA-US Antitrust Lawsuit Update
American and US Airways along with the DOJ made a joint submission yesterday to the Court outlining proposed procedures for the antitrust trial. The parties are mostly in agreement, including on the following dates. The parties agreed to file pre-trial briefs, limited to 50 pages, on November 15. The trial is scheduled to be held on November 25-27, December 2-6, 9-10, 13, and, if necessary, 16-20. The parties agreed to file proposed findings of fact and conclusions of law five days after the last day of the trial. Closing arguments are planned for January 6, 2014.
The parties also agreed to various procedures regarding the exchange of information before the trial, the marking of confidential information, and how witness testimony will be taken. The parties could not agree on two issues. The airlines requested a limit of 400 exhibits while the government requested a limit of 800. The airlines also requested a limit of 30 hours for each side to examine witnesses while the government opposed any limit. The Court should be expected to enter an order shortly resolving those two issues and approving the agreed upon procedures and schedule.
