PilotAction US Airways & American Airlines Trial & Other News Update

[mrbreeze]

PilotAction Merger News for US Airways & American Airlines #5: October 23, 2013

US Airways cites government shutdown in lowering a revenue forecast for October

J.P. Morgan cited the change in lowering its estimate of fourth-quarter earnings to 53 cents per share from 64 cents. Analysts surveyed by FactSet were expecting 48 cents per share.

See Story: http://finance.yahoo...-201719262.html


US Airways president says shutdown hurt bookings

See Story: http://finance.yahoo...-215328739.html


Shutdown Shock: When Uncle Sam Sneezes, US Airways Gets a Cold

See Story: http://www.businessw...ampaign_id=yhoo


US Airways 3rd-quarter profit falls; shares off

"From an operational performance standpoint, it's been a continuing great story," said Robert Mann, an airline consultant based in Port Washington, New York. "On that basis, US Airways can certainly add a lot of value to where American has recently been."

See Story: http://finance.yahoo...-125600536.html


Wolfe Research, Hunter Keay: October 23, 2013

LCC reported EPS of $1.16, above our $1.14 and consensus of $1.12. By our count this was the 18th straight quarterly beat by LCC, the longest streak of any airline we cover. We were lauding DAL for growing EBIT margins for four straight quarters… LCC just completed its seventh consecutive quarter of y/y EBIT margin expansion.


US Airways Group Management Discusses Q3 2013 Results - Earnings Call Transcript

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


State of the Airline, 3Q 2013 Earnings (Webcast Replay): October 23, 2013

Today US Airways announced financial results for the third quarter of 2013. CEO Doug Parker hosted employees at the quarterly State of the Airline meeting at CHQ in PHX.

Listen to Webcast: https://wings.usairw...wings/news/sota


US Airways CEO Shows Basic Humanity, Backs Embattled Charlotte Airport Chief

Give Parker credit for not just going along, out of self-interest, when an obvious injustice occurs.

See Story: http://www.forbes.co...artner=yahootix


More Supporters of the Airline Merger Weigh In

It appears that the mayors of Phoenix and Philadelphia have been convinced there will not be the same cuts applied to their airports as were seen in Memphis. And with all the political happenings in this merger battle, it would be reasonable to expect that the airlines at least talked to the mayors. If this is true, some public officials are seeing the airlines' argument as convincing. Since both Arizona and Pennsylvania are among the states suing to block the merger, success in persuading state officials to allow the merger, along with possible concessions on the airlines' part, could go a long way to clearing the road for a settlement between the airlines and state AGs in these two states.

With the support of both the Phoenix and Philadelphia mayors on board, I see a greater chance that the merger can move forward despite the current picture of state AG opposition in Arizona and Pennsylvania.

See Story: http://www.fool.com/...ine-merger.aspx


APA: "NO QUESTION ABOUT WHETHER MERGER SHOULD MOVE FORWARD" AFTER MAYORS URGE U.S. ATTORNEY GENERAL TO DROP LAWSUIT

FORT WORTH, Texas (Oct. 23, 2013) — The president of the Allied Pilots Association (APA), certified collective bargaining agent for the 10,000 pilots of American Airlines, says he is pleased that seven mayors from cities that are American Airlines and US Airways hubs have joined to release a letter today to U.S. Attorney General Eric Holder urging him to settle the lawsuit against the AA–US Air merger.

"The fact that these mayors from economically and geographically diverse cities reached a consensus on this issue and took the time to express it publically should leave no question about whether this merger should move forward," APA President Capt. Keith Wilson said. "On behalf of the pilots APA represents, I'd like to thank each one for their support."

In the letter, the mayors cited support from organized labor unions — including APA — as proof that the merger is pro-growth and would foster increased competition. The letter also states APA and other unions "have joined together with the companies to support the new American Airlines. This is unprecedented. Such a constructive approach between employees and management should be applauded by the Administration, not challenged."


APFA Merger Comment: October 23, 2013

Marcus Gluth, APFA Vice President and a Florida resident, along with APFA's Government Affairs Representative Julie Frederick, met with the office of Florida Attorney General Pam Bondi.

The Florida attorney general is one of the six (remaining) AGs who joined the DOJ lawsuit in its effort to block the AA/US merger. Florida stands to gain tremendous benefits for consumers who will have more choices with seamless connections and increased international flying with a third strong competitor in the new American. The Attorney General’s office was receptive and seemed eager to hear why the employees are supporting the merger. APFA appreciated the opportunity to discuss why we believe it is the best path forward for both of our companies.

Not trying to be a cyber bully here Chip, but we all read this stuff everyday on the Internet......you shouldn't waste your time condensing it for us....we ARE capable of reading. It's a little insulting that you think we need help putting it together.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 24, 2013

Pressure Mounts on DOJ to Accept US Airways/American Merger

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


Regional economics drive support, opposition to proposed airline merger

See Story: http://www.washingto...airline-merger/


US Airways profit down; Nutter pushes for merger

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


Mayors from American, US Airways hubs urge U.S. to settle lawsuit

During the conference call, US Airways president Scott Kirby dismissed suggestions that the airlines’ case in court will be hurt by their strong earnings. “The short answer is no, it doesn’t undercut support. Strong companies merge all the time, and the point of this merger is we will be stronger. We will be able to attract more customers. We will be able to offer more benefits to customers if we are allowed to merge,” Kirby said.

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


Deutsche Bank Upgrades US Airways Group (LCC) to Buy

See Story: http://www.streetins...uy/8806861.html


US Airways - How High Will It Fly?

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


Why US Airways Has Room to Fly

See Story: http://www.fool.com/...oom-to-fly.aspx


US Airways Soars to Record Pretax Profit

See Story: http://www.fool.com/...tax-profit.aspx


USAPA Update on Addington II: October 24, 2013

Day two of the Addington II trial resumed at 08:45 MST, October 23, 2013 in Phoenix. Among the approximate 80 pilots in the courtroom observing the trial were USAPA Executive VP Steve Smyser, Secretary-Treasurer Rob Streble, BPR members John Scherff, Roger Velez, Courtney Borman, Paul DiOrio, Paul Music, and John Taylor; along with P4P Chairman Glenn Kunkel and Communications Chairman James Ray.

Throughout the day, there were mid-morning and mid-afternoon breaks as well as a lunch break of approximately one hour and 20 minutes. The remainder of the day was spent with USAPA witnesses. The day began continuing the testimony of Negotiating Advisory Committee Chairman Dean Colello who was followed by NAC member John Owens. The Plaintiffs then played portions of Vice President Bradford’s video deposition, which had been taken previously. That was followed by testimony from USAPA witnesses Jess Pauley, Merger Committee Chairman, and Bob Davison, a member of the Merger Committee.

At 16:11, USAPA rested.

NO DECISIONS WERE RENDERED AT THE CONCLUSION OF THE DAY.

Judge Silver then directed both parties to submit summaries of the evidence in this case of no more than 15 pages by October 31 and responses to these summaries of no more than 10 pages by November 6. Judge Silver also said that she would issue an order requiring expedited briefing of the outstanding motions for summary judgment filed by USAPA and US Airways. These motions primarily address Claim IV of the Complaint which alleges that the Plaintiffs are entitled (but not required) to participate separately in the seniority integration proceeding.

The Court adjourned at 16:20 MST.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: October 24, 2013

Chambers of commerce voice their support for US Airways-American Airlines merger

See Story: http://aviationblog....es-merger.html/


Chamber of Commerce Letter to AG Holder: October 24, 2013

See Letter: http://blogs.star-te...bers-102413.pdf


Editorial: Time for settlement talks on American-US Airways merger

Merger benefits

— No jobs will be cut in the immediate future.
— Union-management strife is likely to ease.
— The carrier will offer more service from D/FW and other hubs.
— There is promise of improved employee compensation and benefits packages.
— The merger would help the airline industry return to profitability.
— American would be a viable competitor to giants United and Delta.

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


Given soaring profits, is American merger needed? US Airways' Parker says yes

See Story: http://www.dallasnew...er-says-yes.ece

 

[USA320Pilot]

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

[background=rgb(250, 250, 250)]PilotAction Merger News for US Airways & American Airlines #3: October 24, 2013[/background]


AMR Corp., US Airways Surge as Merger Support Grows

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


American Airlines Merger Settlement Prospects May Be Gaining Momentum

[background=rgb(248, 247, 247)]In recent days, unconfirmed reports have emerged of hush-hush talks designed to reach a settlement with the DOJ.[/background]

See Story: http://skift.com/201...ining-momentum/


Business groups ask U.S. to settle U.S. Airways, American suit

See Story: http://finance.yahoo...-232530000.html


Airline merger could help Southwest expand in DC

The CEO of Southwest Airlines Co. is "reasonably confident" that American and US Airways will eventually merge, and he wants some of their takeoff and landing rights at Reagan National Airport outside Washington.

See Story: http://finance.yahoo...-194350316.html


Southwest Airlines wants Washington and New York slots if there’s a merger (but isn’t assuming there’ll be a merger)

See Story: http://aviationblog....-a-merger.html/

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: October 25, 2013

Partnership of New York City CEO's Letter to AG Holder: October 22, 2013

See Story: http://newamericanarriving.com/images/uploads/PFNYC_Support-_American-US_Merger.pdf


Why A Failed Merger Could Be Good For US Airways Shareholders

See Story: http://seekingalpha.com/article/1773382-why-a-failed-merger-could-be-good-for-us-airways-shareholders?source=yahoo


AMR Corp. Falls Out of Bed

See Story: http://blogs.barrons.com/stockstowatchtoday/2013/10/25/amr-corp-falls-out-of-bed/?mod=yahoobarrons&ru=yahoo


APFA Hotline (Bid Line Pay Protection/Capwiz)Update: October 25, 2013

Good News! - Interim Bid Line Pay Protection Update

As many of you have already noticed on your November HI2, the number in the GUAR BASE column is probably no longer reflecting 70 (hours) as it has for so many years. Beginning on November 1, 2013, the current line holder guarantee now reflects your individual bid line guarantee. Each flight attendant’s guarantee will be equivalent to the total flight pay hours of his/her respective bid line. Also, Availability (AVBL) flight attendants will now have a 75-hour guarantee, which will increase to 80 hours once the Domestic and International divisions have been combined. Additionally, a flight attendant awarded a low-bid line will have a minimum guarantee in their GUAR BASE column of 70 hours.

Since AA has not finished programming SABRE to accommodate our new Interim Bid Line Pay Protection, an entry has been created for Flight Attendants to monitor the OBG (Original Base Guarantee) and the ABG (Adjusted Base Guarantee) for quick review. This entry is 7X*/EMPLOYEENUMBER/MONTH (example: 7X*/012345/NOV).

The Original Base Guarantee (OBG) will be the pay value of the bid line. This does not include carry-over time but does include all deadhead time and P-time (applicable to International Flight Attendants), which is time paid but not credited. The increased guarantee works just like our previous 70-hour guarantee did. It may be reduced by OEs, TTs, or voluntarily opting out of the pay protection, etc. and the reduction will be reflected in your ABG. The ABG may be restored throughout the month by OEs, TTs, MU, CC, AB or Option Flying.

More detailed information on Interim Bid Line Pay Protection, will be posted soon on the Scheduling page of the APFA&rsquo;s website at www.apfa.org<http://www.apfa.org/>.

Just Do It

As the antitrust trial approaches, it is vital that we continue to make our voices heard. The new American has a bright future under the current Plan of Reorganization. The alternative to a successful merger is many more months spent in bankruptcy while current management creates a new Plan of Reorganization.

Please contact Congress now and tell them:

* Thousands of jobs are at stake;

* A merger between American Airlines and US Airways is the only path to success for these two companies;
* The new American will provide more choices and better service for our passengers;
* Our employer needs to be able to compete with Delta and United.

Every letter that is sent via Capwiz is logged into the recipient's database. The more messages we generate, the more notice your representatives in Congress will take.

Click here to act now.

For a thorough accounting of the DOJ case including documents filed and news surrounding the antitrust suit, click here.
AmericanAirlines + US Airways
"On Our Way"

Leslie Mayo
APFA National Communications Coordinator

 

[HogDriver]

http://www.nbcdfw.com/news/local/AA-US-Airways-DOJ-Agree-on-Mediator-for-Merger-229687061.html

Looks like an out of court settlement is in the works.

 

[USA320Pilot]

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

Pressure builds for approval of US Airways merger

See Story: http://www.philly.com/philly/business/transportation/20131028_Pressure_builds_for_approval_of_US_Airways_merger.html


Shares of AMR Corp. Get Back in Bed

See Story: http://blogs.barrons.com/stockstowatchtoday/2013/10/28/mid-day-movers-shares-of-amr-corp-get-back-in-bed-crocs-plunges-on-piper-downgrade/?mod=yahoobarrons&ru=yahoo


AMR Corp Shows How Useful A Chapter-11 Reorganization Can Be

See Story: http://seekingalpha.com/article/1777262-amr-corp-shows-how-useful-a-chapter-11-reorganization-can-be?source=yahoo


Airports want chance to support airline merger

See Story: http://finance.yahoo.com/news/airports-want-chance-support-airline-151812657.html


Dallas/Fort Worth Airport, other airports want to tell judge they support American Airlines-US Airways merger

See Story: http://aviationblog.dallasnews.com/2013/10/dallasfort-worth-airport-other-airports-want-to-tell-judge-they-support-american-airlines-us-airways-merger.html/


AMR creditors committee wants to be a friend of the court, too

In its filing, the committee said it polled the parties. The airlines don’t object to the committee’s filing, but DOJ attorneys have objected, the committee disclosed.

In a related filing, four unions at American and US Airways told the judge that they and the Transport Workers Union have agreed to file one amici curiae brief covering all those unions. Judge Kollar-Kotelly previously had granted permission to the TWU to file a brief. Last week, the Allied Pilots Association, the Association of Professional Flight Attendants, the Association of Flight Attendants-CWA and the Communications Workers of America had filed a separate request for permission to file an amici curiae brief.

See Story: http://aviationblog.dallasnews.com/2013/10/amr-creditors-committee-wants-to-be-a-friend-of-the-court-too.html/


Southwest wants some of merged AA's slots in D.C., N.Y.

See Story: http://www.usatoday.com/story/todayinthesky/2013/10/26/southwest-ceo-eyes-merged-americans-slots-in-dc-ny/3244197/


Airline merger could help Southwest expand in DC

See Story: http://www.lasvegassun.com/news/2013/oct/28/us-southwest-ceo-airline-merger/


Will Increased Support Push the US Airways-American Airlines Merger Through?

See Story: http://wallstcheatsheet.com/stocks/will-increased-support-push-the-us-airways-american-airlines-merger-through.html/?a=viewall


Florida AG Pam Bondi continues crusade against the free market

See Story: http://www.examiner.com/article/florida-ag-pam-bondi-continues-crusade-against-the-free-market


An Open Letter to Florida Attorney General Pam Bondi from the 10,000 Pilots of American Airlines

See Story: https://public.alliedpilots.org/APA/LinkClick.aspx?fileticket=I06YpkqSaqY%3d&tabid=1042&mid=2085


APA Update (Government Shutdown Impact on Airbus Delivery and Training Schedule): October 25, 2013

The government shutdown had a number of adverse effects on our Airbus fleet and delivery schedule. As reported in the press, four A319s at DFW were not able to enter revenue service as they awaited FAA certification. We also had Airbus Check Airmen who were trained but not fully certified because of the lack of FAA personnel. This led to a training backlog at the Flight Academy, and a number of our A320 pilots were put into an Awaiting Training (AT) status.

The company was unable to cover the scheduled Airbus flying because nearly half of its initial Airbus fleet was not yet certified to carry passengers. This resulted in the company scrambling to cover those sequences with other equipment. This reduction in scheduled Airbus revenue flying resulted in a backlog of OE training, adding to the cascading effects of the government shutdown.

Even as the government resolved its crisis, the FAA notified the company that it will not be fully functional, with respect to AA certifications, until November.

While the training backlog builds with the few Airbus aircraft we have, six aircraft in Germany will be ready to be delivered between now and mid-December. Sending AA CKA and line pilots to retrieve these aircraft puts an additional strain on Airbus manning, which only exacerbates the problem. The company projects that because of the training backlog, it will be short on trained Airbus pilots, resulting in several hundred hours of cancelled flights in both November and December. (A320 pilots whose sequences have cancelled are being paid in accordance with Sequence Protection.)

The training backlog becomes more acute as additional training flights and Check Airmen are needed for qualifying pilots for Bogota, Columbia, and a number of hit cities such as our seasonal ski destinations.
If not resolved quickly, this situation will have longer-term impacts as the company is forced to reduce block hours and schedule. These block hours represent many long-awaited captain upgrades and furloughee recalls.

To address a portion of this training backlog, the company and APA have agreed to permit Airbus to deliver six aircraft rather than AA sending four pilots to Hamburg each time to retrieve them. The company will pay 96:00 hours of apportionment pay at Group II Captain rates for each aircraft delivery (24 hours of Group II CA pay x 4 CAs, in accordance with Section 6.C.2 of the CBA). This will result in a total of 576:00 hours of total apportionment pay for this non-precedent–setting event. This agreement is for six specific aircraft, and the agreement expires Dec. 15. The arrival of these aircraft will almost double the current Airbus fleet, which underscores the need to resolve the training backlog.

In parallel with this agreement, APA reached closure related to hotels for DFW-based pilots during training and received a written confirmation that the economic provisions of LOA 13-08, in a merger scenario, will be retroactive to Jan. 1, 2014 (even if the actual bankruptcy exit date is beyond that date).

After carefully analyzing the effect of the government shutdown on our airline, we concluded that it is in our best interest to enter into this non-precedent–setting temporary agreement in a way that benefits the AA pilots. The goal is to get these aircraft into the fleet as expeditiously as possible and to minimize disruptions caused by the shutdown that are affecting the training, upgrades and block hours available to our membership during the build-up of the new Airbus fleet.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: October 28, 2013

2 Critical Airports Now Supporting the Airline Merger

The support of the Phoenix and Philadelphia airports carries another benefit: Arizona and Pennsylvania are both challenging the airline merger alongside the DOJ. These airports' perspectives show that both states are far from in agreement, increasing the possibility that the attorneys general of either state may look to settle before the Nov. 25 trial begins.

See Story: http://www.fool.com/investing/general/2013/10/28/2-critical-airports-now-supporting-the-airline-mer.aspx


Airports want chance to support airline merger

See Story: http://finance.yahoo.com/news/airports-want-chance-support-airline-151812657.html


AMR, US Airways, U.S. Agree to Mediator in Antitrust Case

“The question in a settlement is always who makes the first step, and that’s where the mediator can be helpful with formulating hypothetical solutions,” said Robert Mann, president of aviation consultant R.W. Mann & Co. in Port Washington, New York.

See Story: http://www.bloomberg.com/news/2013-10-29/amr-us-airways-u-s-agree-to-mediator-in-antitrust-case.html?cmpid=yhoo


Airlines, Justice officials pick mediator in antitrust lawsuit

The parties didn’t disclose the mediator’s name or any other particulars of the mediation effort.

On another matter, the judge Monday granted the request of Dallas/Fort Worth International Airport and three other cities and airports to file a friend of the court brief in support of the merger. The others were Charlotte, N.C., and its Charlotte Douglas International Airport; Phoenix and its Sky Harbor International Airport; and Philadelphia, which owns and operates Philadelphia International Airport.

See Story: http://www.dallasnews.com/business/airline-industry/20131028-airlines-justice-officials-pick-mediator-in-antitrust-lawsuit.ece


AMR Returns to ’Square One’ If Merger Blocked, Creditors

The bankruptcy would go back “to square one with likely disruption and disarray among numerous, financially unaligned stakeholders, the UCC told a federal court. The creditors committee of Fort Worth, Texas-based American is seeking permission to file a brief with U.S. District Judge Colleen Kollar-Kotelly explaining the “relative merits of the merger in comparison to starting over in the bankruptcy process.”

See Story: http://www.bloomberg.com/news/2013-10-28/amr-returns-to-square-one-if-merger-blocked-creditors.html?cmpid=yhoo


UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
Civil Action No. 13-1236 (CKK)
ORDER

(August 30, 2013) The Court held an initial scheduling conference in this matter on August 30, 2013. This Order briefly sets forth some of the issues discussed on the record and in Chambers with counsel for both parties. Trial in this matter shall commence on November 25, 2013. The parties shall promptly file a proposed case management order, and email a native copy of the order to Chambers. By no later than September 4, 2013, the parties shall file a joint proposed order concerning referral of discovery disputes to a special master. The parties shall also confer and contact the Court regarding the appointment of a third-party mediator for use at the parties’ discretion. The Court shall hold a status conference on October 1, 2013, at 10:30 AM to discuss trial procedures and pre- and post-trial briefing. If there are any issues the parties would like for the Court to address during the status hearing, the parties shall file a joint status report by no later than September 30, 2013 at 12:00 PM briefing outlining the issue(s).

SO ORDERED

/s/
COLLEEN KOLLAR-KOTELLY
UNITED STATES DISTRICT JUDGE

 

[USA320Pilot]

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

Mediation Offers Path to Merger of US Airways and AMR, Expert Says

See Story: http://www.thestreet.com/story/12086924/1/mediation-offers-path-to-merger-of-us-airways-and-amr-expert-says.html?puc=yahoo&cm_ven=YAHOO


AA-US Airways, Justice agree to mediator in merger case

Could the merger battle between the Justice Department and would-be partners American and US Airways be headed for a settlement?

See Story: http://www.usatoday.com/story/todayinthesky/2013/10/29/aa-us-airways-justice-agree-to-mediator-in-merger-case/3295613/


One analyst thinks the introduction of mediator ‘could pave way’ for settlement in American Airlines-US Airways lawsuit

See Story: http://aviationblog.dallasnews.com/2013/10/one-analyst-thinks-the-introduction-of-mediator-could-pave-way-for-settlement-in-american-airlines-us-airways-lawsuit.html/


How will the American Airlines-US Airways lawsuit turn out? Depends on whom you ask

See Story: http://www.dallasnews.com/business/headlines/20131028-how-will-the-american-airlines-us-airways-lawsuit-turn-out-depends-on-whom-you-ask.ece


USAPA BPR Special Telephonic Meeting Notice: October 29, 2013

In accordance with the USAPA Constitution and Bylaws Article 5, Section 3 C. and the Union Operating Manual Section 3 III., there will be a Conference Call of the Board of Pilot Representatives on Friday, November 1, 2013, commencing at 1000 EDT and adjourning at 1100 EDT or the conclusion of business. The agenda for this meeting is:

· NAC briefing on the iPad agreement
· Review Kasher Award and dissenting opinion regarding the 3% grievance and evaluate legal options including a BPR resolution to pursue action to vacate the Award in federal court

Participants will include the Board, Officers, Communications, NAC, Grievance and Legal Counsel.

 

[USA320Pilot]

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

AMR CEO Sees Way to Settle Suit Over US Airways Merger

See Story: http://www.bloomberg.com/news/2013-10-29/amr-ceo-sees-way-to-settle-suit-over-us-airways-merger.html?cmpid=yhoo


AMR, US Airways, and the Government Go to Counseling

The decision by AMR, US Airways, and the DOJ to work with a mediator significantly increases the chances that they will settle the antitrust lawsuit. As is typically the case in litigation, a settlement makes sense for both sides, as it allows each side to get something it wants while avoiding the risk of an all-or-nothing verdict.

See Story: http://www.fool.com/investing/general/2013/10/29/amr-us-airways-and-the-government-go-to-counseling.aspx

 

[USA320Pilot]

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

Seven chambers of commerce join list of parties that want to weigh in on the American Airlines-US Airways case

The airlines consented to the chambers’ brief, the U.S. Department of Justice objected, and the state of Arizona didn’t object. The other plaintiffs in the DOJ lawsuit, five states and the District of Columbia, have taken no position.

See Story: http://aviationblog.dallasnews.com/2...ays-case.html/


Oneworld alliance wants to have its say in support of American Airlines-US Airways merger in lawsuit

Oneworld, the alliance with leading partners American Airlines and British Airways, filed a request Wednesday to file an amicus curiae, or “friend of the court,” brief in the U.S. Department of Justice’s lawsuit to block American’s merger with US Airways.

Judge Colleen Kollar-Kotelly has given amici filers until Nov. 15 to file their briefs. Responses have to be filed by Nov. 22, the Friday before the Monday, Nov. 25, start of trial. She’s granted the request of Transport Workers Union and a number of airports to file amici briefs. She’s yet to rule on requests from other unions to combine their brief with the TWU’s, as well as amici requests from various chambers of commerce, airports and the unsecured creditors committee in American’s bankruptcy case, who are all in favor of the merger and against the lawsuit. The Oklahoma attorney general served notice on Kollar-Kotelly’s court that his state would file anamicus curiae brief.

See Story: http://aviationblog.dallasnews.com/2...-lawsuit.html/


2 Airlines Looking at American Airlines' Slots

See Story: http://www.fool.com/investing/genera...nes-slots.aspx


Decline in American Airlines jobs levels off during summer 2013

See Story: http://aviationblog.dallasnews.com/2...mer-2013.html/


Airlines, DOJ in court for status hearing - Lawyers will not say whether airlines and the Justice Department have discussed a settlement

WASHINGTON (Dallas News) - Attorneys squaring off in the Nov. 25 antitrust trial involving the merger of American Airlines and U.S. Airways meet today in federal court to update the judge on the status of their preparations.

We’re looking for news on which economists and other experts the airlines and the DOJ, which is seeking to block the merger, will call at trial. It’s possible we’ll near whether the parties have met with the mediator they retained earlier this month, at the judge’s behest.

The hearing begins at 10:30 EST and if the past is a good guide could be over quickly.

Update: The federal judge overseeing the airline merger trial said today the pretrial maneuvering has proceeded smoothly and “there is no reason the trial won’t begin on time.”

She said Wednesday morning that she’ll accept the parties’ proposed schedules for discovery and other pretrial work, and should issue an order to that effect later today.

Neither party had any concerns to add at the hearing, and will be expected back in court for a final pretrial status hearing on Nov. 21.

Third parties wishing to file friend of court briefs will have until Nov. 15 to do so. Judge Colleen Kollar-Kotelly said she’ll rule soon on the remaining requests to file such briefs.

Update: Rich Parker, lead attorney for US Airways, so it would be inappropriate to say whether the parties have met with a mediator in advance of next months antitrust trial over whether the airline can complete its merger with AMR Corp. to form the world’s largest airline.

He declined, too, to say whether the airlines and the Justice Department have discussed a settlement.

He said a list of expert witnesses — primarily economists – will be filed Nov. 8, but said the identity of the experts won’t be known until some time after that.

He said there are one or two fact witnesses left to depose but other than that the parties are focused on the last stage before the trial: interviewing expert witnesses.

See Story: http://aviationblog.dallasnews.com/2...-hearing.html/

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: October 30, 2013

AMR, US Airways Prepare Settlement Proposal to Justice Department

By JACK NICAS and SUSAN CAREY
Oct. 30, 2013 3:54 p.m. ET

CHICAGO (WSJ.com) - American Airlines parent AMR Corp. and US Airways Group Inc. are preparing a settlement proposal to the U.S. Justice Department that would include offers to give up slots at Reagan National Airport, according to two people familiar with the process.

The Justice Department sued in August to block the airlines' proposed merger, and the antitrust case is set to go to trial on Nov. 25, a high-profile court contest that holds big risks for both sides. The two airlines and the Justice Department recently agreed to consult a court-appointed mediator to negotiate toward a settlement. The parties also have said they remain open to resolving the case outside of court.

One of the people cautioned that the two airlines still are expecting to go to trial. Richard Parker, of O'Melveny & Myers LLP, which is representing US Airways, also said Wednesday the airlines were ready for trial and anxious to make their case.

AMR Chief Executive Tom Horton, at a conference in New York Tuesday, reiterated his company's belief that a settlement is better for both sides and that it is the airlines' responsibility to make a strong settlement proposal.

The airlines are hoping to offer a package of divestments to the regulators, focused largely on relinquishing some slots at Reagan National Airport. Industry analysts have discussed the possible concession of Reagan slots since the two carriers announced their merger plans in February. If they combined, the airlines would control two-thirds of the flights from the slot-controlled airport just outside of Washington, D.C.

The possible proposal could also include other concessions, said the other person, but much remains to be negotiated and any proposals could be rejected.

Still, the airlines may struggle to resolve the Justice Department's concerns simply with divestments. The government's antitrust suit makes sweeping, fundamental arguments against the merger, including how it could harm competition, reduce air service and increase fares.

The suit also specifically mentions that the merger would leave too many slots at Reagan with the combined carrier, but it also lists more than 1,000 routes where regulators believe the merger would significantly harm competition.

The Justice Department's antitrust chief, Bill Baer, previously said the government was willing to listen to settlement proposals, but insisted the department believes the "right solution" was a court injunction to block the deal. A department spokeswoman declined to comment Wednesday.

If combined, American and US Airways would be the largest carrier in the world by traffic, vaulting ahead of current No. 1, United Continental Holdings Inc., and No. 2, Delta Air Lines Inc.

American and US Airways contend a merger between them would serve as a counterbalance to United and Delta, which have expanded through recent combinations, as well as offering passengers more choice and a bigger route network.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #3: October 30, 2013

Los Angeles Mayor Garcetti Letter to AG Holder

See Story: http://newamericanarriving.com/images/uploads/LA_Mayor_Garcetti_Letter_to_Holder_(10_24_13)_(00562505).pdf


Ads Show Support for AA-US Merger

TEMPE (US Daily) - Three pro-merger ads are running this week in the New York Times (print only) as well as the print and digital versions of Political and National Journal. The New York Times ad today includes photos of our American and US Airways colleagues while the Politico and National Journal ads tomorrow will feature the letter from seven U.S. Mayors and an infographic that shows merger support from Congress, Chambers of Commerce and some of our unions. Visit the merger page on Wings to see these ads, or pick up copies of these publications..


Print Ad: What top mayors say about the US Airways and American Airlines combination

See Story: http://newamericanarriving.com/news-and-updates/what-top-mayors-say-about-the-us-airways-and-american-airlines-combination


Print Ad: Who supports the combination of American Airlines and US Airways?

See Story: http://newamericanarriving.com/news-and-updates/who-supports-the-combination-of-american-airlines-and-us-airways-print-ad


AMR, US Airways Prepare Settlement Proposal

See Story: http://blogs.wsj.com/law/2013/10/30/amr-us-airways-prepare-settlement-proposal/


Is a settlement under discussion in the American Airlines-US Airways case?

I subsequently talked to someone in the know, but not directly in the pipeline today, who has heard that “all sides” are supposedly in settlement talks in Washington, D.C.

See Story: http://aviationblog.dallasnews.com/2013/10/is-a-settlement-under-discussion-in-the-american-airlines-us-airways-case.html/

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #4: October 30, 2013

US Airways, American drawing up proposed settlement-report

Dow Jones reported that one of the two people familiar with the proposed settlement said that the airlines still expected to go to trial.

See Story: http://finance.yahoo.com/news/us-airways-american-drawing-proposed-205245420.html


Judge finalizes calendar, approves various ‘friends’ requests in American Airlines-US lawsuit

See Story: http://aviationblog.dallasnews.com/2013/10/judge-finalizes-calendar-approves-various-friends-requests-in-american-airlines-us-lawsuit.html/


Lawsuit against airlines' merger heading to trial

See Story: http://finance.yahoo.com/news/lawsuit-against-airlines-merger-heading-225059313.html


Settlement best avenue for American, US Airways merger

See Story: http://www.star-telegram.com/2013/10/30/5291701/settlement-best-avenue-for-american.html?rh=1

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #5: October 30, 2013

US Airways, American consider merger settlement: sources

Tom Hoban, an American pilot and Allied Pilots Association spokesman, said earlier on Wednesday that the lobbying will likely continue. "That's part of the overall strategy. We want to compel those that initially came out in support of DOJ and help them get religion on the subject," he said.

See Story: http://www.chicagotribune.com/business/sns-rt-us-americanairlines-usairways-proposal-20131030,0,3874722.story


AMR, US Airways Near Settlement - Carriers Work Toward Plan to Resolve Case With Justice Department

CHICAGO (WSJ.com) - American Airlines and US Airways Group Inc. are preparing a settlement proposal to the U.S. Justice Department that would include offers to give up slots at Reagan National Airport, according to two people familiar with the process.

The Justice Department sued in August to block the airlines' proposed merger, and the antitrust case is set to go to trial on Nov. 25, a high-profile court contest that holds big risks for both sides. The two airlines and the Justice Department recently agreed to consult a mediator to negotiate toward a settlement. The parties also have said they remain open to resolving the case outside of court.

One of the people cautioned that the two airlines still are expecting to go to trial. Richard Parker of O'Melveny & Myers LLP, which is representing US Airways, also said on Wednesday that the airlines were ready for trial and anxious to make their case.

A big AMR bondholder said he has been pushing the airlines for weeks to offer to divest AMR slots at Reagan National, which is just outside Washington, D.C., but the carriers so far have seemed reluctant.
AMR Chief Executive Tom Horton, at a conference in New York Tuesday, reiterated his company's belief that a settlement is better for both sides and that it is the airlines' responsibility to make a strong settlement proposal.

The airlines are hoping to offer a package of divestments to the regulators, focused largely on relinquishing some slots at Reagan National. Industry analysts have discussed the possible concession of Reagan slots since the two carriers announced their merger plans in February. If they combined, the airlines would control two-thirds of the flights from the slot-controlled airport.

The possible proposal could also include other concessions, said the other person, but much remains to be negotiated and any proposals could be rejected.

Still, the airlines may struggle to resolve the Justice Department's concerns simply with divestments. The government's antitrust suit makes sweeping, fundamental arguments against the merger, including how it could harm competition, reduce air service and increase fares.

The suit specifically mentions that the merger would leave the combined carrier with too many slots at Reagan, but it also lists more than 1,000 routes where regulators believe the merger would significantly harm competition.

The Justice Department's antitrust chief, Bill Baer, has said the government was willing to listen to settlement proposals, but also insisted the department believes the "right solution" was a court injunction to block the deal. A department spokeswoman declined to comment Wednesday.

If combined, AMR and US Airways would be the largest carrier in the world by traffic, vaulting ahead of United Continental Holdings Inc. and Delta Air Lines Inc.

AMR and US Airways contend their merger would offer fliers more choice and a bigger route network, as well as serve as a counterbalance to United and Delta, which have expanded through recent combinations.

The merger would significantly boost the combined airline's presence in a few big airports, including Reagan National, LaGuardia Airport in New York and Boston Logan International Airport. AMR has a strong position in Chicago, Los Angeles, Dallas and Miami, while US Airways is the largest carrier in Philadelphia, Phoenix and Charlotte, N.C. But the two airlines are typically small in the airports where the other is dominant, according to Innovata LLC, an aviation-data firm.

Jamie Baker, a J.P. Morgan airline analyst, said in a recent note that he has slightly boosted his estimate that the merger will go ahead. But he isn't optimistic the parties will reach a negotiated solution to avoid the trial. "Satisfying the entirety of the DOJ's complaint would result in significantly diminished revenue synergies, to the point that costs would rise in a merger and little else," he said.

Vinay Bhaskara, an analyst for Aspire Aviation, a Hong Kong-based research firm, has compiled his own list of potential givebacks that might make regulators accept the merger. The list includes divesting slots at Reagan National and gates in Charlotte and Chicago, as well as selling a route authority to São Paulo, he said. "There is something in here for everyone," Mr. Bhaskara said. "This list eliminates many markets of concern."

If no settlement is reached, the Nov. 25 trial is expected to last 10 to 12 days. The parties would file post-trial briefs in late December and closing arguments would take place on Jan. 6.