Shuttle Flying, Bankruptcy Financing, & Gecas

[CaptianBoomer]

320-

I fail to see how the reduction of mainline hulls is any kind of committment to anything, other than shrinkage and furloughs and a restacking of the seniority/longevity deck.

GECAS has so much confidence in U that they want to take "new" aircraft from U and give them to someone else. They have $ 3 bil in exposure at U and want to take a maximum of $ 300 mil in jets from U? Hardly a committment.

Of course, if you would like to see U with 100 busses, 300 rj's, and 10 widebodies, so be it. This company is not interested in running an airline. If everyone worked for free, these idiots would advocate letting someone else fly the planes.

When you get down to fly the -190, you can fly it for 1st year pay too.

Thanks!

Boomer

 

[USA320Pilot]

CaptainBoomer:

As I have repeatedly said before – US Airways had no DIP financing entering bankruptcy and still does not have exit financing) going out of bankruptcy. The company had $260 million in aircraft “cureâ€￾ payments due in January and February. Fuel prices are cutting into the unrestricted cash requirements that must be met per the ATSB requirements – thus the airline was on the edge until yesterday.

The GE deal gives the company more space and more liquidity to get through the next two quarters. The longer the airline can hold on - the better chance that airline will be able to survive as we get into the transformation plan, which is likely to work and return the company to profitability.

The day the airline filed for Chapter 11 the company went into an area of “major riskâ€￾, which was caused by union resistance and email. One of those risks was the loss of airplanes after the cure period governed by S.1110 of the bankruptcy code. GECAS had the right to repossess their aircraft and they did, but they gave us bridge financing and access to other aircraft.

US Airways has done a good job in keeping most of its aircraft, the GE deal takes away 25 planes over 3 years, but it gives us financing and some temporary liquidity.

It is a good deal considering the other options and as for furloughs and downgrades - you never know - but I do not see that happening.

Much of this could have been avoided, but due to union resistance lead by ALPA's RC4 we are where we are.

Best regards,

USA320Pilot

 

[700UW]

Your information is wrong once again.

The $260 million is not cure payments nor is the whole thing due in January.

The $260 million is lease payments for the first quarter of 05, due between January and March

And that is according to the Senior VP of Finance and Treasurer.

 

[USA320Pilot]

700UW:

It has been a few weeks since I met with Dave Davis and others looking at the confidential financial information. I did not remember the exact payment schedule, but the issue is the company had some very large aircraft payments due in Q1 and the GECAS agreement provides badly needed liquidity.

Thanks for the correction.

By the way -- what do you know about the upcoming Shuttle changes? In addition, where did I say all of the payments were due in January?

Best regards,

USA320Pilot

 

[CaptianBoomer]

320

Did the company's proposal not have a contract provision that they could not guarantee the fleet size if they filed?

Yes or No?

Yes.

Therefore, no one but the company is to blame for the loss of the aircraft. They got everything they asked for and more from the pilots.

What remains to be seen is will they back off the other groups who haven't handed them the keys to their profession and their wallets.

Boomer

 

[700UW]

I stand corrected you said Jan and Feb Cure payments, the cure payments were due 11/11/04, 60 days after the intitial chapter 11 filings per Section 1110.

And Davis is gone, the information was provided by Senior VP, Finance and Treasurer Eilif Serck-Hanssen.

The Shuttle will be all Airbus starting in the February Schedule, according to the company's presentation to its managers.

 

[USA320Pilot]

CaptianBoomer:

The Company’s September 4 proposal, which ALPA’s RC4 blocked by “roll call†the pilot’s opportunity to vote on, contained the 279 mainline fleet count. The MEC vote occurred on September 6 and then on September 10, the company delivered another proposal that eliminated the 279 minimum fleet count.

Why? GECAS lost patience with ALPA due to the RC4’s stupidity.

In a confidential meeting I attended with the MEC that included Bruce Lakefield, Bruce Ashby, and Dave Davis last summer, Lakefield warned the MEC that GECAS wanted to remove about 30 aircraft, probably B737s, to diversify their risk. Furthermore, during the LOA 91 debate last June GECAS spoke directly to the MEC about their issues with ALPA and indicated they were losing patience.

Lakefield told the MEC the only way to keep the fleet count intact was to reach a new agreement that GECAS would support. Moreover, I understand Lakefield told the same thing to every US Airways labor union.

In fact earlier today General Electric spokesman Eric Jones told Bloomberg News "This provides some liquidity to the airline while they're in bankruptcy and keeps our exposure in check by returning some airplanes to us," publicly confirming what Lakefield told us at the MEC meeting.

Moreover, by the RC4 not permitting the rank-and-file from voting on the September 4 proposal the pilot’s also lost:

 40% more of the DC plan that went from 50% to 10% of gross earnings

 Equity participation was reduced from 19.33% to 8.5%

 Minimum block hour guarantees

 Contingent acquisition rights (CAR’s – protections in case of a buyout)

 Special training relief was granted, allowing training out of seniority

 No MDA displacement rights while in bankruptcy

 J4J displacement rights are gone

 Vacation reduced from 28 to 21 days

CaptainBoomer, in regard to question of “did the company's proposal not have a contract provision that they could not guarantee the fleet size if they filed?†Yes it did, but that too was discussed by Lakefield with the MEC last summer. After the union did not listen to GECAS or management, the financiers would not commit to a minimum fleet count and the company could only comply with limited S.1113 protection because of the 60-day S.1110 requirement. US Airways could only protect the fleet for 60 days by law and in reality, the airline did a good job to protect about 92% of the mainline and all of the MDA and PSA fleet. In addition, the GE deal provides an orderly reduction of Group 2 aircraft at a rate of less than one per month for about three years.

Equally important, the company was able to secure Large RJ financing, probably for EMB-170/190 aircraft to maintain US Airways Group ASM's, with 6 EMB-170s sitting on the ramp and South America and 3 on the assembly line in US Airways’ livery. In fact, the RA deal breaker was the EMB-190 scope relief, according to a private conversation I had with Doug Mowrey the day the TA was reached.

CaptianBoomer, the MEC was warned by both GECAS and Lakefield that if the September 4 proposal was not ratified the airline could lose mainline aircraft. How do I know? I was in the meeting when this discussed. Therefore, if you do not like the loss of mainline aircraft I suggest you complain to union leaders who had the opportunity to prevent this from happening.

Best regards,

USA320Pilot

 

[Walmartgreeter]

CaptianBoomer:

Why? GECAS lost patience with ALPA due to the RC4’s stupidity.


Best regards,

USA320Pilot

[post="204346"][/post]​

You are an ass. And a disgrace to the union. If you do not like what YOUR union is doing, why don't you just quit. I will be happy to pick up your dues. Greeter.

 

[700UW]

This sums it up from ALPA itself:

We urge all pilots to contact their reps or the Comm Center for accurate updates on restructuring negotiations and the activity of other unions. We also request that all pilots refrain from promoting any management anti-union propaganda or chastise other employees in the media. There is little to be gained from such activity other than embarrassment for yourself, your fellow pilots, US Airways, and ALPA.

 

[USA320Pilot]

700UW & Walmartgreeter:

During the past year I have signed ALPA and Company confidentiality and non-disclosure agreements and sat at the MEC table as a MEC Rep. I have attended multiple confidential meetings with every senior company and top ALPA official.

700UW, can you explain why the ALPA MEC entrusted me with this resposibility?

It appears your comments are wrong again, but that is not unusual because people like you will lead employees to obtain worse cuts, which could have been avoided. In fact, for the IAM it is very possible that all Utility will be eliminated, which I know could have been avoided. It's too bad, but union leadership will fail the Utility workers, again.

Everything in my last post to CaptianBoomer is fact, but do not let that adjust your thoughts, because just like ALPA, it's only going to get worse for the AFA, CWA, and IAM.

Walmartgreeter, your childish insults and lack of decorum speak for themself, exspecially since you hide like a coward, and you know what I mean. GECAS warned the RC4 they could pull aircraft without deals and guess what, GECAS did what they told ALPA at a meeting I attended. If you're upset, voice your complaints to ALPA's RC4 and the other union leaders who are directly responsible for US Airways losing 25 mainline aircraft during the next 3 years.

Best regards,

USA320Pilot

 

[deano]

700UW & Walmartgreeter:

During the past year I have signed ALPA and Company confidentiality and non-disclosure agreements and sat at the MEC table as a MEC Rep. I have attended multiple confidential meetings with every senior company and every top ALPA official.

700UW, can you explain why the ALPA MEC entrusted me with this resposibility?

It appears your comments are wrong again, but that is not unusual because people like you will lead employees to obtain worse cuts. In fact, for the IAM it is very possible that all Utility will be implemented, which I know could have been avoided. It's too bad, but union leadership will fail the Utility workers, again.

Everything in my last post to CaptianBoomer is fact, but do not let that adjust your thoughts, because just like ALPA, it's only going to get worse for the AFA, CWA, and IAM.

Walmartgreeter, your childish insults and lack of decorum speak for themself, exspecially since you hide like a coward, and you know what I mean. GECAS warned the RC4 they could pull aircraft without deals and guess what, GECAS did what they told ALPA at a meeting I attended. If you're upset, voice your complaints to ALPA's RC4 and the other union leaders who are directly responsible for US Airways losing 25 mainline aircraft during the next 3 years.

Best regards,

USA320Pilot

[post="204408"][/post]​

You're like the guy on Ham Radio everyone hates but no one has figured out how to shut him off. One “K1MAN“. He rants while everyone piles on. That is what you bring to this forum, too bad the owners are not ham operators because then maybe they would see a parallel and how it adversly affects their site. Like the ARRL this forum will become the whipping boy because of one individual.

Curt

 

[700UW]

You held a proxy ooooh, how important.

And EVERY ALPA Member that attended the meeting had to sign a confidentiality agreement.

The company does not want utility and they have made that perfectly clear from the beginning.

You are not a MEC or NC member, what you say or do means nothing to ALPA, you are a scared and terrified person who shows his fear with each and every post.

You were banned from the ALPA boards, you changed your name on here(scared again), your own union put out a MEC Code-A-Phone to disavow you. Do you have to get hit in the face with reality to actually get what others and your union thinks about you? You are nothing but a self-serving person who could care less that non-pilot workers of this company are losing their houses, and deciding what bills to pay or to eat.

And I have attended more meetings and actually have a say in my destiny and my co-workers, can you say the same-thing?

Have not seen you at CCY? Where have you been? Did not see you with Pollack or Stephens at Bankruptcy Court, where have you been? Don't see you putting out videos or updates from ALPA. I mean a man of your importance ( legend in his own mind) should be important enough to be at those places and doing those things.

You are not a representative of ALPA, you could not even get elected from your base. You mustered 24 votes, how many Captains are based in LGA?

Your answer is quit, tell me who you are, yadda yadda yadda. Now that is childish

You are are terrified because you have NO control over what the AFA, CWA or IAM will do, so I suggest you call the foreign flying job you told everyone months ago that you were going to take and see if they are still hiring.

Lets see, you told everyone you thought Dave S was the best until he took your pension which your MEC that you supported 100% blessed without even letting you vote, you told everyone ALPA was gonna strike, shut the place down and you had another job, I guess principles and your word mean nothing to you.

You are an embarrassment to your co-workers, your own union has even said it.

We urge all pilots to contact their reps or the Comm Center for accurate updates on restructuring negotiations and the activity of other unions. We also request that all pilots refrain from promoting any management anti-union propaganda or chastise other employees in the media. There is little to be gained from such activity other than embarrassment for yourself, your fellow pilots, US Airways, and ALPA.

 

[AP Tech]

During the past year I have signed ALPA and Company confidentiality and non-disclosure agreements and sat at the MEC table as a MEC Rep




I believe if I remember correctly you were not the elected LGA REP but held the proxy do to the fact the ELECTED Rep was unavailble. After all your comments what do you think your chances are of ever attending a MEC meeting as a rep if you were ever working in one of the larger bid stations? How are you going to feel when we start to lose the larger A/C and they are replaced with the 170's and 190's, and then start at the 1st pay step????

 

[EyeInTheSky]

GECAS warned the RC4 they could pull aircraft without deals and guess what, GECAS did what they told ALPA at a meeting I attended. If you're upset, voice your complaints to ALPA's RC4 and the other union leaders who are directly responsible for US Airways losing 25 mainline aircraft during the next 3 years.

Best regards,

USA320Pilot

[post="204408"][/post]​

That's the funniest damn thing I've ever read. Blame losing 25 aircraft on 4 pilots in the union. WTF are you smoking?

 

[700UW]

Time to call the MRO?