C
chipmunn
Guest
[P align=center][FONT face=Times New Roman size=3][STRONG]The November 26 labor leader meeting with management and its background[/STRONG][/FONT][BR]
[P class=MsoNormal align=left][FONT face=Times New Roman][FONT size=3]October 25 – The c[SPAN style=mso-bidi-font-size: 10.5pt]ompany stated in an SEC filing that it wanted to cut annual costs by [SPAN style=COLOR: black; mso-bidi-font-weight: bold]nearly $100-$300 million more a year than previous estimates - bringing cuts up to $1.6 billion annually - to achieve profitability.[BR][/SPAN][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 14 - US Airways told regulators in a SEC filing it [SPAN style=mso-bidi-font-size: 10.0pt]forecasts the company would contribute $3.1 billion to the pension funds from 2003 to 2009.[BR][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt][BR]November 15[/SPAN][SPAN style=mso-bidi-font-size: 10.0pt] – US Airways ALPA MEC Chairman Chris Beebe told all pilots in a letter, “[/SPAN][SPAN style=COLOR: black; mso-bidi-font-size: 10.5pt; mso-bidi-font-weight: bold]When the Company filed its application with the ATSB for a $900 million loan guarantee, it had to [/SPAN][SPAN style=mso-bidi-font-size: 10.5pt; mso-bidi-font-weight: bold]present a business plan that included projected revenue, which would help the ATSB determine if the loan could be repaid.[SPAN style=mso-spacerun: yes] [/SPAN]The business plan satisfied the ATSB, and t[/SPAN][SPAN style=mso-bidi-font-size: 10.5pt]he loan was conditionally approved in July. The funds will be made available to US Airways upon emergence from bankruptcy - but only if the business plan still meets the conditions for issuance of a guarantee.[SPAN style=mso-spacerun: yes] [/SPAN][SPAN style=mso-bidi-font-weight: bold]US Airways’ July and August revenue figures were near the projections contained in US Airways’ business plan filed with the ATSB.[SPAN style=mso-spacerun: yes] [/SPAN]However, the industry-[SPAN style=COLOR: black]wide September and October downturn (which looks to be continuing through the end of this year and well into the next) has led to a revenue short fall. Management plans to make up for this shortfall [/SPAN][/SPAN]by decreasing its expenses, as it has conditions attached to the ATSB loan.[SPAN style=mso-spacerun: yes] [/SPAN]The Company has said publicly that if it doesn’t meet those conditions, it stands the risk of losing the loan, [SPAN style=COLOR: black; mso-bidi-font-weight: bold]and has made a formal request to all US Airways labor groups in an attempt to again reduce costs.[BR][/SPAN][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt][BR]November 23[/SPAN][SPAN style=mso-bidi-font-size: 10.0pt] - ALPA code-a-phone said, “[/SPAN]The Retirement and Insurance Committee briefed the MEC on management’s meeting with the PBGC.â€[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 23 - [SPAN style=mso-bidi-font-size: 10.0pt]ALPA code-a-phone said, “[/SPAN] Management has requested a meeting with all US Airways labor leaders on Tuesday, November 26, to update labor on the Company’s status and to present management’s ideas on potential solutions to the current problems the Company is facing.†This meeting will begin at 10:00 AM.[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 23 - [SPAN style=mso-bidi-font-size: 10.0pt]ALPA code-a-phone said, “[/SPAN]The MEC is planning to reconvene next week in Crystal City at the Crystal Gateway Marriott on Tuesday and Wednesday (November 26 and 27).[SPAN style=mso-spacerun: yes] [/SPAN]This meeting will be to immediately address the unfolding events because management is expected to provide the unions with one week to obtain consensual contract changes.[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 24 – Reports from within the pilot group indicate management may provide the Labor Leaders at tomorrow’s meeting two options: provide meaningful changes to the labor accords to boost productivity and reduce the pension obligation or the company may provide 60-day notice to terminate the defined benefit pension programs for ALPA, IAM, AFA, and TWU represented employees.[BR][/FONT][/FONT][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA][STRONG][BR]Chip comments:[/STRONG] If the company elects to exercise its legal right to terminate the pension plan, similar to what occurred to now CWA represented employees in the 90’s, the company would save on average over $500 million per year in labor expenses, which would permit US Airways to obtain the loan guarantee by meeting the 7 percent profit margin requirement. Therefore, is it better for the unions and management to reach voluntary concession accords before the US Airways board meeting the first week of December, to be included in the final Plan of Reorganization (POR) due to the court on December 9, or risk having the pension plans terminated?[BR][/SPAN][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA][BR]Chip [SPAN style=mso-spacerun: yes][/SPAN][/SPAN][/P]
[P class=MsoNormal align=left][FONT face=Times New Roman][FONT size=3]October 25 – The c[SPAN style=mso-bidi-font-size: 10.5pt]ompany stated in an SEC filing that it wanted to cut annual costs by [SPAN style=COLOR: black; mso-bidi-font-weight: bold]nearly $100-$300 million more a year than previous estimates - bringing cuts up to $1.6 billion annually - to achieve profitability.[BR][/SPAN][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 14 - US Airways told regulators in a SEC filing it [SPAN style=mso-bidi-font-size: 10.0pt]forecasts the company would contribute $3.1 billion to the pension funds from 2003 to 2009.[BR][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt][BR]November 15[/SPAN][SPAN style=mso-bidi-font-size: 10.0pt] – US Airways ALPA MEC Chairman Chris Beebe told all pilots in a letter, “[/SPAN][SPAN style=COLOR: black; mso-bidi-font-size: 10.5pt; mso-bidi-font-weight: bold]When the Company filed its application with the ATSB for a $900 million loan guarantee, it had to [/SPAN][SPAN style=mso-bidi-font-size: 10.5pt; mso-bidi-font-weight: bold]present a business plan that included projected revenue, which would help the ATSB determine if the loan could be repaid.[SPAN style=mso-spacerun: yes] [/SPAN]The business plan satisfied the ATSB, and t[/SPAN][SPAN style=mso-bidi-font-size: 10.5pt]he loan was conditionally approved in July. The funds will be made available to US Airways upon emergence from bankruptcy - but only if the business plan still meets the conditions for issuance of a guarantee.[SPAN style=mso-spacerun: yes] [/SPAN][SPAN style=mso-bidi-font-weight: bold]US Airways’ July and August revenue figures were near the projections contained in US Airways’ business plan filed with the ATSB.[SPAN style=mso-spacerun: yes] [/SPAN]However, the industry-[SPAN style=COLOR: black]wide September and October downturn (which looks to be continuing through the end of this year and well into the next) has led to a revenue short fall. Management plans to make up for this shortfall [/SPAN][/SPAN]by decreasing its expenses, as it has conditions attached to the ATSB loan.[SPAN style=mso-spacerun: yes] [/SPAN]The Company has said publicly that if it doesn’t meet those conditions, it stands the risk of losing the loan, [SPAN style=COLOR: black; mso-bidi-font-weight: bold]and has made a formal request to all US Airways labor groups in an attempt to again reduce costs.[BR][/SPAN][/SPAN][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][SPAN style=mso-bidi-font-size: 10.0pt][BR]November 23[/SPAN][SPAN style=mso-bidi-font-size: 10.0pt] - ALPA code-a-phone said, “[/SPAN]The Retirement and Insurance Committee briefed the MEC on management’s meeting with the PBGC.â€[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 23 - [SPAN style=mso-bidi-font-size: 10.0pt]ALPA code-a-phone said, “[/SPAN] Management has requested a meeting with all US Airways labor leaders on Tuesday, November 26, to update labor on the Company’s status and to present management’s ideas on potential solutions to the current problems the Company is facing.†This meeting will begin at 10:00 AM.[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 23 - [SPAN style=mso-bidi-font-size: 10.0pt]ALPA code-a-phone said, “[/SPAN]The MEC is planning to reconvene next week in Crystal City at the Crystal Gateway Marriott on Tuesday and Wednesday (November 26 and 27).[SPAN style=mso-spacerun: yes] [/SPAN]This meeting will be to immediately address the unfolding events because management is expected to provide the unions with one week to obtain consensual contract changes.[BR][/FONT][/FONT][FONT face=Times New Roman][FONT size=3][BR]November 24 – Reports from within the pilot group indicate management may provide the Labor Leaders at tomorrow’s meeting two options: provide meaningful changes to the labor accords to boost productivity and reduce the pension obligation or the company may provide 60-day notice to terminate the defined benefit pension programs for ALPA, IAM, AFA, and TWU represented employees.[BR][/FONT][/FONT][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA][STRONG][BR]Chip comments:[/STRONG] If the company elects to exercise its legal right to terminate the pension plan, similar to what occurred to now CWA represented employees in the 90’s, the company would save on average over $500 million per year in labor expenses, which would permit US Airways to obtain the loan guarantee by meeting the 7 percent profit margin requirement. Therefore, is it better for the unions and management to reach voluntary concession accords before the US Airways board meeting the first week of December, to be included in the final Plan of Reorganization (POR) due to the court on December 9, or risk having the pension plans terminated?[BR][/SPAN][SPAN style=FONT-SIZE: 12pt; FONT-FAMILY: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA][BR]Chip [SPAN style=mso-spacerun: yes][/SPAN][/SPAN][/P]
