What's new
By:

US-AA Merger Articles (Merged Topics)

I agree. I read this thread for NEWS. Not compliments, complaints, crying, or anything that is not published elsewhere. News. News.

Please leave it that way. Thank you.
 
If I valued ignorance over free knowledge this thread would really piss me off too.
 
Labor unions ask directors of American Airlnes parent AMR to consider merger with US Airways

Click here to read the story.


Goldman Sachs May Play Pivotal Role in American’s Fate

The firm, an AMR bondholder, is among creditors being lobbied by US Airways to back a possible takeover bid, said people with knowledge of the matter. Goldman Sachs has encouraged other debt investors to meet with US Airways to see if a merger would recoup more than AMR’s stand-alone plan.

US Airways is also seeking the backing of creditors including Appaloosa Management LP, Oppenheimer Holdings and Claren Road Asset Management LLC, the people said. Some investors have been trying to form ad-hoc committees and are discussing hiring advisers to negotiate with AMR and US Airways, the people said.

Until recently, Goldman Sachs was also advising Delta Air Lines on whether to make a competing bid for AMR, said another person. Delta told some outside advisers more than a month ago to halt work on the effort because the carrier wasn’t likely to proceed with an offer.

Click here to read the story.


Final Glance at Some Airline Companies Closing Stock Prices: May 3, 2012

NEW YORK (AP) -- Shares of some top airlines companies were mixed at the close of trading:

Delta Air rose $.09 or .8 percent, to $10.96.

JetBlue Airways Corp. rose $.03 or .6 percent, to $4.75.

Southwest Airlines Co. rose $.05 or .6 percent, to $8.22.

US Airways Group rose $.45 or 4.4 percent, to $10.71.

United Continental Holdings Inc. fell $.09 or .4 percent, to $21.57.

Click here to read the story.


About 6,000 pilots vote no confidence in American Airlines management

The Association of Professional Flight Attendants launched its own no-confidence petition Thursday on its website. Like on the APA site, you have to be a union member to sign the APFA petition.

Click here to read the story.
 
APA News Digest: May 4, 2012

[background=transparent]Dramatic Response to "No Confidence" Petition[/background]

[background=transparent]On Tuesday, May 1, APA President Captain Dave Bates announced that the union decided to circulate a "no confidence" petition concerning management's "stand-alone" business plan. In his announcement, Captain Bates states that "a merger now with US Airways will save jobs, pensions and salaries and provide a much brighter future for American Airlines, our customers and all the airline's employees." He also poses a series of questions, such as "are the managers who drove American Airlines into bankruptcy the ones to lead us out? How well has the "Cornerstone" plan worked out so far? How well did "convergence" work out? Or the "kick the can" or limp along" plans? What about "Pull Together-Win Together" or "Flight Plan 2020?" What did AMR management do with the many billions of dollars of concessions we have already provided?"[/background]

[background=transparent]As of 3:00 p.m. CDT today, 6297 pilots had expressed a vote of "no confidence" in the current direction of American Airlines.[/background]

[background=transparent]To read the full text of Captain Bates' message concerning the petition, click here.[/background]

[background=transparent]To add your name to the petition now, click here.[/background]

[background=transparent]Please be aware that APA's petition is not the same as a similar, publicly hosted petition you may have signed that circulated previously. If you already signed the publicly hosted petition, please be sure to add your voice to APA's petition by clicking on the link above.[/background]

[background=transparent]"No-Confidence" Rally on Friday, May 11[/background]

[background=transparent]APA and the Association of Professional Flight Attendants will conduct a no-confidence rally on the morning of Friday, May 11. Please plan on joining your fellow pilots and members of the APFA beginning at 8:30 a.m. CDT at APA headquarters, 14600 Trinity Blvd., Ste. 500, Fort Worth 76155-2512. APA will provide picket signs for the participants reinforcing our message of no confidence in AMR management.[/background]
[background=transparent]As detailed elsewhere in today's edition of the APA News Digest, thousands of our pilots have already lent their names to the no-confidence petition. If you haven't done so already, please take a minute to add yours and let AMR management know that it's time for real change.[/background]

[background=transparent]We will provide details about area parking and transportation options to and from APA headquarters in the coming days.[/background]

[background=transparent]Make plans now to participate in this important event.[/background]

[background=transparent]APA, TWU and APFA Publish "Open Letter" to AMR Board of Directors[/background]

[background=transparent]In advertisements today in The Wall Street Journal, The Dallas Morning News and Fort Worth Star-Telegram, the three unions on the American Airlines property--APA, the Transport Workers Union and the Association of Professional Flight Attendants--co-signed an open letter to the AMR Board of Directors urging immediate support for an American Airlines-US Airways merger. In the letter, the president of the three unions state," We understand the challenges inherent in any merger and decided to support this plan only after considerable analysis and debate. Our respective unions have already reached industry-competitive conditional labor agreements with US Airways management that will reduce costs, boost productivity and help position American Airlines for future success."[/background]

[background=transparent]The open letter also notes that under the merger plan proposed by US Airways management, American Airlines' Fort Worth, Texas home would be preserved, along with thousands of jobs slated to be eliminated under AMR management's "stand-alone" plan. The letter further notes that a merger would result in a rejuvenated American Airlines, with a comprehensive global network capable of competing with Delta Air Lines and United Airlines.[/background]

[background=transparent]Click here to view a PDF of the ad.[/background]

[background=transparent]APA President and APA Negotiating Chairman Meet with USAPA Leadership[/background]

[background=transparent]
HummelBates_Digest.JPG
[/background]
[background=transparent]On Monday, April 30, APA President Captain Dave Bates and Negotiating Committee Chairman FO Neil Roghair met with U.S. Pilots Association (USAPA) President Captain Gary Hummel and approximately 50 other members of USAPA's leadership at the union's Charlotte, NC headquarters. USAPA represents the 5,200 mainline pilots who fly for US Airways. This week's meeting marked the first ever between an APA President and the entire USAPA leadership.[/background]

[background=transparent]In a related news article in TheStreet.com, Captain Bates said, "I'm here to build a bridge with our union brothers at USAPA and to coordinate in creating the world's largest and best airline. We want a combined workforce, fully integrated, under one agreement."[/background]

[background=transparent]"No one is clear how the process will unfold," Captain Hummel said in the same article by TheStreet.com. This meeting was (intended) to start defining that. We are in agreement in working together towards that end."[/background]

[background=transparent]Click here to read TheStreet.com article in its entirety[/background]

[background=transparent]Click here to read a related article from the Charlotte Observer.[/background]

[background=transparent]Management Testimony: "Kick-the-Can" and "Limp-Along"[/background]

[background=transparent]Last week former AMR Senior Vice President-Human Resources Jeff Brundage testified in the bankruptcy court hearing about the concessions AMR asked of its unions before its bankruptcy filing. According to a Reuters news report, Mr. Brundage stated that the concessions management sought at that time would not have "allowed us to be a viable enterprise." Brundage said that management's goals shifted after the Chapter 11 filing. Brundage also stated that management's pre-bankruptcy contract proposals were referred to by management as "kick-the-can" and "limp-along" plans. Brundage further stated that it was clear the pre-bankruptcy offers would not have allowed the company to avoid bankruptcy.[/background]

[background=transparent]This week Mr. Brundage announced that he would be stepping down from his Senior Vice President-Human Resources position and transitioning into a "Senior Advisor" position with AMR. In a "Dear Colleagues" letter, Mr. Brundage stated that while "that all good things come to an end," he was "not quite there yet" and that he is "determined to see this process through because addressing our employee cost disadvantages it is the right thing to do for our future." He added that "For now, I'm not going anywhere and will continue to work with many of you on the needed changes." The "needed changes" that Mr. Brundage refers to center around the 1113© process and management's efforts to terminate the APA-American Airlines Collective Bargaining Agreement.[/background]

[background=transparent]Denise Lynn, Mr. Brundage's successor, stated in her "Dear People Team" letter, "What I value most, however, is the culture of collaboration and professionalism he has cultivated here, and which I aspire to continue."[/background]

[background=transparent]Your New, Improved and Relevant Family Awareness[/background]

[background=transparent]In case you haven't noticed, APA's Family Awareness program is back and better than ever. In the fall, the program was redesigned to be more domicile-centric, with an emphasis on frequent social gatherings rather than home-based meetings. Additionally, the Family Awareness communications capabilities were modernized to utilize a combination of e-mail messages, social networking sites, and postcards to advertise events.[/background]

[background=transparent]The result has been the rebirth of a robust Family Awareness program that has been holding a number of popular and well-attended events across the system. The new primary Family Awareness event is termed a "Meet & Greet" and was first rolled out as a monthly event for members in training, held at a tavern near the AA Flight Academy. The format was designed as a social setting for members to meet APA leaders in an informal environment that presents an opportunity to ask questions and facilitates conversation between members and leaders. The Meet & Greet events proved exceptionally popular with members and their spouses.[/background]

[background=transparent]Since AMR's Chapter 11 filing on Nov. 29, 2011--and in particular, since the announcement of APA's pursuit of an alternative business plan with US Airways management--the Meet & Greets have been expanded system-wide. Under the leadership of Chairman First Officer Jennifer Ewald, Family Awareness sponsored more than 25 events across the country last month, with total member attendance approaching 1,000 pilots. These events are regularly attended by your national officers, domicile representatives, and key committee members, which has helped drive the success and popularity of the Meet & Greets.[/background]

[background=transparent]Without a doubt, you'll find a Meet & Greet event happening near you soon. If you haven't attended one already, you're missing out. Take advantage of these unique opportunities for face-to-face communication with your union leadership.[/background]

[background=transparent]US Airways CEO Doug Parker & President Scott Kirby Comments on Merger[/background]

[background=transparent]During US Airways' recent first quarter earnings conference call with airline analysts, CEO Doug Parker and President Scott Kirby made the following comments on the agreements made with AA labor unions and their perspective on the potential merger of the two airlines.[/background]
[background=transparent]Chairman and CEO Doug Parker:[/background]
  • [background=transparent]"Now we've been hard at work over the past 3 months and have concluded that there's an opportunity to do something that we think is in the best interest of both companies, owners or creditors, in the case of AMR, both companies' employees, our customers and the communities we serve." [/background]
  • [background=transparent]"Our goal has been to first get the support of the unions, then the full unsecured creditors' committee, after which point we would look forward to a cooperative and consensual process with AMR's board and management team." [/background]
  • [background=transparent]"Now on Friday, we took a big step in that direction, when we disclosed that we'd reached agreement with each of the Allied Pilots Association, the Association of Professional Flight Attendants and the Transport Workers Union. These 3 unions that represent over 50,000 AMR employees, and they also issued a joint statement on Friday in support of a potential merger. So we are extremely grateful for their support. And we share their desire and enthusiasm to work together to build a truly great airline." [/background]
  • [background=transparent]"And we're highly confident that the value created by our two companies is very large, relative to the value of a standalone AMR." [/background]
[background=transparent]US Airways President Scott Kirby:[/background]
  • [background=transparent]"There's a tremendous amount of value created by merging US Airways and AMR, and we can and should use the portion of that to give employees more than AMR can on a standalone basis. It's premature to get into all the details about the source of synergies or the mechanics of any potential transaction, but I think that we can help on this point about the synergies." [/background]
  • [background=transparent]"I think every airline analyst and probably everyone listening to this call appreciates that a merger of US Airways and American Airlines would create enormous revenue synergies. Like United Continental, Delta-Northwest, US Airways AMR would have a network that could generate much more revenue than the two airlines can independently. [/background]
  • [background=transparent]"We agree with all 3 unions that the merged American needs to have contracts that have neither a competitive advantage nor disadvantage to Delta and United. This merger creates an airline that can compete effectively against United and Delta. Since the new American will have revenue-generating capabilities like United and Delta, it should also have labor costs like United and Delta." [/background]
  • [background=transparent]"So the synergies created by our merger allow us to set the pay of US Airways and AMR employees, comparable to the pay at United and Delta. The result is better contracts than American can pay independently and much better than they are attempting to impose on their employees to the 1113 prices." [/background]
  • [background=transparent]"The union leadership and employees of AMR have shown great leadership in getting us to this point. Importantly, they recognized early on that the goal is to build a company that could succeed, compete and restore American to its rightful place as a preeminent airline in the country. They recognize that labor cost is needed to be competitive to make that vision a reality, but we also recognize that it wasn't necessary to go beyond industry standard." [/background]
  • [background=transparent]"We worked together as partners with APA, APFA and the TWU to forge a merger that will restore American to its preeminent position in the industry, do so with a competitive cost structure and with a route network that's built to compete and win." [/background]
[background=transparent]Click here to review the entire commentary.[/background]
 
USAPA Negotiating Committee Update: May 4, 2012

The Negotiating Advisory Committee, accompanied by Business Intelligence Committee Chairman John Owens, met in Dallas on Wednesday (May 3) of this week to discuss the status of negotiations. We thank the Allied Pilots Association (APA) for their hospitality and we are very satisfied with the outcome of our meeting. The purpose of our discussions was to obtain answers to many questions we had concerning the agreement APA has reached with US Airways Management, as well as to discuss the process moving forward.

While many of the aspects of the Conditional Labor Agreement will ultimately end up in the final contract (if the merger is completed), it is our intention to incorporate provisions contained in the current East and West agreements that would benefit all 'New American Airlines' pilots. We are committed to obtaining the best contract possible, understanding however, that many of the major issues outlined in the Conditional Labor Agreement and Plan of Reorganization are, in all probability, going to remain unaltered. With this in mind, we intend to concentrate on a "short list" of issues such as Scope, work rules, and quality of life that are most important to US Airways pilots.

We will be joining the APA Negotiating Committee next week as equal partners at the negotiating table, as this combined team has further discussions with US Airways Management. We will have a better idea of where this process will lead after those meetings.

Thank you for your support.
 
APFA Hotline: May 4, 2012

Dear Fellow Flight Attendants,

In 1947, the Air Line Stewards and Stewardesses Association was certified as the first bargaining representative for the AA Flight Attendants. Back then, a flight attendant earned $110 a month and flew an average of 115 hours.

Here we are, sixty-five years later, and the Association of Professional Flight Attendants stands tall as the largest independent aviation union in the nation representing the 17,000 US-based men and women of American Airlines. We have weathered many storms including the challenges of B-Scale, furloughs and our historic Strike in '93, as well as the tragedy of 9/11, among them. Our unity is what makes us strong, and when faced with an unprecedented challenge, we always find a way to prevail.

Today, we face a challenge without precedent in our long history. Under the auspices of bankruptcy protection, our employer is attempting to erase 65 years of collective bargaining in a few months time.

Even prior to appearing in bankruptcy court, my team and I were left with little doubt that a deal was not possible with AA's negotiating team; they refused to move off their ask. Rearrange the furniture? Yes, they'll consider it. But real bargaining: not a chance. Even before the most preliminary court hearings, several of us witnessed first-hand exactly what management was trying to do. And now, you've seen it too.

Management's power grab of our contractually bargained pay, work rules and benefits have ramped up considerably over the past two weeks. Using the 1113 process, our company is trying to dismantle everything we have worked so hard to build. They believe that they have the bankruptcy system gamed in such a way that they can get whatever concessions they want from the workforce. And by now, we are all very familiar with their demands.

In addition to gutting our contract, slashing our pay and terminating our benefits, management is also keen on preventing any sort of consolidation. As we have read in the media for weeks, a handful of American’s executives are the only people in the industry delusional enough to believe that this airline can emerge from bankruptcy and thrive as a standalone company. A merger with US Airways is not only the most viable plan for American Airlines, it is the only viable plan. Combining our two companies will not only save jobs, salaries and benefits, but strengthen our industry, provide an attractive option to passengers and return American Airlines to a position of prominence.

US Airways senior management team, along with nearly every single airline analyst, understand the problems at American are systemic. Consolidation is necessary for AA and US Airways to expect to compete with the network carriers. Our company has serious issues, but its workforce is not one.

The improved network and the synergies provided by a merger between US Airways and American will provide savings and new revenue to help turn this company around. It will allow us all to move forward with fresh team of executives with a viable business plan and a commitment to fair dealing. We have all seen enough of American’s way of doing business. It is time for a wholesale change.

Please join me in supporting the proposed merger with US Airways and submitting a vote of “no confidence” in the American Airlines business plan by clicking here. You must already be logged into apfa.org to be taken directly to the petition. If you are not logged in, please do so then click the petition link again to sign your name.
In Unity,

glading.jpg

Laura Glading
APFA President
 
APA Negotiating Update: May 4, 2012

On Monday of this week, APA President Captain Dave Bates and I traveled to Charlotte, North Carolina to meet with the leadership of the US Airline Pilots Association (USAPA). The purpose of our trip was to go over the agreement we have made with US Airways management and the process we see ahead for all parties. We were given approximately an hour and a half to answer questions from their Board of Directors and the approximately 50 USAPA pilots in attendance. On Wednesday, the USAPA Negotiating Committee traveled to APA Headquarters to meet with our committee and to go over the vast array of contractual issues that will need to be worked out in the months ahead. Both meetings were very cordial and productive and we feel confident that we are off to a good start and can build a positive working relationship with the USAPA leadership.

Preparations continue for the court hearings that start on May 14. At that time APA will present our case to dismiss management’s motion to reject our collective bargaining agreement. We are very encouraged by the strong turnout of the APA membership in signing the petition expressing no-confidence in AMR management. The vast majority of our pilots have signed the petition and we encourage you to ask the pilots you fly with to also sign, if they haven't done so already. To sign the petition, click here.

Next week we will be meeting with the APA Board of Directors and negotiations continue with the management of US Airways. AMR management has reached out and expressed their interest in resuming negotiations. As of this update, a meeting date with AMR has not been established.

FO Neil Roghair
Chairman, Negotiating Committee
 
Internet Report Regarding Former AA CEO Bob Crandall: May 2, 2012

From an AA buddy of mine within the week.

I just had Bob Crandall on board (flt 1095, ORD-PBI) he came up to the cockpit for about 10 minutes to talk about AA and the current situation.

Here's a synopsis.

- AA should have gone thru BK in 2003.
- The plan Horton has for growth at the cornerstones will not work.
- AA needs to merge with USAir (preferably while in BK) to get the hubs in PHL
CLT and PHX. With these added routes we can compete with DL and UA. Absent
this added capacity he sounded doubtful about AA's future.
- He said AA has retrenched and given up competing. He said the old AA would
'f'ing crush you if you tried to enter one of out hubs'. He used Boston as
an example of AA's inability to compete.
- He said that AMR should 'send all the embraer jets back to Brazil'.
- Said that there has to be changes in management at AA.
- Was obvious he has no confidence in Horton and the rest of upper management
at AA.
 
Wow. Who let Uncle Bob out of the home for the day? Let's take a bit of a critical look at these points, shall we?

- AA could have gone through bankruptcy in 2003, but then employees would have lost a decade of higher wages, pension earnings and other retirement benefits. There was not much harm in trying to stay out of Chapter 11.
- Any specific reason why cornerstone (aka hub and spoke) won't work? United may not call it "cornerstone" but what do you think ORD, IAH, EWR, LAX and SFO represent?
- US Airways' three hubs have way too much overlap with existing AA markets. There would be a bloodbath in terms of frequency reductions and layoffs. Mereger "synergies" at their finest.
- This isn't the 80s. AA can't crush low cost competitors. It tried in the 2000s to hammer JetBlue LGB-JFK and it got its rear end handed to it, while people like me enjoyed $250 transcons.
- Not all markets are great for RJs, but some are. Would it be better to simply not serve those markets and forgo connecting traffic to feed the hubs?
- There have been huge changes in AA's management just in the last six months. I think what Uncle Bob means is that he wants to come out of retirement.
 
You must log in or register to reply here.

Similar threads

U
US Airways announced that it had reached agreements for collective bargaining agreements
2 3 4
Replies
49
Views
11K
mike33
mike33
U
US Airways Has AA Labor Backing for AMR Takeover: Sources
9 10 11
Replies
154
Views
33K
BoeingBoy
BoeingBoy
U
US Airways Shares Slip Despite Merger Chance, Strong Demand
5 6 7
Replies
92
Views
17K
AAviator
A
U
  • Locked
US Airways Has Labor Backing for AMR Takeover: Sources
Replies
0
Views
901
USA320Pilot
U
U
American-US Air Merger Would Bolster The Industry
2 3
Replies
42
Views
9K
Maark767
M

Latest posts

Back
Top