Us Air To Reduce Iam-fsa Positions

[vc10]

No one will give this company DIP funds, if they go into bankruptcy they will never emerge.

You can do Ch 11 without a DIP---you just need to have sufficient cash going in. Which means an earlier entry than if you have access to a DIP.

 

[700UW]

US does not have the cash on their own to go into Ch 11.

 

[delldude]

Separately, as PITBull indicated, the AFA MEC elected to enter into negotiations with the company because union leaders believe that will be necessary to protect its members.

yeah and she also said the pension threat was a bunch of malarkey from U that AFA'S actuaries proved. GOOD FAITH BARGAINING,EH?

CLUEBYFOUR comments:
Are you aware of the distinct requirements necessary for a 1113 abrogation?

Several things standout: even when/while the company seeks abrogation of a contract, the contract remains in place.

Moreover, several things have to happen, notably US must make a proposal to the IAM, the modification must be necessary to permit reorganization, and The debtor must have negotiated with the union concerning the proposal in good faith.

US will not find a judge who will find that the latter occurred if they do as you suggest. The IAM is not foolish--if the union's actuaries and leadership have provided US cost saving opportunities that US does not implement, they are setting the groundwork to prevent the "must be necessary to reorganize" test from being an issue.

Moreover, unlike the pilots at Eastern and Continental who crossed the picket lines, it's highly unlikely that enough licensed A&Ps will do so, simply because there is other work available at similar payrates (what US would want mechanics to take, anyway) for mechanics, whereas 6 figure jobs in the flightdeck business are much, much harder to come by.

Oh, and US will need DIP financing in Chapter 11. The inability to hedge fuel and purchase anything on credit will quickly drain unrestricted cash below the ATSB thresholds (which really don't allow for a Chapter 11 filing in any case). Major vendors and suppliers to US are already starting to require "Net 0" payment terms as a result of CCY's rhetoric.

Finally, US will lose any meaningful access to capital and credit markets after another Chapter 11 filing. This will make any new equipment purchases all but impossible, a point that responsible union leadership will point out to it's members (since any growth in the latest "plan" is predicated upon it).

LOOKS LIKE HE KNOWS THE GAME 320 ...
sounds like a winner to me....thanks clue...

 

[AP Tech]

This is why I have given up on the naysayers (Delldude,700UW,Cavalier,AP Tech and Pitguy).

Sorry but I thought I was permitted to voice an opinion or two.....I open my eyes and see reality!!! Maybe I will become a passive reader and no longer post!

Anyway judging some of the replies to the original I believe alcohol was involved judging by some of the ramblings!!!!!!!!!

 

[N513AU]

It's time to shut 'er down boys..... Make sure that we take big a$$ cleaning delays, that the planes are filthy and that lavs are backing up and smelling really sweet. Lay us off - DELETED BY MODERATOR

 

[RowUnderDCA]

POST DELETED BY MODERATOR

 

[SpinDoc]

A huge part of the current labor woes is you coming on here being an arrogant moron and insulting and inflaming the troops. It serves no valid business purpose so why do you do it?

Bob:

First of all, I am not a senior manager at US
and would not want that kind of attention or
authority.

Secondly, I can't see how my posts on this
board can affect all of the union members in
the company. Heck, there are only about
5 union posters who are regularly on these
forums and their credibility is basically
zero.

It is my objective to respond to people on this
board who are constantly spreading negativity
and less than truthful information about the state
of the company. As USA320Pilot and countless
others have tried to point out to the union
naysayers, the company is in significant financial
trouble and certain things need to happen to fix
that. Regardless of the opinions of these union
posters, the cuts will happen ir the doors of the
company will close.

Before he left the company, Dave Seigel
advised the employees that they are free
to seek employment elsewhere if they
disagree with the direction the company
is going. Obviously, our negative union
posters don't have the Knutts to quit,
instead, they insist on spouting negativity
and threaten to shut the company down
on a daiy basis.

That ticks me off because some people
actually want to stay around and try to fix
this thing, and when I get ticked off, I
bite back in my posts.

 

[700UW]

You don't fix a company by violating union contracts agreed to by the company.

You don't fix a company out of the wallets of the employees, history has shown it never works.

You don't fix a company by declaring war on your employees.

You don't fix a company by offering horrible service to your customers.

You don't fix a company by lying, cheating and stealing from your employees.
Do I need to go on?

 

[OldGuyinPA]

I'm glad I don't work here....


They ought to shut the doors. Management is inept. The company is on a downward spiral of whch there is no escape. Way to go...I'm sure glad they spent all that money to keep such talent around......

 

[diogenes]

Any labor group that does not participate in the new business plan and does not obtain a S.1113/S.1114 letter will likely get whacked, which is why PITBull said the AFA elected to enter into formal negotiations with the company. Apparently the AFA understands that the plan will go forward "with or without employees" and that's why they are trying to protect their jobs with the best possible deal going forward.

My memory of the value of S1113 letters differ. Employees were told, "get an S1113 letter, and the Company won't ask for any more concessions." So all unions got one, and WHILE U were STILL in BK, they asked for MORE concessions.

When the membership asked their union, including the esteemed Ms Levine, WTF?, the answer was the S1113 letter applied to the original BK plan, and as conditions had deteriorated (even before U exited BK!), the S1113 letters DID NOT APPLY to the revised BK plan.

My advise - put any S1113 letter in a glass case next to the loo - it could come in handy! :angry:

 

[delldude]

SpinDoc understands what is needed to survive. You can lead a horse to water but can't make them drink. This is why I have given up on the naysayers (Delldude,700UW,Cavalier,AP Tech and Pitguy). I have faith in this management team and the silent majority that will assist the company with the required concessions. It is imperative that the silent majority (IAM) members advise their local leaders that now is the time to bargain with the company.

I still have faith that Pitbull will see the light. I look forward to reading your novel. :unsure: There is a growing movement within the AFA to do whatever is needed to survive. We have the best frontline employees in the industry and everyone wants to keep their jobs.

This is why I have given up on the naysayers (Delldude,700UW,Cavalier,AP Tech and Pitguy).

yegads old friend...what of the supervisor position you coached me on??is this the end,my friend?

I have faith in this management team and the silent majority that will assist the company with the required concessions.

hey birdman,you got 2 votes the last time.....the second voters are on furlough...now its the die-hard old smacks who have had enough of your contract booga booga.

It is imperative that the silent majority (IAM) members advise their local leaders that now is the time to bargain with the company.

you better contact jerry falwell,i think he can help you here

I still have faith that Pitbull will see the light. I look forward to reading your novel

pitbull doesn't write novels birdman...only non-fiction

We have the best frontline employees in the industry and everyone wants to keep their jobs.

yes birdman...those include IAM mech and related whose contracts have to be tested in court and whose members will and shall put a stop to you and yours

 

[hubbleguy]

USA320 guy, I take exception to your post on the first page of this thread. I work at a LCC and I think it was low of you to make that statement. We all have families to support and working here at JBLU is how I do it.

I used to work for PanAm and I worked at U several years ago, so I know what the deal is.

Next time you may want to think before you post, and I agree with others, enough of your rants about the IAM, give it a rest.

 

[USA320Pilot]

700UW:

700UW said: "US does not have the cash on their own to go into Ch 11."

USA320Pilot comments: US Airways Group's cash position on June 30, 2002, was $602 million while the company's operating cash flow was a negative $1 million per day during the second quarter (See Story). The company filed for bankruptcy protection on August 11, 2002 with a cash balance of about $500 million.

When the company announced the filing they also announced a debtor-in-possession (DIP) financing agreement for $500 million led by Credit Suisse First Boston and Bank of America (See Story).

That provided US Airways, a larger company than today, with about $1 billion in cash.

Yesterday, US Airways reported it ended the second quarter with total restricted and unrestricted cash, cash equivalents and short-term investments of approximately $1.73 billion, including $975 million in unrestricted cash, cash equivalents and short-term investments. US Airways began the quarter with an unrestricted cash balance of $978 million, so the company’s available cash balance remained steady during the second quarter.

USA320Pilot concludes: US Airways currently has the funds available to file for a pre-packaged bankruptcy that would not require DIP financing to restructure. The company does not want to seek this route, but if necessary, management is working on a plan to keep the current security in place and work with the key stakeholders to restructure.

In particular, the ATSB, GECAS, Embraer, Bombardier, and Airbus apparently have agreed to work with the airline.

The cost reduction targets would be any labor union who does not have a new collective bargaining agreement and facility/aircraft lessors.

As I have said before, the company has once again hired the Seabury Group and FTI Consulting to work with it through the next filing and bankruptcy specialists from the law firm of Arnold and Porter.

In regard to the financiers, who are beginning to turn up the heat on labor, according to Aviation Daily, "The airline was able to buy itself a little bit of time with regard to its planned RJ deliveries thanks to new “interim†agreements with GE, Embraer and Bombardier. Last month, it received a tentative green light from the companies to continue taking deliveries of the new RJs following a May credit downgrade. The companies will now provide RJ financing through Sept. 30."

“Stop dragging your feet or hoping that Chapter 11 will help you,†Bruce Lakefield said. “It certainly will not.†If the airline fails to win ratified concession deals well before Sept. 30, the company faces a “series of consequences†with the Air Transportation Stabilization Board and its other financial partners. “Rather than risk those consequences,†which could destabilize the airline’s finances and hurt employees, the company may have to make another trip to bankruptcy court, Aviation Daily reported.

In conclusion, US Airways does have the cash-on-hand to file for bankruptcy, it has hired the advisors to work on this alternative, and the financiers and federal government now appear to be on-board with the plan.

Respectfully,

USA320Pilot

 

[USA320Pilot]

Hubbleguy:

Hubbleguy said: "USA320 guy, I take exception to your post on the first page of this thread. I work at a LCC and I think it was low of you to make that statement. We all have families to support and working here at JBLU is how I do it. I used to work for PanAm and I worked at U several years ago, so I know what the deal is. Next time you may want to think before you post, and I agree with others, enough of your rants about the IAM, give it a rest."

USA320Pilot comments: Hubbleguy, one of the major issues in the industry restructuring is the pay and benefits of the LCC and RJ employees in comparison to the network carriers. I want to see everybody improve their standard of living and I do not fault anybody from taking the best job available, but the fact is US Airways is asking its employees to accept pay and benefit cuts to America West levels.

These pay rates and benefits are higher than JetBlue, but LCCs and their employees have set the new standard, good, bad, or indifferent.

Do I like any of this? No, of course not, but it's the reality of the marketplace.

Respectfully,

USA320Pilot

 

[Atlantic]

Everyone can be replaced.
Any craft throws up a line at this point and time is going to get creamed.
Remember the MLB umps that thought they had the upper hand? 20 fat guys walked the plank, and 20 new fat guys were hired.
MY money is with the CO. with any job action. Just look at the average age. That should tell you something.