Us Airways Details Network Plans

[USA320Pilot]

US Airways Details Network Plans

Complete Story

Regards,

USA320Pilot

 

[USA320Pilot]

Business Travel News said, "Of course, a primary element of the carrier's restructuring is lower labor costs to be negotiated with employee union leadership. There is mounting speculation that US Airways' newest efforts to transform into a more competitive, lower-cost airline and regain financial footing won't progress quickly enough to prevent a fresh bankruptcy filing. The company emerged from Chapter 11 protection nearly 14 months ago."

USA320Pilot comments: Here is another independent source confirming what I have said before on this website. If US Airways is unable to quickly reach new labor accords along the lines of America West's contracts, with all labor groups, then the company will enter into a pre-packaged bankruptcy.

There are now multiple reports the company has hired financial, business, and legal advisors; as well as arranging another DIP financing package, to conduct a rapid formal reorganization that will primarily target labor. Other targets will be municipal bond holders (except the ACAA), EETC, and debt holders. Furthermore, this reorganization could include a corporate transaction, although at this time it’s uncertain who will be the surviving business enterprise.

Finally, I can tell you this, two of the key objectives for ALPA in the current negotiations is to get improved fragmentation language, which is now the best in the industry, and S.1113 motion protection.

Respectfully,

USA320Pilot

 

[Pacemaker]

USA320PILOT,

I believe ALPA will ratify an AW-type contract with an attached 1113 letter. However, I also feel the CWA/AFA & IAM will refrain from negotiations, thus the company will enter bankruptcy with 3 of the 4 major union groups as non-particpiants. Assuming the BK judge agrees to impose new work rules and pay on the 3 unions, that leaves them free to seek self-help. My point - how difficult will it be to obtain DIP finanacing with 75% of the work groups threatening a strike, or a work slowdown?

 

[USAirBoyA330]

USA320Pilot:

I mean come on....really...lets cut the silliness. You and I know full well they are going to file CH11 no matter what we do. They are going to wait until the last minute and then set a deadline and POOF.......same old story.....sign this or we will LIQUIDATE. Like they did the last time.....they are going to file CH11 right after AFA/ALPA...ect sign the dotted line. The ink won't even be dry...just like the last time.
I don't think threats will work this time. I am not disagreeing with what your saying and how things will play out...I am just saying the company will file CH11 regardless of what labor does.

 

[robbedagain]

how will those already affected in the mainline express cities be if the company does re-enter a prepackaged ch.11? there is absolutely no way in heck that they can take anymore from those of us in the expressed mainline cities as we went from 22 or 23 down to 13 an hr while the rest of the commuter affilates are at 15 to 17 an hr.

 

[Tim Nelson]

USA320PILOT,

I believe ALPA will ratify an AW-type contract with an attached 1113 letter. However, I also feel the CWA/AFA & IAM will refrain from negotiations, thus the company will enter bankruptcy with 3 of the 4 major union groups as non-particpiants. Assuming the BK judge agrees to impose new work rules and pay on the 3 unions, that leaves them free to seek self-help. My point - how difficult will it be to obtain DIP finanacing with 75% of the work groups threatening a strike, or a work slowdown?

Pacemaker, you hit the nail right on the head. Without signed agreements, financing is a 'moot' point. I do not believe USA320Pilot has accepted that truth yet. Financing is the blood and without it everyone suffers [including the pilots with a 1113 letter] whether we believe it or not. Difficult situation indeed.

Consider US AIRWAYS DIP financing of the last bankruptcy, under the headlines, "US Air's Chief Lender Threatens the Ultimate"
Dr. Bronner said, "without concessions, we'll pull the D.I.P. financing and they're gone."

At any rate, it appears to me that around 90% of IAM members aren't interested in what is being said. It doesn't mean they are angry, it just means that they just aren't connecting to what is being preached.

As a side, I do believe your management can be creative with results but it would require a different approach and an assumption that management actually wants to stay out of Bankruptcy court.

regards,

 

[oldiebutgoody]

The BIG concern for RSA should be that if they go chapter 11 again, anything can happen. Even IF (yes, a BIG if) they prepackage it and have a DIP package arranged, RSA could, and very likely would, lose control of this airline. At that point the shoe would be on the other foot, and TPG or whomever winds up the DIP financier could pull the same shenanigans on the RSA and their leases and other investments as the RSA is planning to do to others. I believe that the only reason for RSA to seriously consider another bk would be for liquidation. With oil prices finally looking like they may go down, and more travellers than ever, this would be very short sighted indeed. Now, I also think that a chapter 11 ala TWA might happen, where rather than a DIP financer the company is sold or fragmented into one or more other companies.

 

[diogenes]

Finally, I can tell you this, two of the key objectives for ALPA in the current negotiations is to get improved fragmentation language, which is now the best in the industry, and S.1113 motion protection.

Respectfully,

USA320Pilot

Yes, the 1113 letters were so useful during the last BK.

I put my copy in a glass case beside the loo, with a small hammer chained to the case.

 

[diogenes]

There are now multiple reports the company has hired financial, business, and legal advisors; as well as arranging another DIP financing package, to conduct a rapid formal reorganization that will primarily target labor. Other targets will be municipal bond holders (except the ACAA), EETC, and debt holders. Furthermore, this reorganization could include a corporate transaction, although at this time it’s uncertain who will be the surviving business enterprise.

The above is;

A. Deja Vue

B. A cut and paste from an article posted 18 months ago.

C. A scene from Groundhog Day.

 

[ClueByFour]

USA320Pilot comments: Here is another independent source confirming what I have said before on this website. If US Airways is unable to quickly reach new labor accords along the lines of America West's contracts, with all labor groups, then the company will enter into a pre-packaged bankruptcy.

Bolding is mine.

Business Travel News said, "Of course, a primary element of the carrier's restructuring is lower labor costs to be negotiated with employee union leadership. There is mounting speculation that US Airways' newest efforts to transform into a more competitive, lower-cost airline and regain financial footing won't progress quickly enough to prevent a fresh bankruptcy filing. The company emerged from Chapter 11 protection nearly 14 months ago."

Well, we heard the first speculation here, I guess. If I had a dime for each speculation on this website that was incorrect, I would not have to fly US anymore, as I'd be tooling about in my own G-V. (I'm not even going to mention how well the last "pre-packaged" bankruptcy went)

There are now multiple reports the company has hired financial, business, and legal advisors; as well as arranging another DIP financing package, to conduct a rapid formal reorganization that will primarily target labor. Other targets will be municipal bond holders (except the ACAA), EETC, and debt holders. Furthermore, this reorganization could include a corporate transaction, although at this time it’s uncertain who will be the surviving business enterprise.

Where are the reports of a DIP financing package? Where are the reports about EETC and debt holders?

But let's examine this: Airbus can place 320 series aircraft now, GE can certainly place "big" RJ/SJ delivery positions, and US can't afford to screw with any more airports, since there are none left to kick around that US can afford to lose.

Finally, I can tell you this, two of the key objectives for ALPA in the current negotiations is to get improved fragmentation language, which is now the best in the industry, and S.1113 motion protection.

That's pretty funny--is that the same ALPA that had a key objective of keeping the defined benefit pension the last go-around?

 

[SpinDoc]

USA320PILOT,

I believe ALPA will ratify an AW-type contract with an attached 1113 letter. However, I also feel the CWA/AFA & IAM will refrain from negotiations, thus the company will enter bankruptcy with 3 of the 4 major union groups as non-particpiants. Assuming the BK judge agrees to impose new work rules and pay on the 3 unions, that leaves them free to seek self-help. My point - how difficult will it be to obtain DIP finanacing with 75% of the work groups threatening a strike, or a work slowdown?

You've got to be kidding, right? Self help is
not an option with the union rank and file.
The vast majority of them are living paycheck
to paycheck and will lose their homes, cars,
and possibly families over simple contract
changes that will be imposed by a judge. I find
it hard to believe that anyone would give
credence to union posters who continue to
preach the "full pay to the last day" bull
fertilizer. It amazes me how gullible most
folks are on these boards.

 

[ELP_WN_Psgr]

I will think that the USAirways pilots are truly concerned about the welfare of their company and their fellow employees when they sign up to fly the "big rigs" (anything 737 or larger) at the wages Mesa pays its folks to fly RJs.

Remember the motto amongst the pilots: "There is no "I" in T-E-A-M, but there is an "M" and an "E".

 

[ClueByFour]

edited

 

[TheWatcher]

You've got to be kidding, right? Self help is
not an option with the union rank and file.
The vast majority of them are living paycheck
to paycheck and will lose their homes, cars,
and possibly families over simple contract
changes that will be imposed by a judge. I find
it hard to believe that anyone would give
credence to union posters who continue to
preach the "full pay to the last day" bull
fertilizer. It amazes me how gullible most
folks are on these boards.

Sounds to me like the union members are fighting a war that i liken to the old "Cold War" that i fought in the US military. I think the people have had enough and are willing to lose all in battle whether than be forced into submission. Same attitudes that old guys like myself had during the cold war years that has enabled both you, I and others to remain free and post on these chat boards. I may not agree with your attitude of submission, but i will fight to death to defend your right to believe in what you preach. B)

 

[PITbull]

USA320PILOT,

I believe ALPA will ratify an AW-type contract with an attached 1113 letter. However, I also feel the CWA/AFA & IAM will refrain from negotiations, thus the company will enter bankruptcy with 3 of the 4 major union groups as non-particpiants. Assuming the BK judge agrees to impose new work rules and pay on the 3 unions, that leaves them free to seek self-help. My point - how difficult will it be to obtain DIP finanacing with 75% of the work groups threatening a strike, or a work slowdown?

Pacemaker,

Do you have even a little inclination of BK law? The judge does not impose workrule changes and wages. After a 1113 filing, unions and mangement have an oportunity to, once again negotiate in good faith. Their are 9 issues that a judge considers before consideration of abrogation.

If abrogation would occur, then the labor groups can accept the companies contract for labor or be released to "self help". If labor is released to "self help", which I suspect at least 1 or 2 groups would strike...

Its over for Dr. Bonehead, his investment, Senior management's huge payroll, and the employees. Game over.