US Airways Has AA Labor Backing for AMR Takeover: Sources

[WorldTraveler]

who ever said that labor was the only impediment to a restructuring? if it was, then labor would have had all of the seats on the creditors committee. Since there are other creditors, then there are not only other obstacles but other interests which will come into consideration.
Spin comes from Parker who somehow thought that he just needed to get labor onboard - a lesson he learned from DL. Problem is he still has to come up w/ a viable turnaround plan too.

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And no there is no evidence that the entire creditors committee is impressed w/ US' plan and is ready to pull the plug on AMR's.... it just hasn't happened.
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AMR's plan right now is to retain the pensions so the PBGC will be a much smaller creditor anyway

 

[USA320Pilot]

AMR Unions Said Prepared to Back US Airways Takeover Offer

The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. exits bankruptcy by itself

Click here to read the story.


US Airways stock trading up more than 10% to $9.20 per share

Click here to read the story.

 

[TWU informer]

who ever said that labor was the only impediment to a restructuring? if it was, then labor would have had all of the seats on the creditors committee. Since there are other creditors, then there are not only other obstacles but other interests which will come into consideration.
Spin comes from Parker who somehow thought that he just needed to get labor onboard - a lesson he learned from DL. Problem is he still has to come up w/ a viable turnaround plan too.

.
And no there is no evidence that the entire creditors committee is impressed w/ US' plan and is ready to pull the plug on AMR's.... it just hasn't happened.
.
AMR's plan right now is to retain the pensions so the PBGC will be a much smaller creditor anyway

AMR's plan right now is to obtain a very large cost advantage over the competition.
Parading the promise of Profit Sharing Checks as a great alternative to guaranteed pay.
The prevailing management thinking is that this allows the strong to eliminate the competition.

However, between Bankruptcy Laws and Corporate Welfare from City, State, Federal Governments, everyone survives and the race to the bottom continues. The only losers are the middle class workers of Airline Industry. The competition will simply either get voluntary concession match from their employees, or execute the Laws that will allow them to take them anyway,

And each night, we hear current Presidential Candidates promising jobs and a better future. Yet, the Lawmakers are the masters of the plan that is the destruction of a once proud and well paid job provider.

It is a Merry-Go-Round of fantasy entriched idiots using their minds to destroy humanity.

What's even worse, is those that actually defend this as good.

 

[EastCheats]

Of course it will, and same for everyone else. More cuts are coming if we link up with this fool. No way we keep even what AA is offering because US will have to be brought up into the fold, especially if there will be any unity and harmony. And we all know Doug Parker's track record on that. He would rather have the animosity because they equal cost savings. We've had enough of that on our end, and our end is pretty mild compared to east vs. west. No thanks!

My thoughts exactly. Consolidation has a downside which results in cuts. Parker will sit back, watch the chaos and reap the benefits of another un-merger. Be prepared for a compounding of problems. American has it's own problems obviously LCC is in the midst of a civil war. You add these together and I see a toxic mix.

If you think that a merger with the Titanic is the answer, think again. We are short of lifeboats already and the ship is sitting on the the ocean floor. It's going to result in another shipwreck and Capt Parker willl be in the remaining lifeboat paddling away.

 

[TWU informer]

My thoughts exactly. Consolidation has a downside which results in cuts. Parker will sit back, watch the chaos and reap the benefits of another un-merger. Be prepared for a compounding of problems. American has it's own problems obviously LCC is in the midst of a civil war. You add these together and I see a toxic mix.

If you think that a merger with the Titanic is the answer, think again. We are short of lifeboats already and the ship is sitting on the the ocean floor. It's going to result in another shipwreck and Capt Parker willl be in the remaining lifeboat paddling away.

I am so much interested in your alternative plan, I am about to bust my bladder awating to hear it.

 

[EastCheats]

I am so much interested in your alternative plan, I am about to bust my bladder awating to hear it.

Stand alone....Pretty simple concept, isn't it?

How about yours? A bailout? The only bailout you will get from Parker is a can and an expectation for you to do the bailing.

 

[BoeingBoy]

PBGC could also be a big player, if they can somehow structure a deal to save the pensions then the Gov't is likely to be on board as for as any merger approval.

If the DB plans aren't terminated, the PBGC will have no claim and thus no influence.

What everyone either forgets or doesn't know is that a vote of the UCC is the first step. If the UCC votes in favor of a POR (5 or the 9 members) then the POR goes to the unsecured creditors where the outcome is determined by size of claims - if a majority of the dollar value of unsecured claims is voted in favor of the POR, it passes. Otherwise, it fails to pass. Secured creditors are automatically votes in favor of any POR while stockholders are automatically no votes for any POR. What is unknown is how much value the union and PBGC unsecured claims will have. It may be that the PBGC has no claim and the unions have small claims, in which case they would carry little power to affect the vote outcome.

Jim

 

[TWU informer]

Stand alone....Pretty simple concept, isn't it?

How about yours? A bailout? The only bailout you will get from Parker is a can and an expectation for you to do the bailing.

Stand alone, giving concessions to a Management Team that has been given concessions time and time again and yet we are still here and now in C11.

Great idea!
Far from original, but great idea.

 

[wings396]

My thoughts exactly. Consolidation has a downside which results in cuts. Parker will sit back, watch the chaos and reap the benefits of another un-merger. Be prepared for a compounding of problems. American has it's own problems obviously LCC is in the midst of a civil war. You add these together and I see a toxic mix.

If you think that a merger with the Titanic is the answer, think again. We are short of lifeboats already and the ship is sitting on the the ocean floor. It's going to result in another shipwreck and Capt Parker willl be in the remaining lifeboat paddling away.

The pilot group are the ones that could be viewed as toxic. Don't attempt to pull everyone else down with your issues.

 

[texflyer]

I bet Parker offers same wage or pay scales but work rule changes. While AA wanted wage cuts and work rule changes. In other words 14K AA workers will still be leaving the company and US employees get a nice pay raise. If given that choice,the three unions really have no choice but back Parker's horse.............We will soon see if this story is legit.

 

[UPNAWAY]

The toxic issue is really and East Pilot issues and it goes away with any merger.

 

[WorldTraveler]

text,
AA is not proposing wage cuts other than perhaps as revisions to freeze rather than terminate the pensions.
Labor is supporting a potential takeover in an attempt to avoid the huge number of cuts... it is highly doubtful they will be as supportive if AA continues w/ the layoffs - which is likely because the 1113 process and exclusivity are still moving forward.

Informer,
labor could indeed decide to take the EA path - but I'm not sure even labor believed what was coming... UA's pilots didn't years later. AA's labor groups are out to get the best deal- right now they think that comes by supporting a merger - but if they knew what cuts had to be made to make AA/US work, they wouldn't back that plan either. Problem is that Parker doesn't have to be truthful about his plans - and labor will fall for whatever plan they think will work, esp. if it means minimizing the impact of the cuts - which in this case means the loss of about 11K dues paying members. No one should take their eyes off of labor's goal.
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Actually, according to AMR's 1113 documents, they are proposing a CASM almost identical to DL - and about 1 cent better than UA. Given that AA and UA have traditionally played ping pong - one is doing well, one is struggling, and then switch roles- that is enough for AA to survive. And keep in mind that UA's costs will rise even further as it seeks labor peace as part of merger integration - or it will play the same game Parker is now playing and play one group against the other.
Either way, if AA gets costs on par with DL - who has a pretty good track record of staying at the lower end of the network carrier CASM - AA will be able to compete since DL won't be doing any better and UA will be above.
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It would seem likely that the pilot pension funds will be terminated based on the same lump sum provisions that existed in the DL pilot pension plan. The PBGC and the pilots group gained about $2B worth of claims in equity against the reorganized DL. It wouldn't be surprising if a similar amount occurs ofr AA's pilots. If AMR retains the rest of its pensions, as DL did, they will probably need $500M or more in additional funding in order to come up w/ a plan. So far, it isn't clear where that money will come from. Taking on more debt is not likely going to be the answer since AMR has already said its aircraft replacement plan will generate expenditures far larger than its other network carrier peers.

 

[EastCheats]

The pilot group are the ones that could be viewed as toxic. Don't attempt to pull everyone else down with your issues.

I view your previous anti-pilot posts as toxic, pal. How about you leave the hall monitor duties to the mods...

 

[zflygrl]

US Airways Has AA Labor Backing for AMR Takeover: Sources

US Airways has been successfully gathering union support for its effort to merge with bankrupt AMR, and could unveil a union-backed bid as early as next week.

The carrier's executives have also been presenting their case on Capitol Hill, "making promises to reverse job reductions at American," said a person who was informed of those discussions.

*******I HOPE THE AA UNIONS ARE SMART ENOUGH TO GET ALL PROMISES MADE BY US AIRWAYS IN WRITING*********
Or else they will know what it is like to be impaled.....

 

[signals]

AA has announced that there will be over 14000 layoffs of both union and non union workforce. US claims can reduce that amount. Doesn't say by how many and it doesn't say how much employees will need to pay cut.

Is outsourcing a possibility? Because technically the jobs will be saved, but the pay cut be enormous.