US Airways Has AA Labor Backing for AMR Takeover: Sources

[chris perry]

The term sheet is unacceptable to 99% of the workforce. So AMR better up the Ante or they will get little support....Just Facts,the PV days are enough for me to vote no. Much less the rest...

 

[wings396]

I know it doesn't matter what any of us say, but I'll still say this: For the unions at AA to be backing US Airways is a big mistake. Management at US Airways is just as horrible, if not worse than that of AA. I know everyone at AA is pissed at AA management, but US Airways will not, I repeat, WILL NOT be better towards you. US managers are big on deception and inaction. Any promise that US makes is just that, an empty promise. And the longer they can drag out fulfilling their promises, the better it is for them.

The grass in this case is not greener on the other side. I guarantee you that.

Encouraging.....

 

[Hopeful]

Quite a few folks wearing USAir tees @ work tonight. Interesting

What is interesting is that our naive union leadership is willing to believe LCC management's "promises" of saving jobs...

Does everyone truly believe that LCC would keep in house maintenance at today's levels?
Preserve over 9000 TWU jobs?

YA>>>>RIGHT!!!!!

 

[WorldTraveler]

The simple fact is that AA spent eight years with uncompetitive labor costs, including several years in which AA's revenue production fell dramatically relative to its peers because its costs were out of life with its competitors and it was forced to keep capacity in the system which needed to be removed.
.
AA is fixing the revenues, in part by using the little cost advantage it has already gained in BK.
.
What won't ever change is that AA's cost structure is out of line with the industry including with competitors on their domestic system who do a much better job at cost control than AA.
.
It should surprise NO ONE that AA labor will continue their efforts to reduce the company's efforts to reduce labor costs, esp. eliminating 11K dues paying members.
It should also come as no surprise that US, despite two BKs, is desperately trying to save its own franchise - since it has tried multiple times to gain a larger network carrier with better revenue generating abilities - but has come up empty handed every time.
.
Why ANY AA employee would believe that US can provide a better deal - long term or short term - when US can't produce revenue on par with AA and has lower paid employees on average than AA - is behind comprehension.
.
There will always be people who will hold onto any kind of hope - false or not - in order to avoid facing the harsh reality that AA has to be turned around - whether as a standalone or with US.
.
Some AA people foolishly believe that US will minimize the cuts that have to be made at AA while US people foolishly believe that if they get their hands in AA's cookie jar, all of their problems will end.
.
What should be apparent is that US wants AA's revenues - but is nowhere interested in or capable of paying US people wages comparable to what AA people will make - because US' revenue generating capacity is fatally flawed compared to the larger network carriers.
.
NO one has yet to explain how Parker is going to come up with the $7-10B that AA's non-labor creditors are going to want for the cuts they have endured - given that LCC's market cap is a fraction of that amount and AMR's turnaround plan is based on heavy borrowing for fleet renewal.
Anyone?
.
The bottom line is there is NO incentive for the non-labor creditors to accept a deal with US because the recovery on their claims will be BETTER with a reorganized, standalone AMR.
.
The whole goat rodeo that Parker is trying to orchestrate with labor should be seen as such - nothing more than an attempt to hold out false hope to AA labor that the cuts AA is making can be reduced - all the while using what gains AA does obtain thru the BK process to funnel AA revenues to US, which remains unable to compete with the top tier network carriers despite multiple BKs and some of the lowest paid employees in the industry.

 

[Flying low]

Kind of surprised that the TWU is willing to give up all the AA dues paying members instead of a big handful.

 

[damajagua]

Totally agree with what you are saying WT.
This whole situation is very fluid. According
to all AA unions since the 1113 term sheets
where presented to the unions AA has not
moved at all from it. It has been a take it or
leave it approach. I think if AA decides to
negotiate and remove a few of their demands
on the 1113 term sheet, the support
for Parker and his cronies can evaporate
very fast. Trust me the unions are not that
stupid. This is nothing but another publicity
stunt. I actually think its a somewhat smart
that the unions are using whatever tactic they
can to try to force the company to negotiate.
At the end of the day that's what the unions are
supposed to be doing. That's what they get paid for.

 

[wings396]

Who said they are giving them up? How about an agreement that would have the MR side go to the IAM, and all of the fleet remain with them. .

 

[usa1]

The combined company will save 1.5 B per year ..... Parker is making that available to labor in the negotiations. That's where AA current management is at a disadvantage. They have much less to offer in a stand alone.

WorldTraveler, all of this is your worst nightmare isn't it.

 

[eolesen]

The combined company will save 1.5 B per year ..... Parker is making that available to labor in the negotiations. That's where AA current management is at a disadvantage. They have much less to offer in a stand alone.

Are they claiming $1.5B in incremental revenue, or $1.5B in savings?

If the claim is savings, that says "job losses" to me. There's really no other practical way to generate savings of that magnitude.

 

[usa1]

Are they claiming $1.5B in incremental revenue, or $1.5B in savings?

If the claim is savings, that says "job losses" to me. There's really no other practical way to generate savings of that magnitude.

AA wanted US out of business back in the RDU and BNA hub days. Parker is basically completing that wish. But the hub will be in CLT.

Layoffs? .... Look for some kind of retirement incentive for those over 50-55. There's probably 25,000 employees interested if the offer is right. Which will lead to more saving within 3-5 years.

 

[FA Mikey]

This is nothing but another publicity
stunt. I actually think its a somewhat smart
that the unions are using whatever tactic they
can to try to force the company to negotiate.
At the end of the day that's what the unions are
supposed to be doing. That's what they get paid for.

Well said. In the end usair will shorty be sitting alone yet again.

 

[damajagua]

The combined company will save 1.5 B per year ..... Parker is making that available to labor in the negotiations. That's where AA current management is at a disadvantage. They have much less to offer in a stand alone.

And if you believe for one second that Parker is going
to give ONE penny of that $1.5 to labor; you are the most
naive person on this planet.

 

[bluebird]

Well said. In the end usair will shorty be sitting alone yet again.

Has APFA lost faith in AA? They like the US deal now. "The bid has the support of the APFA, APA, and TWU." Hotline 20 Apr 2012

Our name would be American. Our HDQ would still be DFW. You could retire in PHX people!

 

[eolesen]

But the hub will be in CLT.

Will it? I still have to ask how many pm-US folks get thrown under the bus in the deal.

Keeping CLT and MIA at their current sizes isn't sustainable, particularly to the Caribbean, and MIA has a much stronger origin/destination market.

 

[robbedagain]

eolsen is it possible that CLT could remain a large large station still keep mia as hub but then what happens to dca and phl i kind of think that by keeping clt as a hub to compete head to head with ATL