Last summer during the LOA 91 negotiations GE was directly involved and actually forced ALPA to provide RJ scope relief. The financier spoke directly with ALPA numerous times about diversifying their US Airways risk, and not only did it occur with RJs, but mainline aircraft too.
Separately, last August during a MEC meeting at the Key Bridge Marriott, Bruce Lakefield told the MEC in "open session" that if labor did not fully participate in the TP, GECAS wanted to take back about 30 aircraft. Every union was briefed on this risk, thus, due to labor resistance to change, GE repossessed 25 of its aircraft from US Airways with an orderly reduction.
Due to issues such as the CWA/AFA strike press releases and IAM "concession stand is closed" comments, passengers booking away from the company has increased. Thus to offset the revenue loss their must be more cost cuts.
According to today's WSJ, US Airways' latest GE deal is a "catalyst" toward completing its restructuring. But it also requires the airline to come up with another $100 million in liquidity by January.
Guess where this will likely come from -- try the AFA and IAM units.
GE is requiring more cuts due to labor leader resistance and there will be deeper labor cuts than were necessary, due to "hardline" attitudes. The cuts will come from those unions without new agreements.
It's too bad this is happening, but it's a union’s choice.
A colleague of mine recently made an interesting comment. He said, "and the CWA, AFA and IAM? Held out to the bitter end, totally unified, and got a bill for $150 million more than their original ask! Why do you think the CWA signed, with the AFA close behind, even after their ask went up? Because they didn't want their entire contract abrogated by a judge who has already called US Airways a 'ticking fiscal time bomb.' There is nothing easier than using the threat of liquidation combined with a 1113c filing during one's second bankruptcy in 2 years to 'take candy from a baby.' Waiting for the bankruptcy judge to decide on a company's 1113c motion has never been tried before in the airline industry! Why? Because, to date, no one has been stupid enough to allow the company to impose their 'last and final offer' through the courts."
Is imposition enough "pain"?
Best regards,
USA320Pilot