Usairways Sells Erj-70's And Slots To Republic

[funguy2]

A few comments:

First:

Republic expects to take delivery of the first Embraer 170 late this summer after its Republic Airline subsidiary receives its operating certificate. Until such time, US Airways will lease back the aircraft from Republic. Republic expects to complete the transition by mid-2006.

...

Until Republic receives its operating certificate from the Federal Aviation Administration -- expected Sept. 1 -- US Airways will lease the aircraft back from Republic and continue to operate them.

This seems interesting to me. Republic Holdings recently "acquired" Shuttle America from Wexford in order to move the UAL E170 operation off of the Chautauqua certificate, and end penalties being paid to AMR for scope issues.

Acquired is in quotes because both Republic Holdings and Shuttle America were controled by Wexford prior to the transaction anyway.

So, why would they operate UAL's E170s on Shuttle's certificate and US Airways' E170s on the new Republic certificate? Maybe they will consolidate all E170 flying to the Republic certificate, as was the original plan? We'll have to see how this plays out.

fr8mstr said:

I wonder how fast they will pi$$ away the 100 million? Let's see how much for the severance package? plus now they are going to lease back our own gates and aircraft. I would not be surprized if all the "gains" from this transaction are eaten up in a few months just with the cost now to be incurred by paying cost plus.

I had the exact same thought. This transaction seems to be a very expensive way to borrow money. Depending on the lease rates for those slots agreed to between Republic and US Airways, that cash could be quickly consumed just by the transaction itself... And, I wonder if there is a pre-negotiated price for US Airways to repurchase the slots, or if it will depend on "market value" at the time. In otherwords, does US sell the slots today for $50mil (roughly half of the deal... I recall this is not exactly correct) and repurchase them in 2 years for $150mil? This seems to have the potential to be a VERY expensive transaction for US, and a VERY good one for Republic Holdings.

My last thought is more of a J4J thought. This whole J4J issue seems to be extremely "perverted". You now have MDA "ceasing to be", and there are many questions as to how that effects J4J pilots. Also, the recent Mesa transactions, where Mesa's US Airways flying will quickly be shifted to UAL and Delta. Does this mean US Airways J4J pilots at Mesa will soon be flying flights for United Express and Delta Connection? I am not sure if that is the case, but it seems wrong to me.

 

[the turtle]

My last thought is more of a J4J thought. This whole J4J issue seems to be extremely "perverted". You now have MDA "ceasing to be", and there are many questions as to how that effects J4J pilots. Also, the recent Mesa transactions, where Mesa's US Airways flying will quickly be shifted to UAL and Delta. Does this mean US Airways J4J pilots at Mesa will soon be flying flights for United Express and Delta Connection? I am not sure if that is the case, but it seems wrong to me.

[post="278886"][/post]​

[/quote]


Mesa J4J's pilots are on Mesa's system seniorty list and will be able to hold any position systemwide that their seniority can hold, once the Airways flying goes away.

Right now that appears to be any CRJ FO position in IAD, DEN, PHX, and Nashville.

 

[xoxo]

The company still has not sent out any info to MAA employees about anything. We will be losing our jobs (AGAIN) in a few months and they havnt even said a word to employees. Something is going on. It is not good. Hey CCY, if you are reading this post...Can you at least send out some info to the EMB-170 Division? This is crazy. We came back to help out the company..and I think if you all do not start answering some questions soon..the f/a are gonna start dropping like flies..we are sick of this s$#t. I guess you forgot that we can come back to mainline even if we quit MAA. The rumor is around the water cooler that the f/a are gonna start quitting....Who are you gonna get to replace us in such short notice. Those that came back are back..you will not be able to find anymore furloughed f/a's.

 

[Mike]

Our Buddy, Brucy Lakefield said the whole transition should take about nine months. That is plenty of time to train our replacements. Why would they take MDA folks when they can hire anew for rock bottom wages. Look at any airline termanal now..we have and are being replaced with twenty something year olds across the board. I guess 14K to 20K is ok if you are young and single. I just hope they realize that it would be nice to own a home someday. It does not happen on those wages. Unfortunately, the flood of these newbes continues to roll in. This business is forever changed. What used to be a great job and exciting field has turned to nothing. Sad

 

[passed_over]

it really seems had the continous greed of the mainlineALPA MEC to not work with the WO's and had the 170's been put at PDT instead of a bastardised division of airways then this may never have come to this. yes there is/was a flow through contrived and many wo pilots were able to transfer to MDA they are all going to get screwed to many divisions to much to handle and now lots of our friends are going to be soon out of work J4J really never worked and now MDA is gone way to go mainline ALPA

 

[USA320Pilot]

I have read a lot in this thread about ALPA’s response to the sale of MDA and its assets and I take exception to many of the comments. ALPA has not run from the situation, the union continues to fight for the MDA pilots, and there are three points to consider:

-- According to LOA 91, which was negotiated a few months prior to the bankruptcy filing, if a change of control of MDA occurs all MDA pilots and their contract, including LPP seniority integrations rights, go to their acquiring business entity with ALAP as their representational body.

-- The challenge is that the Republic pilots who are represented by the IBT (another problem) do not agree with LOA 91 and they are not bound by the US Airways ALPA contract. The Republic pilots have taken the position that they are only bound by the J4J provisions of the US Airways ALPA contract, which means the IBT believes the MDA pilots are only permitted to have 50% of the pilot jobs and could be stapled to the bottom of the Republic list.

In response ALPA’s Grievance Committee has filed MEC 05-06-04, MDA/Wexford Transaction because the union believes “the Company is misinterpreting and misapplying Section 1 of the Working Agreement and Letter of Agreement 91 by taking the position that the Wexford transaction with respect to MDA is an Aircraft Sale Event rather than an MDA Affiliate Event and change in control of MDA. It is the position of the Association that the Company's transaction with Wexford is an MDA Affiliate Event and represents a change in control of MDA.â€

Here’s the challenge: ALPA will fight for every MDA pilot job, which I support, per LOA 91, but in the end this dispute could be decided in bankruptcy court, where labor has not had much success. Should ALPA fight for every MDA job? Absolutely and it will, but there are contractual and bankruptcy issues and it’s my understanding the US Airways must have the $100 million from Republic to emerge from bankruptcy.

-- Now let’s look at some of the facts surrounding the proposed merger and how this could affect the MDA pilots:

MDA pilots are active ALPA members as a pilot in the Midatlantic division of US Airways who pperate aircraft under the US Airways operating certificate as do pilots in the mainline operation.

Like every other US Airways pilots, MDA pilots can vote on issues that affect the US Airways pilots (if in good standing) and can serve on MEC committees or can be elected to the MEC. Thus, within the Association a MDA pilot has the same rights and responsibilities as any US Airways pilots including paying dues and assessments.

There are certain provisions from the American Eagle contract and the US Airways mainline contract that apply, which is a source of frustration for the MEC and the Negotiating Committee (that includes one MDA pilot), however, final language yet to be worked out.

For merger purposes MDA pilots are pilots on furlough from the mainline operation of US Airways or CEL pilots. MDA pilots have a seniority number on the US Airways pilot’s system seniority list and based on seniority, like every pilot on the list, guarantees the MDA pilots a number on the merged US Airways -- America West list, if the proposed corporate transaction occurs.

A key absolute is that the order of the pilots on the US Airways seniority list cannot be changed as a result of the integration process. Thus, every US Airways pilot will be integrated into the merged seniority list per ALPA Merger Policy includes the following:

Preserve jobs.
Avoid windfalls to either group at the expense of the other.
Maintain or improve pre-merger pay and standard of living.
Maintain or improve pre-merger pilot status.
Minimize detrimental changes to career expectations

In conclusion, I believe the company is clearly in violation of LOA 91 and MDA pilot transfer because every aircraft, spare parts, simulators, and commuter slots are being sold and the union should pursue an expedited grievance. Meanwhile, in regard to the merger, every MDA pilot, whether furloughed mainline or a CEL pilot, should have ALPA merger policy benefits per t heir seniority on the system seniority list.

Regards,

USA320Pilot

 

[mlt]

USA320Pilot
Your entire post was copied from 'active Pilots Only' message board. Using quotes without giving credit.....I believe it is called plagarism. So much for integrity.

 

[700UW]

He never had any, remember he accuse BB of doing that?

Someone should report him to ALPA.

 

[mlt]

Speaking of Boeing Boy...it is implied on the pilots message board that he will not be posting there as he is scheduled for retirement. The Give Away Gang doesn't like to be challenged and they have changed the access to 'only active'.

I hope Boeing Boy knows that all of us want him to continue to post on this board.

 

[700UW]

Jim is a man of character.

 

[Light Years]

Our Buddy, Brucy Lakefield said the whole transition should take about nine months.  That is plenty of time to train our replacements.  Why would they take MDA folks when they can hire anew for rock bottom wages. Look at any airline termanal now..we have and are being replaced with twenty something year olds across the board.  I guess 14K to 20K is ok if you are young and single.  I just hope they realize that it would be nice to own a home someday.  It does not happen on those wages.  Unfortunately, the flood of these newbes continues to roll in.  This business is forever changed.  What used to be a great job and exciting field has turned to nothing. Sad

[post="278991"][/post]​

So what are they going to do when a couple hundred 170 F/As give thier two weeks on the same day, retaining thier mainline recall? The list has been exhausted, they only have a few on thier 90 day obligation. They can't force the F/As to stay, and with the prospect of no job/crap job, no longevity as thanks for the whole fiasco, and more money-less effort doing anything else, they're really playing with fire. It's like poking a hungry rattesnake with a stick.

Keep in mind any replacement F/As would have to be trained from the ground up and qualified on all US Airways aircraft... even an abbreviated program would take weeks. Not the 3 day recurrent and 170 training the mainline F/As have.

Look for the 170s to sit on the ramp looking pretty if the company doesn't give some good info SOON. Are they really that out of touch with the anger of the 170 F/As at the moment?

 

[BoeingBoy]

Speaking of Boeing Boy...it is implied on the pilots message board that he will not be posting there as he is scheduled for retirement. The Give Away Gang doesn't like to be challenged and they have changed the access to 'only active'.

[post="279075"][/post]​

My retirement isn't coming up quite that soon - still over 16 months - so I'll be around to post a while longer.....

Jim

 

[PITbull]

Our Buddy, Brucy Lakefield said the whole transition should take about nine months.  That is plenty of time to train our replacements.  Why would they take MDA folks when they can hire anew for rock bottom wages. Look at any airline termanal now..we have and are being replaced with twenty something year olds across the board.  I guess 14K to 20K is ok if you are young and single.  I just hope they realize that it would be nice to own a home someday.  It does not happen on those wages.  Unfortunately, the flood of these newbes continues to roll in.  This business is forever changed.  What used to be a great job and exciting field has turned to nothing. Sad

[post="278991"][/post]​

Mike,

I don't believe that is the case or even close to an accurate speculation. You maybe able to hire off the street, but they won't be able to keep f/as on the a/c at those wages. These types of hirees that accept these types of wages do not stick to any job let alone a f/a job. Plus the training would be no less than 4 weeks.

The Company needs reliability. They need to know that when a f/a is called out they will acutally show up for the flight. If these off the street hirees decide to quit at any day for even a little wage increase from any company...they'll be history for U.

So, it behooves the company to retain the folks they have on the property. Otherwise the "Division" will fall appart way before end of the year.

 

[Mike]

So what are they going to do when a couple hundred 170 F/As give thier two weeks on the same day, retaining thier mainline recall? The list has been exhausted, they only have a few on thier 90 day obligation. They can't force the F/As to stay, and with the prospect of no job/crap job, no longevity as thanks for the whole fiasco, and more money-less effort doing anything else, they're really playing with fire. It's like poking a hungry rattesnake with a stick.

Keep in mind any replacement F/As would have to be trained from the ground up and qualified on all US Airways aircraft... even an abbreviated program would take weeks. Not the 5 day recurrent and 170 training the mainline F/As have.

Look for the 170s to sit on the ramp looking pretty if the company doesn't give some good info SOON. Are they really that out of touch with the anger of the 170 F/As at the moment?

[post="279088"][/post]​

Perhaps the MDA people should ask for a "Transition Retainment Bonus" It worked for our management. You have one thing right..they should not do this to people with nothing to lose. You think they would have learned their lesson after the Christmas bag debacle in PHL. How can you tell people they are history and expect them to continue to do a great job. The really sad part is USAirways is cutting the most detacated. Everyone returned to MDA to make this place work.

 

[Mike]

Mike,

I don't believe that is the case or even close to an accurate speculation. You maybe able to hire off the street, but they won't be able to keep f/as on the a/c at those wages. These types of hirees that accept these types of wages do not stickto any job let alone a f/a job. Plus the training would be no less than 4 weeks.

The Company needs reliability. They need to know that when a f/a is called out they will acutally show up for the flight. If these off the street hirees decide to quit at any day for even a little wage increase from any company...they'll be history for U.

So, it behooves the company to retain the folks they have on the property. Otherwise the "Division" will fall appart way before end of the year.

[post="279091"][/post]​

Good Point PitBull..I did the J4J thing at MESA and their average F/A lasted 90 days. It was a revolving door.