What's Next

[USA320Pilot]

Nobody knows how a S.1113 proceeding will end and the bankruptcy code has never been tested. The Pittsburgh Tribune-Review recently wrote an interesting column on the subject and I have cut and pasted an interesting section below:

Interesting section:

Legal experts say it remains unclear whether unions may strike because no airline labor contracts have been rejected since federal bankruptcy laws were rewritten in the 1990s.

"It's a cutting-edge question, and the law is not clear," said Joseph O'Leary, a labor lawyer with McDermott Will Emory, a Boston law firm.

O'Leary has represented defunct LTV Steel, Wheeling-Pittsburgh Steel Corp. and other companies during bankruptcy reorganizations.

Workers in every industry -- except railroads and airlines -- are covered by the National Labor Relations Act, which permits employees to strike if their contracts are terminated, O'Leary said.

Railroads and airlines are treated differently from other industries because their labor strikes can affect public safety, O'Leary explained.

Olson, who has represented companies operating under the Labor Railway Act for more than 20 years, said he believes it would be difficult for US Airways' unions to strike.

If Mitchell rejects US Airways' labor contracts, the airline likely would serve unions with a notice that, under the Labor Railway Act, preserves the status quo. Employees would be forced to labor under terms of the company's last offer -- in this case, $1 billion in wage and benefit cuts -- until they negotiated new collective-bargaining agreements, Olson said.

If the unions strike or attempt to strike, the company could get a court injunction stopping them, Olson said.

If negotiations between the two sides don't result in new labor contracts, the dispute then would be forwarded to the National Mediation Board. The board may keep the case indefinitely -- thus raising the possibility that unions would have "very little hope of obtaining relief for years," Olson added.

Complete Story

USA320Pilot comments: There is reason to believe there will be a consensual agreement between the IAM-FSA & IAM-Trainers and US Airways, but there is little progress to report between the IAM-M and management. In my opinion, the IAM-M could have an "imposed" contract and members could be required to work under those terms or they must resign from the company, if the airline obtains a court injunction preventing "self help".

Best regards,

USA320Pilot

 

[usfliboi]

You have a BIG suprise ahead.

Bend over!

[post="230402"][/post]​

No my friend you do...... This isnt eastern... there wasnt thousands of mechs out of work , wanting work!!!!!!!!! Do what you gotta do bud, take your best shot, in the end the majority of the unions and its employees will have the final say. Its your choice and no one else. If you think for one moment that this company or the majority of the employees, will allow one union with blurred vision, to shut it down, your in for a long sad set of depressions.... Dont take my word for it, PLEASE Dont take my word for it, pay attention to reality in progress, watch, learn, listen..... reality happens with or without an opinion!

 

[WestCoastGuy]

SpinDoc replies:

Clue: You know as well as I do that
the company has to be prepared for
moronic and emotional reactions from
the unions, and to keep the operations
going, they certainly would want to have
trained and certified personnel ready to
step in.
And you think this gaggle of misfits in CCY actually have the ability or foresite to do this? Think again, they're counting the loot in the Golden Parachutes, not looking to save this this outfit. Just going thru the motions so they're not all brought up on charges of misuse of their fidutiary responsibilities. In the corporate world, they're all dumb as rocks, but not totally stupid. Im sure they all would rather be on the golf course in Florida or Caribbean, than in some White Collar Federal facility.

 

[USA320Pilot]

WestCoastGuy:

Right...That's why the ATSB has provided 5 loan guarantee application/amendment approvals, the "at risk" portion of the loan guarantee is being refinanced, GE is providing bridge financing, and the creditor's committee supports the business plan.

For whatever reason, the financial community continues to support the management team.

Regards,

USA320Pilot

 

[WestCoastGuy]

WestCoastGuy:


For whatever reason, the financial community continues to support the management team.

Regards,

USA320Pilot

[post="230418"][/post]​

The financial community may continue their support, but the employees have no confidence this this group. My predicition is the entire group will leave once contracts are settled. And of course, they'll leave with all the money they can take. This company will be history within 1 year.

 

[WorldTraveler]

The financial community continues to prop up USAirways and United for one simple reason: it is their best hope of preserving their financial interests. Given that no other airline is in a position right now to purchase US’ assets, it is to be expected that creditors will continue to prop up US until someone else comes along to assume responsibility for those assets. You can bet that those creditors are actively marketing US’ assets.

US may succeed at imposing contracts on its employees and preventing them from striking but it is apparent that the wheels are beginning to fall off the wagon at US. The Middle Seat commentary in the Wall Street Journal reported that the only significant place where service has significantly deteriorated in the face of labor cuts is at USAirways’ PHL hub – the #1 revenue generator for the company and where competitive choices have mushroomed during the past year.

While US hasn’t reported their financial performance, UA’s financial report today can be described as nothing short of abysmal. The industry as a whole continues to be in severe crisis and even the cost cutting steps UA and US have proposed do not appear to be large enough to overcome the revenue crisis that is sweeping the industry and shows no signs of abating.

 

[WestCoastGuy]

IMO, the best the employees can do at this point, is to approve any TA that involves BUYOUT cash. Take the cash and LEAVE as soon as possible. That is exactly what the Exec's at CCY will be doing just before this company goes under. You can bet the farm, they'll have their pockets stuffed and money stashed as they are singing the blues and Usair sinks like the Titanic

 

[FM2436]

IMO, the best the employees can do at this point, is to approve any TA that involves BUYOUT cash. Take the cash and LEAVE as soon as possible. That is exactly what the Exec's at CCY will be doing just before this company goes under. You can bet the farm, they'll have their pockets stuffed and money stashed as they are singing the blues and Usair sinks like the Titanic

[post="230447"][/post]​

Then dfo you care to tell goodstew that he/she made a mistake in voting "NO" on the AFA T/A?

 

[WestCoastGuy]

Then dfo you care to tell goodstew that he/she made a mistake in voting "NO" on the AFA T/A?

[post="230451"][/post]​

This is just my opinion. Anyone can do as they choose and vote how they choose. I do not tell anyone here they made a mistake nor, like a certain pilot, what will happen if they vote one way or another.

 

[ClueByFour]

WestCoastGuy:

Right...That's why the ATSB has provided 5 loan guarantee application/amendment approvals, the "at risk" portion of the loan guarantee is being refinanced, GE is providing bridge financing, and the creditor's committee supports the business plan.

For whatever reason, the financial community continues to support the management team.

Regards,

USA320Pilot

[post="230418"][/post]​

I'd love to loan people money on the terms that GE is loaning money to US, but loan sharking at the consumer level is against the law. They are pulling planes (which, BTW, they claim to have takers for elsewhere who are presumably solvent) and all but running the show. Confidence in management, indeed. They, much like Bronner and BOA, are protecting their exposure and little else (in fact, GE is starting to see the writing on the wall, else they would not have taken 25 planes back). What is US' credit rating these days? Wait, it usually tanks in Chapter 11. Sure, I'm sure the street loves the current losers in CCY.

Other people with exposure are demanding accurate cure payments, supplemental rent, EDS wants to be prepaid, and every concession granted by the ATSB was done before the election. Let's see what happens after Jan 6th.

I think the only group of people with any degree of "confidence" in the current crop at CCY is some middling-senior pilots who have no absolutely no chance of replacing that level of income if US tanks (well, not flying domestically, anyway). The street has no confidence, customers have no confidence, and 3/4ths of the workforce has no confidence.

I daresay the only people with confidence are those who did not read about "fool me once, shame on me," and so forth in primary school....

 

[USA320Pilot]

Clue:

It's my understanding the company has obtained all of its financing requirements to complete its business plan, plan of reorganization (POR), and disclosure statement if the company obtains new IAM labor accords, either via a consensual or possibly a more "painful" imposed agreement. Furthermore, I understand the creditor's committee supports the POR.

With this pending news, how do you think Judge Mitchell will rule on January 6, if necessary. Moreover, during bankruptcy I & II what is the percentage of motions the court has ruled in favor of the company?

By the way, how could you be so wrong, again?

Best regards,

USA320Pilot

 

[700UW]

The company needs $100 Million more or the GE deal is off, they need private financing before Jan 14th.

And if there is an abrogation then labor strife, the ATSB will shut this place down.

You read it here first.

 

[N924PS]

The company needs $100 Million more or the GE deal is off, they need private financing before Jan 14th.

And if there is an abrogation then labor strife, the ATSB will shut this place down.

You read it here first.

[post="230525"][/post]​

Between you and the Captain, this forum just isn't worth the time any more. A couple of know it alls who really know nothing. Enough hot air to inflate the Hindenburg.

 

[700UW]

Don't like it use the ignore feature or don't read the forums.

The information in the post you qouted is accurate and in the court documents filed.

 

[N924PS]

Don't like it use the ignore feature or don't read the forums.

The information in the post you qouted is accurate and in the court documents filed.

[post="230536"][/post]​

Fighting IAM and Gutless ALPA. May they Rest in Peace if your info is correct.