FlySlow

US Airways isn't failing, however, he's right to point out we're not as successful as Parker, Kirby and the press makes us out to be.

Having the East pilots subsidize the rest of the operation makes us look better on paper than we would if we were all paid the same. (East grp. 2 capt. 125/hr, West appx 142/hr)...2011 would most likely not have been profitable if we were all paid and had the same benefits (East vacation: 21 days-West: 35 days).

Be careful with Mr. Parker. But the same goes for Mr. Horton, I'd guess. The Term Sheet has lots of holes in it, having an arbitrator decide every disagreement is a disaster in waiting...Better to get some inputs from East & West negotiators, and get firm language. Remember, we only get what we negotiate!

US Airways needs this merger, over the long term (5-10 years). We have loads of debt, a smaller cash cushion, but also a positive in being smaller across the Atlantic as the EU is imploding. (Though so far traffic is holding up).

That being said, where is Delta? When will they step up to the plate and become spoilers?

B757200ER

"Looking back at our investment in APA and more importantly, looking ahead, where have they led us and where are they taking us now by merging our careers with a weaker, poorly run and more dysfunctional US Air? With twenty or more years “invested” in our own American Airlines careers, isn’t it time for each of us to disconnect the controls and start demanding better results?"

I agree with his sentiments, whoever he is. He has a right to demand more for his dues and for his leadership to be accountable. I also don't think U+AA is the answer. But, since AA is the ugly girl at the prom noone wants to dance with, there are few decent options.

eaglefly

Unfortunately for AA pilots, the U merger is reality.........and a virtual certainty. The only argument I'm hearing is WHEN it occurs and WHO controls it. Given the apparent reality it will occur, would it be better for AA pilots to get the best deal they can with those most likely to honor that deal or once again put faith in a source that has betrayed them time and time again ?

At least U's offer keeps all current AA pilots employed for any merger, while AMR's is likely to mean upwards of 2000 pilots gone (APA estimate) likely BEFORE that would occur. Additionally, at least SOME scope is retained in the U deal wheras in the AMR "plan", it's a blank check (at least so far). Yes, it's just picking the better of two deals, one being disappointingly poor and the other complete annihalation. Again, it's a "no-brainer" for most of us which to pick to hold onto, an M80 or a hand grenade.

Our contractual working terms though are only half the issue. The other is AA having a FUTURE. That includes aspects like a viable business model and people who can execute that business model or at least have a history of executing successful business models. The timing and control of the merger has been explained to me as a difference of who benefits most from the transaction. In U's plan, it would be the creditors and employees and thus ultimately management and shareholders. In AMR's, it sounds like it's designed primarily as simply another executive compensation generation scheme to provide the biggest exit payoff to current management. One needs to wonder then, will that be at the expense of the other parties with interests above if it results in a disorganized and chaotic AA for someone else to worry about cleaning up the mess after the transaction ?

If I were a creditor hedging my bets, I'd pick the an executive team with a track record and a stable transition vs. nipping every extra buck from labor and risking not having the other two. If AA employees are mangled to the degree now being sought, again, it's extremely difficult for me to see anything for which the inheritor of the new combined carrier has to work with on this side in producing a competitive quality product with motivated employees. Simply swinging a bat increasingly harder to the heads of ones employees hasn't done that yet to my knowledge.

cactusmike

FlySlow, I agree with your premise that the East pilot costs have contributed to subsidizing the operation but I think you over estimate the importance of those costs. 3500 employees out of 18 to 20 thousand is really not that significant. I can see where you get that idea from just looking at the cost difference in the two contracts and comparing those numbers to the profit and loss statement but consider this: when fuel costs rose astronomically the company still made a profit. Those extra costs were covered by an increase in revenue.

I believe that if we had a joint contract similar to the Kirby proposal, which would have had an increase in pilot costs of 160 million per year, that the revenue would have been tweaked to cover those costs. It is just easier for them to let things go on right now the way they are right now rather than really work to maximize the yield. I also think Parker and Kirby are more than happy to let USAPA stew under LOA 93 because they are the ones who stalled the merger by not accepting the SLI and renegotiating every section of the joint contract. They will take full advantage of USAPA until they day that they do not have to, the day when either the AA deal goes down or the judge rules that the company is bound by the Nicolau Award.

Mason32

In our case it means our mechanics get to get trained on EMB and CRJ equipment. The FA's come over just like the pilots, they keep their contract as a subsection of our FA's contract.
All the other stuff... From CEO down to chief pilots and station managers get dumped. An entire administration disappears.
The existing contracts that get folded in as subsections if ours still allow some limited outsourcing already so AMR gets to keep its threat if outsourcing while still reaping the huge rewards from only having to run one airline, not three.
AMR will do whatever you can prove to them makes them money. Our union and ALPA just have expressed zero interest or attempts to merge lists beyond the public rhetoric. On our side, one list, is little more than a war cry... And at ALPA you have a Eagle pilot as a national officer. If they become APA he loses his job. He won't be allowing or encouraging any merged list discussions anytime soon.

Sadly, it would be up to us members to begin forcing the issues, because the elected folks won't unless we force them.

FliFast

I'll have to re-read it, but I missed the part where he said he recommended that APA/AMR restore seniority, backpay, and retirement to the TWA pilots. And how the APA in their fervor to eliminate Supp CC in St. Louis will re-instate the TWA's DOH pilot seniority so that they don't get the double staple with USAir.

I also liked how he said USAirways will gladly bring their Capts pay up to American's pay:

12 yr USAirways A330 Capt $160
12 yr AA B777 Capt $205

Finally, I missed where he quoted how many grievances the APA has actually won when it comes to disputes about Supp CC with AMR management.

I just remember working at TWA right after we were put into BK to eject Carl Icahn, how the American Airlines pilots insulted us and made inflamatory remarks about us because we were in BK...I will never forget their lack of professionalism.

FF

eaglefly

I don't know anyone who's recommending this except some of the former TWA pilots. BTW, it's AMR who has the "fervor" to eliminate CC.

To say ALL AA pilots did anything is as "inflammatory" as anything else.