Delta Pilots Agree to TA

[Mach85ER]

No details, just rumours. One is something like a 19% payraise over two years plus 3% year after that. Scope and RJ's and the big unknown.

Yes, it is relevant to the AA board. The news does affect what is going on with AA pilots in court and could have a big effect of stiffening the pilots resolve, i.e. walkout, if the full press continues.

 

[AA-MRO.COM]

Maybe we can merge with delta and then get rid of the twu

 

[Bob Owens]

Yep, it establishes "Market Rate", so unless the Judge is going to allow AA to impose terms on Exxon and all the airports that have jacked up their rates since 2001 and make them accept whatever AA wants to pay them in order to get to their 17% profit target then Pilots, Flight Attendants. Mechanics and Stock clerks should be able to get "market Rates" as well.

As part of the merger agreement SWA mechanics just got their 401K match bumped up to 9%.

 

[eolesen]

The Frontier case ruling showed that the court and company don't have to consider changes since the term sheet was filed, right?

The market rate that mattered was what was in place two months ago.

 

[Bob Owens]

The Frontier case ruling showed that the court and company don't have to consider changes since the term sheet was filed, right?

The market rate that mattered was what was in place two months ago.

?? I interpreted that as changes to the term sheet, in other words if they overreach on the ASK and back off during pre-1113 talks , when he determines whether or not to abrogate he looks at the original ask not at what they moved to. This way it discourages the debtor from approaching the process with demands it cant justify, like AA has. Not changes in Market rate for the industry as far as determining whether or not to grant the motion.

 

[1AA]

Maybe we can merge with delta and then get rid of the twu

Delta already got rid of the TWU when they acquired PanAm. The only problem was that the employees went as well. That is Collateral damage we do not need.

 

[WorldTraveler]

?? I interpreted that as changes to the term sheet, in other words if they overreach on the ASK and back off during pre-1113 talks , when he determines whether or not to abrogate he looks at the original ask not at what they moved to. This way it discourages the debtor from approaching the process with demands it cant justify, like AA has. Not changes in Market rate for the industry as far as determining whether or not to grant the motion.

Whatever may legally be allowed doesn't change the perception to AA pilots that they are falling further behind .
There are a number of reasons why DL wanted a quick deal with the pilots - putting pressure on AA and UA pilot talks is just one effects.

 

[Overspeed]

The Frontier case ruling showed that the court and company don't have to consider changes since the term sheet was filed, right?

The market rate that mattered was what was in place two months ago.

I thought the guiding principle in Chap 11 was not what the other guys make but what will it take to pay your bills? Has a pay raise ever happened through BK? No.

 

[BoeingBoy]

I thought the guiding principle in Chap 11 was not what the other guys make but what will it take to pay your bills?

That is basically it. While a Judge might not grant abrogation if the company demands were outrageous - I mentioned once that minimum wage wouldn't be considered reasonable if all other airlines paid double or triple that, Bob won't find "market rate" in bankruptcy law anywhere and especially not section 1113.

 

[AA-MRO.COM]

I thought the guiding principle in Chap 11 was not what the other guys make but what will it take to pay your bills? Has a pay raise ever happened through BK? No.

Has a pay raise ever happened with the twu HELL NO

 

[Buck]

The Frontier case ruling showed that the court and company don't have to consider changes since the term sheet was filed, right?

The market rate that mattered was what was in place two months ago.

However for the Mechanic & Related, the company now has a history of attempting to obtain a market rate based on the legacy carries but remain less than average.

 

[BoeingBoy]

History really means nothing - it's strictly what the company wants vs what the Judge thinks is reasonable and treats all creditors relatively fairly. If AA can convince the Judge that it needs what the original term sheets called for and that the pain will be relatively evenly divided among the creditors, they'll get it.

Jim

 

[BoeingBoy]

Has something changed during the day? Last I saw was that a TA was reached but the MEC was being briefed before deciding whether or not to send it out for a vote. The thread title makes it sound like the pilots have already ratified the TA.

Jim

 

[Kev3188]

Your timeline's correct...

 

[Mach85ER]

Has something changed during the day? Last I saw was that a TA was reached but the MEC was being briefed before deciding whether or not to send it out for a vote. The thread title makes it sound like the pilots have already ratified the TA.

Jim

Jim,

You are correct. Looking at the thread now in the evening, I realize my thread title was poorly written. I looked briefly to edit it, but had no luck (Anybody knows the way to change it, please post)

A more accurate title should read something like, "Delta Negotiators Agree to send a TA to the DALPA Board of Directors" or something like that.

My apologies, I hate misleading titles as much as anyone else.