PilotAction Merger News for US Airways & American Airlines: October 16, 2013
US Airways Third Quarter 2013 Financial Conference Call To Be Webcast
See Story: http://finance.yahoo.com/news/us-airways-third-quarter-2013-202100707.html
American Airlines to add flights to Asia from Dallas/Fort Worth
Our Tokyo/Haneda flight has been quite unprofitable, largely because we are allowed to operate only during severely restricted hours, limiting our customers' options for connecting flights to and from other Asian markets
See Story: http://finance.yahoo.com/news/american-airlines-add-flights-asia-190207971.html
American Airlines Adding Shanghai Nights With Expanded Asia Presence
Tom Horton, American chairman and CEO, noted that the expansion into Asia is helping to build an “even stronger foundation” to help its merger with US Airways succeed.
In addition to the news about the added Shanghai and Hong Kong service, American also released its outlook for 2014 on Wednesday, a highlight of which was some news about fully-flat seats: “We will offer fully lie-flat seats in all premium cabins on the 17 daily New York-London flights we operate jointly with British Airways. Together, we’ll offer the most fully lie-flat seating between New York/JFK and London/Heathrow,” Vahidi said.
“All of these investments lay an important foundation for our pending merger with US Airways, as we prepare a strong case for our November trial,” Vahidi added.
See Story: http://www.forbes.com/sites/maggiemcgrath/2013/10/16/american-airlines-adding-shanghai-nights-with-expanded-asia-presence/?partner=yahootix
Really small news for people interested in the US Airways-American Airlines antitrust case
See Story: http://aviationblog.dallasnews.com/2013/10/really-small-news-for-people-interested-in-the-us-airways-american-airlines-antitrust-case.html/
American CEO: We’re open to a “sensible, common sense settlement” with the DOJ
See Story: http://blogs.star-telegram.com/sky_talk/2013/10/american-ceo-were-open-to-a-sensible-common-sense-settlement-with-the-doj.html
Democratic congressmen urge DOJ to drop its antitrust lawsuit against American-US Airways merger
See Story: http://blogs.star-telegram.com/sky_talk/2013/10/democratic-congressmen-urge-doj-to-drop-its-antitrust-lawsuit-against-american-us-airways-merger.html
68 Congresman Send Joint Letter To President Obama To Urge Administration To Reconsider Its Efforts To Prevent The American And US Airways Merger From Going Forward
October 15, 2013
The Honorable Barack Obama
President of the United States
1600 Pennsylvania Ave. NW
Washington, DC
Dear President Obama:
As Members of Congress representing thousands of American Airlines and US Airways employees, we are writing to express our respectful disagreement with the U.S. Department of Justice’s (DOJ) lawsuit against the proposed merger of American Airlines and US Airways. We believe DOJ’s legal challenge puts at risk the future economic security of our constituents, tens-of-thousands of unionized workers at both airlines, and the economic well-being of communities that we represent.
The proposed merger will not only increase competition, but will also increase opportunities for airline workers and the communities serviced by both American Airlines and US Airways. The combination will make both airlines a much stronger competitor against other airlines like United, Delta, and Southwest that have benefitted from recent mergers as well as a growing number of air carriers like Virgin America, JetBlue, and Spirit.
The new American will provide millions of consumers’ with new choices onboard a premier global airline with a much broader network that will be a viable alternative to other large, global carriers – both domestic and foreign. In doing so, the new American will provide financial stability for its workers, vendors, suppliers and communities who all rely on a healthy airline.
We are concerned that the DOJ’s lawsuit creates an atmosphere of uncertainty for our respective congressional districts and constituents. While we share your concern regarding any potential impact on consumers as consolidation in any industry is contemplated, we believe that DOJ’s concerns as outlined in the complaint filed last month are not an adequate representation of all of the facts.
We urge your administration to reconsider its efforts to prevent the American and US Airways merger from going forward. It is our hope that all parties involved can reach an amicable resolution that will not jeopardize the significant economic benefits this merger provides for the employees and communities of both carriers and the constituents we represent.
Thank you very much for your consideration.
Sincerely,
Representative Marc Veasey
Representative Alcee Hastings
Representative Gregory W. Meeks
Representative Robert Brady
Representative Eddie Bernice-Johnson
Representative Mike Quigley
Representative Ruben Hinojosa
Representative Ed Pastor
Representative Joe Garcia
Representative Ann Kirkpatrick
Representative Joyce Beatty
Representative Frederica Wilson
Representative Chaka Fattah
Representative Kyrsten Sinema
Representative Tim Ryan
Representative Yvette Clarke
Representative Janice Hahn
Representative Danny K. Davis
Representative Jared Polis
Representative Henry C. Johnson, Jr.
Representative Karen Bass
Representative David Scott
Representative Jan Schakowsky
Representative Ron Barber
Representative Tammy Duckworth
Representative Dina Titus
Representative Luis Gutierrez
Representative Gloria Negrete McLeod
Representative Steven Horsford
Representative Matt Cartwright
Representative Robert E. Andrews
Representative Charlie Rangel
Representative Loretta Sanchez
Representative Gene Green
Representative Brad Schneider
Representative Nick Rahall
Representative Dan Maffei
Representative John Delaney
Representative Mike McIntyre
Representative Patrick Murphy
Representative Pete Gallego
Representative Raul Grijalva
Representative Tony Cardenas
Representative Ted Deutch
Representative Filemon Vela
Representative Richard Neal
Representative Dan Lipinski
Representative Frank Pallone
Representative Bill Owens
Representative Donald M. Payne, Jr.
Representative Julia Brownley
Representative Cheri Bustos
Representative John Barrow
Representative Alan Lowenthal
Representative Carol Shea-Porter
Representative Joe Crowley
Representative George Miller
Representative John Lewis
Representative Sean Patrick Maloney
Representative Carolyn Maloney
Representative Robin Kelly
Representative Sheila Jackson Lee
Representative Grace Meng
Representative Lois Frankel
Representative Paul Tonko
Representative Elijah Cummings
Representative Maxine Waters
Representative Donna Christensen
cc: United States Attorney General Holder
United States Department of Transportation Secretary Anthony Foxx
Texas State Attorney General Gregg Abbott
Arizona State Attorney General Tom Horne
Michigan State Attorney General Bill Schuette
Tennessee State Attorney General Robert E. Cooper, Jr.
Virginia State Attorney General Ken Cuccinelli
Pennsylvania State Attorney General Kathleen Kane
Florida State Attorney General Pam Bondi
District of Columbia Attorney General Irvin B. Nathan
USAPA’s President’s Message: October 14, 2013
Fellow Pilots,
I am writing to let you know there is a dispute between me and certain members of our Board of Pilot Representatives as to the interpretation of our USAPA Constitution and Bylaws. This dispute arises out of an interpretation of the duties of the President under Article III, Section 8, (3), of the USAPA Constitution.
That Section of our Constitution pertaining to the duties and responsibility of the President states:
3. He shall, subject to approval of the Board of Pilot Representatives, appoint and remove committee members; employ, discharge, and fix the compensation of all servants, agents, and employees of USAPA other than duly elected officers; and cause to affix his signature to USAPA membership cards.
As your President, I read this to mean that I appoint and remove committee members and that my appointments and removals are subject to the approval of the Board of Pilot Representatives. Simply put, this is how we’ve always done business. This is a necessary balance of power incorporated into our Constitution and is similar to the President of the United States appointing Cabinet Secretaries and Justices, subject to the approval of the Senate.
At our last BPR meeting, the PHL Domicile Chairman brought to the BPR a resolution directing the President to appoint an individual as Chairman to a committee. I ruled this resolution out of order because appointments to committees are the duty and privilege of the President and not a duty vested with the BPR. My ruling was challenged by the PHL Chairman and his challenge was sustained by a 6-5 vote of the BPR.
The USAPA BPR, acting in their majority capacity, has overruled the President with a 6 to 5 vote. This “challenging or overruling” is referred to in Roberts Rules as a “Challenge to the ruling of the Chair,” and while it is a legitimate and appropriate tool to be used when the chair commits an error in parliamentary procedure, it was never designed for, and can never be used to overrule our Constitution and system of governance.
Your USAPA Constitution, like the Federal Constitution, envisioned the possibility of disputes within the organization and safeguards were put in the document to preserve the orderly conduct of our affairs. One of these provisions is a balance of power arrangement between the three branches of our union’s governance. We have three separate branches of governance just as the Federal Government does.
They are the Executive, the Legislative and the Judicial. As an example, the Officers do not vote; only the BPR can vote. This is exactly as it is in the Federal House and Senate. The President has specific enumerated powers as does the BPR. The elected Appeal Board can hear disputes submitted to it by the membership or any branch of the union leadership.
The USAPA Officers, the BPR, and the Appeal Board have all been elected by you, our membership, and their elected positions give them distinct representational authority under our Constitution. A dispute has arisen between the BPR and me over the interpretation of our Constitution, and that is why I have filed a complaint with the USAPA Appeal Board and asked for a ruling on the validity of the resolution in question.
Under the leadership of our prior bargaining agent, ALPA, disputes such as this simply went to majority rule. The Officers in that organization simply had to bow to the majority legislative rule of the MEC, not necessarily the line pilots. Unlike that organization, in USAPA only you, the USAPA members, can change the makeup of the elected leadership of this union. Only you, the membership of this union, can ratify an agreement or change the Constitution. The final authority rests with the line pilot. You can always petition your representatives for a recall ballot of any Officer or BPR member.
If two branches of this union are in some kind of dispute, the third branch, the Appeal Board, can render a decision. Even then, the collective voice of the line pilots can override that decision of the Appeal Board and recall an Officer or BPR member if the majority of the line pilots deem this to be in the best interests of the union. Ultimate power rests with the membership. To that end the Officers support the contention that the line pilots have ultimate control over the union and not any particular branch of the leadership.
The most important thing to understand is that an orderly process of dispute resolution was designed into our Constitution to deal with situations such as this. As your President, I will not allow this dispute to interfere or derail the important business and work of this union. We are closely monitoring the proposed American and US Airways merger, the attending litigation filed by the Department of Justice, and many other areas of important work for our pilots.
An example of our dedication to the work for our membership lies in the fact that we have been involved in litigation with members of the West pilot class for several years, in several forms, and that dispute lies in the Federal Courts; not in our union headquarters. West pilots serve all USAPA pilots on many committees and other positions of leadership. Because of this separation and an orderly dispute resolution method via the courts, we have been able to negotiate an MOU and manage many other important aspects of this merger and new contract that benefit everyone.
Rest assured that your union will resolve this issue in an orderly and timely manner while we continue to deal with important issues of the day.
Regards,
Gary Hummel
President
USAPA Vice President’s Message: October 16, 2013
Fellow Pilots,
Many of you have expressed concern regarding President Gary Hummel’s medical condition, so I want to give you an update. I saw Gary Tuesday night October 8
[sup]th[/sup], in the PIT Airport. Gary was having dinner with his FAA Aviation Medical Examiner. The next day, a series of medical tests were scheduled at the University of Pittsburgh Medical Center. I later learned that Gary was experiencing complications resulting from his body’s rejection of the stent that had been implanted several months ago, and it was recommended that he undergo bypass surgery.
Gary had been working from the cardiac care unit of the hospital from the 9th until his bypass surgery on the 14th. I am happy to report that his team of physicians has declared the operation a success, and Gary is expected to be released from hospital by the end of this week. The doctors have advised he cannot travel for up to six weeks.
I will provide an additional update as soon as more information is available.
Steve Bradford
USAPA Vice President
USAPA’s What’s Up On the Line?: October 16, 2013
Q – I don't know if there is a place on the website for it (I did not find it) but I think it would be appropriate to have photos of all our reps from all the bases available for viewing so the average line pilot would have a face to place with the name.
A – Now available on the Member's website, go to the CONTACT tab>USAPA Leadership, for the photos of the Officers and BPR, including their email addresses. Previously, photos of the BPR were published in the April 2013 USAPA Bulletin, and the Officers were depicted in the May 2012 USAPA Bulletin (both editions are available on the website, NEWS tab>USAPA Bulletins).
Q – I thought the retro pay distribution method was decided by the BPR back on June 7. Then I read a BPR Meeting Recap from a July 11 meeting that said the BPR changed their initial thoughts on distribution. Also, the amount that was originally estimated to be about $10,000/pilot ended up being a little over $8700.00 for those receiving a full share. Why?
A – The BPR wanted the distribution to benefit more pilots, and therefore, they included more recipients than originally planned. Based on previous Profit Sharing methodology, the $10,000 would have been fairly accurate, but by including more pilots, the total amount was reduced. The final $40 million resolution and vote are shown below.
On July 11, 2013, the following resolution was moved/seconded by Stein/Dugstad and passed 10-1 (No - PHL DiOrio).
BE IT RESOLVED THAT the $40 million dollars contained within the MOU will be disbursed based on a per capita basis to all pilots holding US Airways system seniority and active on February 8th 2013, with the following exceptions:
Pilots defined as “management pilots” (as defined by the Profit Sharing Methodology) will not be included in the disbursement
Pilots on military leave shall receive a full share
Pilots placed on LTD after January 1, 2003 and who remain on LTD as of February 8, 2013, or were medically retired as per AWA Contract 13.D.2, or were transitioned to VPL shall receive $2,500.
Pilots on LTD for less than 12 months as of February 8, 2013 receive a full share.
If a pilot is eligible for more than one distribution method, he/she may only receive one distribution and that will be the one with the highest value.
Pilots on furlough as of February 8, 2013, shall receive $2500, provided they return to employment no later than January 1, 2015. An escrow account will be established to pay the furloughed pilots upon their return. Any remaining funds in this escrow account will be donated to the US Airways Pilots Emergency Assistance Fund no later than January 1, 2015.
ALLIED PILOTS ASSOCIATION EXPRESSES SUPPORT FOR REPUBLIC AIRWAYS PILOTS, VOWS "CLOSE COOPERATION"
FORT WORTH, Texas (Oct. 15, 2013) — The president of the Allied Pilots Association (APA), certified collective bargaining agent for the 10,000 pilots of American Airlines, expressed strong support for the pilots at Republic Airways Holdings (NASDAQ: RJET).
"The pilots of Republic Airways have been trying to secure a fair contract since 2007, when their current agreement dating back to 2003 became amendable," said APA President Capt. Keith Wilson. "It shouldn't take six years — and counting — to negotiate a new collective bargaining agreement, especially when the current agreement is already 10 years old."
Under the Railway Labor Act governing airline labor negotiations, contracts do not expire but instead become amendable on an agreed-upon date.
"APA supports our brother and sister pilots at Republic in their efforts to bargain in good faith," Wilson said. "We will continue working in close cooperation to help ensure a prompt resolution to their protracted negotiations."
APA and Teamsters Local No. 357, the union representing the Republic pilots, are both members of the Coalition of Airline Pilots Associations.
In a vote conducted from Sept. 30 to Oct. 7, 97.5 percent of Republic pilots signaled "no confidence" in Republic Chief Operating Officer Wayne Heller and his senior management team. Previously, the Republic pilots voted overwhelmingly in favor of exercising their right to strike.
"The Republic pilots have shared with us their concerns about their management's efforts to operate larger equipment at substandard rates of pay," Wilson said. "The pilots' preference is for these aircraft to be operated by mainline carriers to prevent any further degradation of our profession.
"APA looks forward to continuing our efforts on behalf of Teamsters Local 357 Executive Board President Craig Moffatt, the negotiating team and the entire Republic pilot group," he said.
Along with improved pay and working conditions, the Republic pilots are seeking to address the high pilot attrition rate at the carrier and the impact of new Part 117 flight-time/duty-time regulations.
