Transition Negotiations Update—August 19, 2005
Negotiations for a Transition Letter of Agreement between the US Airways and America
West pilots and management representatives for both companies took place this week in
Phoenix at the America West MEC office. The pilot representatives present were Doug
Mowery, US Airways MEC Negotiating Committee Chairman, Dan Scola, Negotiating
Committee member, and Kim Snider, US Airways MEC Vice Chairman; Mark Burdick,
America West Negotiating Committee Chairman, Tony Lozano, AWA Negotiating
Committee Member, and John McIlvenna, AWA MEC Vice Chairman. ALPA staff
representatives were Bruce York, ALPA's Director of Representation, Jeffrey Small, US
Airways MEC Contract Administrator, and Andrew Shostack, AWA MEC Contract
Administrator. Company representatives present were Jerry Glass, AL Hemenway, Todd
Jewitt, and Beth Holdren, all from US Airways, and David Seymour of America West.
The pilot negotiators and representatives of each MEC continued to work well together in
addressing joint issues of concern with the Company. Transition Agreements are intended
to provide security and protection for pilots, as well as a structure to govern operations of
the companies during the period after the merger transaction is approved but before a
single operation, merged contract and combined seniority list become effective.
This week there was substantial discussion and negotiation of elements in a typical
transaction agreement. These talks included the following:
• Continued recognition of each MEC;
• Separate operation of pre-merger equipment by each airline during the interim
period;
• Protection of existing routes
• Minimum aircraft or equipment levels;
• Limitations on base closure;
• Company agreement to accept a merged seniority list;
• Procedural agreement for negotiation of a combined contract;
• Commitments on dates to merge the separate operations;
• Dispute resolution provisions; and
• Company contributions to each pilot group's merger fund and assistance with
Flight Pay Loss
Proposals were exchanged and progress was made in the above areas.
ALPA representatives continued to propose this week that certain economic
improvements be made before negotiations for a combined contract start in the areas of
pay and retirement benefits.
ALPA also continued to propose that the Transition Agreement include "no furlough" protection. We also stated that we must retain a seat on
the Board of Directors. Management has insisted that no additional cost increases can be
absorbed during the interim period and that pilot staffing levels are protected by the
provisions referenced above on minimum aircraft levels.
While formal negotiating sessions are not scheduled for next week, ALPA intends to hold
informal discussions with management on the key open issues. Following these
discussions, the MEC will be briefed on the status of the Transition Agreement for their
review and discussion prior to the September 15 bankruptcy court hearing to approve the
proposed US Airways Plan of Reorganization.
We will continue to keep you informed of all developments