2015 Pilot Discussion.

[Claxon]

The US Airways list presented will look a lot like this:http://leonidas.cactuspilots.us/The_Unofficial_Revised_Nicolau_2JAN15.pdf
I just checked and I am above Dean Collelo.
Who knows, after the airbitration, Dean may be further down the list. 😉

Taking Responsibility

“A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you've lost your trousers - you're in the airline business.” Sir Adam Thomson

Over the past few U-Turns, we’ve noticed a change in the tone of comments we’ve received. Maybe the reality of what we are up against is finally sinking in. Some accused us of taking the quotes from the Freund rebuttal out of context. We didn’t. We’ve had requests for copies of Jeff Freund’s actual East Vs West court documents. The file is too big to be directly cut and pasted. We can forward it in a scanned PDF-ZIP/Scan format. Just email us. Remember, we have no website, no budget and receive no donations. Maybe someone will paste it as an attachment on the AWAPPA web board for all to view. We would do it ourselves, but we’ve all been banned from the AWAPPA web board since May.

We have also received additional comments on what happened at Wye River from both sides. While our initial reporting appears to be correct and consistent with the latest accounts, it was incomplete. Here’s additional information from both sides.

According to our reports, on Day One of Wye River, Jeff Freund warned the West MEC that if USAPA won, the West risked losing everything. He urged reaching an agreement. He was gone on Day Two. We won’t address his motivation for leaving.
As Jeff Freund observed in his rebuttal to the East MEC lawsuit, the NIC was not in stone. And the loss of ALPA put it in real trouble. At least ALPA had the obligation, through the ALPA Merger Policy, to attempt to get the company to use the NIC Award.

ALPA’s lawyers knew the list was negotiable, but they never told either rank and file. We attended last summer’s ALPA road shows in PHX, starring Paul Rice and a cast of ALPA attorneys. Did ALPA ever hint that the NIC was negotiable? We believe it was for fear of fanning the flames and drawing more support for USAPA that Herndon kept that from us. They did tell all the Wye River attendees the reality. One side listened, the other didn’t.

In last summer’s East Vs West lawsuit, the East used ALPA DUES MONEY and an ALPA-Approved attorney, Roland Wilder, to pursue the case. As far as we can determine, we had to use our own Merger Fund money to defend ourselves. Thanks for choosing sides, ALPA! In the likely event that the NIC will be trashed in a single contract, it will be our own voluntary contributions that will have to be raised for a DFR lawsuit. USAPA expects it, so we shouldn’t disappoint them. This could be an extremely costly effort that could drag on for years. U-Turn is not discouraging filing a DFR, and we need closure.

Jeff Freund is a top-notch lawyer. We have no doubt that he told our MEC the truth about how negotiable the NIC really was. The question is: why didn’t CJ, Bendett, et al, listen? We figure that they either didn’t believe him or after all their hairy-chested resolutions and hotlines, they were afraid to back down. What good are attorneys if you don’t take their advice?

There is one other possibility. We mentioned it in a previous U-Turn. Our union leaders believed that the USAPA vote would be close (razor’s edge, to quote one of them) and that it was worth holding out and rolling the dice, figuring that if ALPA survived, so would the NIC. Too bad ALPA didn’t explain the importance of the 30% of East pilots who refused to participate in the Wilson Polling.

We now have a better picture what the East MEC had on the table: an 8 year fence, furloughs by longevity (LOS), MDA time not counting for longevity, Dave O’Dell having 400 pilots below him, and the Nic surviving as THE LIST. Yes, the East offered the NIC. They just wanted to protect their retirement attrition, which stalled by the change in Age-60. Looking back, that offer must look like a home run to any West pilot right now, but last February the EAST MEC and ALPA couldn’t get to first base with it.

Our former MEC and our union leadership played a very high stakes game of poker by not dealing at Wye River. Freund was right, we were risking everything…..and right now, it looks like we lost. They need to take responsibility for that.



Eastcheats tells you the list is the Nicolau. We have provided you with facts, not conjecture. Take note Legacy AA pilots. west merger committee is seeking to slam your furloughed to the bottom of their proposed list.

 

[luvthe9]

"I hope the pilot group does not know about your plan to pay USAPA dues and join as a member, else I fear for your safety.

Anyone who supports a leader like John McIlvenna who throws out veiled threats is just as sick as John."

 

[Claxon]

west merger committee has a proposed list they will reveal at the last minute. A list which places THOUSANDS of Legacy AA pilots on the bottom.

 

[luvthe9]

"When George Hopkins writes the East/West chapter in Flying the Line, III, U-Turn won’t even get a footnote. ALPA did it to itself. ALPA got caught up in a true conflict of interest and couldn’t figure a way out. What’s done is done. Get over it."




READ THAT LAST LINE!!!!

 

[Claxon]

Jeffrey Freund - Notice of Removal July 24, 2007
Thus, the “arbitration award” Plaintiffs purportedly seek to “vacate” is in actuality the proposed pilot seniority list developed through ALPA’s Merger policy that ALPA will adopt as its bargaining position to be presented to the Company, but which (like a union bargaining position in any matter) the Company is not required to accept. Application, Ex.1 at 2,9 (ALPA will present to the company the merged seniority list developed through ALPA’s Merger policy arbitration procedures, and “ALPA will use all reasonable means at its disposal to compel the company to accept and implement the merged seniority list”). Plaintiffs seek review of this ALPA bargaining position developed through ALPA Merger Policy, and, while couching it in the terms of “vacating” and “arbitration,” the relief they actually seek is a review of the product of ALPA’s Merger Policy, and, ultimately, alteration of ALPA’s bargaining proposal to the company…Plaintiff’s Application to “vacate” an “arbitration award” that does not establish any enforceable seniority rights in a collective bargaining agreement with the Company, but which merely sets out ALPA’s bargaining position to be presented to the company, is not a state law claim at all but rather an artfully pled Federal claim for breech of Duty of Fair Representation.

Judge Emmet Sullivan - Memorandum Opinion November 30, 2007
“Ultimately, the ALPA Merger Policy generates a proposed seniority list, which ALPA promises to present to the merged airlines in an effort to persuade the merged airlines to adopt the list.” See Defs. Opp’n 3-4.

 

[Claxon]

This is going to be a real gut check for West pilots, but one we think West pilots finally need to understand. USAPA is the CBA. Vote them out next summer if you want, but until then, we’ve got to rely on them to enforce the contract. We do have a representative at the table on this. Being at the bottom of the active pilot list, we have to hope he will put the overall good of West pilots before his own position, teetering near furlough himself. That’s one of the problems you get when you have a bottom guy negotiating for you. U-Turn saw that in Mitch Vasin’s refusal to follow through with a grievance on the East/West flying back when he was in his third year at America West and sitting in the positions of Grievance Chairman and later MEC Vice-chairman. We’ve beaten that to death in previous U-Turns, so we’re not going to get any deeper into that mistake or our criticism of Vasin at ALPA’s Last Stand, the April 2008 A330 LOU. Over and done. Let’s hope the future is brighter.
Speaking of a brighter future, stay tuned for the next edition of “As the U Turns.”
Dave Blomgren, for the U-Turn


Mitch Vasin sits today on west merger committee. This is good for east pilots as Vasin has led west pilots into numerous poor legal excursions into the ditch.

 

[CactusPilot1]

I am the messenger for the East pilots. Look in the mirror and face your reality. Your president and CEO do not agree with your DOH.
Your minus votes mean nothing.

west merger committee has a proposed list they will reveal at the last minute. A list which places Legacy US pilots.......wait and see

You stand corrected.

 

[Claxon]

You stand corrected.

Take note of prior west opinions and ordering of east pilots Legacy AA pilots. west pilots view any furloughed pilot at the time of a merger as a stone which is to be stepped on in the furtherance of their agenda. Reference west seniority list aspirations. west pilots plan to destroy the careers of those Legacy AA pilots unfortunate enough to be furloughed. west pilots think their mighty america west airlines career has a much higher value than Legacy AA pilots on furlough.

 

[Claxon]

The US Airways list presented will look a lot like this:http://leonidas.cactuspilots.us/The_Unofficial_Revised_Nicolau_2JAN15.pdf
I just checked and I am above Dean Collelo.
Who knows, after the airbitration, Dean may be further down the list. 😉

Scroll through this list as proof positive Legacy AA pilots. Pay very close attention to years of east pilots starting in 1987
These are pilots never furloughed. Mitch Vasin and west 2004 hires running the operation.

Beginning in 1988 the west scheme of world domination begins. Wait till you see their plans for your group.

 

[Claxon]

AWA’s Results of Operations

In 2006, AWA realized operating losses of $35 million and a loss before income taxes and cumulative effect of change in accounting principle of $33 million. Included in these results is $79 million of net losses associated with its fuel hedging transactions. This includes $9 million of net realized losses on settled hedge transactions and $70 million of unrealized losses resulting from the application of mark-to-market accounting for changes in the fair value of fuel hedging instruments.

The 2006 results include $17 million of net special charges, including $68 million of merger related transition expenses offset in part by a credit of $51 million related to the Airbus restructuring. The 2006 results also include nonoperating expenses of $11 million related to $6 million for prepayment penalties and an aggregate $5 million write off of debt issuance costs in connection with our refinancing of the ATSB and GECC loans.

In 2005, AWA realized operating losses of $120 million and a loss before income taxes and cumulative effect of change in accounting principle of $195 million. In 2005, AWA changed its accounting policy for certain maintenance costs from the deferral method to the direct expense method as if that change occurred January 1, 2005. This resulted in a $202 million loss from the cumulative effect of a change in accounting principle. See Note 2, “Change in Accounting Policy for Maintenance Costs,” to AWA’s consolidated financial statements in Item 8B of this report.

AWA’s 2005 results include $75 million of net gains associated with its fuel hedging transactions. This includes $71 million of net realized gains on settled hedge transactions and $4 million of unrealized gains resulting from the application of mark-to-market accounting for changes in the fair value of fuel hedging instruments.

The 2005 results include $106 million of special charges, including $13 million of merger related transition expenses, a $27 million loss on the sale and leaseback of six 737-300 aircraft and two 757 aircraft, $7 million of power by the hour program penalties associated with the return of certain leased aircraft and a $50 million charge related to an amended Airbus purchase agreement, along with $7 million in capitalized interest. The Airbus restructuring fee was paid by means of setoff against existing equipment purchase deposits held by Airbus. The 2005 results also include nonoperating expenses of $8 million related to the write-off of the unamortized value of the ATSB warrants upon their repurchase in October 2005 and an aggregate $2 million write-off of debt issuance costs associated with the exchange of the 7.25% Senior Exchangeable Notes due 2023 and retirement of a portion of the loan formerly guaranteed by the ATSB.

In 2004, AWA realized operating losses of $16 million and a loss before income taxes and cumulative effect of change in accounting principle of $85 million. Included in these results was a $16 million net credit associated with the termination of the rate per engine hour agreement with General Electric Engine Services for overhaul maintenance services on V2500-A1 engines. This credit was partially offset by $2 million of net charges related to the return of certain Boeing 737-200 aircraft, which includes termination payments of $2 million, the write-down of leasehold improvements and deferred rent of $3 million, offset by the net reversal of maintenance reserves of $3 million related to the returned aircraft.


Here are their numbers. This was a failing airline in every sense of the word. Even with the lowest pilot pay in the industry.

 

[Claxon]

The merger was consummated September 27, 2005, making the 1st and 2nd 2006 quarters the first two full financial reporting quarters.


US Airways
America West
Q1 2006
65m
58m
Q2
305m
68m
Q3
(-78)m
(-100)m
Q4
12m
(-63)m
Q1 2007
66m
56m
Q2
263m
(-8)m
Q3
Consolidated
consolidated

Total income for the first full year of the combined airline (2006):
US Airways-----------304m
America West---------(-37)m

 

[Claxon]

Timothy R. Phelan...known as SH&E...potential likelihood of the America West bankruptcy...summarize Mr. Parker's projections, and our conclusion that we think he was very correctwe had to merge or liquidate, we had to merge with US Airways liquidate.


15 Mr. Phelan.

16 Have you seen an airline that was the size

17 and had the assets of US Airways in 2005 that has

18 been compelled to liquidate.

19 A I don't think there has ever been a case

20 of complete liquidation of airline as large as US

21 Airways.

You have America west

21 in the middle now, with rising costs in the

22 beginning of 2005. And you have low cost carriers


2409




1 will continue their low cost positioning versus

2 America West and the network carriers.

3 Q So this chart we are looking at now and

4 the related analysis that is in the full report

5 confirms Doug Parker's comments about the

6 competition dropping their costs?

7 A Their strategic model was broken, their

8 low cost strategic model was broken.

9 Q Thank you, Mr. Phelan.

10 The next exhibit, slide 12, switches to a

11 slightly different subject doesn't it?

12 A Well, it does, indeed.

13 Q Would you explain that, please?

14 A Mr. Parker said that you know, but for the

15 merger, if you will, but for the merger they would

16 have, and given the fact that they had four reasons,

17 they didn't have a strong enough market position

18 from a financial standpoint or from an income

19 standpoint to raise additional capital, equity, on

20 the equity side.

21 They had, as I recall, they only owned two

22 aircraft, two out of 140, so they had no collateral.


2410



AMERICA WEST AIRLINES OWNED TWO(2) of 140 aircraft..............

1 They had no assets to pledge as collateral for

2 additional debt. Most of their loans were

3 unsecured, I should say, but at any rate he said you

4 know, but for -- given our competitive situation,

5 given our inability to raise additional capital, and

6 given our cash situation, we had to merge or

7 liquidate, we had to merge with US Airways or

8 liquidate.


2326

 

[CactusPilot1]

Scroll through this list as proof positive Legacy AA pilots. Pay very close attention to years of east pilots starting in 1987
These are pilots never furloughed. Mitch Vasin and west 2004 hires running the operation.
Beginning in 1988 the west scheme of world domination begins. Wait till you see their plans for your group.

Why would the AA pilots be concerned about the US list? You sound like a crybaby looking for a hug. They are concerned about their own presentation.

See you in arbitration. If the last few arguments are how you will present your side of the story, I am confident you will have a similar result as in the past. Fine with me.

 

[Claxon]

Mitch Vasin 11:16pm Jan 12
Hi everybody. Eagle alumnus here - 10/12/1998 left for America West in March 2004. I still have many friends there and I remain a staunch supporter of Eagle pilots. Eagle has always been the Cadillac of regional airlines in terms of its quality of people and to see you all getting treated like this makes me sick. I served in a union leadership role at America West so I wanted to provide you with some insight as to the folks you're dealing with (since it is the AWA management team that now runs AA). They ***always*** lead off their negotiations with a giant scare. In 2005, the US Airways and America West pilots began negotiating a contract for the merged airline, and on the very first day of negotiations the company threatened to place both pilot groups under US Airways' bankruptcy contract if the groups did not negotiate a "cost-neutral" contract. Because the America West pilots made more money than the US Airways pilots, "cost-neutral" meant that the America West pilots (who were already severely underpaid) would have to take PAY CUTS to give the US Airways pilots a slight raise. This threat was made at a time when the company made record profits and our CEO Doug Parker made the most money he had ever made in his life. Not long thereafter, during one of our many seniority lawsuits, the company had to confess to the judge that their threat was simply not possible and that they made the statement to "manage expectations." I don't see anything different here, and I would be VERY surprised if liquidating Eagle was really their Plan B if you don't ratify the contract. They play an aggressive game of mental warfare to lows that I never saw from previous Eagle management. It is difficult for me to purport to tell you how to vote since I don't have any skin in the game, but I cannot stand here on the sidelines and watch this management team terrorize a group of pilots for whom I have a tremendous amount of respect. I just want you all to know that there are lots of us in the industry that support you. Good luck and God speed.

 

[Claxon]

When you see Mitch Vasin Eagle Pilots, ask him how correct his prediction of your career with Doug Parker turned out........