MEC CODE-A-PHONE UPDATE - February 21
This is Roy Freundlich with a US Airways MEC update for Friday, February 21, with one new item:
The U.S. Bankruptcy Court hearing convened today to consider the Companyâ€™s motion to distress terminate the pilots defined benefit plan and ALPAâ€™s objection to the motion. Approximately 80 US Airways pilots attended in the hearing in uniform as well as a significant number of retired US Airways pilots.
Todayâ€™s court activities included opening statements by attorneys for US Airways, ALPA, the creditorsâ€™ committee, and from several other parties representing individual pilots and retired pilots.
After opening statements, the majority of the day was spent receiving testimony from two Companyâ€™s witnesses, a legal advisor from the Retirement Systems of Alabama (RSA) and US Airwaysâ€™ CFO Neil Cohen.
The RSA testimony centered on its financing agreement with US Airways. The RSA representative admitted after making numerous evasive statements under cross examination that there are potentially other ways to satisfy the final DIP investment conditions, other than to terminate the pilotsâ€™ pension plan. He testified that RSA was deeply skeptical that the pilots pension plan could not be terminated, and when asked if RSA was using or going to use its DIP financing agreement to apply negotiating leverage against ALPA and the US Airways pilots, the RSA representative testified no.
CFO Neil Cohen then testified on the Companyâ€™s historical rendition of restructuring efforts from June 2002 until the present.
The hearing was recessed at 6:00 p.m. and is scheduled to reconvene at 9:30 a.m. on Monday, February 24, to continue with witness testimony and ALPAâ€™s objection to the Companyâ€™s motion. MEC members, officers, and committee members are again planning to attend the hearing in uniform. Your MEC representatives recommend that as many pilots as possible also attend the hearing in uniform to reflect our pilot groupâ€™s concern and interest in this issue.
For those pilots flying to DCA on Monday for the continuation of the hearing, transportation to the courthouse will be provided. A shuttle bus will begin picking up pilots from Reagan National Airport at approximately 8:45 a.m., Monday morning, departing from the crew room concourse, lower level, baggage claim, door 12. The bus will shuttle hourly between National Airport and the courthouse in Alexandria, Va., until 1 p.m., and then will provide transportation to the airport as needed.
Please remember we have 1,827 pilots on furlough.