Alpa Mec Meeting Talking Points - 3/30/05

USA320Pilot

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ALPA MEC talking points - March 30, 2005

The Republic/Wexford/US Airways deal

 On March 14, US Airways announced that it had reached an agreement with Republic Airways Holding, Inc., and its majority shareholder, Wexford Capital LLC, on an equity and financing package that includes a $125 million dollar investment upon US Airways' emergence from Chapter 11.

 The agreement also includes options for obtaining 110 million dollars of other liquidity enhancements that would be available prior to emergence to assist US Airways in completing its restructuring.

 Republic is the parent company of Chautauqua Airlines and Republic Airlines. Both those airlines fly as US Airways Express carriers.

 The agreement allows US Airways to exercise its option to obtain $110 million dollars through the sale of certain assets. These assets include ten EMB-170 aircraft currently owned by US Airways and three EMB-170 aircraft currently committed for delivery to US Airways; other EMB-170 related assets, such as a flight simulator; 113 commuter slots at Reagan National Airport; and 24 commuter slots at the LaGuardia airport. US Airways currently operates 25 EMB-170 aircraft.

 This option can be exercised prior to the effective date of US Airways' plan of reorganization, but no later than Dec. 31, 2005.

 In addition, US Airways could assign to Republic the leases for an additional 15 EMB-170 aircraft. Republic would enter into a regional jet service agreement that would continue the operation of the aircraft as US Airways Express. In addition, Republic would simultaneously lease back the slots to US Airways. At any time on or after the second anniversary of the slots sale/leaseback agreement, US Airways will have the right to repurchase the LaGuardia and Washington slots at a predetermined price.

 After the effective date of US Airways' POR, if US Airways does not exercise the slots sale/leaseback option, Republic then has an option to purchase/assume debt and leases for all 28 EMB-170 aircraft and to fly them as US Airways Express. If this portion of the agreement is implemented, it would constitute the sale of US Airways' MidAtlantic aircraft to Republic. If either option is exercised, Republic will comply with the applicable provisions of all existing agreements with US Airways regarding MidAtlantic Airways.

This equity investment is contingent on several events:

 US Airways must secure a total of $350 million in new cash investment (including the $125 million from Republic and the $125 million previously secured from Eastshore Aviation, LLC) to finance the US Airways POR and other conditions, including Republic being satisfied with US Airways' business plan.

 The agreement provides for comparable treatment such as representation on the US Airways board of directors as was provided to Eastshore.

 The agreement also includes a commitment by US Airways to amend and restate its existing jet service agreement with Chautauqua, to assume that agreement, and to enter into a new jet service agreement with Republic for regional jet feed using the EMB-170 and 190 aircraft under the US Airways Express brand.

 On March 31, US Airways is scheduled to seek the court's approval for this proposed agreement.

ALPA’s response

 The MEC recognizes that the Republic Airways Holdings agreement with US Airways may impact the careers of US Airways’ pilots.

 ALPA is evaluating all pertinent LOA 91 provisions in response to pilots’ concerns about any possible MDA transaction resulting from US Airways' proposed agreement with Republic Airways, and what US Airways' agreement with Republic could mean for MDA pilots and for all pilots on the APL list.

 ALPA continues to assess every aspect of this situation and all possible outcomes so that the rights and protections contained in the MDA contract, LOA 91 and the entire current contract, will be preserved.

 It is critical that we fully understand the potential agreement and all LOA 91 implications, evaluate the legal procedures available to us, and prepare for our next steps. This evaluation period is absolutely necessary. In a situation like this, where several parties are involved, the process becomes complicated. However, ALPA will not jeopardize the careers of MDA pilots, or other US Airways pilots, by prematurely stating our intentions until we have evaluated every piece of information that is needed to represent the best interests of all US Airways pilots.

March 30, 2005 MEC ALPA resolution

 During a special MEC meeting on March 30, the MEC unanimously passed a resolution that directs that a response be filed on March 30 with the Bankruptcy Court stating that ALPA is reserving all rights under the Collective Bargaining Agreement.

The resolution also states that:

 The US Airways MEC will continue to pursue every opportunity to achieve the most advantageous outcome for all US Airways’ pilots, and

 the US Airways MEC directs the MEC Officers and MEC Negotiating Committee to meet with all other parties to this agreement as necessary in order to resolve the career impact issues resulting from the provisions of the Republic Holdings – US Airways agreement, including job and seniority issues.
 
Hey 320 you better check the latest on this deal. Evidently Embraer has some different ideas for the 170's and has sent an objection to the bankruptcy court and in the meantime Airways is burning a lot more cash than was anticipated.




Mod comment: don't quote the entire article.
 
Yesterday ALPA discussed the Embraer objection, but it is believed that the objection should have little impact on Judge Mitchell's decision on the Wexford Capital/Republic/US Airways deal.

Mitchell's options is simple: Not approve the motion and move the the company closer to liquidation or approve the motion and give US Airways a better chance to emerge from bankruptcy.

Regards,

USA320Pilot
 
USA320Pilot said:
ALPA MEC talking points - March 30, 2005

The Republic/Wexford/US Airways deal

 Republic is the parent company of Chautauqua Airlines and Republic Airlines. Both those airlines fly as US Airways Express carriers.

[post="259646"][/post]​

Republic Airways doesn't fly as US Airways Express. They don't fly at all.
 
Light Years said:
Republic Airways doesn't fly as US Airways Express. They don't fly at all.
[post="259744"][/post]​

LY,

You are absolutely correct - for now. Republic Holdings is desparately trying to get Republic Airways off the ground for one simple reason - money.

CHQ flies some American Connection* service for AMR as well as the 170's for UAL. Problem is that AMR's scope doesn't allow a Connection carrier to fly aircraft as large as the 170 at all, not just on Connection but at all. So AMR incurrs a penalty from the scope violation which CHQ ends up paying. I understand it's approximately $300,000 per month.

Which brings us to the desperation to get Republic Airways flying. Then either the Connection flying or the 170 flying could be transfered from CHQ to Republic and the penalty avoided.

Jim

*Trivia question for the day. How do you tell American Connection from American Eagle at a distance?
 
American Connections tail Eagle is all blue, as opposed to American Eagle's which is blue and red. The Connection birds also do not have the RJ: Regional Jet logo on the engines. :)

What Republic should do is basically use the Republic certificate for MidAtlantic, keeping it seperate from the rest of Chautauqua.

Hey BB, here's another one for ya... what's different about SkyWest's United Express CRJs as opposed to other UAX carriers?
 
A gold star for you today. :up: You are correct on both.

If Republic can get a certificate, that makes sense - the 170's at Republic (both UA and US flying) and the smaller jets at CHQ.

Of course, the whole thing turns into a can of worms. Do the CHQ people flying the 170 move laterally to Republic? What about the MDA folks? How about the people at CHQ flying ERJ's that are senior to some of the CHQ people flying the 170 - can they xfer or not? If so, does that possibly mean that openings for MDA folks will be at CHQ on the ERJ and not Republic on the 170? Etc, etc.

Jim
 
Light years is one of the more industry savvy F/A's we have Jim. You will not be able to stump her too easy... ;)

As to the AA scope Clause issue and Republic. There has been rumors about Shuttle America's certificate coming into use. I guess we wil see what happens.
 
It will be a mess over at CHQ. I am doing the J4J stuff. From my understanding it is one company senority list at Republic and Chq First Officers can't make lateral moves on equipment. They are hiring off the street for FO's on the 170 for United and the upcoming Delta jets.

I haven't heard a thing from the teamsters union about this. Everything I have been hearing is strictly rumors. How it works now, is you recieve a company senority when you show up on the property. You move up as people are hired under you. It is horrible for the captains because you never get off reserve. The Reserve system is the worst. I think people at MDA will stay with the MDA aircraft. CHQ has tailnumbers on the 145 that we showed up with.

Most pilots at CHQ feel that a J4J thing is what will come out of this. 50% of the pilots will not have jobs has the aircraft leaves MDA.

Since there is only about 14 of the J4J guys now at CHQ I don't get to vocal. But I do believe it is going to get messy.
 
No answer to my trivia- In the old United colors, SkyWest has gray engines on thier CRJs whereas the other UAX carriers have blue engines. And I have too much time on my hands/ concern over pretty paint on airplanes.
 
Republic Airways is the holding company Wexford set up which owns both CHQ and Republic Airlines. Lots of little details in this one....... Republic Airlines is supposed to get their operating certificate in the may-june time frame.

How many mainline guys noticed the part in the offer where it states CHQ/Republic would have the right to operate the Embraer 190 in USAIRways colors? The 190 is a 737-200 size airplane with a 2300+ nm range..... May as well let Johnny O fly his 737's as an Airways connection. I hope I'm not watching events unfold into an "I told ya so"....

SH
 
Light Years said:
No answer to my trivia- In the old United colors, SkyWest has gray engines on thier CRJs whereas the other UAX carriers have blue engines. And I have too much time on my hands/ concern over pretty paint on airplanes.
[post="259795"][/post]​

Darn, LY, I completely missed the question - one of those senior moments, I guess. No matter though, cause I didn't know the answer anyway.

I'll go stand in the corner now.....

Jim