ALPA Update on Bankruptcy & MDA



MEC CODE-A-PHONE UPDATE - September 11, 2002
This is Roy Freundlich with a US Airways MEC update for Wednesday, September 11.
The 1113 bankruptcy hearing that was scheduled for yesterday, September 10, in which the Company would seek relief from labor agreements not modified for restructuring, did not go forward in order to accommodate the CWA tentative agreement and current ratification process, as well as the possible IAM resubmission of its tentative agreement to its membership for another ratification vote. The 1113 motion has been continued until September 23 to await the results on these issues.
ALPA’s bankruptcy legal counsel reported yesterday that a review of the court’s docket revealed that US Airways has filed a motion to reject or abandon additional aircraft and associated engines from a pool of 155 identified aircraft. This includes 87 737s, 22 757s, 6 767s, and 35 Dash-8s. The Company is seeking authority to reject or abandon any or all of these aircraft and/or engines. These assets are both leased and owned. The number of aircraft identified in this petition for rejection or abandonment potentially violates the minimum mainline fleet provisions of the Restructuring Agreement and management’s stated commitment to maintain the recently modified fleet size of 280 aircraft.
Upon receipt of this information ALPA contacted the Company yesterday for an explanation of the filing. Management stated that it remains committed to a 280 aircraft fleet size, to the extent stated in President and CEO David Siegel’s recent letter to employees. This commitment is based on management’s ability to renegotiate aircraft leases. ALPA will be monitoring this situation very closely and will take whatever steps are necessary to ensure that the contractual rights of our pilots are defended.
ALPA President Captain Dwaine Woerth completed appointments to the MDA Negotiating Committee last week. The Committee is constituted as follows: Captain Donn Butkovic was appointed chairman, First Officer Dave Belastock, First Officer Roy Freundlich and Captain Jim Moon from PSA were appointed members. Since MDA is a separate ALPA unit, a communications structure independent from our MEC is required and is currently being implemented. This will include a voice announcement system and pilot only website for access to updates and other information. This should be available sometime next week.
The Committee met in Herndon last week and is meeting in Pittsburgh this week to address organizational issues and review the negotiating parameters, accelerated timeline and selection of arbitrators for the completion of contract terms if necessary, and the regional contracts identified in the Restructuring Agreement. The Committee has made arrangements to receive information and assessments of scheduling and other important sections of regional contracts from the MEC’s Scheduling, Grievance and other key committees, and ALPA advisors. A meeting with MDA management is scheduled for tomorrow.
. On this date, one year ago, the terrorist attacks directly impacted our industry and significantly contributed to US Airways'' current difficulties. Your MEC representatives proudly recognize that US Airways pilots have done our part to ensure the operational stability of our airline and have made substantial sacrifices to help facilitate our recovery. Your representatives thank you for your crucial support during this difficult period.
From the above post by Chip:

ALPA will be monitoring this situation very closely and will take whatever steps are necessary to ensure that the contractual rights of our pilots are defended.

Chip, you have said that the company is batting 100% with their request to the bankruptcy judge. If management decides that it needs to petition the court for a change in the pilot agreement to allow even fewer aircraft, or any other changes, what option does ALPA have? We must think about the survival of the company and allow them to do whatever is needed!