Amazing, Doogie's thoughts on LCC pensions...

[USA320Pilot]

US Airways had committed financing from Citigroup and Morgan Stanley for the proposed transaction for $8.2 billion, not for pension restoration.

There is no lending institution in the world that would provide a company that kind of money for pensions without a means to service the debt. The loans were provided to fund the acquistion so the two copanies could merge and generate more profits, not to add more debt with an inability to service that debt.

In regard to DALPA pensions click here.

Regards,

USA320Pilot

 

[luv2fly]

US Airways had committed financing from Citigroup and Morgan Stanley for the proposed transaction for $8.2 billion, not for pension restoration.

There is no lending institution in the world that would provide a company that kind of money for pensions without a means to service the debt. The loans were provided to fund the acquistion so the two copanies could merge and generate more profits, not to add more debt with an inability to service that debt.

In regard to DALPA pensions click here.

Regards,

USA320Pilot

What exactly did the US pilots receive in return for the voluntary termination of their DB plan? I am not familiar with it.

 

[PITbull]

What exactly did the US pilots receive in return for the voluntary termination of their DB plan? I am not familiar with it.

The wonderful opportunity to keep working at USAirways to 65 years old at half the pay of pre-BK.

I wrote to the Senators yesterday thanking them for presenting this viewpoint and bringing to light the terminated pensions of the employees that no one should forget.

I expressed to them that U was so ruthless with Labor that they not only terminated the pension plans but slashed the wages of Labor by 30-50% so we could no longer even afford to contribute to our own 401K. Our focus was just to exist day to day to keep a roof over our families heads.

Truly amazing that they have billions 18 months later to invest in goggling up airlines and cashing in on stock with stock earning that have tripled because of the profits made on the backs of the employees. Receiving $500 in profit sharing does not even touch the surface of losing a pension and continueing with lousy wages for these employees.

 

[jack mama]

please stop encouraging those non binding senators with more non binding fluff about money raised to buy a company vs money raised to pay terminated db plans...you are dellusional to think the DB plans are coming back...they are part a failed business model, and DC plans are here to stay.

pitbull - why do you continue to harp on the fact that the money was raised by investors for a promise of a return..the company is in business to make money for the shareholders, not to provide fat cat DB plans for union workers.....and i understand of course that you must keep your employees happy to run a successfull company, but a DC plan works just fine for everybody else in the world, why not US?

 

[usjacket]

"DON'T WORRY ABOUT IT!"

 

[Harry Callahan]

Pitbull, what you mentioned only makes sense. It also takes a little brain power which I'm sorry, this AFA union certainly doesn't have. There is NO leadership and the one at the top does NOTHING except put out barely worthwhile E-lines. Yep everythings juuuuust fantastic. I MAKE US FLY and OUR PAYCHECKS MAKE US CRY! ! !

Can someone make a tee shirt or hat with that last line ?

 

[PHLfa88]

Psssst!! It's called "Parker Punch" now. Kool-Aide is trademarked and I heard they got upset 😀

Pssst! The Pensions Were Gone WAY Before Parker Was On The Scene!! Ya'll Need To Let It GO!! 😛

 

[careerfurloughee]

Pssst! The Pensions Were Gone WAY Before Parker Was On The Scene!! Ya'll Need To Let It GO!! 😛

Isn't that the same as saying "Don't worry about it"?

 

[luv2fly]

and i understand of course that you must keep your employees happy to run a successfull company, but a DC plan works just fine for everybody else in the world, why not US?

Because a DC plan needs time to grow in order to provide for retirement. If you were a pilot in your late 40's or 50's, time is critical and a DC doesn't compensate adequately enough for the termination of the DB. In addition, the already reduced PBGC limits are reduced even further for the mandated age 60 rule.
Bottom line is DC's work as long as you have the time to invest as well.

 

[PITbull]

The US pensions were stripped long before Doug came into the picture. And speaking of pensions, how is yours over there at DL???? 😀

No. I don't think it was long. Pensions were terminated in BK for IAM and AFA on Jan 10, 2005, merger rumors were all over the place in Feb. and March, U merged with AWA on Sept 27 2005.

pitbull - why do you continue to harp on the fact that the money was raised by investors for a promise of a return..the company is in business to make money for the shareholders, not to provide fat cat DB plans for union workers.....and i understand of course that you must keep your employees happy to run a successfull company, but a DC plan works just fine for everybody else in the world, why not US?

Why would you pose such a question? Why not ask DR. Bronner of Alabama if the DC plans works better than a Defined Pension plan for the workers he represents?

CO still has their pensions intact. AA still has their pensions intact. With their restructuring, their employees still make more than U's across the board.

Who has a better business model? A company who went into BK 1-2 or 3 times or one that has ran their business efficiently changing their business model to fit the evolution in the industry...and producing a consistant product that customers want and still maintaining livable wages for employees???

A defined contribution works if you make enough money to contribute to it and you know enough about wall street to invest to maximise a fair return.

 

[ALCARLOS]

With a number of employees still out on the street, why should there be any increase?

 

[Twicebaked]

I am baffled why the unions aren't stirring much more noise, too.



H-e-l-l-o people...window of opportunity here...

This would at the very least put some immediate pressure on management to enhance the contracts for their labor groups and close these deals.

That is because we don't have YOU!!!!

 

[LCC_#1]

Wow guys,
I would love the pension back, all furloughees back, staffing of the early 90's back, the 1989 contract, full service meal service in f/c and coach. 450 we had on the east side making our # of a/c close to 800, and of course my pay that would probably be$15-$20 an hour higher at this point.

Here is one person's opinion. ALL airline employees seem to forget that this industry rarely makes money and the profit margins are typically small. When an airline DOES make record profits, everyone is ready to celebrate and spend spend spend!! You guys crack me up...US Airways, Delta, American. You are all the same. We made a few milliion..we're out of the cold...let's spend it!! Who cares about the future?

 

[Q2DETX5]

I expressed to them that U was so ruthless with Labor that they not only terminated the pension plans but slashed the wages of Labor by 30-50% so we could no longer even afford to contribute to our own 401K. Our focus was just to exist day to day to keep a roof over our families heads.

That is exactly the problem, thank-you PB. That 401K ain't worth squat if you can't dump a boatload of cash in it.
And that cute little DC plan....what's that all about? You can't contribute to it at all.

 

[PITbull]

ALL airline employees seem to forget that this industry rarely makes money and the profit margins are typically small. When an airline DOES make record profits, everyone is ready to celebrate and spend spend spend!! You guys crack me up...US Airways, Delta, American. You are all the same. We made a few milliion..we're out of the cold...let's spend it!! Who cares about the future?

Correct me if I'm wrong...but didn't Dougie just make a $10.8 billion hostile bid for DL?????? I remember the same lame retorhic ad nauseum when we were in those past bankruptcies... "live to fight another day" bullshittt. Well, is this not the day? If not now, then when?

Just how long do you think it would take to make a return on that investment of a hostile takeover????? How much cost would it take to even merge those employees? Get rid of routes that overlap, more furloughs and giving back a/c while DL sits in BK.

My friend, the execs and investors are only looking out to cash in a return of no less than 500%. If they can do it on your back for as long as your back doesn't break, they most certainly will.

If you are not for you...who will be for you????