AWA ALPA MEC Hotline – September 14, 2005
From: JR Baker, AWA MEC Chairman
To: All AWA Pilots
As you know, your AWA MEC accepted a draft of the Transition Agreement during Monday’s Special MEC meeting and will vote on the final language on Friday. This agreement involves three parties, management, the America West pilots, and the US Airways pilots.
Today, the US Airways MEC unanimously voted to accept the Transition Agreement. Earlier this week, the US Airways pilots had filed objections to the merger with the federal bankruptcy court. During today’s MEC meeting, the US Airways MEC decided that they will still object to executive compensation. However, based on changes the Company made to provide Board of Directors input to our pilot groups, they will drop objections to not having an actual BOD seat. Instead, a Labor Committee of three Board of Director members will be formed. This Labor Committee will meet with ALPA and three other unions, share with ALPA the information that the BOD receives and relay to the Board our input.
The US Airways pilots also received $500,000 for settlement of a large grievance and got the Company to agree to eliminate a contract clause that could reduce pay by up to 1 percent to fund retirement contributions for returning furloughees for the time they were on furlough.
The language of the Transition Agreement is almost complete, and your MEC is ready to review the final document during Friday’s MEC meeting. The Transition Agreement will keep separate and preserve flying and aircraft for each pilot group during the interim period when the two airlines are transitioning to a merged airline, make sure that the Company accepts the integrated seniority list and set out a process that starts 60 days from now for bargaining the merged contract.
On a more somber note, both Delta Air Lines and Northwest Airlines filed for Chapter 11 bankruptcy protection today. Tune into CNBC tomorrow morning, Thursday, September 15, to hear Capt. Duane Woerth, ALPA president, weigh in on the latest blows to the airline industry. He will appear on television between 10:00 a.m. and 10:30 a.m. Eastern Time.
Our airline industry is in turmoil and there’s no end in sight. Analysts are predicting more bankruptcies, consolidations, fragmentations and perhaps liquidations. Our pilot group took an important step this week to make sure that our consolidation with US Airways protects us and proceeds in an orderly fashion.
As we struggle through these tough times, our profession must stand together to survive. Continue to keep your union brothers and sisters at Delta, Northwest, and all other airlines in your thoughts and prayers.
Be careful out there.
AWA ALPA MEC Hotline – September 15, 2005
From: JR Baker, AWA MEC Chairman
To: All AWA Pilots
Some have called it “Black Wednesday,†others the “daily double,†with both Delta and Northwest filing for bankruptcy yesterday. Now, four major U.S. airlines are operating under bankruptcy protection, putting even more pressure on the other struggling airlines.
Airlines are citing high fuel costs and not enough available cash as their reasons for seeking or contemplating bankruptcy protection. With gas prices going up, airfares have remained low. People are choosing to fly rather than drive to their destinations to mitigate the pain felt at the pump.
Wouldn’t it make sense that if passenger traffic was up, airlines would make money? Add on pilots giving billions of dollars in concessions, and one would reasonably assume that there would be a plethora of cash to cover today’s high fuel costs. Unfortunately, this is not the case.
Airline managements across the board have squandered away that money through low fares trying to beat the competition. And now most of the competition is operating out of bankruptcy. Clearly, the ways of the past aren’t working. So, where does that leave us?
It’s time for airline managements to implement business solutions that work in today’s environment. When fuel goes up, fares must go up. Management needs to get smart and stay smart on maximizing yields. Airline managements in general must focus on fixing operational wastes such as training debacles, rather than tap labor to make up for management’s lapses. That well has been tapped too many times and is now bone dry.
We must be realistic and not overly pessimistic that the end of our industry is near, or even optimistic that things are going to change quickly. There will likely be more blows to our industry before things start to turn around, and we must be prepared for what the future may bring. With these recent filings, the odds are high that a future merger or fragmentation takes place that affects us as we become the new US Airways. Make no mistake, this MEC is prepared, and we will continue to prepare for all eventualities.
Though your MEC is focused 100 percent on what’s in our backyard, we are also looking beyond the merger with US Airways and preparing for the unexpected. This is not a novel concept. As pilots, we rigorously train to protect and defend against the unexpected. Your MEC’s job is to continue monitoring the industry, the environment, and the impact they have on our airline. We will continue managing our resources effectively. And most importantly, we will continue working together as a team to ensure the viability of our pilot group and our airline.
One last item - The pilots at Polar Air Cargo have been in negotiations for more than two years trying to get a fair contract that recognizes their contributions and allows their airline continued growth. At 12:01 a.m. tomorrow, Friday, September 16, Polar Air Cargo pilots may go on strike. If this should happen, there will likely be pilots who are stranded. Please help them get home.
Be careful out there.
From: JR Baker, AWA MEC Chairman
To: All AWA Pilots
As you know, your AWA MEC accepted a draft of the Transition Agreement during Monday’s Special MEC meeting and will vote on the final language on Friday. This agreement involves three parties, management, the America West pilots, and the US Airways pilots.
Today, the US Airways MEC unanimously voted to accept the Transition Agreement. Earlier this week, the US Airways pilots had filed objections to the merger with the federal bankruptcy court. During today’s MEC meeting, the US Airways MEC decided that they will still object to executive compensation. However, based on changes the Company made to provide Board of Directors input to our pilot groups, they will drop objections to not having an actual BOD seat. Instead, a Labor Committee of three Board of Director members will be formed. This Labor Committee will meet with ALPA and three other unions, share with ALPA the information that the BOD receives and relay to the Board our input.
The US Airways pilots also received $500,000 for settlement of a large grievance and got the Company to agree to eliminate a contract clause that could reduce pay by up to 1 percent to fund retirement contributions for returning furloughees for the time they were on furlough.
The language of the Transition Agreement is almost complete, and your MEC is ready to review the final document during Friday’s MEC meeting. The Transition Agreement will keep separate and preserve flying and aircraft for each pilot group during the interim period when the two airlines are transitioning to a merged airline, make sure that the Company accepts the integrated seniority list and set out a process that starts 60 days from now for bargaining the merged contract.
On a more somber note, both Delta Air Lines and Northwest Airlines filed for Chapter 11 bankruptcy protection today. Tune into CNBC tomorrow morning, Thursday, September 15, to hear Capt. Duane Woerth, ALPA president, weigh in on the latest blows to the airline industry. He will appear on television between 10:00 a.m. and 10:30 a.m. Eastern Time.
Our airline industry is in turmoil and there’s no end in sight. Analysts are predicting more bankruptcies, consolidations, fragmentations and perhaps liquidations. Our pilot group took an important step this week to make sure that our consolidation with US Airways protects us and proceeds in an orderly fashion.
As we struggle through these tough times, our profession must stand together to survive. Continue to keep your union brothers and sisters at Delta, Northwest, and all other airlines in your thoughts and prayers.
Be careful out there.
AWA ALPA MEC Hotline – September 15, 2005
From: JR Baker, AWA MEC Chairman
To: All AWA Pilots
Some have called it “Black Wednesday,†others the “daily double,†with both Delta and Northwest filing for bankruptcy yesterday. Now, four major U.S. airlines are operating under bankruptcy protection, putting even more pressure on the other struggling airlines.
Airlines are citing high fuel costs and not enough available cash as their reasons for seeking or contemplating bankruptcy protection. With gas prices going up, airfares have remained low. People are choosing to fly rather than drive to their destinations to mitigate the pain felt at the pump.
Wouldn’t it make sense that if passenger traffic was up, airlines would make money? Add on pilots giving billions of dollars in concessions, and one would reasonably assume that there would be a plethora of cash to cover today’s high fuel costs. Unfortunately, this is not the case.
Airline managements across the board have squandered away that money through low fares trying to beat the competition. And now most of the competition is operating out of bankruptcy. Clearly, the ways of the past aren’t working. So, where does that leave us?
It’s time for airline managements to implement business solutions that work in today’s environment. When fuel goes up, fares must go up. Management needs to get smart and stay smart on maximizing yields. Airline managements in general must focus on fixing operational wastes such as training debacles, rather than tap labor to make up for management’s lapses. That well has been tapped too many times and is now bone dry.
We must be realistic and not overly pessimistic that the end of our industry is near, or even optimistic that things are going to change quickly. There will likely be more blows to our industry before things start to turn around, and we must be prepared for what the future may bring. With these recent filings, the odds are high that a future merger or fragmentation takes place that affects us as we become the new US Airways. Make no mistake, this MEC is prepared, and we will continue to prepare for all eventualities.
Though your MEC is focused 100 percent on what’s in our backyard, we are also looking beyond the merger with US Airways and preparing for the unexpected. This is not a novel concept. As pilots, we rigorously train to protect and defend against the unexpected. Your MEC’s job is to continue monitoring the industry, the environment, and the impact they have on our airline. We will continue managing our resources effectively. And most importantly, we will continue working together as a team to ensure the viability of our pilot group and our airline.
One last item - The pilots at Polar Air Cargo have been in negotiations for more than two years trying to get a fair contract that recognizes their contributions and allows their airline continued growth. At 12:01 a.m. tomorrow, Friday, September 16, Polar Air Cargo pilots may go on strike. If this should happen, there will likely be pilots who are stranded. Please help them get home.
Be careful out there.
