Extension..... Here is the special jetwire....
Dear American Team,
We today received word that Judge Sean Lane will delay ruling on American’s Section 1113 motion for all union groups for one week, until Friday, June 29. Earlier today, in an effort to secure more time for the Allied Pilots Association to review the company’s final proposal, the company supported the union’s request for a one week delay in the ruling.
We know this process can be confusing and there are many questions. This week we were hopeful we could reach agreement with the pilots union on a proposal that went far to balance pilot needs with contractual changes necessary to our restructuring. As you may know, the APA Board of Directors announced yesterday it would not yet put that proposal out for the pilots to vote – a disappointing development but one we believe can be addressed by allowing the union additional time to review our proposal.
The APA proposal represented hard work and compromise on the part of both parties, producing competitive terms that provide significant benefits for pilots. The proposed six-year contract allows us to improve productivity and network flexibility, while providing pilots with pay increases, furlough protection, profit sharing and seeking a freeze of the pension instead of termination. As we have asked of all people, pilots will take on a greater share of their health benefit costs so that we can continue to offer comprehensive health coverage.
When we started the process of restructuring, we had a significant amount of ground to make up. We had fallen far behind our industry peers in many areas. The competitive landscape had changed and we needed to adapt – quickly.
Throughout negotiations, our focus has been on reaching consensual agreements that allow us to succeed and win. It was that focus, and the additional benefit of our recent revenue improvements, that allowed us to put forward a proposal to APA that adjusts the savings target while still achieving the goals of our business plan. The proposal produces cost savings of 17 percent as compared to our initial target of 20 percent.
Given the adjustment to the savings target for pilots, we’ll be meeting with the five TWU-represented groups with whom we now have ratified agreements to make comparable improvements for them. We will also adjust the needed savings for our independent employees, in order to ensure they are treated fairly and equitably. Our goal continues to be to reach consensual agreements with APFA and the remaining TWU groups.
We are on a path that is the right one for American Airlines. The process remains challenging, but there are huge opportunities ahead as we reach agreements with all of our represented workgroups and begin focusing our collective efforts on creating a profitable, successful new American.
Thank you for your continued focus and dedication as we work through this process.
Sincerely,
Denise
"Last, best and FINAL offer" We are dissapointed M&R and Stores turned down our "latest offer".
"Weeks , not Months". (that was six months ago)
June 5,
June 22, June 29???
Lies, lies and more lies.
The company is by law entitled to an answer, the unions have no say in it. So if its pushed back its because the company agrees to do so.
"contractual changes necessary to our restructuring"
What that does
not mean;
"Contractual changes necessary for AA to surive"
"Contractual changes necessary to exit BK"
'Contractual changes necessary to earn profits"
"Contractual changes necessary for AA to thrive"
In other words it does not mean that they need the changes for anything close to the intended purposes of Chapter 11
What does it mean then?
Contractual changes necessary to earn $3 billion a year in profits, an EBITAR in excess of 17%. Thats what they mean when they say "necessary for our successful restructuring".
This most certainly was not what Chapter 11 was put in place to do. AA's filing with over $4billion in the bank and a business Plan that would make them the most profitable Airline ever, and likely send the rest of the industry back into C-11, highlights the pressing need for our legislators to revisit or pehaps even strike C-11 in its entirety.
I believe that Judge Lane will rule to abrogate if and when AA asks him to, its what Wall Street's Court does, thats why the Dallas based company filed here, however I think he is very much aware that if it comes to that the reaction and fallout could put the whole gig at risk. With super high load factors the system cant cope with very much should not just workers at AA but Airline workers at other carriers not show up for work. We know that workers at UAL, Delta and even Southwest are very concerned about what happens here at AA and if AA can file with $4 billion whats stopping their employer from filing while showing profits and use the arguement that compared to AA their profits are not "competitive" and that they need a double digit EBITAR as well? Nothing. No doubt the public would be irate at airline workers, but they would be even more irate at the government for causing the whole mess by so blatently tipping the scales in favor of the greedy corporations and leaving Airline workers with no other options.
Everyone must remember that we already put 4 years into this contract, another 6 would make it 10. They are out of the f%$&(&*^g minds!!!!
The company is demanding $900million from the unions so they can show a $3billion profit, in other words if they left the agreements as is they would still earn over $2 billion a year in profits.They dont need ANY cuts from us, they simply need to cut what they should have cut in 2003, leases on aircraft they dont fly, facilities they dont use etc etc.
With oil prices in a nosedive its going to be even harder for AA to hide their profits and even harder for them to get sympathy from the pissed off passengeers who spend their Vacations in airline terminals.
