Mda Sale Moving Closer To Conclusion?

[USA320Pilot]

Following this week's agreement between the IBT and Republic Air Holdings and the US Airways ALPA MEC resolution regarding the MDA-Republic agreement, it appears the the sale of MDA assets can now be completed and an orderly transfer of EMB-170s can occur. This is an important part of US Airways' plan of reorganization and a restructuring step that would make a potential merger easier to complete.

Listed below is information regarding new terms between Republic's Chautauqua Pilots and the Company regarding the Shuttle America Operating Certificate, ALPA's resolution, and today's offer by Republic for Shuttle America's operating certificate.

Chautauqua Pilots Spell Out Terms For Shuttle America Deal

Tuesday, April 19, 2005

INDIANAPOLIS (Aviation Daily) - Pilots at Chautauqua Airlines are outlining their requests to airline management to ensure a smooth transition of the carrier’s Embraer 170s to the Shuttle America operating certificate if Chautauqua’s parent company opts to move the planes to avoid paying American Airlines fines.

Chautauqua started flying the planes after sister carrier Republic Airlines failed to win FAA certification in time to begin United Express flights with the -170s last fall. American’s pilots claimed that 70-seat flying violated their contractual scope clause, and eventually Chautauqua, American and American’s pilots resolved the dispute with the understanding that the -170s flying at Chautauqua would be temporary until Republic Airlines won FAA certification.

For unexplained reasons, Republic Airlines continued to experience certification delays, and earlier this month management at Republic Airlines Holding notified Chautauqu a’s pilots, represented by the International Brotherhood of Teamsters (IBT), that there was a possibility Republic Airways Holdings might acquire Shuttle America’s certificate (DAILY, April 6). Republic Airways Holdings has started paying American fines as a result of Chautauqua flying the -170s.

IBT, in a letter to Republic Airways Holdings Chief Operating Officer Wayne Heller, noted that Heller had said recently that the -170s could be assigned to Shuttle America’s certificate before Republic’s proposed acquisition of the certificate. "We understand that this would facilitate the FAA Embraer 170 certification process," said IBT’s Local 747 President and General Counsel E.E. Sowell.

The union has concerns regarding the movement of the planes before the acquisition is finalized; however, IBT said it recognized the "unique" situation and its own desire to ensure growth for Chautauqua through the potential a cquisition of Shuttle.

Temporary Relief

IBT said it plans to grant temporary relief of about three months for certain aspects of its current contract if management at Republic Airways Holdings meets certain terms. These stipulate that Chautauqua continue publishing bids for Embraer 170 Shuttle America flying before the acquisition and that no more than 10 captains and 10 first officers can fly the planes prior to "the complete purchase of Shuttle America by Republic Airways," IBT said. The union also wants all Embraer 170s on the Shuttle certificate or on firm order to be governed by the Chautauqua contract and flown by pilots on the Chautauqua seniority list "during any period of separate operations."

US Airways ALPA code-a-phone update

Tuesday, April 19, 2005

See Story

Market Pulse: Republic Airways offers to buy Shuttle America

Thursday April 21, 8:58 pm ET

SAN FRANCISCO (MarketWatch) - Republic Airways Holdings Inc. said late Thursday that it has made an offer to buy Shuttle America Corp. from Shuttle Acquisition LLC, an affiliate of Wexford Capital LLC. Republic Airways said it has offered to purchase the company for $1 million, plus the assumption of less than $1 million in debt. Wexford Capital is the majority shareholder of Republic Airways Holdings. The deal is expected to close in May. Republic said because it and Shuttle America are controlled by a common entity, it will have to restate its results for fiscal 2002 through 2004. The company said it may have to reduce its 2004 net income in the range of $4 million to $7 million.

See Story

Regards,

USA320Pilot

 

[USA320Pilot]

Republic Airways Holdings Announces a Conditional Offer to Purchase Shuttle America Corporation

Republic's decision to purchase Shuttle America is in anticipation of increased demand for the Embraer 170 and to provide Republic with the opportunity to operate aircraft larger than 70 seats such as the Embraer 190 while complying with certain scope restrictions that some of its major airline partners currently have in place. Republic intends to add the Embraer 170 to the Shuttle America operation as soon as possible and plans to phase out all turboprop flying by the end of 2005.

See Story

Regards,

USA320Pilot

 

[Light Years]

So how about the actual US Airways pilots and flight attendants who actually work on the largest E170 fleet in the world right now? You know, the ones who voluntarily came back from furlough, to work mainline planes at lower than Express wages, launch a new aircraft type, and were likely the employee group that has represented US the best attitude and service wise for the last year?

I guess just back to the streets so another s**ty commuter can take over a bulk of the airlines flying? Shuttle America. There's some class. One million dollars? I wouldn't trade a sixer of Milwaukee's Best for that airline.

 

[SoldWholeSale]

Easy now, its a trade-off USA320Pilot is happy to make, it is after all a group of junior pilots..... I'm on his email distribution list outside of this furum, and he's had the spin machine in full swing trying to get the MEC to sell-wholesale all of MDA for pretty much nothing.

Right now, MDA is the class of the operation and the example for the rest who thought pay cuts and more work should entitle a poor attitude.

My guess is, the U MEC will throw MDA under the bus for little or nothing after making a display of interest. Then, the 300+ very organized MDA pilots will very shortly there after file a suit for failure of representation.

Yes 700, I have been wrong (the ball was rolling and my information was good, the game just never started), but the chrystal ball is working pretty good this time. Who knows what all balls are in play with AMW, CHQ/Wexford, Mesa, Air Wisconsin, and USAir mainline all in the mix and chrystal city only knows who else.... It won't be boring and my guess is its gonna hurt no matter your seniority or work group.

Best of luck to everyone, the next month should make interesting reading in my kids college "intro to the airline industry" class in ten years or so...

 

[eolesen]

The whole deal with Shuttle America has less to do with MDA than with the fact that Chautauqua is paying AMR fines for violating the AMR/APA scope clause by operating 70 seaters for UAL.

CHQ got a temporary waiver to operate the E170s for UAL, with the stipulation that it was only temporary. As I understand it, Republic hasn't gotten their certificate yet. If they can move the CHQ aircraft over to Shuttle America's certificate, they're back in compliance with AMR and can stop paying fines. They've already paid out something like $300K in 4Q04.

Also, isn't the entire MDA/Republic agreement contingent on finding additional financing? I haven't seen anyone else step up to the plate yet, and I hadn't seen anything which makes it clear what happens to the AirWisc and Republic agreements if the HP deal goes thru.

One thing is for certain -- Mesa appears to be getting shut out. HP won't give them any more flying, and they're not ponying up any money at US.

 

[Light Years]

How DOES the HP merger, if it happens, affect the Republic and and Air Whisky deals?

Maybe HP would want to keep the EJets as part of the mainline as they would basically replace 737s.

Having a CRJ900 on a short Express flight is one thing, but I would imagine that the E170/190 would have a big job in this merger. It would be serving the midcon markets from PHX, CLT, and PHL as well as the short haul routes that are the meat and potatoes of both route systems... It would have a huge role in the merged airline, if not serve as the backbone. Would America West as interested as US seems to be in paying others to fly the planes rather than keep the revenue in-house?

If someone comes along and puts 500 or 800 million into the two airlines, do they kind of overtake the folks who put in 100 million into a stand-alone US? If anyone has that money and does it, I would think they would get rid of investors who threw in relatively little for the privelege of ripping the airline off and stealing thier flying and assets.

 

[USA320Pilot]

SoldWholeSale:

Since you aksed me to send you private emails, I find your comments interesting and misleading.

In regard to your lawsuit threat, it's not the fist time the Association has been sued and you will likely lose more money. Why? Laws were made by lawyers by lawyers and it will get old paying legal fees, bleeding your personal finances, and watching the only attorney's make money.

ALPA Legal is fully cognizant of the MDA pilot threats and is prepared for any litigation.

I do not like what is happening with MDA, the J4J pilots, and the CEL pilots. We all must rally together to get the best possible deal and lawsuit threats certainly do not encourage ALPA to support your position.

Separately, earlier today Republic announced their first quarter earnings and will hold an analyst conference call, where the MDA deal will likely be discussed and more information obtained.

Regards,

USA320Pilot

 

[hp_fa]

One thing is for certain -- Mesa appears to be getting shut out. HP won't give them any more flying, and they're not ponying up any money at US.

[post="263850"][/post]​

Mesa needs to move back to Farmington. What a poor excuse for an airline.

 

[Bud8EE]

I do not like what is happening with MDA, the J4J pilots, and the CEL pilots. We all must rally together to get the best possible deal and lawsuit threats certainly do not encourage ALPA to support your position.

[post="263925"][/post]​

This is the biggest load of BS. It's not that you don't like what is happening, it is that you don't care, and to pretend that you do insults anyone on this boards intelligence. You care about yourself and that it, so be big enough to admit it. That's only 5'4" anyway. You are all for unionism but only the part that protects your interest. The same union and contract that protects the right of the MDA pilots it the one that establishes your place on the seniority list because of longevity. You argure Capitlaism and market forces but if it was truly Capatilistic any pilot could walk into the VP of OPS and write down an annual figure, days off, and he would pick the lowest offers and who flies Captain. So you argue Captalism when it benifits you and Unionism when it benifits you, so just admit it is all about you.

 

[Hope777]

Well said Bud8EE

 

[SoldWholeSale]

Do you really feel bad about what is going on at MDA???



DO NOT FORWARD OUTSIDE OF PILOTACTION
Dear Pilotaction Member:


Today the Charlotte Observer reported US Airways and one of its
major creditors agreed (yesterday) to extend by two weeks the
deadline for the carrier to file a reorganization plan with the
bankruptcy court.


The airline was scheduled to file that plan today, but General
Electric Co., which holds a stake in many of US Airways' planes and
engines, agreed to give the airline until the end of April, the
companies said in a statement Thursday. It is the third extension GE
has granted US Airways, which is trying to emerge from bankruptcy
protection. If the airline fails to file a plan "reasonably
acceptable" to GE, the creditor could seek repayment, likely
triggering a shutdown.


See Story:
http://www.charlotte.com/mld/charlotte/business/11399544.htm


Simultaneously ALPA announced a special MEC meeting has been called
to convene in Pittsburgh for Monday, April 18, at 10 a.m. and will
adjourn at 5 p.m., or at the completion of business.


The agenda for the meeting is:


-- Report from the Negotiating Committee and MEC Officers regarding
the implementation of Resolution AI 05-41: Resolving the career
impact issues resulting from the Republic - US Airways Agreement
including job and seniority issues.


-- Whether the Association should accept the April 13, 2005 company
proposal to negotiate and grieve this issue. If the Association does
not accept the company proposal, what action(s) should the
Association take?


See Story:
http://crewroom.alpa.org/aaa/DesktopModule.../ViewCodeaPhone.
aspx?DocumentID=335


Meanwhile, GECAS is directly involved in the company's POR
discussions, it is US Airways' largest creditor, and as we know it
is concerned about its exposure to the Arlington-based company. If
you remember, last summer GECAS became directory involved in ALPA
negotiations during the LOA 91 process and they want to diversify
their risk to our airline.


In my opinion, GECAS may be concerned about ALPA Resolution AI 05-41
and its impact on the US Airways' ability to complete the Republic
deal. If ALPA fights the Republic – US Airways agreement, GECAS
could object to the POR and force an immeidate shutdown of US
Airways. In addition, the Republic equity investment has a clause
where the Indianapolis-based carrier must approve the POR before it
provides US Airways with $125 million in exit financing. Thus,
another potential problem is that the regional airline may not
provide US Airways required exit financing if there are MDA labor
problems. If my suspicions are correct, this could become a
difficult issue for ALPA, but can be resolved.


In addition, these issues are likely having an impact on the on-
going US Airways, America West, and Mesa talks where GECAS has
significant exposure too. If TheDeal.com's (this is a good and
accurate source of information) article and Holly Hegeman's report
on US Airways and America West are true, and I know believe there
are advanced on-going discussions occurring between the parties,
then GECAS may withhold major funding to permit a transaction from
going forward that could save both US Airways and America West,
unless MDA labor obstacles are removed.


See TheDeal.com article:
http://www.thedeal.com/NASApp/cs/ContentServer?
pagename=hpa&c=TDDArticle&cid=1113424103124&p=M4YD5AR1


I have nothing specific to base my thoughts on, but I do believe all
of these events are interrelated and ALPA's response to the US
Airways-Republic deal, MDA, and Resolution AI 05-41 could decide
whether or not US Airways survives, not only in the long-term, but
in the immediate future.


Monday's MEC meeting could be a defining moment or a life changing
experience for US Airways' pilots.


Regards,

USA320Pilot



P.S. In a bit of good news Crude Oil Futures are about to drop below
$50 per barrel and are trading down 93 cents at $50.20 per barrel.

 

[Light Years]

What a d*ck. Don't worry, no one will fight for him when his time comes.

 

[Bear96]

Monday's MEC meeting could be a defining moment or a life changing
experience for US Airways' pilots.

What, another one???

P.S. In a bit of good news Crude Oil Futures are about to drop below
$50 per barrel and are trading down 93 cents at $50.20 per barrel.

[post="263995"][/post]​

Oops ...

http://www.bloomberg.com/energy/

 

[ClueByFour]

We must throw the MDA pilots under the bus to maintain our jobs.

Same old tune, really.

 

[savyinvestor]

Is anyone really surprised? I didn't think so. Savy :down: