New Airline Bailout gives management a brand new hammer!

airlineorphan

Senior
Aug 20, 2002
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Hey folks,

Watch out, they''re probably coming back again for more! Looks like the airline bailout contains language requiring more slash and burn by airlines.

Below is an excerpt from the airline bailout portion of the war appropriations bill. The language here is from H.R. 1559 and I got it from the below link:

http://thomas.loc.gov/cgi-bin/query/D?c108...emp/~c108PmGkHu::

I''m not certain it is included in the final version passed today by both chambers, but I would be willing to bet it is!

This language will require any carrier that gets aid in this package to submit a plan to cut operational costs by 10% of June 2002 costs or by the amount of aid received (whichever is greater).

US Airways employees likely have already met that amount, but watch out for management coming to us saying, We need this aid. We''ll liquidate without this aid. It hurts so much to ask for more, but it is out of our hands.... (hurts from their maniacal laughter in the Crystal Palace)

Elsewhere (Title IV, Section 407) the the legislation gets around to closing the barn door on executive compensation. It caps compensation at the outrageous 2002 levels. Yeah, that''ll show''em!

-Airlineorphan

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TITLE IV: AVIATION INDUSTRY RELIEF PROVISIONS
.............
SEC. 408. AIR CARRIERS TO SUBMIT OPERATIONAL EXPENSE REDUCTION PLANS.
(a) IN GENERAL- Each air carrier that receives financial assistance under this Act shall transmit a plan to the Comptroller General within 90 days after the date of enactment of this Act that, if implemented, will reduce that air carrier''s annual operating expenses by an amount equal to the greater of--
(1) 10 percent of that carrier''s annual operating expenses determined as of June 15, 2002; or
(2) the amount of financial assistance that air carrier has received or will receive under this Act.
(B) OPERATING EXPENSES- In determining annual operating expenses for purposes of this section, an air carrier shall compute operating expenses attributable to fuel on the basis of the average price of such fuel for June 15, 2002.
 
Well you know i wouldnt be a bit suprised by anything. I''ve said since the 5% cut for the war that we WOULD never see that 5% back, contract or NO contract. Guess we are on permanent 15% cut.... Now i''m just hopeful that will be enough for the GREEDY @!#&@&$$!!!!
 
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On 4/12/2003 4:20:12 PM NAPAUS wrote:

Well you know i wouldnt be a bit suprised by anything. I''ve said since the 5% cut for the war that we WOULD never see that 5% back, contract or NO contract. Guess we are on permanent 15% cut.... Now i''m just hopeful that will be enough for the GREEDY @!#&@&$$!!!!

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Hey NAPAUS,

The good/bad news is that we actually have already given more than 10% in labor costs compared to June 2002 levels (as per requirements in this nasty little piece of legislation). Of course if the company gets more than that bogey number in aid, they will be expected to cut by the amount that is greater: 10% of June 2002 levels or the amount of the bailout money.

Thus we''re already there, and then some.

However, I don''t put it past this management to try creative accounting to on this. We''ll need to watchdog them pretty carefully on this.

It seems a bit of a contradiction that this legislation includes this 10% cut of operating costs requirement, while leaving executive compensation caps at 2002 levels. And the money spent upon unemployment compensation is going to be miniscule compared to the $ that will be allotted for industry bailout.

Just another day at the sausage factory!

-Airlineorphan
 
Yes we will get it back, and before the 5% defferal a utility is making $17.13 vs a mechanic making $26, $9 an hour is a big differance, like $360 a week.
 
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On 4/12/2003 5:45:13 PM LavMan wrote:

NAPAUS, we got 200% of our givebacks in 1992 and 1993, back in 94 and 95.

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LavMan,

Do you think we are getting anything back this time?

Do you think some people are making good money for dumping lavs now? I do.

-If you think your job stinks well it stinks being a mechanic just making a few more stones than the guy dumping the lav.
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