NEW PHL CHIEF PILOT

[traderjake]

The pension for all practical purposes was lost 7 months earlier. The MEC was warned by the negotiating committee and did not listen. The September before that vote, the company reported the pension underfunded to the point that ERISA kicked in...only two roads out of that. Fund it or terminate it. Three months later the ATSB said they would not give us the loan to exit bankuptcy with the pilot pension hanging over the company's head. The vote in question came 3 or 4 months after that... March or April I think.

And that was not the first time the MEC was advised to look at freezing the pension.

 

[Iclubbabyseals]

And that was not the first time the MEC was advised to look at freezing the pension.

Indeed.

Persistence paid off. All management had to do was to wait for a weak MEC. A couple of shuttle people who would benefit from a termination rather than a freeze and they had the pension. Blaming someone who is gone is really weak.

Oh, wait, were you on the MEC then? Oh, gosh. Aren't you special.

 

[Black Swan]

For once I am going to have to agree with Jake on this. The pension for all practical purposes was lost 7 months earlier. The MEC was warned by the negotiating committee and did not listen. The September before that vote, the company reported the pension underfunded to the point that ERISA kicked in...only two roads out of that. Fund it or terminate it. Three months later the ATSB said they would not give us the loan to exit bankuptcy with the pilot pension hanging over the company's head. The vote in question came 3 or 4 months after that... March or April I think.

Don't take my word for it, go talk to the players from that time. You will find this to be true. BTW, John Davis DID get his lump sum.

Driver B)

One other thing. If I am not mistaken, the CLT Captain rep at that time was none other than the PRESENT CLT BPR rep. He and Davis were thick as thieves. I am pretty sure I am right.

Lost? Maybe in your mind. A lot of others think otherwise. The pension was THE one big obstacle to the merger a year earlier when they tried to do this abortion and stopped. All they needed was a weak MEC to not let it get to a vote from the membership and problem solved. The pension was target one to make this thing fly, and they needed a crisis and another run through bankruptcy to scare Pollock and co.


US Airways-America West Merger Talks Began Early In 2004


Jul 1, 2005



By David Bond
GESTATION PERIOD

US Airways was talking merger with America West well in advance of its second bankruptcy filing, but the pay, pension and retiree-benefit cutbacks of its current stint in Chapter 11 are what made the deal feasible, according to a regulatory filing by America West.

The filing, to the Securities and Exchange Commission, makes clear that even though the deal was concluded within a month after initial press reports that the two airlines were in negotiations, its origins go back as far as February 2004. The filing also revises downward, to 39% from 45%, the share of the merged company's equity that will go to current America West shareholders, who are being asked to approve the merger.

In a registration statement describing merger terms to these shareholders, America West gives this account of how the deal came about:

THE FIRST DISCUSSIONS resulted from the troubles US Airways faced after emerging from its first bankruptcy, on Mar. 31, 2003. The carrier reduced its highest-in-the-industry costs considerably during an eight-month reorganization but overestimated its post-bankruptcy revenues and was surprised, then as now, by fuel price increases. Casting about for ways to avoid another Chapter 11 filing, US Airways looked at an America West merger as one alternative.

For its part, America West's management "believed that consolidation in the industry was inevitable, and was interested in the potential benefits of combining the airlines' complementary east-west route networks." But the talks ended in July 2004 when both carriers concluded that it wouldn't work due to "a number of issues, including . . . labor, pension and benefit costs." Two months later, US Airways went back into Chapter 11 bankruptcy protection.

In December 2004, assuming it would reduce its labor costs further, US Airways set out to investigate deals with other companies. US Airways/America West talks were reopened in January, this time figuring that their labor costs would turn out to be "similar," and that bankruptcy would increase the ability to combine networks more efficiently and cost effectively than before. US Airways' prospective post-reorganization liquidity also was a plus.

Enter the committees and the consultants. The board of America West's parent, America West Holdings, was briefed on the renewed talks on Jan. 20 as part of a strategy presentation. The strategy and finance committee of US Airways Holdings' board was advised late in February. Legal, financial and labor analyses followed in March, with the key finding that US Airways' labor costs no longer made a merger impractical.

The pace of negotiations quickened in April. The airlines and their advisers--The Seabury Group for US Airways and Greenhill & Co. for America West, mainly--met and teleconferenced often on such issues as the ratio for converting America West shares into shares of the new company (shares of the old US Airways will be worthless as part of the reorganization), the need for additional equity investment and the composition of the new company's board. The airlines met with potential investors and with the Air Transportation Stabilization Board, which administers government-guaranteed loans to both carriers and has veto power over the merger.

Word of the merger talks leaked out midway through the month. On Apr. 19, the day the full board of US Airways met and reviewed the negotiations, The Wall Street Journal posted a web site report, and a print version the next day. On Apr. 22 the carriers confirmed it.

In May the negotiators settled on $375 million as the minimum new investment needed for the merger to proceed. By then, the airlines had lined up $350 million from four entities--Eastshore Holdings, PAR Investment Partners, ACE Aviation Holdings and Peninsula Investment Partners, with $125 million, $100 million, $75 million and $50 million, respectively. The total reached $500 million in a deal concluded after the merger was announced in mid-May, by which Wellington Management Co. will invest $150 million on behalf of funds it manages.

The Wellington investment apparently accounts for the reduced percentage ownership in the new company for America West shareholders. In the mid-May announcement, the division was said to be 45% to America West shareholders, 41% to new equity investors and 14% to some of US Airways' creditors. Now, the new investors will get 49%, America West shareholders 39% and the creditors 12%.

THE MERGER CLEARED an important hurdle June 23, when the Justice Dept. said it will have no objections based on antitrust laws. This was no surprise--there was very little overlap in the route networks. They will face competition from Southwest nonstops on Philadelphia-Phoenix and Philadelphia-Las Vegas, two of their four hub-to-hub markets. On Charlotte-Las Vegas, AirTran Airways and Independence Air offer one-stop service. Only on Charlotte-Phoenix will competition be limited to legacy carriers' one-stops.

 

[crazystnic]

Indeed.

Persistence paid off. All management had to do was to wait for a weak MEC. A couple of shuttle people who would benefit from a termination rather than a freeze and they had the pension. Blaming someone who is gone is really weak.

Oh, wait, were you on the MEC then? Oh, gosh. Aren't you special.

explain to me how the shuttle guys would benefit from a termination rather than freeze?
I'm not seeing much benefit from my end?

 

[Phoenix]

This just shows what ALPA officers really are, company yes men. Did you know Marshall what's his name--former CLT ALPA LEC---is the new assistant CP in CLT? This is unreal; no its not.

No. No. No. I just cant' bare it. I cannot accept it. There is simply just no way that ALPA leaders would point the finger of blame at us (shouting YOU ARE ALPA) and yet at the same time really be advocates of the company at heart. It just can't be. Alas Alack.

....But if Lance becomes Chief water boy and go-fur to the CLT office then maybe I'll be force to reconsider.

 

[traderjake]

Persistence paid off. All management had to do was to wait for a weak MEC. A couple of shuttle people who would benefit from a termination rather than a freeze and they had the pension. Blaming someone who is gone is really weak.

Being too stupid to know you were screwed by MEC pilots close to retirement is weak too.

 

[john john]

ALPA by-laws allow your pension to be terminate without a membership vote
A major change in your contract without a membership vote

 

[Pi brat]

I just got a CBS message saying that Marshall Rogers and Bruce Galleron have joined the CLT CP staff as acting assistant chief pilots. I guess I was right, the work load must be about to increase! Wow, 5 guys in the CP office, haven't seen that many since the early '90s. Welcome gentlemen, and good luck.

 

[A320 Driver]

quote name='Black Swan' timestamp='1311880360' post='817498']
Lost? Maybe in your mind. A lot of others think otherwise. The pension was THE one big obstacle to the merger a year earlier when they tried to do this abortion and stopped. All they needed was a weak MEC to not let it get to a vote from the membership and problem solved. The pension was target one to make this thing fly, and they needed a crisis and another run through bankruptcy to scare Pollock and co.


US Airways-America West Merger Talks Began Early In 2004


Jul 1, 2005



By David Bond
GESTATION PERIOD

For its part, America West's management "believed that consolidation in the industry was inevitable, and was interested in the potential benefits of combining the airlines' complementary east-west route networks." But the talks ended in July 2004 when both carriers concluded that it wouldn't work due to "a number of issues, including . . . labor, pension and benefit costs."
[/quote]

Swan,
The pension (The Defined Benefit Plan) was lost in bankruptcy I and we got the DC Plan (Defined Contibution Plan). The DC plan was further modified in LOA93 or bankruptcy II I believe. The vote you are speaking of was during exit from bankruptcy I. What has THAT got to do with America West? The pension that article is referencing has to be the DC Plan.

Driver B)

Driver

 

[A320 Driver]

I just got a CBS message saying that Marshall Rogers and Bruce Galleron have joined the CLT CP staff as acting assistant chief pilots. I guess I was right, the work load must be about to increase! Wow, 5 guys in the CP office, haven't seen that many since the early '90s. Welcome gentlemen, and good luck.

Oh joy... Politics is alive and well. So now they have a Regional Director and 4 Assistant Chief Pilots in CLT? Do they have that many offices?

 

[767one]

PHL- home of the least respected CP's in the industry!!! PS Since Yarko's little white lie I think is is going to be taking over Hogg's job in Tempe, he sure has proven he's capable!! There is not one pilot in PHL that does not know why Pollock was put in the office, nothing more than to stick it to the pilot group.

So where are they going to put Chris Beebe?

Regards,

Bob

 

[nic4us]

I just got a CBS message saying that Marshall Rogers and Bruce Galleron have joined the CLT CP staff as acting assistant chief pilots. I guess I was right, the work load must be about to increase! Wow, 5 guys in the CP office, haven't seen that many since the early '90s. Welcome gentlemen, and good luck.

I was starting to wonder.

Rumor was you guys were getting two new ACPs in PHL. Then Pollack replaces Yarko= net gain of zero. Any word on additional PHL ACPs?

So, I take it you approve of these two new ACPs???

What do you think would cause an increased work load? That is the 64k$ question.

 

[john john]

I guess I was right, the work load must be about to increase!

Probably bringing more management on to do more discipline hit you when your down
HP hired and promoted a lot of management to over see the agents. HP has a high ratio management to labor

 

[MUTATIS MUTANDIS]

All that ex ALPA help, LANYARD POLICE!

 

[Pi brat]

So, I take it you approve of these two new ACPs???

I think the CPO is kind of like congress. Everybody talks about them, but they re-elect their own. I have never had any problems with our current CPs. Last month I was written up by a gate agent and was called by the CP. He asked my side, listened, and backed me up. That was the end of it, as far as I know. Marshall and I have flown together and had some good trips. We've also had some lively discussions, but always friendly and I appreciate his POV, if I don't always agree. I don't know Bruce, but never heard anything bad about him. There could be worse additions to the staff, that's for sure!

I think we all know why the workload is about to increase. I can't imagine why anyone would want the job.