First question: Does the pilots slowdown delay the bidding period process for the merger?Answer: It has sent a very strong message and people are still very concerned. You have the bondholders and the dentured trustees saying they aren't going to agree on anything unless they have something a stand alone plan in place in order to have something to bid against. They know and we all know the merger has to happen and nobody disagrees with that. They just want to make sure they get the right recovery. US Airway's has to keep upping the ante. Some bondholds believe a pilots deal is not necessary and just put a stand alone plan together based on the 1113. The are very determined to get a stand alone plan with or without the pilots agreement. Once the pilots negotiate, everyone will get behind their efforts. The AA Board of Director's has an active role in the day to day operations of the airline, but not necessarely in the outcome of what the new AA will look like. They can, however, have an influence in regards to what management will look like when the merger should happen, and if AA should cooperare or not. The Creditor's Commitee can make this all happen but it is much easier, quicker, and better if they have the cooperation and coordination of American to do this consensually. They could hold the process up and make it more difficult. It is important to get the AA Board to come around and onboard consensually. They do play a role, but are not in charge of the company right now. The APFA has carried the water and pushed the effort and it is now time for the pilots to do their part in the process to get the message out and do what they have to do. The APFA leadership is 100% behind this merger, but any outward demonstrations on our part would not be helpful right now, because it would get lost with the message of getting a contract. The company is fumbling and everything they do is a desaster. The cascading of manangement is leaving them short in many departments to deal with each situation that arises. They don't have the checks and balances to run the company right now. We don't have to say anything right now, as the company is doing a good job of dispaying how bad things really are.
Question: What is going on behind the scenes in regards to the merger? Do the non-UCC memebers meet with the union UCC members? Is US Airways gathering financial information from AA at this time, or are they also in discussions with AA?
Answer: During the quiet period and strategic alternative period, all the parties are working together. US Airway's is meeting with AA. The UCC is overseeing those talks and there is a complete sharing of information and the parties are trying in earnest to shape what this merger will look like. It is the advisors to the Creditor's Committee. When the Creditor's Committee was formed, they hired advisors. There is an investement banking firm, a financial analyst firm and and bankruptcy attorneys. These three groups each have individual advisors that show up for these talks. None of the nine Creditor's Committee members are physically participating in the talks but get information from the advisors.
Question: What can we expect with any announcement coming up?
Answer: Hopefully we will hear that they have come up with a plan of reorganization that includes the merger, and that they got the right recovery from the bondholders. The announcement will also include who will be leading the merger. This could be weeks or months. After the quit period is overwith, the efforts will still go on but it may not be as cooperative. The Creditor's Committee may have to take a more ative role in forceing things to happen. Many possibilities. US Airway's could go ahead and submit their bid. US Airway's may go directly to the Creditor's Committee. US Airway's has not had the oportunity to go directly to the Creditor's Committee yet. Everyone is talking behind the scenes. All the Creditor's Committee members talk on a regular basis.
Question: Where are we in regards to any campaign to support the pilots? And how do we make it clear to the UCC that this management team is unacceptable to us as employees of American Airlines going forward.
Answer: We said publicly that we are behind the pilots, and support them in whatever they do. The message of where we stand has been sent and resent to every commmittee member and they are crystal clear on where we stand in regards to wanting new management. Laura did an interview with CBS nightly news that should come out soon, along with Time magazine. The membership will have their turn to be vocal soon. Everybody understands where we have to be in regards ot the merger and new leadership. There is a process and a protacal, and in bankruptcy, the debtor has certain rights. It a fine line of having them do something without stepping on their rights.
Question: What are the chances that this merger could happening with the current management team running the airline going forward?
Answer: Nobody thinks that is a good idea and not likley. AA is not happy at all that they are being forced into this process. Each day, they have less and less conrol of what the outcome will be. This is where the AMR board of director's will plan an important role.
Question: AA wanted cost values established from all three unions in order to finalize their stand alone plan. The 1113 has been decided upon. AA should have all of their cost layed out. What is it that they are still waiting on in order for them to present their stand alone plan?
Answer: Some bondholders would agree, but most Committee member's say it cannot be established without an agreement from the pilots. Origionally all the unions were sticking together. If nobody had gotten a deal and all unions collectively thought the 1113's were way over the top, pressure could be put on AA so say nothing was going to happen. The judge found another judge to mediate the parties, and that pressured AA to put more on the table. This moved the 20% consessions down to the 17%. The TWU got deals first, then the pilots had a potential deal, and the flight attendants were left hanging out there. The APFA knew they could not carry this thing all alone. We were the only ones left out there without a deal. If the company had secured a deal with the pilots, they may have made a run for the exit, without the flight attendants, so we had to protect ourselves. That is how we got a deal, to protect ourselves in the interem. The pilots were confident at that time that they were going to ratify their deal along with the TWU. The object back then was for everyone to do the same thing. It would have been a collective pressure on the company. Since the pilots didn't ratify a deal, it has put a hitch in everything, because the pilots cost are still unknown. That is where we are at presently, with the pilots trying to get a deal of some sort, which is likley to happen.
Question: Is there a chance of an outside court appointed trustee stepping in an running AA temporarely in place of the current management team before the exclusivity period ends?Answer: The only way this could happen is if there was a charge of illegal action. The court would not do that unless there was some criminal accusation. AA has not been accused of breaking any laws, so there is no chance of that. If we get AA to cooperate with the merger, there is a possibility of some back door deal to give Horton some faux title for a period of time so he could leave and save face. Nothing has been discused or talked about, but that remains a possibility in the scheme of things. But it will be clear who really is running the company.
Question: There is residue left over from the LBFO vote. It is important to unify the Yes and No groups to get us on the same track with the merge. Getting merge, similar to getting a contract is a multi layered process that requires a lot of effort including membership activity. Is there a way of putting pressure on the various parties to let them know we are behind our union and behind this merge? How can we take it to the next stage as a collective expression? How can we get the flight attendant on board and get past the LBFO and divisive talk and move it ahead?
Answer: All three union have to committ to the AMR board and we have to do it with our membership. There are many ideas that could be made for campaigns, and all are up for discussion. The UCC knows actually what is going on, and there has been a respectful relationship with them. The company was opposed to an early out, for example, and the APFA pushed for it and it was supported by the UCC. The 'me too' with the pilots was also opposed by the company and was considered laughable, but was encouraged by the UCC, with pressure from the APFA. There is a good relationship with them so any campaigns would be better served directed at the AMR board. It would be beneficial to have a campaign with the flight attendants from US Airway's and American together. We have to show the Creditor's Committe, the bodholders and everybody, that we are willing to work together. This is a very different bankruptcy, and a bankruptcy where we can work together to make this thing work.
Question; Can we renegotiate the US Airway's bridge agreement where it is efftective outside of the bankruptcy process to use as leverage?
Answer: We have is cleared with the Us Airway's people to have the bridge agreement inplace as soon as US Airway's management team is in place wheather inside or outside of the bankruptcy process. As soon as they take control, the bridge kicks in. The current US Airway's team communicates and works well together and has not been into bankruptcy. they are the darlings of Wall Street. They've managed to make money twice when US Airway's should have been buried. These are the right guys for the job and everyone will be willing to give them a shot at this.
