PilotAction US Airways & American Airlines Trial & Other News Update

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #2: August 23, 2013

Antitrust judge in American Airlines-US Airways case has a long trial scheduled to begin in mid-January

The judge did not note any conflicts on her schedule around the Nov. 12 date.

See Story:[background=rgb(250, 250, 250)] [/background]http://aviationblog.dallasnews.com/2...-january.html/


Southwest Seen Overlooked as U.S. Seeks to Block AMR Deal

[background=rgb(250, 250, 250)]Southwest flies more passengers in the U.S. than any other carrier and serves 29 of the 30 largest metropolitan areas. To federal regulators, that’s not enough to be considered an influential industry competitor.[/background]

[background=rgb(250, 250, 250)]In suing to block the merger of American Airlines and US Airways theDOJ erred in deeming Southwest, the biggest discount carrier, too small to sway others’ actions, according to analysts such as Savanthi Syth of Raymond James Financial Inc.[/background]

[background=rgb(250, 250, 250)]“You can’t ignore one of the largest players in the market,” Syth said. American and US Airways, seeking to overturn the Justice Department’s opposition, are likely to cite Dallas-based Southwest’s ability to undercut rivals as one reason to let their deal go through. [/background]

See Story: http://www.bloomberg.com/news/2013-0...tml?cmpid=yhoo


US Airways and American Ramp Up Merger Push as Labor Steps Up

See Story: http://www.thestreet.com/story/12016...o&cm_ven=YAHOO


Will American and US Airways Get an Answer at November Trial?

[background=rgb(250, 250, 250)]The merger is the only way that AMR Corp. currently sees fit to get out of bankruptcy, one reason the companies said they need an earlier trial date.[/background]

See Story: http://wallstcheatsheet.com/stocks/w...-trial.html/2/


APA President's Message: August 23, 2013

[background=rgb(250, 250, 250)]Fellow Pilots,[/background]

[background=rgb(250, 250, 250)]Many of you have been contacting the Officers and BPR asking when USAPA is going to do something to support the merger, and many more of you probably have been asking yourself the same question. To be honest, there has been a lot going on in the background, but we want to ensure we take the correct steps, at the correct time. The Company's August 21 strategy meeting, which USAPA attended, confirmed that some unions were planning activities that the Company's media consultants [/background]did not recommend[background=rgb(250, 250, 250)]. We have been waiting for the Company to ask us to engage, but with the strategy meeting behind us, we now have some information on the Company's plan.[/background]

[background=rgb(250, 250, 250)]As many of you saw late yesterday afternoon, the Company petitioned the Court to expedite our case with the DOJ so that we can move forward with the merger. We are pleased to report that your BPR and Officers, along with other Union Leaders, unanimously support the efforts calling for an expedited trial in the DOJ’s objection to the AMR/US Airways merger. USAPA, the other unions, and the Company contributed in the crafting of the press release shown below that was issued yesterday evening.[/background]

[background=rgb(250, 250, 250)]Just to be clear, like the overwhelming majority of you, I am in full support of the merger and will continue to support efforts that are in the best interest of our pilots. We will do so in a coordinated effort that is in sync with the overall strategy which will lead to success in our endeavor to complete the merger. When your Union sees a need, we will seek your full support to make that happen.[/background]


APFA Update (Unions Representing 70,000American Airlines and US Airways Employees Call for Speedy Trial in Merger Litigation): August 23, 2013

Let Us Compete for Your Business!

Charlotte, NC, Euless, TX, Fort Worth, TX, and Washington, DC -- Aug. 22, 2013 --[background=rgb(250, 250, 250)] The Allied Pilots Association (“APA&rdquo😉, the US Airline Pilots Association (“USAPA&rdquo😉, the Association of Professional Flight Attendants (“APFA&rdquo😉, Association of Flight Attendants-CWA (“AFA&rdquo😉, the Transport Workers Union (“TWU&rdquo😉 and the Communications Workers of America (“CWA&rdquo😉, unions representing 70,000 American Airlines and US Airways employees, including pilots, flight attendants, mechanics, technicians, aircraft dispatchers, call center representatives, and others, today echoed the companies’ request for a November 12, 2013 trial date in connection with the US Department of Justice’s (“DOJ&rdquo😉 lawsuit. [/background]

The unions issued the following statement:
[background=rgb(250, 250, 250)]We urge the U.S. District Court and the Department of Justice to begin the trial on November 12, 2013 in order to get to a speedy resolution to this exciting merger.[/background]

[background=rgb(250, 250, 250)]Our message to consumers everywhere is simple: “Let us compete for your business” starting as soon as possible.[/background]

[background=rgb(250, 250, 250)]Our members want a fair shot at competing in the marketplace. The airlines we work for, US Airways and American Airlines, can together succeed in a way that neither airline can alone, bringing new competition to the domestic and international airlines that serve Americans. The improved network and higher quality product will attract new customers, allowing the airlines to compete with the megacarriers in a way neither airline can do alone, creating greater job security for our members as a result. [/background]

[background=rgb(250, 250, 250)]Delaying a trial puts our families and our customers at further risk. For American and its employees, the uncertainty of the last two years in bankruptcy has already exacted a heavy toll. Employees at US Airways have had similar hardships with two bankruptcies since 9-11. In order to make new American competitive, that uncertainly should be ended as soon as possible. [/background]

[background=rgb(250, 250, 250)]The livelihoods of hard-working aviation professionals at American and US Airways hang in the balance. Jobs are at stake if this merger does not go through. For our members, job security that comes with truly competitive airlines is on hold as we wait for trial. [/background]

[background=rgb(250, 250, 250)]Our members have borne the brunt of the severe turbulence in the aviation industry. Justice delayed is justice denied for our members. This merger makes sense for competition, customers, and the members we represent who want nothing more than to compete aggressively on a level playing field to serve those customers.[/background]

# # #

Association of Professional Flight Attendants (APFA)
Founded in 1977, the Association of Professional Flight Attendants (APFA) is the largest independent Flight Attendant union in the nation. It represents the 17,000 Flight Attendants at American Airlines. APFA Members live in almost every state of the nation and serve millions of Americans as they travel the nation and the world. Laura Glading is serving in her second four-year term as president of the union. For more information visit apfa.org.

Allied Pilots Association (APA)
Founded in 1963, the Allied Pilots Association—the largest independent pilot union in the United States—is headquartered in Fort Worth, Texas. APA represents the 10,000 pilots of American Airlines. Several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union’s Web site address is www.alliedpilots.org.

US Airline Pilots Association (USAPA)
Headquartered in Charlotte, N.C., the US Airline Pilots Association (USAPA) represents the more than 5,000 mainline pilots who fly for US Airways. USAPA's mission is to ensure safe flights for airline passengers by guaranteeing that their lives are in the hands of only the most qualified, competent and well-equipped pilots.

Association of Flight Attendants-Communications Workers of America, AFL-CIO (AFA)
The Association of Flight Attendants is the world’s largest Flight Attendant union. Focused 100 percent on Flight Attendant issues, AFA has been the leader in advancing the Flight Attendant profession for 67 years. Serving as the voice for Flight Attendants in the workplace, in the aviation industry, in the media and on Capitol Hill, AFA has transformed the Flight Attendant profession by raising wages, benefits and working conditions. Nearly 60,000 Flight Attendants come together to form AFA, part of the 700,000-member strong Communications Workers of America (CWA), AFL-CIO.

Transport Workers Union, AFL-CIO (TWU)
The Transport Workers Union of America (TWU) represents 200,000 workers and retirees, primarily in commercial aviation, public transportation and passenger railroads. Included in the union's membership are 26,000 workers at American Airlines. TWU represents seven work groups at American Airlines including Fleet Service, Aviation Maintenance Technicians (aircraft mechanics), Stock Clerks, Dispatchers, Ground School Instructors, Flight Simulator Technicians and Facility Maintenance Mechanics, TWU also represents Dispatchers, Flight Crew Training Instructors and Simulator Engineers at US Airways. The union is an affiliate of the AFL-CIO.

Communications Workers of America (CWA)
CWA, the largest telecommunications union in the world, represents over 700,000 men and women in both private and public sectors, including over half a million workers who are building the Information Highway. CWA members work in telecommunications, broadcasting, cable TV, journalism, publishing, manufacturing, airlines, customer service, government service, health care, education and other fields.


AmericanAirlines[background=rgb(250, 250, 250)] [/background]+ US Airways
"On Our Way"

[background=rgb(250, 250, 250)]Leslie Mayo[/background]
[background=rgb(250, 250, 250)]APFA National Communications Coordinator[/background]

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #3: August 23, 2013

Lawyers in private lawsuit ask judge not to confirm American Airlines bankruptcy plan

See Story:[background=rgb(250, 250, 250)] [/background]http://aviationblog.dallasnews.com/2...tcy-plan.html/


Former United CEO says latest airline merger likely to go through

Jim Goodwin predicts American-US Airways deal will happen, despite Justice Department's objections

See Story:[background=rgb(250, 250, 250)] [/background]http://www.chicagotribune.com/busine...0,622022.story


American, US Airways mounting fight to beat DOJ merger lawsuit

"They got this one wrong," said Rich Parker, a lawyer for the airlines and partner at O'Melveny & Myers. "They got this one very wrong." The airlines also aren't keen on negotiating a settlement. Paul Denis, a partner at the Philadelphia-based Dechert law firm, who also represents the airlines, said,"We are litigating this case, period." But, if "the government has a creative alternative, we will listen," he later said.

See Story:[background=rgb(250, 250, 250)] [/background]http://www.latimes.com/business/mone...,4183686.story


Unions at American Airlines, US Airways wants Nov. 12 trial on antitrust complaint

See Story: http://aviationblog.dallasnews.com/2...omplaint.html/


US Airways, American Airlines spell out why they think waiting until Nov. 12 for a trial is long enough

See Story: http://aviationblog.dallasnews.com/2...g-enough.html/


3 idle thoughts for Friday

See Story: http://aviationblog.dallasnews.com/2...iday-284.html/

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #4: August 23, 2013

Judge sets Aug. 30 date to discuss American-US Airways anti-trust trial

The judge also ordered the government to file its response to the carriers' trial date request by 5 p.m. August 27. The airlines' attorneys then have one day to file a reply.

See Story:[background=rgb(250, 250, 250)] [/background]http://blogs.star-telegram.com/sky_t...ust-trial.html


Airlines: Analysts Still Puzzled By DOJ’s Challenge to AMR, US Airways Merger

Wolf Research’s Hunter Keay[background=rgb(250, 250, 250)] [/background]explains why everyone’s so befuddled: We looked back at DoJ comments in the three prior airline mergers (DAL/NWA, UAUA/CAL, and LUV/AAI) as well as route overlap between the merged airlines. In each case DoJ indicated that the mergers would be complimentary and good for consumers. In fact in the DAL/NWA review, DoJ said the bigger network would “improve service,” but in LCC/AMR DoJ said the bigger network would “reduce service.” DoJ also arbitrarily changed its approach to analyzing these mergers, which we think will ultimately cause it to fail.

See Story: http://blogs.barrons.com/stockstowat...d=yahoobarrons


US Airways Must Face Frequent Flier’s Suit Over Credit

See Story: http://www.bloomberg.com/news/2013-0...tml?cmpid=yhoo

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #5: August 23, 2013

American says merger plan should be confirmed, despite anti-trust lawsuit

[background=rgb(250, 250, 250)]FORTH WORTH (Star-Telegram) - American Airlines' parent company, AMR Corp., told a bankruptcy judge that its reorganization plan should be confirmed even though the Justice Department has filed an anti-trust lawsuit to stop its proposed merger with US Airways.[/background]

[background=rgb(250, 250, 250)]In a filing made on Friday afternoon, American said the plan should be confirmed because it clearly lays out a timetable to creditors on what would happen if regulatory approval of the merger was delayed. And if a settlement can't be reached with the DOJ or if the carriers don't win the lawsuit, the confirmed plan would be vacated.[/background]

[background=rgb(250, 250, 250)]"All parties involved are well aware that if a satisfactory resolution of the DOJ Action is not obtained, the Merger will not be consummated and the Plan will be withdrawn," the filing said.[/background]


AMR urges court to OK Chapter 11 plan despite antitrust lawsuit

See Story: http://finance.yahoo....191558322.html


American Airlines: Go ahead and confirm our plan, Judge

Judge Lane holds a hearing next Thursday to consider whether he should confirm the plan of reorganization

See Story: http://aviationblog.....an-judge.html/


Justice to bankruptcy judge: Here’s how the antitrust review came about

The U.S. Department of Justice told U.S. Bankruptcy Judge Sean Lane on Friday that the U.S. takes no position on whether Lane should delay a decision on confirming American Airlines’ plan of reorganization until DOJ’s antitrust lawsuit is concluded.

See Story: http://aviationblog.....me-about.html/


DOJ statement to the U.S Bankruptcy Court: August 23, 2013

See Story: http://amrcaseinfo.c.../9923_15463.pdf

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #6: August 23, 2013

American Air Antitrust Judge Moves to Set Trial Date

Scheduling Conference Slated for Aug. 30 in Suit Against AMR-US Airways Merger

[background=rgb(250, 250, 250)]CHICAGO (WSJ.com) - A federal judge assigned to hear the antitrust case brought by the government against the planned merger of American Airlines parent AMR Corp. and US Airways Group Inc. on Friday ordered the opposing parties to an initial scheduling conference in her Washington court in one week.[/background]

[background=rgb(250, 250, 250)]The Justice Department has requested the trial begin on Feb. 10, while the two carriers have asked for a trial start of Nov. 12. The airlines are anxious for a resolution of the complaint so they can close their merger and get American out of bankruptcy-court protection.[/background]

[background=rgb(250, 250, 250)]In her order, U.S. District Judge Colleen Kollar-Kotelly advised the two sides that she has a criminal trial set to begin on Jan. 14 that is expected to last for six to eight weeks. It is her decision on when to schedule the antitrust trial.[/background]

[background=rgb(250, 250, 250)]The airlines, in a court filing on Thursday, warned that the merger pact has a termination clause that gives either side the right to kill the deal on Dec. 13 if the necessary regulatory hurdles haven't yet been cleared. If both airlines want to keep the pact alive, they could move back the termination date.[/background]

[background=rgb(250, 250, 250)]Four unions representing American employees and some US Airways workers on Friday filed an amicus brief with Judge Kollar-Kotelly, supporting the airlines' motion to set an early trial date. The unions, which have enthusiastically endorsed the merger, also asked the court to deny the government's attempts to block the transaction.[/background]

[background=rgb(250, 250, 250)]Separately, AMR on Friday filed a memorandum with the U.S. Bankruptcy Court in New York asking the judge overseeing the company's restructuring to move ahead and confirm its plan of reorganization at a hearing scheduled for Thursday. The merger is the centerpiece of that bankruptcy-exit plan.[/background]

[background=rgb(250, 250, 250)]Despite the Justice Department's efforts to block the combination on antitrust grounds, AMR said the plan has met all the requirements for confirmation by the court, AMR creditors and directors. If the merger isn't allowed to proceed, the judge's confirmation order could be vacated and the merger plan nullified. That would send AMR back to square one, requiring it to craft a new reorganization plan, most likely built on exiting from Chapter 11 on its own. It would then submit that plan to its creditors for a vote, in a process that could take months.[/background]

[background=rgb(250, 250, 250)]If the two airlines reach a settlement with the Justice Department and avoid a trial, the new terms would be brought to the bankruptcy court for approval, AMR said.[/background]

[background=rgb(250, 250, 250)]The Justice Department also filed a statement on Friday in the bankruptcy case. It said it doesn't take a position on whether Judge Sean Lane should confirm the plan.[/background]


The Deal: Early Airline Trial Might Work Against Strapped DOJ

If the earlier date is picked, antitrust experts said it will be difficult for the Justice Department to prepare adequately. Which is exactly what the airlines want, antitrust experts say, as the airlines use their huge legal team to try to outgun the constrained staff numbers of the DOJ.

See Story:[background=rgb(250, 250, 250)] [/background]http://www.thestreet....o&cm_ven=YAHOO


Lawmakers criticize merger lawsuit against American Airlines and US Airways

See Story: http://aviationblog.....-airways.html/


American Airlines' Motion to Set Trial Date

See Story: http://crankyflier.c....tTrialDate.pdf


Judge could decide next week on trial date for American-US Airways antitrust suit

“After an 18-month restructuring process and a thorough assessment of all reasonable restructuring alternatives between the Debtors, the Committee, and other stakeholders, creditors and equity interest holders unequivocally selected this Plan as the best path forward. They did so notwithstanding the risk of government opposition to the Merger — a risk that was thoroughly disclosed and understood,” the creditors committee filing said.

See Story: http://www.star-tele....t-week-on.html


Cranky Flyer takes a look at GAO study on US Airways-American Airlines merger (and finds it wanting)

See Story: http://aviationblog.....-wanting.html/


Cranky Flier comment:[background=rgb(250, 250, 250)] American and US Airways show that of the 16 merger challenges coming from DOJ or the FTC since 2000, 14 have gone to trial in less than 90 days. The other two were in 102 and 106 days respectively. Considering that DOJ has already had 16 months to dive into the merger, more than most, this smells of delay tactics to me. This was brought up in the comments before. You don’t necessarily have to have a good case if you can just delay the thing the death. I’d say that appears to be DOJ’s strategy. What do you think?[/background]

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #7: August 23, 2013

DOJ statement to the U.S Bankruptcy Court: August 23, 2013

http://amrcaseinfo.c.../9923_15463.pdf

 

[ContUNITEus]

Oh, dear US Airways...

Why do they want a quick trial?... Please, Please, drag this out for decades, like you usually do, when someone sues you. How come you want a quick resolution to this, and yet try to always drag things out when it doesn't favor you?

Sincerely...

Your dear friend..

 

[Beancounter]

PilotAction Merger News for US Airways & American Airlines #7: August 23, 2013

DOJ statement to the U.S Bankruptcy Court: August 23, 2013

http://amrcaseinfo.c.../9923_15463.pdf

Oh, that is classic. We're not telling you how to decide or to delay it, but you should delay it, because we're going to drag this out, and out and out, in hopes of forcing a concession. What a bunch of sleazes.

Bean

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: August 24, 2013

AMR Calls Delay of Bankruptcy Plan Approval ‘Destabilizing’

See Story:[background=rgb(250, 250, 250)] [/background]http://www.bloomberg....tml?cmpid=yhoo


Judge’s conflict may favor American Airlines on antitrust trial date

See Story:[background=rgb(250, 250, 250)] [/background]http://www.dallasnews.com/business/a...trial-date.ece


Airline Presses Court to Back Restructuring Plan

In a separate filing, AMR’s creditors’ committee said Judge Sean Lane’s refusal to give the plan his blessing could threaten creditor support for the plan, which includes AMR’s unions and most of its creditors.

See Story:[background=rgb(250, 250, 250)] [/background]http://www.nytimes.c....oofinance&_r=0


Fort Worth senator supports airline merger

See Story:[background=rgb(250, 250, 250)] [/background]http://www.miamihera....s-airline.html


AA & US Airways Unions Issue Joint Press Release Calling for Speedy DOJ Trial Date

See Story: https://public.allie....rial-Date.aspx


AMR-US Air Merger "Pro-Competitive': Crandall Video Interview

The airline industry faces turbulence after the Justice Department's decision to block the merger of American & US Airways. On Bloomberg Government's "Capital Gains" airing Sunday, former American Chairman & CEO Robert Crandall tells host Peter Cook the DOJ lawsuit was a "mistake." Crandall makes the case for the merger and predicts the airlines can win in court.

See Story: http://www.bloomberg....tml?cmpid=yhoo


By Popular Demand: PlaneBusiness Analysis of GAO Report on American Airlines-US Airways Merger

http://www.planebuzz.com/?p=2957


APFA Hotline - August 23, 2013

DOJ Hearing Update

[background=rgb(250, 250, 250)]In a joint press release issued last evening, APFA along with TWU, APA, USAPA, AFA and CWA called for a speedy trial date in the AA-US Airways merger litigation process. US Airways and AA filed a Motion yesterday afternoon to set a trial date as early as November 2013.[/background]

[background=rgb(250, 250, 250)]This morning, U.S. District Judge Colleen Kollar-Kotelly, the judge assigned to the DOJ's merger lawsuit, ordered a scheduling conference for next Friday, August 30th in her courtroom. This conference, which will be attended by both US and AA's legal teams as well as the DOJ will begin the process of setting a trial date. The judge has stated that she has a criminal trial set to begin January 14th that is expected to last up to two months. She noted no scheduling conflicts between now and January 14th.[/background]

APFA Statement to Bankruptcy Court in Support of Merger Filed Today

Click here[background=rgb(250, 250, 250)] to read APFA's pleading in support of the confirmation of AA's Plan of Reorganization, as requested by Judge Lane on August 15th.[/background]

Joint "Amicus Brief" Supporting the Merger Filed Today

[background=rgb(250, 250, 250)]Today, APFA along with three other unions representing employees of American Airlines and American Eagle, [/background]filed an ‘amicus curiae” brief[background=rgb(250, 250, 250)] in support of American’s and US Airway’s motion asking the District Court to start the trial of the Justice Department’s lawsuit on November 12. (“Amicus curiae” means “friend of the court” and is a procedure which allows individuals or entities, who have an interest in the litigation but are not named parties, to advise the court of their position and unique perspective through the submission of pleadings.) DOJ and the six states plus Washington, D.C. which have joined the government want to delay the hearing until February 12, 2014.[/background]

[background=rgb(250, 250, 250)]Here, the Unions explained to the Court that the seventy thousand employees they represent want this case resolved as soon as possible; that their careers and livelihoods are “inextricably linked” to the outcome of the trial; and that the merger with US Airways is the linchpin which will enable American to compete effectively.[/background]

[background=rgb(250, 250, 250)]The Department of Justice’s action leaves these airlines in “competitive limbo”, not knowing with any certainty which strategic direction they are headed. As stated in the brief, “And American cannot adopt a long-term strategy until it knows whether or not it is going to be permitted to acquire a network to compete with United and Delta. The damage to competition in the airline industry as a result of a less competitive American must be minimized by a decision on the merits on as prompt as schedule as possible.”[/background]

[background=rgb(250, 250, 250)]The Unions also point out that American’s market share over the past several years has eroded as United’s, Delta’s and Southwest’s has expanded as a result of their government-approved mergers with Continental, Northwest and Airtran. That disparity will continue for as long as the Justice Department blocks American’s merger with US Airways and keeps these airlines from taking a competitive position on a playing field devised by DOJ.[/background]

[background=rgb(250, 250, 250)]It is anticipated that the Department will submit a response to the airlines’ motion early next week and the District Court will issue a scheduling order shortly thereafter.[/background]

AmericanAirlines[background=rgb(250, 250, 250)] [/background]+ US Airways
"On Our Way"

[background=rgb(250, 250, 250)]Leslie Mayo[/background]
[background=rgb(250, 250, 250)]APFA National Communications Coordinator[/background]

 

[nycbusdriver]

Why are you running two almost identical, and identically titled threads, on the forum, Chip?

My guess is that you feel entitled to use the space as you see fit, as you always have. Anyone who ever glanced at the PIT Crew Room bulletin board would immediately perceive your conceit (as ill-placed as it is.)

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines: August 25, 2013

Judge: US Airways Shortchanged on Frequent Flier Miles

See Story:[background=rgb(250, 250, 250)] [/background]http://wallstcheatsheet.com/stocks/j...s.html/?ref=YF


Schnurman: With AA-US Airways, can Justice handle the truth?

See Story: http://www.dallasnews.com/business/c...-the-truth.ece


Airline mergers, like US Airways/American, historically mean higher fares for travelers

See Story: http://www.eastvalleytribune.com/mon...9bb2963f4.html


Scheduling conflict in airline antitrust case has serious implications

See Story: http://www.upi.com/Business_News/201...0801377365486/


DOJ tells bankruptcy judge it takes "no position" on confirming American's restructuring plan

See Story: http://blogs.star-telegram.com/sky_t...ring-plan.html


American Airlines, US Airways sought meeting with Justice Department lawyer

See Story: http://www.tulsaworld.com/article.as...1_Americ479633


APFA Hotline (OSHA, Merger Support, Seniority Integration, Reserve, Line Guarantee, Thresholds, FAA Audits): August 24, 2013

DOJ Hearing Update

[background=rgb(250, 250, 250)]In a joint press release issued last evening, APFA along with TWU, APA, USAPA, AFA and CWA called for a speedy trial date in the AA-US Airways merger litigation process. US Airways and AA filed a Motion yesterday afternoon to set a trial date as early as November 2013.[/background]

[background=rgb(250, 250, 250)]This morning, U.S. District Judge Colleen Kollar-Kotelly, the judge assigned to the DOJ's merger lawsuit, ordered a scheduling conference for next Friday, August 30th in her courtroom. This conference, which will be attended by both US and AA's legal teams as well as the DOJ will begin the process of setting a trial date. The judge has stated that she has a criminal trial set to begin January 14th that is expected to last up to two months. She noted no scheduling conflicts between now and January 14th.[/background]

APFA Statement to Bankruptcy Court in Support of Merger Filed Today

Click here[background=rgb(250, 250, 250)] to read APFA's pleading in support of the confirmation of AA's Plan of Reorganization, as requested by Judge Lane on August 15th.[/background]

Joint "Amicus Brief" Supporting the Merger Filed Today

[background=rgb(250, 250, 250)]Today, APFA along with three other unions representing employees of American Airlines and American Eagle, [/background]filed an ‘amicus curiae” brief[background=rgb(250, 250, 250)] in support of American’s and US Airway’s motion asking the District Court to start the trial of the Justice Department’s lawsuit on November 12. (“Amicus curiae” means “friend of the court” and is a procedure which allows individuals or entities, who have an interest in the litigation but are not named parties, to advise the court of their position and unique perspective through the submission of pleadings.) DOJ and the six states plus Washington, D.C. which have joined the government want to delay the hearing until February 12, 2014.[/background]

[background=rgb(250, 250, 250)]Here, the Unions explained to the Court that the seventy thousand employees they represent want this case resolved as soon as possible; that their careers and livelihoods are “inextricably linked” to the outcome of the trial; and that the merger with US Airways is the linchpin which will enable American to compete effectively.[/background]

[background=rgb(250, 250, 250)]The Department of Justice’s action leaves these airlines in “competitive limbo”, not knowing with any certainty which strategic direction they are headed. As stated in the brief, “And American cannot adopt a long-term strategy until it knows whether or not it is going to be permitted to acquire a network to compete with United and Delta. The damage to competition in the airline industry as a result of a less competitive American must be minimized by a decision on the merits on as prompt as schedule as possible.”[/background]

[background=rgb(250, 250, 250)]The Unions also point out that American’s market share over the past several years has eroded as United’s, Delta’s and Southwest’s has expanded as a result of their government-approved mergers with Continental, Northwest and Airtran. That disparity will continue for as long as the Justice Department blocks American’s merger with US Airways and keeps these airlines from taking a competitive position on a playing field devised by DOJ.[/background]

[background=rgb(250, 250, 250)]It is anticipated that the Department will submit a response to the airlines’ motion early next week and the District Court will issue a scheduling order shortly thereafter.[/background]

AmericanAirlines[background=rgb(250, 250, 250)] [/background]+ US Airways
"On Our Way"

[background=rgb(250, 250, 250)]Leslie Mayo[/background]
[background=rgb(250, 250, 250)]APFA National Communications Coordinator[/background]

 

[Phoenix]

Why are you running two almost identical, and identically titled threads, on the forum, Chip?
...

Even if it were only one thread... why is he quoting all these news sources, analysts, and experts.. he is spending hours pouring over every word.... aren't they the ones that have been telling us all along that it was a done deal, but obviously they had no clue....

What? Now they have a clue? Not a chance.

 

[jimntx]

Oh, dear US Airways...

Why do they want a quick trial?... Please, Please, drag this out for decades, like you usually do, when someone sues you. How come you want a quick resolution to this, and yet try to always drag things out when it doesn't favor you?

Sincerely...

Your dear friend..

Because the merger exclusivity period expires in December. After that, anyone with lots of cash and a strong desire to lose most of it (the usual outcome in the airline business) can make an offer for the AMR carcass.

 

[Phoenix]

Because the merger exclusivity period expires in December. After that, anyone with lots of cash and a strong desire to lose most of it (the usual outcome in the airline business) can make an offer for the AMR carcass.

Along with a donation to the DOJ's favorite charity.

 

[USA320Pilot]

PilotAction Merger News for US Airways & American Airlines #1: August 26, 2013

Analysts still betting on US Airways-American merger - Some experts say that the Justice Department faces a 'difficult' case

See Story: http://www.thonline.....dd0872570.html


Bloomberg News Capital Games: Bloomberg Interview with former AMR CEO Robert Crandall

See Story: http://www.businessw....erger-grounded


The Deal: American Airlines Profit Soars

None of this talk means AMR intends to abandon the US Airways deal Indeed, AMR CEO Tom Horton in his letter said the airline is "standing strong together with US Airways to get this merger closed." But the company is clearly trying to communicate it is ready for any outcome.

See Story: http://www.thestreet....o&cm_ven=YAHOO


American Airlines’ parent company reports earnings of $292 million — and that’s just in July

[background=rgb(250, 250, 250)]American heads back to bankruptcy court Thursday to attempt to convince U.S. Bankruptcy Judge Sean Lane that he should confirm the carrier’s plan of reorganization as feasible. The approval would be contingent upon American and merger partner US Airways beating back an antitrust lawsuit filed by the U.S. Department of Justice. The carrier and DOJ go into a Washington , D.C. , federal courtroom Friday to set a date for a trial.[/background]

See Story:[background=rgb(250, 250, 250)] [/background]http://aviationblog.....ly-alone.html/


Old AA logo comes down at American Airlines Center , and new one goes up

See Story: http://aviationblog.....s-center.html/


Airlines Still Live on the Edge, With First-Half Profit Margins of Just 2%

See Story: http://business-news....ust-2/12017324


[background=transparent]American/US Airways Merger Settlement Could Allow New Entrants, Experts Say

See Story: [/background][background=transparent]http://www.forbes.co....rtner=yahootix[/background]


[background=transparent]US Airways to Spectrum Target Older CLOs to Cut Borrowing Costs

See Story: [/background][background=transparent]http://www.bloomberg....tml?cmpid=yhoo[/background]


[background=transparent]T. Rowe Price bans about 1,300 American employees from trading in 401(k) plans

See Story:[/background][background=transparent] http://blogs.star-te....01k-plans.html[/background]


[background=transparent]This Airline's a Good Value, Merger or No Merger

See Story:[background=rgb(250, 250, 250)] [/background][/background][background=transparent]http://www.dailyfina....merger-or-not/[/background]


[background=transparent]Robb: Antitrust courts should not be in prediction business

See Story: [/background][background=transparent]http://www.coloradoa....ction-business[/background]


[background=transparent]Union Tensions Emerge over AMR-US Air Merger

See Story: [/background][background=transparent]http://www.ainonline.com/comment/7901[/background]


[background=transparent]US-AA Antitrust Suit Shows Feds’ Wishful Thinking

See Story: [/background][background=transparent]http://www.aviationw....609297.xml&p=1[/background]


[background=transparent]A Message from Chairman and CEO Tom Horton: August 26, 2013[/background]

[background=transparent][background=rgb(250, 250, 250)]Dear American Team,[/background]

[background=rgb(250, 250, 250)]Over the past twenty months, we’ve been working through a difficult but very successful restructuring. Along the way, there were new routes to launch, products to introduce and dozens of new aircraft to bring into the system. There were tough days and good days, and there were plenty of days when our destination on this journey seemed very far away.[/background]

[background=rgb(250, 250, 250)]Today is a very good day. This morning we reported our financial results for July and here’s the headline: we are completing one of the most successful turnarounds in aviation history. We are building a strong, competitive and profitable new American poised to lead again.[/background]

[background=rgb(250, 250, 250)]Thanks to your hard work, American earned a net profit of $352 million in July, excluding reorganization and special items – a record for any month in our history. In fact, our July profit alone nearly equals the $357 million record profit we reported for the entire second quarter. Our consolidated, passenger and unit revenues also set all-time highs for any month. That’s extraordinary – congratulations![/background]

[background=rgb(250, 250, 250)]In addition to our strong financial performance, momentum is building throughout American. We’re growing our formidable international network with both new routes and expanded partnerships. This month we announced expansion of our partnership with LATAM to increase our network connectivity in Brazil and Colombia , extending our lead in the increasingly important Latin American market.[/background]

[background=rgb(250, 250, 250)]Our industry-leading fleet renewal is accelerating. We reached a major milestone in July when we welcomed our first Airbus A319 at the Airbus factory in Hamburg – the first of 260 planned Airbus aircraft on the way. The A319 offers better fuel efficiency with state of the art interiors and inflight entertainment. It’s a great aircraft for our customers.[/background]

[background=rgb(250, 250, 250)]We launched our first service with the 76-seat Embraer E-175. This large regional aircraft is a great product that allows us to better match supply and demand with the right amount of schedule frequency as our competitors do.[/background]

[background=rgb(250, 250, 250)]And there is more to come. In November we are scheduled to take delivery of our first specially configured Airbus A321T, which will start flying JFK-LAX and JFK-SFO in January 2014.[/background]

[background=rgb(250, 250, 250)]Best of all, with this progress comes opportunity for our people. We are hiring hundreds of new flight attendants and recalling and training pilots at an accelerating pace.[/background]

[background=rgb(250, 250, 250)]Finally, and most importantly, we are focused on completing our merger with US Airways. You probably saw last week’s news that we are seeking a November trial date, and the American team is standing strong together with US Airways to get this merger closed. I appreciate that so many of you have asked how you can help, and in the coming days we’ll be sharing ways you can get involved to express your support. We’re ready to make our case in court for the merger’s significant benefits to all of our stakeholders and the communities we serve.[/background]

[background=rgb(250, 250, 250)]As I travel around the system, I hear from lots of you and lots of our customers. What’s clear to me is that the people of American are doing a great job for our customers every day and the results speak for themselves. In the coming weeks, I look forward to sharing with you the latest developments and more news about the new American moving ahead. Thanks for all you do![/background]

[background=rgb(250, 250, 250)]Tom[/background][/background]


[background=transparent]An Open Letter to Texas Attorney General and Gubernatorial Candidate Greg Abbott from the 10,000 Pilots of American Airlines[/background]

[background=transparent][background=rgb(250, 250, 250)]Dear Mr. Abbott,[/background]

[background=rgb(250, 250, 250)]Your candidate website states that “Greg Abbott is fighting for Texas families and values.” Unfortunately, that just doesn’t square with the announcement that the state of Texas has joined a lawsuit in federal court challenging the pending merger of American Airlines and US Airways.[/background]

[background=rgb(250, 250, 250)]Fort Worth has been the proud home of American Airlines for more than 30 years. Throughout much of that period, the airline’s Dallas-Fort Worth hub has served as a powerful economic engine for the region. American Airlines has struggled in recent years in the face of competition with two much larger megacarriers — Delta-Northwest and United-Continental — whose mergers were blessed by the Department of Justice.[/background]

[background=rgb(250, 250, 250)]Nevertheless, American Airlines remains the largest employer in North Texas, directly employing tens of thousands of hard-working, middle-class Texans and indirectly supporting many more jobs and businesses.[/background]

[background=rgb(250, 250, 250)]The merger with US Airways would enable American Airlines to address network and revenue deficiencies and exit Chapter 11 restructuring on a level playing field with United and Delta. A reinvigorated American Airlines would then offer business and international travelers a viable alternative to those carriers, providing an important competitive counterbalance.[/background]

[background=rgb(250, 250, 250)]So, we have to ask: Are you opposed to having a leading global carrier headquartered in Fort Worth ? Considering everything at stake — including the large number of jobs and the tax revenues they generate — that doesn’t make any sense.[/background]

[background=rgb(250, 250, 250)]If American Airlines and US Airways are not permitted to merge, American Airlines would emerge from bankruptcy as a standalone airline in a weak competitive position. The airline could then be forced to shed less profitable routes, affecting the very same markets in rural Texas that you voice concern about in opposing the merger.[/background]

[background=rgb(250, 250, 250)]As for the notion that American Airlines and US Airways “compete directly on thousands of heavily traveled nonstop and connecting routes,” that’s not even close to accurate. The two airlines compete directly on a total of 12 nonstop routes. Their route networks are highly complementary with very little overlap — much more so than in any other recent airline merger.[/background]

[background=rgb(250, 250, 250)]For the sake of American Airlines, its many Texas-based workers and the economic well-being of this great state, we hope you’ll reconsider your position.[/background]

The Allied Pilots Association, representing the 10,000 pilots of American[/background]


[background=transparent]APA INFORMATION HOTLINE (DOJ Antitrust Lawsuit Call to Action): August 26, 2013 [/background]

[background=transparent][background=rgb(250, 250, 250)]This is APA Communications Committee Chairman First Officer Tom Hoban with an APA Information Hotline message for Monday, Aug. 26.[/background]

[background=rgb(250, 250, 250)]DOJ ANTITRUST LAWSUIT CALL TO ACTION: Many of you have asked what you can do to help in our fight against the DOJ antitrust lawsuit. Your APA leadership along with the APFA and TWU union leaders are currently involved in a coordinated planning effort that is in sync with the overall legal strategy in support of the merger. In that regard, we are playing a role as a "friend of the court" in the effort to see this process through to the finish line. [/background]

[background=rgb(250, 250, 250)]Last week, APA, APFA, AFA and TWU filed an [/background]amicus curiae[background=rgb(250, 250, 250)] brief ("friend of the court") in support of our goal to have a trial date set as early as possible, perhaps as early as Nov. 12. While that is a crucial first step in what will be the final push, it is vitally important that your state and national elected representatives hear from you personally. [/background]

[background=rgb(250, 250, 250)]We have worked too hard to let this merger be derailed. The future of our profession depends on it. Let me be perfectly clear — the alternative to doing nothing is an eventual return to the standalone plan with the current group of managers remaining in place.[/background]

[background=rgb(250, 250, 250)]We are asking every pilot in those states that are party to the DOJ lawsuit to please contact their respective attorney general immediately. (Please see below for the list.) In addition to your own personal narrative, please feel free to incorporate [/background]our talking points[background=rgb(250, 250, 250)]about the reasons the proposed merger is pro-competition and perfectly legal. A good narrative might sound like this:[/background]

[background=rgb(250, 250, 250)]Dear Attorney General,[/background]

[background=rgb(250, 250, 250)]I am contacting you to ask that you reconsider your opposition to the proposed merger of US Airways and American Airlines. As an American Airlines pilot since ([/background]insert date[background=rgb(250, 250, 250)]), I know what the merger means to me and to the thousands of other American Airlines employees. A truly competitive new airline is good for our employees, our communities and most certainly our customers. It would provide a viable competitive alternative to the two much larger carriers (Delta and United) that currently dominate the marketplace.[/background][/background]

[background=transparent][background=rgb(250, 250, 250)]A viable competitor would provide greater job security for tens of thousands of workers across the country than the current struggling airline. Neither American Airlines nor US Airways alone has the network to adequately compete with the existing larger carriers; failure of one or both would result in further loss of jobs, less competition, higher airfares and fewer options for the flying public.[/background]

[background=rgb(250, 250, 250)]I hope you will reconsider your participation in this lawsuit and support a merged air carrier that is stronger and more consumer-friendly. A merger between American Airlines and US Airways is what's best for our country.[/background]

[background=rgb(250, 250, 250)]Arizona, Tom Horne: [/background]consumerinfo@azag.gov
[background=rgb(250, 250, 250)]Florida, Pam Bondi: 850-410-1630 (fax)[/background]
[background=rgb(250, 250, 250)]Pennsylvania, Kathleen Kane: [/background]info@attorneygeneral.gov
[background=rgb(250, 250, 250)]Tennessee, Robert E. Cooper: [/background]tnattygen@ag.tn.gov
[background=rgb(250, 250, 250)]Texas, Greg Abbott: [/background]greg.abbott@texasattorneygeneral.gov
[background=rgb(250, 250, 250)]Virginia, Ken Cuccinelli II: [/background]mailoag@oag.state.va.us

[background=rgb(250, 250, 250)]In addition to making personal contact with your elected representative, please sign the [/background]White House petition to withdraw the DOJ lawsuit[background=rgb(250, 250, 250)]. Your friends and family members are also encouraged to sign the petition. The right to petition your government is guaranteed by the First Amendment. "We the People" provides an easy way to petition the Obama administration to take action on a range of important issues facing our country.[/background][/background]