Response To A P Tech

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USA320Pilot

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May 18, 2003
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A P Tech asked: “One quick question, would you have a problem with U reducing the fleet size below 279 A/C and transferring all the leases of the 737's to JO over at Mesa and having them do the flying with their pilots? And please don't tell me you have a contract.....I believe the IAM has one also.â€

USA320Pilot answers: A P, you are comparing apples and oranges. There are two points of difference in the IAM and ALPA contracts. In the IAM dispute the company believes the current contract permits them to outsource heavy maintenance if they do not have the equipment to conduct the overhaul on a new aircraft type. In fact, all of the engine overhaul has been outsourced with the power-by-hour agreements. In addition, the company has offered to meet with the IAM to discuss ways to cost effectively conduct overhaul in-house, but the IAM refuses to meet.

Therefore, the company is looking at some very painful options to lower their maintenance cost, which is one reason US Airways’ chairman David Bronner has said the restructuring will go forward “with or without†employees who do not want to participate in the “Transformation Planâ€.

I believe we all recognize the Pittsburgh overhaul facility will close and be moved to an undesirable location, which is the IAM choice if the do not want to play ball. The challenge for the IAM is that Southwest, FedEx, JetBlue all outsource heavy maintenance and even United has done the same thing. United is down to one maintenance center in San Francisco after closing Indianapolis and Oakland last year.

Senior management says it takes a contractor 13 days to conduct a narrowbody overhaul and US Airways 18 days. Not only does this cost the company more the asset is not available to produce revenue during the 5 extra days.

In regard to the pilot contract, ALPA has permitted outsourcing and our group was the last major airline to grant meaningful scope relief. Critics argue this has hurt US airways because the company has one of the smallest regional jet fleets and has lost key feed and revenue. LOA 79 and LOA 91 provided further outsourcing of big RJ aircraft and more MDA flexability so do not feel as if you are being left out – the pilot group is suffering from the same fate.

Meanwhile, this week Holly Hegeman (I am not a fan of this observer) wrote a very interesting column discussing a pre-packaged bankruptcy with TPG possibly re-gaining control. Hegeman reported US Airways has re-hired the Seabury Group (if you remember John Lutz was a key component of the formal reorganization last time) and FTI Consulting to consult with senior management through the next filing. Moreover, bankruptcy specialists from the law firm of Arnold and Porter have apparently been hired as legal advisors.

If you remember correctly, who was the first person to report on this website that if consensual deals could not be worked out than the company would file a pre-packaged bankruptcy with the target aircraft lessors, airports, and primarily labor?

Also noteworthy, there are additional reports that Dave Siegel is now working as a consultant for TPG who may be interested in becoming an equity investor in both United and US Airways, if the ATSB rejects the loan guarantee application and David Bronner/Bruce Lakefield cannot consensually restructure US Airways. Apparently, RSA could sell its position to TPG and than David Bonderman would combine United and US Airways, but Hegeman said, “I remain hesitant to say the demise of US Airways is a foregone conclusion. Maybe as we know it now the airline is a goner -- but maybe not as a very different animal,†after she reported the information regarding US Airwasy re-hiring bankruptcy financial and legal consultants, TPG's renewed interest, and another UCT/ICT/M&A effrot by US Airways and United.

Thus, could the question be for the IAM be do they want to be a part of the finally married US Airways and Untied or do they want to be standing in the unemployment line with thousands of other members in Pittsburgh and Charlotte?

It appears the company is giving the IAM a choice, just like the company is giving every labor group a choice, including mine.

By the way, ALPA understands this very well, which is why the company and the pilots are engaged in discussion as we speak.

See Story

Regards,

USA320Pilot
 

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Ok, lets do this again one more time.

The company currently performs the C1 thru C11 checks in-house on the airbus narrow body.

Guess what an S-check is? The S-check is the C1 thru C11 checks combined.

So if we have the equipment to perform each check individually, tell me how we don't have it to do the S-check?

The CFM56, CF-6 and PW4000 engines have never been done in-house so it was work we never performed and we do not have an engine shop for those types. We did overhaul the JT8 and Tays in-house.

The company can believe whatever they want, just as they thought they could lay-off F/As without offering VF and the several pilots that had to be brought back in-house. When the IAM wins the arbitration, which we will, I hope you are hungry to eat some crow.

The company can relocate a maintenance base, crew base or anything they choose in any of the labor contracts, but they can't afford to, so that option is out the door. US still has first rights of refusal on the TPA hangar.

And seven out of 10 airbii has major maintenance issues coming out of BFM which included more then several emergency landings and numerous flight cancellations and ST MAE is averaging more then 18 days per aircraft so your 13 # is wrong again.

It does not matter what Fedex, UAL or any other airline does, as we don't have their labor agreements or non-union.

And it was YOUR union who resisted RJs for years to put US behind the eight ball in that matter.

And who cares about what Holly "I Love WN" Hegemann thinks, it is speculation, not the truth and as for as Dave Siegel goes according to his main man Mr Chiames he is not working TPG, he is using office space there.

And everyone has read the SPECULATION on Yahoo, no one knows if they hired anyone for anything.

And don't worry if the IAM Members are on the unemployment line, you will be too.
 
Sentrido:

Sentrido asked: 320, what do you think will happen if the IAM wins arbitration?
USA320Pilot comments: Great question. The company does not have the money or resources to conduct the maintenance. This is work that is not currently being done by US Airways mechanics and the company would need to get a hangar and equipment; as well as recall furloughed mechanics.

The company will not do this; therefore, does this give the IAM more or less leverage?

That depends on Bronner's desire to keep it out of bankruptcy and the IAM's real motivation on "Transformation Plan" participation.

1. If the company wants to fight, they could close the Pittsburgh maintenance facility and move it elsewhere, where I understand a local government has made an offer to move the facility and it is every, very difficult to commute to (US Airways does not fly there). This is one of the reasons the company has rejected the Pittsburgh maintenance facility with an early exit clause. This would be undesirable for the mechanics in question.

As you know, I have said that unless the ACAA offered meaningful debt reduction for all of the Pittsburgh facilities, which they have not done, the hub would close and I strongly believe unless the IAM plays ball, the B737 overhaul facility will be closed too.

2. The company could file their pre-packaged bankruptcy, which the financial and legal consultants are now apparently working on.

3. Or the company and the mechanics could negotiate a way to keep the maintenance in-house.

Regardless, for all work groups, mine, yours, and the others, we have to be able to cost effectively complete with the LCC's or we will fun out of money before the holidays.

I'm not sure which way this will go because there are too many outside influences, but if I had to guess, I would use the points above in descending order of possibility.

Regards,

USA320Pilot
 

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Wrong again,

The IAM presented at the arbitration case, several differant ways to perform the airbus work in-house as the contracts states, the Dunsford Arbitration was also entered into evidence where the company cannot shut down a facility to circumvent the contract.

They had the money to pay over $500,000 per plane to ST MAE.

And the company can move where ever they want too, people will follow their work, who cares if they fly into the city or not, you are just trying to scare people again. The company as closed down mtc facilities where we don't fly as it is an added cost in doing business, IE INT hangar.

The company can the company could, if my grandmother had testicles she would have been my grandfather, your speculation is foolish.

No need to negotiate something that is all ready in our contract.
 
700UW:

You’re in denial and have always been an angry person, which is o.k., because as one ALPA MEC member told me this week, ALPA believe those employee groups who do not participate in the “Transformation Plan’ will get “whackedâ€￾ even harder in bankruptcy. Therefore, it's up to you on how bad you want your pain to be -- you have a choice.

As I have said before, this will give higher paying profit sharing checks and indirectly cause the stock to move higher, which will provide more money for those employee groups who consensually participate in the “Transformation Planâ€￾.

I'm not trying to scare people, just let them know what I have been told -- whic his their will be a lot of paina nd believe me when I tell you that your colleagues will not like it, but again, it's the IAM's choice.

In regard to Dave Siegel, I do not read the Yahoo board, however, I do know exactly why he is at TPG.

Finally, in regard to the unemployment line, I may file a claim, but you do not have to worry about my family and I financially. However, thanks for your concern.

Respectfully,

USA320Pilot
 
Come on, I disproved everyone of your so-called facts and no reply?

Have to come up with some new far fetched scare tactics?

Sorry I am not angry, I just stand up for my IAM brothers and sisters and not roll over for the company like you.

Maybe you need to educate yourself on what it means to be a union member, oh wait, you think you are a professional and/or management not a union member.
 
USA320Pilot said:
USA320Pilot comments: Great question. The company does not have the money or resources to conduct the maintenance. This is work that is not currently being done by US Airways mechanics and the company would need to get a hangar and equipment; as well as recall furloughed mechanics.
There are available facilities in both CLT and PIT. And the company alread owns the tooling (why do you think they moved it all to Alabama for MAE)?

If the company can finance those 60 Airbus aircraft, it can certainly afford to do maintenance which is currently taking 18 days (plus time to ferry and repair after small things like flaps-out landings and the like).

The play (outsourcing the MX to Alabama) was orchestrated by Bronner to bring more jobs to Alabubba. It has nothing to do with being cost effective. Zero. And don't mention how Southwest or Fedex handles their outsourcing programs--the one large difference is that LUV can threaten to take it's business to another vendor if work is not on quality and/or on budget and/or on time. Until a plane drops out of the sky with 150 souls on board, that work will be performed in Alabubba, regardless of the financial and operational drain it currently places on US. When the IAM wins the arbitration, it becomes a moot point--in fact, it might very well force a Chapter 7 filing if the IAM wins for back wages and the like.

You also won't see a bankruptcy filing that US can hope to emerge from--aircraft lessors are not going to budge, nor are airports that US has not already flipped the bird to. If they try to S1113 AFA or IAM-M, you will have Eastern (bearing in mind that it's easier to find work with an A&P than an ATP in the current climate, this possibility probably does not bother the mechanics all that much).
 
USAPILOT: You are undoubtedly a edited by moderator one in denial at that!! :p :p

You are a complete fool if you think dealing with this management will lead to fruitful and prosperous futures for all. What will the man of never ending retorts have to say to his critics when he discovers he has been duped a 2nd time??

UAIR is out to bust the unions on this property as demonstrated by their breach of our collective bargaining agreement. "Only 10 airplanes" my eye....what are they up to now? #14??? Why didn't they stop at 10??? You sucker!! We are being exploited to the max!! How dare you lecture us on apples and oranges while you sit there polishing the apples :angry: What else would you be doing since the airplane is flying by itself??? I wonder if you could even fly without all the automation.....in straight and level fashion :ph34r: .

We are at the mercy of the labor laws and all the associated B-S that the lawyers spew out to lengthen the resolution process. And what a superb crop of judges we have hearing our cases. It's an abomination to say the least :down:

I personally am sick of your rhetoric "know it all-ness!!" I cannot wait until YOUR job is outsourced to MESA or an affiliate. Maybe the entire mainline will be operating only RJ's with the appropriate wage rates in the near future?? Wake up and smell the coffee flyboy....it could happen to you. You are only as good as your last departure....don't you ever forget that.

Furthermore, Wait to see what happens when an A330 fresh out of MAE has to make an emergency "splash" landing while enroute.....If UAIR continues on it's current path where stupidity and ineptitude reign unchecked then you will get what you paid for......NOT MUCH :down: :down:
 
E-Trons:

I do not like this situation anymore than you do. It sucks, but it's the cards that we have been dealt and the marketplace will decide what happens.

It does not matter what industry or what company, but if a company does not have competitive costs they will fail in the marketplace.

Just like ALPA, the IAM has a choice: to participate or not participate. If the IAM participates with a cost effective approach to conduct maintenance, like FedEx, Southwest, and Untied have done, then the work can be done in-house for US Airways mechanics or the company has indicated they will make the IAM members "irrelevant" to the process.

ALPA is negotiating because we know if we do not, there will be a S.1113 motion and as one ALPA official told me this week, the unions who do not negotiate will get "whacked".

Again, do what you want, it's your choice. In fact, if the elects to not concensually participate in the new business plan you could end up raising the profit sharing checks for AFA, TWU, CWA, IAM-FSA and ALPA members; as well as non-union employees.

Respectfully,

USA320Pilot
 
Clue:

Once again your opinion, which does not have any factual information, is misguided. This has become something normal with your posts, since you have no idea what’s happening inside the company.

There is a three-point plan, which I have listed in order of David Bronner’s preference:

1. Consensual restructuring and implementation of the new business plan on October 2.

2. Pre-packaged Chapter bankruptcy filing late this summer where apparently US Airways has retained financial, business, and legal advisors to navigate this process. The targets: aircraft lessors, airport bond holders, and labor non-business plan participants.

3. Asset sale, fragmentation, and liquidation.

I appreciate your opinions, but they are usually wrong and definitely ill-informed.

By the way, how often do you talk to senior management, union officials, airline analysts, and consultants?

Respectfully,

USA320Pilot
 
Isn't that the pot calling the kettle black.

Prove US has hired BK council or advisors! Your opinion and your track speaks for itself, you are 99.9% wrong and all you post is your opinions which you tout as facts.

By the way how often do you misrepresent yourself and post outright falsehoods?

If senior management confides their top secret business plan with you that is illegal and no wonder why this company is going down the drain.

Insider information is a jail-able offense.

http://www.sec.gov/complaint/selectconduct.shtml

http://www.sec.gov/divisions/enforce/internetenforce.htm
 
700UW said
"And seven out of 10 airbii has major maintenance issues coming out of BFM which included more then several emergency landings and numerous flight cancellations and ST MAE is averaging more then 18 days per aircraft so your 13 # is wrong again."


700UW, you are a liar who chooses to distort facts to meet your on agenda. I happen to have first hand experience with the good folks of MAE@BFM and will testify to the quality and timeliness of their work. Their time line for the S check is 14 days. I believe in house it was to run 30 days. I'm sure you can respond to that. Lets hear it. Your devotion to the IAM is overwhelming. Name the "seven" a/c and their problems. Spell it out and quit hiding behind your general statements. :ph34r:
 
According to Maxi-merlin and the base tracks they are averaging 18 days.

And please explain to me how an in-house S-check took 30 days to accomplish since it has never been done in-house?

Better watch who you call a liar, were you looking in the mirror?

700, three emergency landing-flap problems.
706 one emergency landing flap problems.
704- missing girt bar attachments, damaged slide on MED, and improper rigging.

Call QA and the FAA about the rest as I am not at work and do not have access to the rest of the information I need.

Or you can contact DL 142 Flight Safety Committee as all of this has been reported to the FAA and is being investigated.

ST MAE info from the FAA

http://av-info.faa.gov/repairstation.asp?certno=MZAR013L

Certificated Mechanics: 532
Repairmen: 74
Non-Certificated Mechanics: 1173
Total Employees: 1776

And here is a photo of their fine work on a UAL Airbus upon landing after the nose gear being overhauled there.
 
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