Someone is trying to look tough!

Ardenian

Advanced
Jun 27, 2006
147
0
PHL crewroom -
The following showed up on my computer today.

Dear Colleague:

According to US Airways’ SEC filing, Doug Parker’s stock options that were sold last week had the following expiration schedule:

Shares Acquired Expiration Date Option Price Value

24,750 10/28/2006 $29.09 $719,977.50
41,250 01/24/2012 $9.21 $379,912.50
103,125 04/09/2013 $6.42 $662,062.50
33,025 03/10/2015 $12.44 $410,831.00
70,100 03/10/2015 $12.44 $872,044.00

Total Shares Acquired: 272,250
Total Cost: $3,044,827.50

Shares Sold Date Sold Exercised Price Value

202,150 8/1/2006 $44.458 $8,987,184.70
70,100 8/2/2006 $43.5875 $3,055,483.75

Total Shares Sold: 272,250
Total Value: $12,042,668.45
Total Pre-Tax Profit: $8,997,840.95

In a letter to employees Doug Parker said, "The fact is that I’ve authorized the exercise of options to acquire 272,250 shares of US Airways stock and the sale of those shares. All of these options were granted to me during my time at America West. A small portion (24,750) of these options were granted almost ten years ago and are about to expire, which means that if they aren’t exercised, they simply go away. That, along with feeling I should diversify my stock holdings, is the primary reason that I have chosen to exercise some options now."

Chip comments: Parker is right. A small portion of these options (24,750) were set to expire, but 247,500 options did not expire until January 24, 2012 to March 10, 2015. Parker along with every other US Airways senior executive has received huge incentive-based compensation. Meanwhile, US Airways used the bankruptcy process to gut our contracts, where pre-merger US Airways pilots are now the lowest paid in the industry.

Moreover, without the sacrifices of the US Airways employees the merger would not have proceeded, according to Parker America West would have entered bankruptcy, and the senior executives would not have become multi-millionaires due to the recent run-up in the stock price.

US Airways employees continue to suffer, they live pay check to pay check, and they must now fund most of their retirement. Meanwhile, US Airways is posting record profits and management refuses to negotiate a new combined contract that would partially reward the employees after their enormous sacrifices.

I do not know about you, but "enough is enough." It's time for more ALPA press releases to notify the public of the truth, pilot informational picketing at every management event, more ALPA Communications Committee discussions with the news media, and for US Airways pilots to strictly fly by the FOM/Pilot's Handbook.

Regards,

CXXX MXXX


I wonder how we found ourselves in the position of being taken for granted and continually abused by management?

Does anyone think that comments such as the following are indicative of the fearful mindset of 57% of our pilot group?


Dear Fellow Pilot:

…As for ALPA being able to stop any of this, the only way is to capitulate and give the company far in excess of $295 million a year as stipulated in the latest company "proposal".

Respectfully,
CXXX MXXX
 
All I can figure is Doug did not offer to pick him up and take him to lunch. Love scorned is a harsh thing! This is Monty Python at it's best! Let us see..no retirement, no wage increases, little or no insurance, 19 days a month on duty for reserves, with only a 72 hour pay rate....NOW I AM REALLY MAD...NO REALLY! I would pay more to watch this soap opera than I do for HBO! Greeter.
 
From the July 26, 2002 Charlotte Observer:

UNIONS CAN SINK US AIRWAYS WITHOUT AGREEMENTS FROM ALL ITS UNIONS, AIRLINE'S FUTURE IS BLEAK

In recent days US Airways has made much progress toward ensuring that it will have a future. It has reached tentative contract restructuring agreements with its pilots, flight attendants and the Transport Workers Union, which represents the dispatchers, simulator engineers and flight crew training instructors, and with subsidiary PSA Airlines' pilots and flight attendants.

The International Association of Machinists (IAM) unit representing mechanics is close to a deal, and the IAM Fleet Service negotiators are making good progress.

But that's not enough.

The Communication Workers of America (CWA), which represents customer service and reservation agents, remains far from agreement with the company.

US Airways is on the brink of court-ordered bankruptcy because its situation is "unsustainable." Failure to improve the situation will have devastating effects on employees, customers and companies that depend on US Airways.

The airline has received a "conditional" federal loan guarantee approval, but can't use those funds unless it gets restructuring agreements with all labor groups, in accordance with the business plan submitted to the Air Transportation Stabilization Board (ATSB).

Needed for loan guarantees

Major obstacles remain in the way of a voluntary restructuring.

US Airways may not be able to reach agreements with lenders without tentative agreements with the remaining unions. Unless it has those agreements the company wouldn't get final ATSB loan guarantee approval, government sources believe.

How bad is the situation? The carrier continues to burn cash during what is historically the best-performing time of year. Ten months after Sept. 11, US Airways has not resolved its cost problems, the economy remains sluggish, revenue is off 20 percent and low-cost competitors are aggressively attacking its market share. The industry has not recovered as expected.

Domestic fares are at 15-year lows. Shifts in buying patterns and travel options indicate airlines may never get the revenue per available seat mile they previously enjoyed.

Disturbing reports

US Airways needs restructuring agreements for either a voluntary restructuring or successful bankruptcy reorganization. If the company gets union concessions and qualifies for government financing, then if it's forced into bankruptcy, it probably could get in and out of bankruptcy quickly.

What's disturbing are reports that the CWA leadership is misleading its members. Last Friday, company negotiators asked the union to meet, to try and resolve their differences. The union said its negotiators couldn't meet, but its advisers would be available. However, I'm told that when management tried to schedule a meeting, they were told the advisers had other commitments. Meanwhile, the CWA issued a report telling its members the company met with the advisers last weekend - which management disputes.

Brinkmanship by any union could push the airline into bankruptcy. It's disappointing to see a relatively small group of employees risk the destruction of a viable company, with a devastating effect on 40,000 employees and their families.

No one can be sure what will happen in bankruptcy, but it's certain that if the company reorganizes and successfully comes out of bankruptcy, the labor groups that don't have tentative agreements with the company prior to bankruptcy will lose.

As in other union negotiations, the parties that reach savings targeted in the business plan will get a bankruptcy protection letter, which protects against even deeper salary and benefit cuts if the company enters
bankruptcy.

Some may face pay cuts

If the company files for bankruptcy, workers in labor groups without that bankruptcy protection letter may face deep cuts in pay and benefits, loss of unused sick and vacation time, slashed retirement benefits and a crash in
the value of common stock in 401(k) accounts. In addition, they'll work for a smaller airline that will hand out layoff notices at once with no severance pay, and will pay members of unprotected unions significantly less.

Each day the company moves nearer bankruptcy. New chief executive officer David Siegel has brought a breath of fresh air to management. US Airways' best chance to survive is for unions and creditors to bet on him and his
team. Employees wanting to keep their jobs must impress upon union rank-and-file employees the importance of ordering union leaders back to the bargaining table at once, to reach an agreement that is 85 percent of the targeted concessions.

The choice is simple: Either all stakeholders move past their anger, frustration and denial to obtain and ratify restructuring agreements, or the carrier will almost certainly enter bankruptcy.

History has shown only two major airlines have successfully restructured in bankruptcy - not good odds for this company to continue operation.

XXXXXXXXXX is a US Airways captain