Trouble at Alleghany?

MarkMyWords

Veteran
Aug 20, 2002
1,900
1
I found this article on AOL Transportation news.....What is up with that?
US Airways Reneges on Tentative Agreement Between Subsidiary Allegheny and Its Pilots
WASHINGTON, Aug. 27 /PRNewswire/ -- In a strange turn of events, the US Airways Group, Inc. has forced Allegheny Airlines and its pilots, as represented by the Air Line Pilots Association, International (ALPA), out of a tentative agreement (TA), based on an issue related to successorship. The TA was reached on August 11, 2002, to address the US Airways Group''s restructuring plan.
While the US Airways Group has made no specific indication that it plans to sell Allegheny, a wholly owned subsidiary, the Group says it will withdraw the tentative agreement unless the successorship clause can be amended. As agreed to, the clause states that if Allegheny is sold or if any transfer or change of control of the company is implemented, with the exception of a merger with another wholly owned subsidiary, the original terms of the Allegheny pilots'' contract would be reinstated.
Allegheny and its pilots have conducted contract talks since April 2002 to address the US Airways Group''s weakening financial position. The Group received approval for a $900 million guarantee of a conditional $1 billion Air Transportation Stabilization Board loan, subject to certain terms including the seeking of concessions from its employees. On August 11, 2002, the US Airways Group filed for Chapter 11 bankruptcy.
Acting Master Executive Council Chairman John Carlisle, leader of ALPA''s Allegheny pilot unit, stated, "We''re perplexed by this last-minute change in position. Pulling the tentative agreement from the table leads us to wonder if US Airways wanted Allegheny and its pilots to have this deal in the first place."
Allegheny Airlines operates as a US Airways Express carrier and serves 38 cities in twelve states in the eastern United States with over 380 daily flights.
ALPA is the world''s oldest and largest pilots union, representing 66,000 members at 43 airlines in the U.S. and Canada. Visit the ALPA Website at http://www.alpa.org .
 
I don't know the particulars of Allegheny's T/A.

I do know that the former head of Allegheny's ALPA union resigned shortly before their T/A was submitted to US mainline. Allegheny's T/A was an 11th hour deal, just prior to US submitting Chapter 11 papers. This may or may not have any bearing on US's decision to reject Allegheny's T/A.

[IMO] US made motions to gather airlines willing to fly RJ's prior to filing for Chapter 11. During that time the Wholly Owned were/are continually fighting the J4J offer. This may come to the point of "cutting the fat" once US emerges from Chapter 11. The T/A might be seen as too little too late. US has it's goals for restructuring, and has made those goals known for some time. Maybe if Allegheny's ALPA would have looked further down the road they would have seen that losing 50% of the seats now would equal more profitable seats available in the future. [/IMO]

Allegheny is a great organization, with dedicated and loyal employees. I truely hope everything works out in the end for all envolved.

--Silent No More--
 

TBONEJ4J

Senior
Aug 21, 2002
270
43
Assuming the creditors of U want their money back, why would they allow furloughed U pilots to fly RJs at MDA for industry leading pay rates plus 14% for FO and 8% for Captains, when they can have the same aircraft flown by US Air Group pilots for a fraction of the cost.

ALG, PDT and PSA have proposed bottom of the industry rates for any pureJet equipment placed there.

Forgetting the old arguments for a moment and placing yourself in the position of a creditor, what is going to get your money back sooner?[:devil:]
 

liljetdriver

Newbie
Aug 20, 2002
2
0
Is this the first step towards U divesting itself of Alleghany or a negotiating tactic to eek more concessions from the group? Not much news on the wholly owned and their role in the restructuring lately. Who has officially signed onto the new T/A yet?
 

dashflyer

Member
Aug 20, 2002
85
0
Reuters Company News
US Airways deal with Allegheny pilots breaks down
Tuesday August 27, 3:08 pm ET

WASHINGTON, Aug 27 (Reuters) - A tentative labor agreement between bankrupt air carrier US Airways Group Inc. (Other OTC:UAWGQ.PK - News) and pilots at its Allegheny Airlines subsidiary has fallen apart just 10 days before it was set to be ratified by union members, the Air Line Pilots Association said Tuesday.

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The union said US Airways will withdraw the tentative agreement, reached Aug. 11, unless the airline can amend a successorship clause that would require it to uphold its original contract with the pilots if Allegheny is sold, or if control of the company changes hands.

The only exception to that clause would be a merger with another wholly owned US Airways subsidiary.

Allegheny, which has about 450 pilots, operates as a US Airways Express carrier and serves 38 cities in 12 states in the eastern U.S. with more than 380 daily flights. Allegheny pilots began contract talks in April to address the weakening financial position of US Airways, the No. 6 U.S. airline.

"We're perplexed by this last-minute change in position," said John Carlisle, acting master executive council chairman of ALPA's Allegheny pilot unit. "Pulling the tentative agreement from the table leads us to wonder if US Airways wanted Allegheny and its pilots to have this deal in the first place."

US Airways spokesman David Castelveter would not respond to a question about whether the airline had plans to sell Allegheny. He said management feels it bargained with the union in good faith.

"Part of this agreement is not agreed upon, and we will meet again with ALPA in hopes of resolving that issue," Castelveter said.

Under the original terms of the contract, pilots at US Airways subsidiaries were not permitted to operate jets, ALPA spokesman John Perkinson said. The tentative agreement would have allowed Allegheny pilots to fly jets, although certain pilots would have received pay cuts of 9.5 percent as part of the airline's restructuring plan.

Separately, US Airways on Tuesday asked the court handling its Chapter 11 bankruptcy case for permission to cancel current labor agreements covering about 19,000 workers if it fails to negotiate less costly pacts with them.

Cost reductions are a critical component of the company's campaign to restructure and get final approval for a government-backed loan. US Airways' unionized pilots, flight attendants and other employees have agreed to annual concessions totaling more than $560 million.
 
Aug 21, 2002
64
0
----------------
On 8/27/2002 2:33:11 PM

I don't know the particulars of Allegheny's T/A.

I do know that the former head of Allegheny's ALPA union resigned shortly before their T/A was submitted to US mainline. Allegheny's T/A was an 11th hour deal, just prior to US submitting Chapter 11 papers. This may or may not have any bearing on US's decision to reject Allegheny's T/A.

[IMO] US made motions to gather airlines willing to fly RJ's prior to filing for Chapter 11. During that time the Wholly Owned were/are continually fighting the J4J offer. This may come to the point of "cutting the fat" once US emerges from Chapter 11. The T/A might be seen as too little too late. US has it's goals for restructuring, and has made those goals known for some time. Maybe if Allegheny's ALPA would have looked further down the road they would have seen that losing 50% of the seats now would equal more profitable seats available in the future. [/IMO]

Allegheny is a great organization, with dedicated and loyal employees. I truely hope everything works out in the end for all envolved.

--Silent No More--
----------------


I heard that the ALG MEC resigned due to a medical problem? The PSA MEC Ratified (the PSA pilot group was not given the oppurtunity to vote on the J4J T/A per the PSA MEC. Nor were they given the oppurtunity to vote on the revised PSA contract T/A per the PSA MEC) the original J4J program was contingent on Duane Woerth signing off on it! That didn't happen as the mainline final T/A was changed? I have not seen the official T/A but it apparently is the same J4J deal with a new cover? But supposedly only Wholely Owned's are part of the J4J. No code share carriers? I am unsure what the PDT T/A has in regard to the J4J deal? The jet rates agreed upon at PSA are Express I rates as I understand? I do not know how they compare with the industry standard? I'm sure they are not ComAir rates!

[::)]
 
Aug 21, 2002
64
0
----------------
On 8/28/2002 1:41:11 AM

----------------
On 8/27/2002 2:33:11 PM

I don't know the particulars of Allegheny's T/A.

I do know that the former head of Allegheny's ALPA union resigned shortly before their T/A was submitted to US mainline. Allegheny's T/A was an 11th hour deal, just prior to US submitting Chapter 11 papers. This may or may not have any bearing on US's decision to reject Allegheny's T/A.

[IMO] US made motions to gather airlines willing to fly RJ's prior to filing for Chapter 11. During that time the Wholly Owned were/are continually fighting the J4J offer. This may come to the point of "cutting the fat" once US emerges from Chapter 11. The T/A might be seen as too little too late. US has it's goals for restructuring, and has made those goals known for some time. Maybe if Allegheny's ALPA would have looked further down the road they would have seen that losing 50% of the seats now would equal more profitable seats available in the future. [/IMO]

Allegheny is a great organization, with dedicated and loyal employees. I truely hope everything works out in the end for all envolved.

--Silent No More--
----------------


I heard that the ALG MEC resigned due to a medical problem? The PSA MEC Ratified (the PSA pilot group was not given the oppurtunity to vote on the J4J T/A per the PSA MEC. Nor were they given the oppurtunity to vote on the revised PSA contract T/A per the PSA MEC) the original J4J program was contingent on Duane Woerth signing off on it! That didn't happen as the mainline final T/A was changed? I have not seen the official T/A but it apparently is the same J4J deal with a new cover? But supposedly only Wholely Owned's are part of the J4J. No code share carriers? I am unsure what the PDT T/A has in regard to the J4J deal? The jet rates agreed upon at PSA are Express I rates as I understand? I do not know how they compare with the industry standard? I'm sure they are not ComAir rates!

[::)]
----------------

PSA aquired the old "NCR Training facility at the Dayton Airport Inn and may use some or all of the old US RES building at DAY for additional ground training facilities?
The ERJ sim will supposedly be placed in the US training facility in PIT? 727 Bay?
 

Dashdog

Newbie
Aug 20, 2002
6
0
The ALG TA is basically a carbon copy of the PDT TA. The successorship part that is objectionable was copied from the PDT TA.

I understand that ALG and PDT are in the same boat.

Any word about PDT's TA?
 

proud2badx

Newbie
Aug 19, 2002
7
0
www.usaviation.com
I was told directly by PSA management that only the wholly owneds would become part of MidAtlantic, and that the pay scale "might improve" sometime in the future. The days of decent pay are over I fear! and the contract carriers better be ready to fend for themselves as it seems only the CRJ's will be going to wholly owneds and the added capacity will be taken from the contract and mainline portion of the business. PSA is scheduled to get 100 CRJ's at a rate of 4 per month over 24 to 30 months. Again this was face to face information with PSA management last week. We are waiting for mother U to give the word for hiring and the addition of aircraft.[:)]
 

TBONEJ4J

Senior
Aug 21, 2002
270
43
"I was told directly by PSA management that only the wholly owneds would become part of MidAtlantic........ PSA is scheduled to get 100 CRJ's at a rate of 4 per month over 24 to 30 months"

Face to Face information really doesn't carry a whole lot of weight. Now, if it's written on paper and signed by all parties then pop the corks. If it is not spelt out in a binding agreement, without ambiguity or flexible legalese, then promises and plans for the future as told by management(especially at the US Air Group wholly owned carriers) to anyone who will listen means nothing.
[;)]
 

DakotaHC8

Member
Aug 20, 2002
64
0
Ohhhh, someone from management told you it would happen,well thats as good as gold then.

Why dont 'cha wait until they make a real announcement in regards to what will happen. I think that Group management has more in mind for all of the wholly owned carriers than even PSA management knows about. Trust me, anyone that knows isnt talking, and anyone that is talking doesnt really know...

Peace[;)]
 

DorkDriver

Advanced
Aug 28, 2002
128
0
News Flash: PSA is the only operating airline with a J4J agreement. I think that means something to Siegal.
 

1ab

Advanced
Aug 21, 2002
147
0
Mesa gonna be a wholly owned seeing the ceo owns part of U ...then they gonna merge the WO that starts with P

MAYBE they shutdown Allegheny and they only have to deal with Mid-atlantic
 

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