U out of bankruptcy on Monday

geo1004

Senior
Aug 22, 2002
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pitguy, that is unfair.

Dave has done the best job with what he had to work with. The REALITY is that if all of US''s employees continued to be compensated the way they were 12 months ago, US would NOT be here today - the company would have been liquidated in chap. 7, broken up and sold, and nobody would have a job. The mentality that all these cutbacks and reduction in workforce were un-neccesary and "Dave''s fault" are quite simply misguided and wrong. These are horrible times for the airline industry but to place the blame on Dave''s shoulders is bogus.
 

a320av8r

Veteran
Aug 20, 2002
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US Airways Poised to End Bankruptcy ( )
ALEXANDRIA, Va., Mar 28, 2003 (AP Online via COMTEX) -- A federal judge on Friday gave his final approval to US Airways'' termination of its pilots'' pension plan, clearing the way for the airline to emerge from bankruptcy protection next week.
The pension issue had been the last hurdle to the airline emergence. On Friday morning, the Federal Pension Benefit Guarantee Corp. gave its approval to the pension plan, and U.S. Bankruptcy Judge Stephen Mitchell approved it Friday afternoon.

Airline spokesman Chris Chiames said the airline will work through the weekend to clear up technical matters so that it can emerge from bankruptcy protection on Monday.

Think of it as a huge closing on a house. The weekend is going to be spent executing literally hundreds of transactions, Chiames said.

If all goes well, Chiames said, the airline will receive a $900 million federally guaranteed loan and a $240 million investment from the Retirement Systems of Alabama on Monday. That financing was only available to the airline upon emergence from bankruptcy.

The RSA is receiving a 38 percent share of the airline and a controlling interest on the board of directors in return for its investment.

US Airways, the nation''s seventh-largest carrier, filed for bankruptcy in August, nearly a year after the Sept. 11 attacks sent the airline industry, particularly US Airways, into a tailspin.

The airline has shed a third of its capacity and a third of its pre-Sept. 11 workforce of 46,000 employees, and cut its costs while in bankruptcy by $1.9 billion a year.

The final cost cut came by terminating the pilots'' pension plan. That plan will now be taken over by the PBGC, and US Airways will replace the old plan with a smaller plan.

The PBGC will now take over the old plan and pay out reduced benefits to the pilots. Those benefits will be supplemented by the company''s new plan.

The PBGC''s review concluded that the combined benefits pilots will receive are not as good as what they would have received under the old plan. If they had been equivalent, the PBGC would have rejected the plan as an abuse of the PBGC''s role as a pension insurer.

US Airways will save an estimated $600 million over the next seven years under the new pension plan.

The airline and pilots agreed on the new plan last weekend, and the PBGC began its review on Monday.

We appreciate the efforts of the PBGC to respond quickly and favorably in its review, said US Airways President and Chief Executive David N. Siegel. We have impressed upon the agency''s staff our efforts to work cooperatively with (the pilots'' union), given the leadership and sacrifices we have seen from our pilots.
 

N628AU

Veteran
Aug 22, 2002
909
106
www.usaviation.com
PITbull and pitguy...

Please spare us the theatrics. Anyone personally going into BK on Monday has bigger financial issues than their salary at US Airways. This place could have gone in the tank over the summer, and people would have been really hurt. Could you imagine a pilot/mechanic/flight attendant or any other US employee making anywhere above $15 per hour living on $400 a week (pre tax) on NC unemployment?
 

mlt

Senior
Dec 2, 2002
291
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www.usaviation.com
Winglet,
Compensation for the executives is not a problem for me as long as they stop whining they are paid less than their co-horts at the other airlines. They really should keep in mind that on Tuesday morning they will wake up the proud owners of stock with a projected value of 55 million.

What I find interesting is their life insurance, long-term disability and retirement are predicated on their wages pre-restructuring. Nice perk for less than 1 year on the job. Too bad the employees who have worked here 20+ years are not receiving the same advantage. (Source:SEC filing)
 

N628AU

Veteran
Aug 22, 2002
909
106
www.usaviation.com
mlt,

Bryan has left the company.

PITBull,

Yeah, I am unsensitive. Hard to be when you are on furlough yourself, and thanks to IAM shenangains my department does not have the same recall rights as the rest of "Mechanic and Related" AOG-N-IT can fill you in on the details of that when he returns from his latest PIT venture. (Yes board, he is alive and well in the rust belt).

Let me make on thing perfectly clear, I am only unsensitive to those who become so dependent on others that when something is not going their way they blame everyone, and spend so much time wallowing in their own pity, they do not take massive action to help themselves. Life sucks, and the world is not fair. These are not the days when you work somewhere from college graduation to retirement at the same place and get a gold watch. The average American worker will change CAREERS, not JOBS 3 times in their working years. If you can''t stand working for someone else, and not being in total control of your own destiny, go into business for yourself. Remember what the proud men and women of our armed forces do, they ADAPT AND OVERCOME!!!
 

mlt

Senior
Dec 2, 2002
291
0
www.usaviation.com
N628AU,
It is what it is. This management team did what they were hired to do and are being generously compensated via stock and benefits. They do deserve accolades for completing their mission. But, please do not confuse them with creating the earth in 6 days and resting on the 7th. If you are interested in ''light reading'', the employment contracts for our ''chief union buster'' Jerry Glass and his pals Al Crellin, Neal Cohen and Michelle Bryan are included in the SEC filing. After reading the terms of their employment I believe most will agree there is not a need to pass the kleenex!
 

PITbull

Veteran
Dec 29, 2002
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----------------
On 3/28/2003 9:18:44 PM pitguy wrote:

Monday the company comes out of bankruptcy and tons of employees go into bankruptcy.

PITbull writes:

Actually, that is true.

>
 

mlt

Senior
Dec 2, 2002
291
0
www.usaviation.com
N628AU,
I believe Michelle Bryan leaves on March 31, 2003. Which leads me to another interesting area. The terms of their employment state if they lose/leave their job as a result of a change of control certain clauses are triggered. On Tuesday RSA controls the majority of the board (8 out of 15 seats) as well as 37% of the stock (B). So again, please read the contracts and you will see she will hardly be shopping at WalMart.
 

PITbull

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Dec 29, 2002
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N6 writes:

Life sucks, and the world is not fair. These are not the days when you work somewhere from college graduation to retirement at the same place and get a gold watch. The average American worker will change CAREERS, not JOBS 3 times in their working years.

PITbull writes:

"Oh no...say ain't so joe". You mean I'm not getting that gold watch??????
 

PITbull

Veteran
Dec 29, 2002
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On 3/28/2003 9:31:07 PM geo1004 wrote:

pitguy, that is unfair.

Dave has done the best job with what he had to work with. The REALITY is that if all of US''s employees continued to be compensated the way they were 12 months ago, US would NOT be here today - the company would have been liquidated in chap. 7, broken up and sold, and nobody would have a job. The mentality that all these cutbacks and reduction in workforce were un-neccesary and "Dave''s fault" are quite simply misguided and wrong. These are horrible times for the airline industry but to place the blame on Dave''s shoulders is bogus.

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Geo,

I don''t believe anyone has said that consessions and "give backs" were not necessary...no one has even eluded to this. Don''t exaggerate. The point that many labor advocates express is that the sacrifices are so deep, and so harsh, that literally, (with all seriousness) some folks are not surviving. And with the additional 5% pay deferral, many, will have to liquidate some of the things they own, or face going deeper in debt. Folks don''t work a job to go into debt or lose what they have worked for for many years. I am sure, Most of us are only asking and somewhat imploring management, that when their is a sign of a turn around, that management have some compassion to return some of these concessions back to the employees, who you know, have sacrificed themselves and their standards to save this company.

That''s a very simple conceptualization. In the meantime, some common decency and respect towards the needs of all labor groups from mangement would be appreciated more than you know. We are simple people, that obviously don''t demand much but a little respect and its mutual.
 

PITbull

Veteran
Dec 29, 2002
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On 3/28/2003 10:04:10 PM N628AU wrote:


PITbull and pitguy...

Please spare us the theatrics.  Anyone personally going into BK on Monday has bigger financial issues than their salary at US Airways.  This place could have gone in the tank over the summer, and people would have been really hurt.  Could you imagine a pilot/mechanic/flight attendant or any other US employee making anywhere above $15 per hour living on $400 a week (pre tax) on NC unemployment?

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N6,

Shame on you for your insensitivity to the present plight of the employees, here at U.