United Airlines Delays Bankruptcy Exit (again)

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767jetz said: "Another interesting note is that UA may want to see what USAir does in PIT. It looks like US might not commit to PIT, and may withdraw to concentrate on PHL. If this occurs, the city of PIT is already looking for other airlines to come in and service their airport. UA may be looking into moving some lift into PIT to keep that traffic within STAR.

With US in retreat, the chance of any corporate transactions involving significant UA assets going to US is pretty much dead in the water.

Also looks like US may be preparing for a show down with the mechanics. Do you think Tilton might want to wait and see how that plays out?"

Chip comments: In regard to discussions between Pennsylvania government leaders and United's business partner US Airways, there are likely two scenarios. I have been told US Airways is purposely stalling negotiations with Pittsburgh hub being held hostage to other industry restructurings and may move assets westward if opportunities present them self in the fourth quarter or the company is waiting to apply further pressure on the Allegheny County Airport Authority (AGAA).

In my opinion, there will be a deal reached between the parties, which will include greater passenger facility fee reductions, Concourse A RJ jetways, an addition built on to the pilot simulator building (For MAA & PSA), a new reservations building, and rejection of some hangars, RIDC offices, the Carnot & Beaver Grade Road Training facilities, airport facilities (Concourse E for example), and the Greentree Reservation Sales office. Furthermore, there is reason to believe the mainline will operate about 130 flights per day after January 5, 2004, provided an acceptable accord can be reached.

In the end, I suspect Pittsburgh will be similar in scope to Cincinnati and Delta Air Lines and Comair, according to conversations I have had with management.

Moreover, on August 20, US Airways Pittsburgh chief pilot Jim Corbusier said, “Over the next several months, we will begin sharing our crew room facilities here in Pittsburgh with fellow crewmembers from PSA, MAA, and our affiliates. There will be no impact for our crewmembers other than seeing some new faces.â€￾ In regard to negotiations with the AGAA Corbusier said, “Many of you have expressed thoughtful concern about the future of Pittsburgh. Mr. Al Crellin, executive VP of operations, stated in an open forum here recently that he believes once issues are satisfactorily resolved that the mainline operation will stay about the same size.â€￾

In regard to IAM negotiations, I understand why the mechanics believe the A320 overhaul is their work, however, management believes US Airways is permitted by the IAM contract to outsource maintenance that requires new equipment.

For example, when US Airways parked its B737-200s, DC-9s, and MD-80s, which all had JT8D engines and replaced these aircraft with Airbus aircraft with GE engines, US Airways closed its Pittsburgh JT8D engine overhaul facility and outsourced the GE engine work to the manufacturer.

From a legal precedent, this example will likely be used by US Airways during the pending NMB and legal process. According to the IAM-M website, the union will prepare an appropriate response to what would be considered a major dispute under the Railway Labor Act.

According to ALPA Legal, this process will take about 60 days and dependent upon the Arbitrators Opinion & Award, and if the company wins the arbitration, then there will be no dispute between the parties.

In addition, the IAM told its members "as a major dispute, this will include, but is not limited to, seeking a Temporary Restraining Order, injunctive relief, withdrawing our services as provided by law, and/or whatever other legal action may be necessary."

However, if an illegal job action occurs, most observers expect the company to seek legal relief similar in scope to the AMR-APA dispute a few years ago.

Meanwhile, I understand for new Airbus contract maintenance the vendor would use some of the current company hangars, the jobs could be offered to furloughed and/or current mechanics -- who could then double dip to increase gross pay.



Hello Lav. Sent you a PM regarding this thread and you-know-who. Take a peak and let me know your thoughts via PM.