Us Airways Chief Turns Up The Heat

[delldude]

Separately, the New York Times recently reported the company is in discussion with the ATSB and one topic is a pre-packaged bankruptcy filing, with lease holders and labor squarely in the "cross-hairs". As I understand it, the filing could preserve the loan guarantee, not require DIP financing, and preserve the security.

i take it you infer that U has changed the bankruptcy laws by circumventing DIP??i don't think ATSB has authority either concerning BK law.
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Companies that request abrogation of the labor agreement but it must meet the following nine (9) distinct requirements:

1. The debtor in possession must have made a proposal to the union.
2. The proposal must be based upon the most complete and reliable information available at the time of the proposal.
3. The modification must be necessary to permit reorganization.
4. The modification must provide that all affected parties be treated fairly and equitably.
5. The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.
6. The debtor must have met with the collective bargaining representative at the reasonable times subsequent to making the proposal.
7. The debtor must have negotiated with the union concerning the proposal in good faith.
8. The union must have refused to accept the proposal with good cause.
9. The balance of the equities must clearly favor rejection of the agreement.

The AFA and CWA seem to understand this since they have elected to begin formal negotiations with the company, especially with the news the company could default on AFA and IAM pension payments in September.

you make a speculative argument that is open ended. both parties may negotiate but please do not accept the fact that they will both have a successful ratification of any negotiations.(ie:don't count your chickens before they hatch)

Employees in Pittsburgh and Charlotte will have thousands of workers competing for a few jobs in the area and it will be a very difficult situation.

i'm going into real estate and see a huge market of houses in the cranberry area going up soon.

it’s doubtful the judge would pay above market pay and benefits for a failed company.

judges do not set wages..they abrogate or enforce the existing contract .

 

[Doc]

Do I like what we face? Absolutely not, but every employee on this property is better served by the company continuing to operate than going out of business.


USA320Pilot

This is not true at all. I would be better for me for the company to fold then for me to make 13.10 an hour with no retirement and no benefits. You are just looking out for your self and it is so obvious it’s gross. With unemployment I can go to school get trained to do something else anything but this crap so stop with your preaching we would be better off with this JOB. Please you have no idea what it’s like to do my JOB short handed working with an embarrassing product. Then tell me I should do it for less to compete with 2 to 5 year old companies they will have the same problems soon enough Jet blue will start paying for their A/C next year LUV contracts are moving up quickly.



TIME TO MOVE ON IF THEY CAN’T MAKE IT WORK!!!!!!!!

 

[delldude]

As I understand it, the filing could preserve the loan guarantee, not require DIP financing, and preserve the security.

i don't think you quite understand what you are trying to say.
the DEBTOR IN POSSESION is the guy who provides the cash to run the daily operation of the said business.
the DEBTOR IN POSSESION is the guy who fronts cash to emerge from BK.
maybe you misunderstood them and they won't be needing a DIP as they actually are going chapter 7...liquidation.

 

[WestCoastGuy]

Big business wins again....it may be very interesting

I think you're right on target there. This is the age of Corporate Greed and Profit. That is the ONLY driving force. Not the mention Corporate Ignorance. Forget the people that make this business run on a daily basis. They are all "expendable" in the eyes of the like of Lakefield and the group of cronnies in Crystal Palace. They understand one thing .. MONEY...and lots of it. Have we ever had an exec leave with less than millions of dollars and lifetime perks????

 

[Bear96]

i don't think you quite understand what you are trying to say.
the DEBTOR IN POSSESION is the guy who provides the cash to run the daily operation of the said business.
the DEBTOR IN POSSESION is the guy who fronts cash to emerge from BK.
maybe you misunderstood them and they won't be needing a DIP as they actually are going chapter 7...liquidation.

I think you are confused.

U management is the debtor in possession. They owe money (hence "debtor") and are "in possession" of the company (they remain in charge of day-to-day operations). It used to be that when a company entered Ch.11, a trustee independent from management was set up to control (or possess) the BK company and supervise its operations. Now the debtor remains in possession.

The people lending the money to continue operations are CREDITORS, not debtors. "DIP financing" is the financing provided by them to the DIP to enable the company to continue operating while the D is IP.

 

[delldude]

I think you are confused.

U management is the debtor in possession. They owe money (hence "debtor") and are "in possession" of the company (they remain in charge of day-to-day operations). It used to be that when a company entered Ch.11, a trustee independent from management was set up to control (or possess) the BK company and supervise its operations. Now the debtor remains in possession.

The people lending the money to continue operations are CREDITORS, not debtors. "DIP financing" is the financing provided by them to the DIP to enable the company to continue operating while the D is IP.

ok...it all won't happen if they don't get a DIP financer....and they can't be a debtor in possesion unless someone floats them cash....so much for the prepacked stuff...it still boils down to someone fronting cash.

 

[cavalier]

ok...it all won't happen if they don't get a DIP financer....

One thing is for sure.

We have some real DIP SH++I++T__S running this place right into the ground and no amount of talking of these boards will stop the tide.

 

[High Iron]

.......If new agreements with labor are not reached shortly

The old one(s) are being broken....stands to reason any new ones will likely be as well. Their "ends justify the means" style all but guarantees this.

......what will all of the message board chest pounding have accomplished?

Not chest pounding...that's just a pathetic ( and legendary ) attempt at sophistry. Merely a business decision, if you will, based upon previous experience as well as an inferrence drawn from the company's own subterfuge.

 

[insp89]

I do not like this anymore than anybody else, but when all of the other contracts are in place then as I have said before the company can implement its painful IAM plan. Does the company want to go to war with the IAM?

No they do not, but if the IAM is not willing to participate in the new business plan to deliver cost effective maintenance -- management believes they have no choice. Again, it's up to the IAM on whether or not they want to negotiate, but the risks are simple.

Respectfully,

USA320Pilot

Just a couple points, If I'm not mistaken, Didn't the mechanics at United take their contract "to the judge" without having their contract abrogated ?........... - Just in case no one has heard,, The company has the IAM in Arbitration over the outsourcing of the airbus HMV work !!! The company has a choice of either dropping the litigation or WAITING until the ruling is known....It's THEIR choice.....[Even the most staunch company "suction cup" oughta be able to figure this out]...... Don't know anything about a "painful" IAM plan,, But if this management keeps heading down this path, It's gonna be "painful" for the whole shooting match....... Respectfully ?

 

[cavalier]

Don't know anything about a "painful" IAM plan,, But if this management keeps heading down this path, It's gonna be "painful" for the whole shooting match....... Respectfully ?

Unless they can train a bunch of monkeys to turn those monkey wrenches like REAL fast, I would say blowing off the mechanics is the same thing as blowing off the entire franchise. Or maybe they can get the F/As to fix the A/C after they finish cleaning them.