What's Wrong With This Merger?

How come you fail to post that point?
At your request, the "whole story"....

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Dear Fellow Pilot:
There is a Wall Street rumor that David Bronner has received offers to sell key assets, in particular the A320 fleet, which would effectively lead to the fragmentation and liquidation of US Airways.

As I understand it, Bronner is frustrated with ALPA and the other unions to inability to adjust to the LCC reality and wants to cut his loses and recover as much of his investment as possible.

Is it true? There is no way of knowing, but the thought makes sense because Bronner probably does not want to go through a "formal reorganization". US Airways does not have a CEO with the interest to run the company in bankruptcy and Virgin America make sense as an suitor. If true, ALPA probably has one chance to prevent this from happening and that is this week at the MEC meeting.

According to the 2003 Annual report, US Airways own 46 A320 family aircraft, and all owned aircraft are pledged as collateral for various loans. Furthermore, gave up the right to keep 25% of the proceeds of any asset sales in the last ATSB agreement.

To me the issue is not fragmentation OR liquidation, it's fragmentation AND liquidation.

Unfortunately, the "house of cards" is starting to collapse and it is an open question whether even that will be enough to stop the "run on the bank" as creditors and the ATSB start protecting themselves rather than hoping for a turn-around. Apparently, Bombardier has already started in this direction, requiring the company to find alternate financing for several of the CRJ deliveries and American Express is accelerating payments of $75 million.

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,

[USA320Pilot]
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I'm still looking for the "sarcastic comment" in there.....

Jim
 
Good Job Jim!

Lets see the spinmeister try to weave out of this web.
 
L4P:

L4P said: “It has been almost two years and no end in sight (for the integration to be complete).â€

USA320Pilot comments: The merger closed on September 27, 2005, which is exactly 15 months ago, far short of almost 2 years. Airline merger’s are very complex and take time. I would have to do some research to be sure, but I believe this merger will be completed faster than almost every other large scale airline merger.

L4P said: “You bring nothing to the table but debt. However your company survives off the hard work of others. So typical of your outlook on life.â€

USA320Pilot comments; Of course the debt will be higher, but that is because the company is much larger. According to Scott Kirby, the New Delta would be the most profitable airline in the world and it would have the “best in class†capital structure, By the way, does it make you feel good to make personal comments or insult others?

L4P said: Oh BTW, how is that cost neutral discussion coming with Tempe?

USA320Pilot comments: US Airways’ management has publicly indicated it has made a mistake with that phrase. Furthermore, labor negotiations are moving forward with a new CBA for the TWU-Dispatchers, the CWA deal complete, representational issues decided with the NMB, Transition Agreements completed or in negotiation, and in the case of ALPA, every section of the contract now open. Labor negotiations are ahead of what is being publicly presented and there is a lot of posturing going on. Why? It’s part of the process, but I expect we will see positive outcomes for employees in the not-to-distant future.

L4P said: “Yeah we are really looking forward to flying nasty planes, 757 with 8 F seats versus the 24 we have know, planes with no overhead space and no closets, web sites that don't work, huge devaulation in the sky miles program, and pilots who know everything and want to tell every one on board the entire flight. Yeap, can't wait....â€

USA320Pilot comments: I agree that I do not like the reduction in service across the industry, but people want to fly for the least possible price and they’re not willing to pay for the service. September 11 changed this industry forever and some of the premium service before will likely never return. Do I like it? No, of course not. But, I understand the reality of the situation.

Best reagards,

USA320Pilot
 
BoeingBoy:

First off, how come you failed to answer my question? Let me asks it again? By the way, what is your opinion of the RC4 taking actions and "roll calling" over 50 votes against the advice of every ALPA advisor during LOA 93 negotiations?

Second, I do not save posts to “try to discreditâ€￾ others and can confuse facts from the past because events can blure together.

What I find interesting is that you seem to have obtained private emails from a private message board and then posted it without permission in public? Where is the character in that? Can you be honest and tell us who sends you private emails?

I stand corrected on the sarcastic comment, but sarcasm has been used in the past and you know it. In regard to the email, the report was accurate, but I should have probably sued the word "may".

As far as selling the A320 fleet sale, the information came from a Wall Street and was confirmed by an ALPA source. As you know, according to the press US Airways had offers to sell assets afrom buyers s it began the so called “burn the furnitureâ€￾ to stay in business. It is my understanding assets that could have been sold were the Shuttle, PHL International Operation, A320s, and MDA. In the end EMB-170s and slots were sold to generate cash because it effected the core operation the least.

Again, can you answer the following question? What is your opinion of the RC4 taking actions and "roll calling" over 50 votes against the advice of every ALPA advisor during LOA 93 negotiations?

Regards,

USA320Pilot
 
By the way, does it make you feel good to make personal comments or insult others?


No. But truth be known I do enjoy calling you out on your "facts". You make it sooooo easy. If you consider those insults then so be it.


USA320Pilot comments: I agree that I do not like the reduction in service across the industry, but people want to fly for the least possible price and they’re not willing to pay for the service. September 11 changed this industry forever and some of the premium service before will likely never return. Do I like it? No, of course not. But, I understand the reality of the situation.

You're clueless. The only airline to take major service reductions is YOURS. I currently fly clean planes with great service from the front line and 9 of 10 times the fare is cheaper on DL than US. The improvements in the last 18 months on DL, UA, etc makes US the flying pig in the air. Low cost my ass.....

You don't understand the reality of anything and you prove it with every post you make. But understand this. If this takeover does not fly, your airline is in serious trouble. Your most profitable customers are leaving you in droves. It has been posted that you may well have lost almost 1/3 of your CP's this year because they no longer fly you. Why? Your lack of service. I have arranged for two of your most vocal supporters ON THIS FORUM to be given status on DL. What does that tell you?

See you in BK 4.

Best reagards,

USA320Pilot

Back at ya B.O.B.
 
Negotiations going well?

Guess you have not read the IAM Fleet Service and IAM Mechanic and Related Updates.

Go educate yourself, those talks are going no where fast.

You make it too easy.
 
Since the pace of negotiations came up in this thread, here's a couple of ALPA MEC code-a-phone messages on the subject....

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MEC CODE-A-PHONE UPDATE
December 5, 2006

This is Arnie Gentile with a US Airways MEC update for Tuesday, December 5th, with four new items.

Item 1. The US Airways members of the JNC wish to address the subject of US Airways President Scott Kirby’s recent offer of placing all pilots under the AWA contract. This offer reportedly was first made during last week’s “crew news event†at the CLT Training Center. Two days later, Kirby clarified his offer on a conference call with both MEC Chairmen, where he offered the AWA contract cover to cover - with no cherry picking.

Your JNC will endeavor to learn more about this offer during Kirby’s planned address to the Joint MECs in CLT tomorrow and during our next face-to-face negotiation session next week in Washington, DC with the company’s chief negotiator, Jerry Glass.

After learning more details of the specifics of this offer, the JNC will formulate a recommendation for both MECs.

It should be noted, that in the JNC’s original analysis of both contracts in our preparations for negotiations last summer, the current AWA agreement, forged in a non-bankruptcy environment, offered some improvements over the AAA agreement with some exceptions. Accordingly, it was no surprise that management has pushed hard for the East AAA contract bankruptcy provisions for the past year. One of the exceptions mentioned above is Section 1 of the Contract, Scope.

The existing East AAA Contract Scope section was developed over many decades and is a mature and fair labor contract that offers enhanced protection for the pilot group in any transaction or merger that management wishes to pursue. It is no surprise, given current events, that this radically new direction in negotiating strategy from management has surfaced. We will not agree to use the AWA contract scope sections now or in the future. As always, your JNC stands ready to study all offers from management, make recommendations to your MECs, and negotiate on the behalf of what is best for our collective pilot group.

Item 2. <snip>

Please remember we still have 1,683 pilots on furlough with 176 of those pilots working at Jets for Jobs carriers.

Fly safe and thank you for listening.
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MEC CODE-A-PHONE UPDATE
December 20, 2006

This is Arnie Gentile with a US Airways MEC update for early Wednesday, December 20th, with one new item.

Yesterday, Delta Air Lines, Inc. filed a Plan of Reorganization referred to as a POR and a related Disclosure Statement with the U.S. Bankruptcy Court that rejected US Airways' merger proposal.

Following Delta's POR filing, US Airways issued a statement saying that they remain a "determined bidder" for Delta.

As your MEC leadership has said, we have significant concerns and are skeptical about a proposed merger with Delta, since management has failed to yet integrate our Coast-to-Coast pilot group under a fair, single contract. Equally important, US Airways’ Delta proposal raises serious issues about the job protections contained in the US Airways pilot contract, and ALPA is questioning the company’s ability to move forward with this transaction.

To remind management that we absolutely, positively will not go away until we are recognized at the bargaining table, your Communications and Strike Prep committees are finalizing plans for our next public event. Management must conclude negotiations for a single, fair contract and must deal with us, rather than rely on smoke and mirror statements that are not producing anything at the table.

Please stay tuned, and in the meantime, enjoy your family during this holiday season.



Please remember we still have 1,656 pilots on furlough with 175 of those pilots working at Jets for Jobs carriers.

Fly safe and thank you for listening.
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Jim
 
[quote name='longing4piedmont' date='Dec 27 2006, 08:37 \

L4P - your posts are almost humorous - Have you been on the inside of an airbus aircraft - say maybe a 321 just so you know that is the updated version of the 757.... yes 757 does outperform the 321 but i assure you the interiors are far superior to any old 757 delta has no matter what SONG you sing.... also the 319 320 maybe you have heard of it... as opposed to say a nasty 737 or Super 80 - GET REAL hon, and please put the crack pipe down!!! You are making yourself look like a fool.... I am sure if you stepped on a USAir plane VS a DAL aircraft you would be surprised... I know a few crewmembers that were the other day.... USAIR has closets and more than 8 first seats on the 321 --- so put your pom poms down and come back to earth - come back to earth - come back to earth - come back to earth- come back to earth - come back to earth
 
Beauty

So flattered you find my post humorous. But really sweetie it is you who needs to come back to earth. US flies 757 in a 8 seat F configuration while DL flies with 24. What is so hard to read and comprehend in that statement?

You have read where doogie and crew are reconfiguring the airbus birds, taking out F seats on the 321’s, decreasing the pitch in Y, doing away with the closets and limited overhead bins on the 320’s haven’t you?

Dl’s 737-200’s are being retired. I haven’t seen one for a while. The 800’s have 16 in first and are quite comfortable. I could be wrong, but I am fairly sure that all of the 88’s have be redone with new seats and cabins. (all done while in BK BTW while US doesn’t even bother to clean their birds with all the money they are making)

For the record, I’ve flown US quit a bit this year and I’ll take and old 88 over anything US flys. At least they are clean.

Oh yeah, I suggest that you slow down and read what was posted. No where did I state that a 321 had 8 seats. But on one point you are correct. It is a pig when compared to a 757.

I guess we will just have to let the rest of the forum decide who looks like a fool won’t we……..
 

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