inflightboi175
Well-known member
- Joined
- Feb 17, 2009
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American Eagle unions want to delay American Airlines deal with Republic Airlines
wonder if the pilot's union will follow suit?
AFA Challenges AMR’s Motion For Approval Of The CPA With Republic
February 7, 2013
At 3:00 PM ET, this afternoon, AFA filed a motion with the Southern District Bankruptcy Court of New York objecting to the previously filed motion by AMR, requesting court approval of a Capacity Purchase Agreement (CPA) with Republic Airlines.
As you are aware, on January 24th American Airlines announced that it had agreed to a CPA with Republic Airways. The proposed CPA is subject to approval of the bankruptcy court and the hearing on that approval is set for February 14, at 11:00 AM in New York City.
AFA’s motion questions the proposed CPA citing AMR’s lack of consideration of the impact on the operations of American Eagle. AMR dominates decision-making at Eagle, and American Eagle does not have separate representation in the court proceedings. Therefore, it has apparently fallen to the labor unions, which represent the employees of American Eagle, to articulate its interests. The CPA deal focuses on the presumed advantage to American Airlines without any consideration of its impact upon American Eagle and its Flight Attendants.
The proposed acquisition of 53 new 76-seat jests by Republic, represents about 20% of the current American Eagle fleet. Such a deal could represent a material threat to the job security and compensation of AFA members at Eagle.
Furthermore, the CPA is inappropriate on the eve of a merger with US Airways. The Company’s motion for approval makes no mention of its impact upon a proposed merger. Does US Airways support the proposed CPA? Is it a reasonable business judgment to weigh down a carrier with a billion dollar capacity obligation immediately prior to a merger with another carrier? All good questions, none of which were addressed in AMR’s motion to approve the CPA.
AFA negotiated for all of our Members in good faith with management – and because we were compelled by the powerful (pro-management) bankruptcy laws, we made cuts and sacrifices. We did this with the assurance that if we achieved cost parity with other lower-cost carriers, we would remain competitive and our fleet would grow. Management’s assurances can no longer be believed.
The motion filed today by AFA sends a message that we will fight back and not take this lying down!
http://afaeagle.com/news/2013/2/7/afa-challenges-amrs-motion-for-approval-of-the-cpa-with-republic
wonder if the pilot's union will follow suit?
AFA Challenges AMR’s Motion For Approval Of The CPA With Republic
February 7, 2013
At 3:00 PM ET, this afternoon, AFA filed a motion with the Southern District Bankruptcy Court of New York objecting to the previously filed motion by AMR, requesting court approval of a Capacity Purchase Agreement (CPA) with Republic Airlines.
As you are aware, on January 24th American Airlines announced that it had agreed to a CPA with Republic Airways. The proposed CPA is subject to approval of the bankruptcy court and the hearing on that approval is set for February 14, at 11:00 AM in New York City.
AFA’s motion questions the proposed CPA citing AMR’s lack of consideration of the impact on the operations of American Eagle. AMR dominates decision-making at Eagle, and American Eagle does not have separate representation in the court proceedings. Therefore, it has apparently fallen to the labor unions, which represent the employees of American Eagle, to articulate its interests. The CPA deal focuses on the presumed advantage to American Airlines without any consideration of its impact upon American Eagle and its Flight Attendants.
The proposed acquisition of 53 new 76-seat jests by Republic, represents about 20% of the current American Eagle fleet. Such a deal could represent a material threat to the job security and compensation of AFA members at Eagle.
Furthermore, the CPA is inappropriate on the eve of a merger with US Airways. The Company’s motion for approval makes no mention of its impact upon a proposed merger. Does US Airways support the proposed CPA? Is it a reasonable business judgment to weigh down a carrier with a billion dollar capacity obligation immediately prior to a merger with another carrier? All good questions, none of which were addressed in AMR’s motion to approve the CPA.
AFA negotiated for all of our Members in good faith with management – and because we were compelled by the powerful (pro-management) bankruptcy laws, we made cuts and sacrifices. We did this with the assurance that if we achieved cost parity with other lower-cost carriers, we would remain competitive and our fleet would grow. Management’s assurances can no longer be believed.
The motion filed today by AFA sends a message that we will fight back and not take this lying down!
http://afaeagle.com/news/2013/2/7/afa-challenges-amrs-motion-for-approval-of-the-cpa-with-republic
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