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AirTran to take ATA Employees with Deal

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jettypeguy

Well-known member
Joined
Feb 12, 2003
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From Saturday's Chicago Tribune....

Daley says ATA jobs to be saved
But unions want commitment from AirTran on hiring

By Mike Hughlett and Gary Washburn
Tribune staff reporters
Published October 30, 2004

Mayor Richard Daley said Friday that AirTran Airways has agreed to hire virtually all of ATA Airlines' 3,200 Chicago-based employees if a proposed deal between the two carriers is consummated.

That's encouraging news to leaders of unions representing ATA's Chicago workers, though they said it would be more reassuring if AirTran made such a declaration--and in writing.

ATA, Midway Airport's second-largest carrier, filed for bankruptcy protection on Tuesday. At the same time, it announced it would sell rights to its 14 Midway gates to low-cost rival AirTran as part of an $87.6 million deal.

AirTran's president, Robert Fornaro, said Wednesday that ATA had "a lot of good people," but it was too early to tell how many of its workers would be kept on. AirTran's ambiguity prompted Daley to claim that any deal involving city-owned Midway would be contingent on retaining ATA's workers.

Daley said he met with representatives of both airlines on Thursday and is confident the deal will help Chicago.

"We will not lose any jobs," he said. "We have good word from them in regard to the employees."

AirTran considers the workers "a great asset," Daley said.

Jacki Pritchett, head of the Association of Flight Attendants at ATA, said Daley's involvement and reassurances "certainly helps the situation." But, she said, AirTran hasn't made such assurances to the union, which represents 1,800 ATA flight attendants, two-thirds of them based out of Chicago.

Rusty Ayers, a spokesman for the Air Line Pilots Association, said the union is "grateful" for Daley's commitment to protecting Midway jobs. The pilots group has 1,100 members at ATA, about 600 to 700 of whom are based out of Midway.

But Ayers said his union has heard nothing directly from AirTran or ATA.

"In none of the statements by ATA or AirTran have they committed to hiring the employees at Midway," he said.

Officials at Orlando-based AirTran didn't return calls Friday. Indianapolis-based ATA has declined to comment beyond what it already has released publicly.

Retaining a job may be the paramount worry of ATA's Chicago employees, but it's not the only one in the wake of the proposed AirTran deal.

Merging two airline workforces--particularly two groups of pilots--can be fraught with prickly seniority issues.

"Seniority is everything to an airline pilot," Ayers said. It determines what routes a pilot flies, which, in turn, determine a pilot's pay, he said.

Plus, seniority determines a pecking order for layoffs in a union shop. That's particularly important in the struggling airline industry, which has been rife with layoffs in recent years.

Airline unions normally try to blend seniority lists in a merger. But it doesn't always work out that way.

When American Airlines acquired TWA in 2001, many of TWA's employees, regardless of their experience, were put at the bottom of the merged airline's seniority list. When layoffs surged, TWA workers were the first to get pink slips.

Complicating matters in any ATA-AirTran deal is the different array of unions at each carrier. Flight attendants are represented by the same union, but that's not the case with pilots and mechanics.

Also Friday, Daley said that a $100 million employee training center that had been planned by ATA for 71st Street and Cicero Avenue is "still on the table."
 
I think Daley is talking about ramp, customer service etc. type employees. I doubt AirTran is committing anything to hiring pilots or FAs without a normal hiring process and application. hopefully i am wrong.
 
It remains to be seen if Airtran will really take all ATA employees at MDW. In my experience with ATA employees, as far as atittude anyway, is that the pilots are super, the flight attendants average with the atitude of "the passengers are the enemy", and the ground personnel are horrible. Always exceptions of course and maybe it's a trickle down problem from mid level managers.
 
If AirTran does not take any of the aircraft, how could they absorb all of the pilots? They can't. However, the ATA pilots should understand that more jobs will be opening up at SWA (if they get the 800s) and AirTran as a result - and those jobs are better than current ATA jobs.
 
What happens if Southwest buys the 738s (or takes up the leases)? I thought Airtran wasn't going to take any of those airplanes and just wetlease the 738s until Airtran could get their own planes in MDW? Many questions to be answered still.



Bye Bye--General Lee
 
General Lee:

In a nutshell, if SWA (or AAI, or AWA, whoever) were to take the 737-800s, it would trigger the fragmentation clause in our contract that states the pilots must go with the airplanes.

Of course, this clause will probably be given up by the MEC in exchange for a nice job with Brand X.

Also, it is technically only 30% of the fleet, or enough of the fleet that those planes accounted for 30% of the revenue in the past 12 months, or 30% of the block hours flow the past 12 months.

I myself am not counting on any airline taking me.
 
Don't forget, you are in Chapter 11 now. The judge could void your fragmentation policy if he thinks it is necessary to close any deals to dispose of assets. The shareholders are his only concern, not your contract.
 
One thing to remember about the gates; they are controlled by the city, not ATA. Who they go to is not for ATA to decide.

Whatever happens, it'll be interesting!
 
SWA GUY said:
One thing to remember about the gates; they are controlled by the city, not ATA. Who they go to is not for ATA to decide.

Whatever happens, it'll be interesting!
Actually, it will be decided by the court by virtue of how well the creditors will be satisfied in the arrangement. The city will not likely have a say.
 
Mach 80 said:
It remains to be seen if Airtran will really take all ATA employees at MDW. In my experience with ATA employees . . . the pilots are super, the flight attendants average with the atitude of "the passengers are the enemy", and the ground personnel are horrible.

Sounds like a match made in heaven . . . that's how I'd describe our people, too.
 
Seth would be primarily correct....the decisions in CH. 11 are for the benefit of creditors and shareholders. Employess are dead-last.

AirTran will likely request and be granted relief from any contractual obligations. AirTran is in the drivers seat..they have the cash.
 
But I still stand by my earlier post, that AirTran should wait for a Ch. 7 filing. Then they can just cherry-pick. And before anyone flames...this is business folks. Nothing personal.
 
Ultra,

Although the price of any given asset would be cheaper IF ATA goes CH7 (notice the big if :) the competition for those assetts would increase greatly. FL put themselves in the driver's seat by making this offer which will be presented to the Judge. They've ensured themselves at least a chance to buy all that they need. On the other hand, if they were to wait for CH7 they will have to compete with LOTS of other airlines all wanting to pick up a gate or two or three.
 
BK brings on special rules....

The judge has the power.....and I forget the BK title...to do away with contracts, etc .......I don't think he would make any company buying assets to take the ATA employees with them......he will look after the creditors....FIRST.... not the employees. Let's face it....if GE finance or Boeing were to take the aircraft bacK and enter into an agreement with us....the pilots would not come along......Kill the lawyers but it is true....Don't flame me guys and gals...ATA has some great people and I wish each and everyone of them the best.....but what I say is true.
 
...not to mention the fact that the airline is worth much more as a whole, particularly as an operating entity. Good routes, frequent fliers, load factors, no start-up costs, trained employees, great performance - it all goes down the tubes in a liquidation, and you have to start from scratch.

Renogatiate the debt, and you have a winner. Any other takers? We shall soon see.........
 
Pickle said:
In a nutshell, if SWA (or AAI, or AWA, whoever) were to take the 737-800s, it would trigger the fragmentation clause in our contract that states the pilots must go with the airplanes.
Also, it is technically only 30% of the fleet, or enough of the fleet that those planes accounted for 30% of the revenue in the past 12 months, or 30% of the block hours flow the past 12 months.
Pickle -- don't forget our frag clause also talks about Routes as well as aircraft. And we all know MDW makes up more than 30% of our revenues. Just another brick in the wall.
 

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