American and USAirways enter into nondisclosre agreement!

[Ky.BrownBourbn]

Here's Dougie's letter:

Full text: Parker's letter on non-disclosure pact with American


By Ben Mutzabaugh, USA TODAY




CAPTION

By Jim Watson, AFP/Getty Images​

US Airways announced this morning that it has signed a non-disclosure agreement with American Airlines. The agreement will allow the companies to confidentially disclose sensitive financial information to each other as they evaluate the merits of a potential merger.Read on for the full text of a letter in which US Airways CEO Doug Parker announced the news to employees:

Non-Disclosure Agreement (NDA) Signed: An Important Message from CEO Doug Parker
August 31, 2012
Dear Fellow Employees:
Today we announced that US Airways has entered into a Non-Disclosure Agreement (NDA) with American Airlines' parent company, under which both companies have agreed to exchange certain confidential information and to work in good faith to evaluate a potential combination. We are pleased to be working directly with American to study a potential merger and we consider this very good news. It does not mean we are merging – it simply means we have agreed to work together to discuss and analyze a potential merger.
A Non-Disclosure Agreement is pretty much what it sounds like. We, along with American, have agreed to not publicly disclose anything about the discussions or analysis as we move forward because we don't believe that would be productive. We have also agreed not to discuss the work that is being done to analyze a potential combination with anyone not covered by the NDA. This agreement will likely remain in place until either a deal has been signed or we have determined this process will not result in a transaction.
As a result, we will not be able to be as open and candid about the discussions with American as we usually are about issues that are important to all of us. We will still be very communicative, of course, about all other aspects of our airline, and our Communications Team will continue their great work through About US, US Daily, Wings, State of the Airline webcasts, Crew News webcasts, etc.
I trust you recognize the importance of signing this NDA and we appreciate your understanding. While we may not be providing regular updates on this process, rest assured your management team is working diligently and aggressively to do what is best for US Airways and our hard-working team members. I will let you know more as soon we are able.
In the meantime, please keep up the great work. You all are doing a wonderful job of taking care of our customers and running a great airline. The results are remarkable. Thank you so much for all you do.
Sincerely,

Doug
​

 

[Ky.BrownBourbn]

Chicago Tribune says "British Air" is involved!?!?!

By Gregory Karp Tribune reporter 4:25 p.m. CDT, August 31, 2012

U.S. airline behemoths United Airlines of Chicago and Delta Air Lines could be joined by a third mega-carrier, as talks to merge American Airlines and US Airways heated up heading into the Labor Day weekend.

On Friday, AMR Corp., parent of American Airlines, and US Airways Group announced they signed a non-disclosure agreement and would exchange confidential information in an effort to merge their companies. A merged airline would have complementary route networks and achieve the scale necessary to compete head-to-head with the largest carriers, US Airways officials have said.

For consumers, the effect of a potential American-US Airways combination might not be benefit.

"It is pretty clear that a smoothly executed merger -- a historical coin flip at best -- would probably create a stronger business entity," said Rick Seaney, CEO of FareCompare.com. "Unfortunately for passengers, we would likely see an acceleration in the current trend in reduced choice, packed planes and higher ticket prices, albeit finally on newer aircraft."

Brett Snyder, who writes the Cranky Flier blog, said it's easy to predict that fares would rise, but there's a lot of uncertainty right now. "We have no idea what a merger will look like at this point, so it's impossible to say who will be in charge and what will happen," he said.

The non-disclosure agreement means the companies won't be providing more information regarding the status of discussions until there's a deal or they call off talks, the airlines said. The airline companies said they would work in "close collaboration" and "good faith" to evaluate a merger, including working with the creditors committee of AMR, which is in bankruptcy protection.

The companies note there's no guarantee that a merger will result.

American, the No. 2 airline in the Chicago region after United, also said it signed non-disclosure agreements with other parties but would not name them. Reportedly, one is with the parent of British Airways, International Airlines Group, which potentially seeks to buy a stake in American Airlines, according to the Associated Press. It can only buy a stake and not the whole company because foreign entities by law can control only 25 percent of a U.S. airline.

However, analysts have said the most likely hookup would be with US Airways.

Although, for a long time after AMR's bankruptcy last November, CEO Tom Horton insisted the company was not interested in a merger while it was restructuring, saying it was too complex to do both. Meanwhile, US Airways CEO Doug Parker aggressively and publicly campaigned for merger talks.

"I think it would be tremendously unwise to get distracted with talk of combination inside a restructuring," Horton told the Tribune in March. However in July, Horton said the company had "greater clarity on our revenue outlook and cost structure" and would begin evaluating strategic options, including mergers.

In a letter Friday informing American Airlines managers about the non-disclosure agreement, the company said, "This will be an objective, thorough, fact-based process. Although we will proceed with these discussions in good faith, there can be no assurance that any transaction will take place."

Parker and independent analysts have said an American-US Airways combination would allow the airlines to better compete with the two largest U.S. carriers, United Continental Holdings, parent of United Airlines, and Delta Air Lines. Those airlines in recent years have grown bigger by their own mergers.

"You would have the international operations of AMR and the lower cost structure of US Airways," Morningstar analyst Basili Alukos said.

However, combining airlines is no easy feat. The most recent evidence is the mega-merger of United Airlines and Continental Airlines, which combined in 2010. The new United Airlines continues to struggle with integration. Notably, its March combination of United and Continental passenger reservation systems has resulted in numerous serious glitches and rampant flight delays. And the airline is still struggling to strike labor agreements with its unions from United and Continental.

However, a merger of American and US Airways has the support of AMR labor unions. In April, the unions, including pilots, flight attendants and ground workers, said they struck independent deals with US Airways in anticipation and support of a merger.

American's flight attendant union, the Association of Professional Flight Attendants, said in a statement Friday it continues that support. "APFA's position remains consistent regarding a possible merger with US Airways: we support a strategic alternative that includes a management team with a proven record of effective leadership. Combining our networks will allow American Airlines to grow and compete with our industry's dominant global carriers."

The American Airlines pilots union, Allied Pilots Association, saw Friday's non-disclosure agreement as a good sign. "APA sees it as a positive move forward," said spokesman Dennis Tajer. "We look forward to more progress in the days and weeks ahead."

At least one airline industry analyst was reading between the lines of the joint news release Friday.

"We noticed the press release was sparsely worded and lacked the typical happy speak such as 'we are pleased to announce' or 'we look forward to' whatever, which no doubt is because AMR has been dragged kicking and screaming to the table," wrote analyst Vicki Bryan of Gimme Credit in a research note Friday. "Yet there it now sits because, as we have speculated, AMR's stakeholders are becoming universally convinced that a merger presents the best chance today and in the future for the resulting carrier to compete with any reasonable success against Delta and United-Continental as well as global behemoths emerging overseas."

Shares of US Airways stock closed up 2.6 percent in Friday on the New York Stock Exchange.

[email protected]

Reuters contributed to this report.

 

[Ky.BrownBourbn]

And from St. Louis Business Journal

American Airlines’ parent company, AMR Corp., and U.S. Airways Group Inc. have entered into a non-disclosure agreement to exchange confidential information as they study a potential merger.
The companies said they would work closely with AMR’s Unsecured Creditors Committee as American works its way through Chapter 11 bankruptcy, the Dallas Business Journal reports.
Both companies said a merger between AMR and U.S. Airways (NYSE: LCC) is not guaranteed, and they agreed not to talk with other parties about potential mergers while the agreement is in place.
AMR Corp. (PK: AAMRQ) filed for Chapter 11 bankruptcy protection in November, citing high labor costs as part of the reason for its financial distress. It is trying to to shed $1.25 billion in annual labor costs to become profitable.
American Airlines is the second-busiest carrier at Lambert-St. Louis International Airport.
Related links:

Bankruptcies

 

[Ky.BrownBourbn]

Dallas Morning News says Union announced it 3 days ago...

Pilot union: US Airways to sign non-disclosure agreement with American Airlines

173 7
comments (1)

By tmaxon
[email protected]
12:42 am on August 28, 2012 | Permalink

The U.S. Airline Pilots Association, which represents US Airways pilots, told its members Monday night that the US Airways board has decided to sign a non-disclosure agreement with merger target American Airlines, according to a message sent us late Monday.
NOTE TO READERS: READ ABOVE ITEM THAT CORRECTS, CLARIFIES THIS ITEM FROM LATE MONDAY/EARLY TUESDAY.
Among other things, that action has squelched discussions between US Airways and the pilots’ unions at American and US Airways, the union said.
“This NDA prohibits US Airways from negotiating with unions at AMR and US Airways over terms and conditions related to a potential merger between the two companies,” USAPA told its members in the message Monday evening.
“As a result, negotiations among US Airways, USAPA, and APA [Allied Pilots Association at AA] scheduled for this week in DFW have been cancelled and there is no current date set for resuming those negotiations. As long as the NDA remains in effect, the terms of the MOU between USAPA and US Airways cannot be clarified or changed,” the US Airways union said.
The non-disclosure agreement allows the two sides to exchange confidential information. “AMR has insisted, however, that US Airways must refrain from negotiating with both the AMR unions and its own unions about a merger while it has access to the confidential and sensitive information concerning AMR’s financial position and operational plans,” USAPA said.
Keep reading for the entire message.

USAPA Officers’ Message: August 27, 2012
Fellow Pilots,
Earlier today (Monday, August 27), USAPA was informed by US Airways President Scott Kirby that the US Airways Board of Directors had approved signing a Non-Disclosure Agreement (NDA) with AMR. This NDA prohibits US Airways from negotiating with unions at AMR and US Airways over terms and conditions related to a potential merger between the two companies.
As a result, negotiations among US Airways, USAPA, and APA scheduled for this week in DFW have been cancelled and there is no current date set for resuming those negotiations. As long as the NDA remains in effect, the terms of the MOU between USAPA and US Airways cannot be clarified or changed.
The principal purpose of the NDA is to allow AMR and US Airways to exchange confidential and other sensitive financial and operational information in order that the two companies can intelligently assess the various considerations necessary while discussing the possible terms of a merger. AMR has insisted, however, that US Airways must refrain from negotiating with both the AMR unions and its own unions about a merger while it has access to the confidential and sensitive information concerning AMRs financial position and operational plans.
It is possible that at some point during the next several months, US Airways and AMR will reach an agreement concerning the merger of the two airlines. If an agreement in principal is reached, a Plan of Reorganization (POR) would then be presented to the Bankruptcy Court. An additional 45-60 days more would then be required before a POR could be approved by the Court.
USAPA and APA will not be able to discuss clarifications and changes to the MOU with US Airways until there is an agreement on a merger, or the NDA expires. We expect this means that discussions concerning the MOU could not resume for a period of 30-90 days.
In accord with the action taken by the BPR last week, the MOU will be submitted to the membership of USAPA beginning September 21 for a vote, with a recommendation from the BPR that the membership should disapprove the MOU.
In the meantime, the Officers will be meeting with legal counsel to explore various options. The Negotiating Advisory Committee has been recalled from Dallas and will compile pertinent information about the MOU, its pluses and minuses, and will be announcing their road show calendar to you soon. Please watch for this material and try to attend these important meetings in order to make the most informed decision possible prior to casting your vote.

 

[Ky.BrownBourbn]

And here's the denial from Airways the morning that the union announced it!

US Airways: No non-disclosure agreement with AA


By Ben Mutzabaugh, USA TODAY

Updated 3d 8h ago





CAPTION

By Jim Watson, AFP/Getty Images​

- Updated at 11:53 a.m. ET
US Airways says that despite comments to the contrary from pilots, it has not agreed to sign a non-disclosure agreement (NDA) with American Airlines parent AMR.
At least two news organizations cited a memo from the U.S. Airline Pilots Association (USAPA) that said US Airways' management had agreed to sign the NDA.
That's not true, says US Airways.
"USAPA's statement that US Airways' board of directors has approved signing an NDA with AMR Corporation is incorrect," the airline says in a statement responding to the report. "We received an NDA and are reviewing it."
USAPA had originally sent a memo that said management had agreed to sign the NDA. The report was picked up by TheStreet.com, which has since modified its report.
In an update to its story, TheStreet.com writes that "in a correction issued Tuesday, USAPA spokesman James Ray said that (NDA signing) did not occur."
"US Airways has in fact been asked by AMR, as a sign of good faith, to cease union negotiations and behave as if the NDA has already been signed," Ray says in a corrected statement quoted by TheStreet.com. "US Airways has agreed to honor that request."
- ORIGINAL POST: The board of US Airways has agreed to sign a non-disclosure agreement with the parent of bankrupt American Airlines, according to reports out this morning.
OTHER AA NEWS: American Airlines parent AMR posts $135M profit in July
Both TheStreet.com and The Dallas Morning News cite the US Airways pilots' union as the source of their information.
The non-disclosure agreement would allow US Airways and American parent AMR to confidentially share financial details that would let them evaluate a combination of the companies.
THE DALLAS MORNING NEWS: Pilot union: US Airways to sign non-disclosure agreement with American Airlines
THESTREET.COM: US Airways will sign non-disclosure agreement with AMR
However, US Airways pilots' union says the non-disclosure agreement contains language that prohibits US Airways from talking with American's and its own labor groups about a merger with American.
"AMR has insisted … that US Airways must refrain from negotiating with both the AMR unions and its own unions about a merger while it has access to the confidential and sensitive information concerning AMR's financial position and operational plans," the U.S. Airline Pilots Association (USAPA) that represents US Airways pilots said in a Monday evening message to its members, according to the Morning News.
US Airways had been working on potential deals with both its own unions and those at American that would take effect should US Airways be successful in its attempt to merge with American.
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[dollacrackho]

http://m.yahoo.com/w/legobpengine/n...ntertainment&.ts=1346505338&.intl=US&.lang=en

 

[johnsonrod]

I hope the America West pilots are ramping up their legal fund to ensure attorneys are reading to fight for the fulfillment of the Nic award. Don't get lost in the shuffle if things move forward!!!!!!!!!!!!!!!

 

[charlie2]

I hope the America West pilots are ramping up their legal fund to ensure attorneys are reading to fight for the fulfillment of the Nic award. Don't get lost in the shuffle if things move forward!!!!!!!!!!!!!!!

Which part of the ALPA generated transition agreement (TA) between AWA and US Airways don't you understand? I know it's the part where it says that a contract would have to ratified by the members of AWA and US Airways for the nic list to be implemented. If a list is created in a m/a with AA who is AOL going to fight? APA? Good luck with that.

 

[General Lee]

Which part of the ALPA generated transition agreement (TA) between AWA and US Airways don't you understand? I know it's the part where it says that a contract would have to ratified by the members of AWA and US Airways for the nic list to be implemented. If a list is created in a m/a with AA who is AOL going to fight? APA? Good luck with that.

I guess you don't believe in a divorce settlement either, right? It didn't happen, the divorce. You can go back and take your now ex-wife's truck back, because the divorce settlement really DIDN'T happen..... Sorry, the NIC award will eventually happen. You can't escape a binding award. Parker knows this too. Enjoy!


Bye Bye---General Lee

 

[TEXAN AVIATOR]

AMR entered into a NDA with a few companies that don't want to be named too.