Fapa loa 67

[richav8ter]

Troops go read the Rev's. latest Fri. love letter, and report back here for more sniping and mudslinging. RAH just filed an SEC 8K with the same info for those not stuck in this quicksand of a merger.

How will this effect the union election?????

Can plucky FAPA defeat the cruel overlord?


more to come......

 

[richav8ter]

Let me add good luck to all involved. It seem most of us where mostly happy, and now everyone is mostly pissed, we have only the powers at be to blame for that, not each other.

 

[MCOE175]

I’m writing today to update you on the progress of the restructuring plan we shared in last week’s webcast, including news of an important commitment by a group of our fellow employees.

As you recall, our disappointing first quarter results and the continued impact of high fuel costs mean we have to make some fundamental changes in how we do business. On our first quarter earnings conference call, we announced a plan to improve our business results by $100 million. We have since raised that target to $120 million, which would enable Frontier to produce a profit at the elevated fuel prices we’re seeing in 2011.

The restructuring process really begins by posing a fundamental question to each key stakeholder: “Is Frontier Airlines worthy of continued investment?” Beginning with our Board of Directors, the answer is a conditional yes. Our Board has agreed to permit us to raise additional cash if our management team can show that we have commitments for at least half of the $120 million in financial improvements. We’ve already produced $25-$30 million of this through previously announced fleet and network changes.

The remaining improvements will result from the work we’re doing with several key stakeholders. These include aircraft lessors, distribution partners, other significant suppliers and employee groups — key among them, the Frontier Airlines Pilots Association. While all employees will be impacted ($25 million of our plan is related to labor costs), it was important that the pilot group take a leadership role to instill confidence in other stakeholders.

Over the past two weeks, FAPA leadership has worked with the management team to develop an amendment to the current pilot agreement, known formally as LOA 67. This work included meetings between FAPA leaders and some of our largest stakeholders, including Airbus and General Electric. I can say without question that those partners were impressed by the leadership role being taken by FAPA in our collective efforts.

Over the past few days, I’ve met with groups of Frontier pilots to discuss the restructuring plan and the amendment, which requires ratification by the pilot group. We are asking for an affirmative vote by next Friday, June 17. You should understand that FAPA participation in our restructuring is contingent on the participation of all other stakeholders. We believe that the ratified amendment, combined with other wage and benefit changes, and the fleet and network changes already planned, will be sufficient for our Board to allow us to proceed with raising an additional $70 million. This cash is critical to fund the airline this coming winter, as we complete the remainder of our restructuring program.

I’d like to personally thank FAPA leadership for their understanding of the urgency of this work and for stressing the importance of their members’ participation. I’d also like to thank all the pilots who took time to attend the meetings. It was important to me to see your resolve and commitment to this airline.

I believe ratification will be the watershed event to get other significant stakeholders across the finish line. Conversely, it wouldn’t be an overstatement to say that failure to ratify would likely derail the entire restructuring effort.

I think it’s important that I’m as transparent as appropriate regarding what’s in the FAPA amendment:

First, they have a say in determining their future, because without the restructuring Frontier would no longer be viable.
Second, they obtain equity in Frontier. The Board views the amendment as an investment that should allow pilots to share in the financial rewards of a successful Frontier.
Third, they receive a commitment to future growth made possible by a firm aircraft order for new-generation narrow-body jets.
Fourth, they receive a commitment from management to establish a profit sharing plan for all participating Frontier employees. The plan will return a substantial portion of future profits to the employees who have sacrificed during the restructuring.
Finally, a good faith effort by the Company to attract an equity investment(s) in Frontier would reduce the Company’s ownership of Frontier to a minority interest by Dec. 31, 2014.
In return, FAPA has agreed, subject to ratification, to a reduction in 401(k) matching contributions, sick pay and vacation accruals; deferral of the scheduled snap-back pay adjustments in their collective bargaining agreement; and a two-year extension to the collective bargaining agreement.

Of course, all Republic employees have a vested interest in the success of Frontier. Without Frontier, Republic would have no alternate use for nearly 30 Embraer jets whose disposition would affect hundreds of Republic employees. It’s clear that all employees ultimately benefit by participating in the restructuring.

So how does this affect other employee groups? First, if the Frontier pilots’ amendment is ratified, I will seek similar amendments to Frontier’s labor agreements. For remaining employees, it’s important to start with what we’re not asking. As we were unable to restore the bankruptcy pay reductions as I’d hoped, we do not intend to ask employees for wage concessions. We will, however, make the same changes to 401(k) matching and other vacation and sick pay benefits that are included in the pilots’ amendment. The overall plan will include a way for those participating employees to obtain equity and profit sharing consistent with the Frontier pilots. It’s important that all participating employees share in the future success of Frontier.

I want to lead this effort. So effective today, I will reduce my pay 20% and will forgo any bonus award until all employee groups receive bonus payments.

While this is difficult work for everyone, it’s the effort necessary to secure the future of a great airline. I will write again next Friday with the results of the ratification vote and more details on what happens next.

God bless,

Bryan

 

[stratus72]

Let me add good luck to all involved. It seem most of us where mostly happy, and now everyone is mostly pissed, we have only the powers at be to blame for that, not each other.

Well said....

 

[crxpilot]

I remember the CEO of Independence Air took a 25% paycut. Turns out the paycut was really being diverted to a refundable insurance policy payable to him protected outside of bankruptcy. You may want to ask where his "20%" is going to as well.

 

[dougdrvr]

What does "as transparent as appropriate" mean?

And " a good faith effort"?

And he makes promises with an entity that will, in all likelihood, not be around after June 26th ? He already has unit costs far below his competition and yet he is unable to turn a profit without asking for more concessions from his employees. Are the BODs so blind that they can not see how dysfunctional this management group is? All of this goes far beyond the flight crews, when you see the chaos in all the other departments. Maintenance, computer res system, etc.

 

[Flying Illini]

What does "as transparent as appropriate" mean?

And " a good faith effort"?

Those are the two questions that I hope the F9'ers are asking themselves. Native RAH pilots already know that the words "a good faith effort" are nothing meaningless.

I wish the F9 guys lots of luck in their quest, I really do (I'm not a merger supporter). However, it seems that they are so blinded by their rage against the RAH regional pilots that they are unable or unwilling to see what BB is doing to them. I do congratulate BB though, he set things up nicely (pilot in-fighting) so that he could take advantage of one pilot group and lower his labor costs even further.

 

[redflyer65]

This will probably turn out about as well as the Midwest pilot's pass privileges. Not sure how Bedford sleeps at night. Seems like he's pretty clueless as to run a 'real' airline and not a sub-contractor with fixed cost and returns.

RF

 

[OpenClimb]

The vast majority of Frontier pilots just want to keep their jobs. They're more than a little gun shy after the 2008 bankruptcy and its aftermath. All Bedford had to do was mention that we could go out of business altogether if this deal doesn't pass and he had a majority of the votes. Throw in a few meaningless promises (e.g. LOA 67) and I predict the final vote will be 82% in favor and 18% opposed with 425 votes cast.

 

[redflyer65]

No flame, but why is Bedford really coming after the Frontier pilots when this 'company' involves plent of other employees. I did see were he stated he's going to ask for more concessions from others, but are ALL other Republic Holding pilots immune from this? Isn't money on one side just as important money on other side of the house?

Seems like he has squarely painted a bullseye on the backs of the F9 guys...and they are NOT over paid to begin with.

Sounds more like inept management than anything else....

 

[Flying Illini]

No flame, but why is Bedford really coming after the Frontier pilots when this 'company' involves plent of other employees. I did see were he stated he's going to ask for more concessions from others, but are ALL other Republic Holding pilots immune from this? Isn't money on one side just as important money on other side of the house?

Seems like he has squarely painted a bullseye on the backs of the F9 guys...and they are NOT over paid to begin with.

Sounds more like inept management than anything else....

I believe that BB has played nice with FAPA just to get them on his side. Once he gets what he wants the niceness will just fade away.

It is saddening to see F9 give *another* round of concessions.

He went after the F9 pilots b/c the native RAH pilots have nothing to give and even if we did we are so disenfranchised that we wouldn't give them anything.


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[Skippy]

Why even vote? We all know it will pass by a ridiculously large margin.
Pathetic. Who the f takes concessions now? In these times?
Its not the labor stupid. The labor needs to quit subsidizing inept mgmnt.

 

[ChinaClipper]

The RAH Guys have nothing they CAN "give!" After SIX YEARS OF IBT SECTION SIX, the only "concessions" possible involve gutting the FAR'S! That, my friends, is why the F9 guys are moving on, the IBT Arrogance had made BB, of ALL PEOPLE, a better bet than the IBT....wonder of all wonders....BTW Wanna bet the number of Airbus Training Manuals on Ebay will suddenly spike? Saluti!

 

[AirBill]

The RAH Guys have nothing they CAN "give!" After SIX YEARS OF IBT SECTION SIX, the only "concessions" possible involve gutting the FAR'S! That, my friends, is why the F9 guys are moving on, the IBT Arrogance had made BB, of ALL PEOPLE, a better bet than the IBT....wonder of all wonders....BTW Wanna bet the number of Airbus Training Manuals on Ebay will suddenly spike? Saluti!

Jeezus, Clipper, don't you have anything else to say? Or is this reply saved in a file somewhere?

I wish you no ill will, but I'm afraid you guys are going to see a different side of BB and Co. after the LOA passes. Because after he gets his way with 67, you'll see a steady supply of 68, 69, ...

What's sad is that most of us hoped to benefit from the experience of quote-unquote "mainline" union experience. So disappointed we were to see it held away from us out of spite. Get ready. You guys are about to get BOHICA'd, BB-style.

 

[Bolo]

Jeezus, Clipper, don't you have anything else to say? Or is this reply saved in a file somewhere?

I wish you no ill will, but I'm afraid you guys are going to see a different side of BB and Co. after the LOA passes. Because after he gets his way with 67, you'll see a steady supply of 68, 69, ...

What's sad is that most of us hoped to benefit from the experience of quote-unquote "mainline" union experience. So disappointed we were to see it held away from us out of spite. Get ready. You guys are about to get BOHICA'd, BB-style.

We(F9) appreciate your concern. Shouldn't you worry about your negotiations? How are they coming along?

 

[Dizel8]

AFAIK, no airline has ever been saved by employee give backs, but I wish you all the best! Rock and a hard place comes to mind!

 

[Axel]

The RAH contract is extremely weak. One of its greatest weaknesses is the inclusion of "conditional language" such as "best effort" and "when practicable." BB & co have applied this repeatedly to circumvent the intent of the language.

Without getting into the mainline v. RJ debate, the RAH pilots really do have a wealth of experience working under this management group. With (consistent) history as an indicator, allowing conditional language in any agreement with RAH management will result in them using the language to renege.

The F9 guys are certainly in an unenviable position. By all indicators, the branded side is struggling badly and its future is uncertain. A good faith effort by all parties to sacrifice in order to overcome hard times may be necessary to see Frontier survive and thrive. However the track record of this management group with regard to good faith, and especially when conditional language is involved, is not good.

The F9 guys can't be blamed for doing what they think is necessary to preserve the company and therefore their livelihoods, but they are "babes in the woods" when it comes to the tactics and strategies BB & co have employed to lower their labor costs. The RAH group has learned this through bitter experience. I truly hope this LOA is an exception.

 

[Shrek]

The RAH contract is extremely weak. One of its greatest weaknesses is the inclusion of "conditional language" such as "best effort" and "when practicable." BB & co have applied this repeatedly to circumvent the intent of the language.

Without getting into the mainline v. RJ debate, the RAH pilots really do have a wealth of experience working under this management group. With (consistent) history as an indicator, allowing conditional language in any agreement with RAH management will result in them using the language to renege.

The F9 guys are certainly in an unenviable position. By all indicators, the branded side is struggling badly and its future is uncertain. A good faith effort by all parties to sacrifice in order to overcome hard times may be necessary to see Frontier survive and thrive. However the track record of this management group with regard to good faith, and especially when conditional language is involved, is not good.

The F9 guys can't be blamed for doing what they think is necessary to preserve the company and therefore their livelihoods, but they are "babes in the woods" when it comes to the tactics and strategies BB & co have employed to lower their labor costs. The RAH group has learned this through bitter experience. I truly hope this LOA is an exception.

I think you summed that up PERFECTLY.........Good Luck guys the Rev is brutal.

 

[vetrider]

What's sad is that most of us hoped to benefit from the experience of quote-unquote "mainline" union experience. So disappointed we were to see it held away from us out of spite. Get ready. You guys are about to get BOHICA'd, BB-style.

That sounds like the bozos we had at AWA counting on the east to show us the way to deal with management and get a good contract.

 

[redflyer65]

Bedford is sooo far over his head it's insane. Good luck to the F9 guys, this looks like a slippery slope with a quick drop off. Not good.

RF

 

[Flying Illini]

Bedford is sooo far over his head it's insane. Good luck to the F9 guys, this looks like a slippery slope with a quick drop off. Not good.

RF

You nailed it. The SLI is the least of my worries and it should be the least of the F9'ers worries as well. If BB and WH don't get their act together we'll all be looking for jobs soon. WH should be fired by the BOD for not having plans to profitably run the airline. Back when RAH purchased F9 all indications were that fuel prices would continue to rise indefinitely. RAH should have taken that into acct before signig on the dotted line. To ignore that and to go ahead with the purchase and to try to operate the airline with your fingers crossed is negligent at best.


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[Bolo]

You nailed it. The SLI is the least of my worries and it should be the least of the F9'ers worries as well. If BB and WH don't get their act together we'll all be looking for jobs soon. WH should be fired by the BOD for not having plans to profitably run the airline. Back when RAH purchased F9 all indications were that fuel prices would continue to rise indefinitely. RAH should have taken that into acct before signig on the dotted line. To ignore that and to go ahead with the purchase and to try to operate the airline with your fingers crossed is negligent at best.

Agreed +1 They also tried to reinvent the airline and look where it got them.

 

[AirBill]

We(F9) appreciate your concern. Shouldn't you worry about your negotiations? How are they coming along?

They'll be dead in the water if the RPC is voted in.

 

[StaySeated]

They'll be dead in the water if the RPC is voted in.

Actually, if the RPC is voted in you get to keep your Local 357 and all of your committe reps as long as you want them (that is your choice and no other pilot group has the right to choose what is right or wrong for you). You also benefit from 700+ pilots (and their bank account) working along side of you.

Or you can vote for the IBT and keep your Local 357 and all of your committee reps, and you can have 700+ pilots (and their bank account) working to destroy you. No one wants to be forced into a bargaining unit. Forcing the IBT on the Frontier pilots will only result in more harm and disfunctional behavior.

Sounds like a no-brainer. The RPC is the only structure that will work with this Holding company.

Why anyone thinks that "taking over" one group equates to "unity" is a mystery to me.

A vote for the IBT is a vote for a poison pill for the entire pilot group.

To take it a step furthur, what is the IBT offering any of us, all 3000 of us?

What is their vision of our future?

The only IBT campaign literature I have received is the typical IBT scare tactics.

They are trying to scare you into thinking that your contract negotiations will be delayed. This is not true, you guys can continue on whatever course you deem appropriate.

They are trying to scare you into thinking that we will all end up without any representation. This is a joke, the only way we can end up non-union is if a majority of the votes cast are for "no representation".

They are trying to convince you that the IBT will support your strike. When are you guys going on strike? 2013? 2014? Do you have any idea on the average length of mediated negotiations? We are talking years not months.

They are trying to scare you into thinking that the RPC will not be recognized by the NMB. This is not true, the RPC structure is an IBT concept that is working very well at a number of other IBT properties.

If you look past the scare tactics and propaganda, it is easy to see that the IBT is offering nothing to the pilot group.

The RPC will afford all 3000 pilots a new voice.

 

[FSIGRAD]

I don't think you have to join the IBT union, you can for go union membership and not receive any union protections. It is however a union shop, you are required to pay your union dues or your fired.

 

[AirBill]

Jeff ..., erm, SS,

All I'll say is, FAPA had a golden opportunity to add all 3,000 pilots into its group. The enmity most guys felt toward IBT around here was so palatable, most felt it could not survive. FAPA could have swooped in and taken the entire group with any kind of decent attempt. It chose not to. Why?

And why, with one IMSL, does there need to be separate representation? Why perpetuate a caste system that only drives total wages down? Why allow yourselves to be part of the wedge that management is attempting to use to split the groups?

Actually, I'm surprised management is working that hard at it. Way things are going around here, we're doing a pretty good job of splitting ourselves.

Good luck with two or three or four or five percent of nothing.

 

[trainer8]

...Or you can vote for the IBT and keep your Local 357 and all of your committee reps, and you can have 700+ pilots (and their bank account) working to destroy you. No one wants to be forced into a bargaining unit. Forcing the IBT on the Frontier pilots will only result in more harm and dysfunctional behavior.

Why anyone thinks that "taking over" one group equates to "unity" is a mystery to me.

From the RPC website:

"We are a group of Lynx, Midwest, Frontier and Republic Airways pilots who believe we can be stronger and more effective if we work together as a group."

Wow...all from the same Council. There is medication for this problem.

 

[The Drizzle]

Our FAPA who art in Denver
hallowed be thy name.
Thy kingdom come, BB's will be done
In Indy as it is in Denver.
Give us this day our daily bread
and forgive us our scope as we forgive those
who have no scope.
And lead us not into integration
but deliver us from the evil IBT.

 

[Bolo]

Our FAPA who art in Denver
hallowed be thy name.
Thy kingdom come, BB's will be done
In Indy as it is in Denver.
Give us this day our daily bread
and forgive us our scope as we forgive those
who have no scope.
And lead us not into integration
but deliver us from the evil IBT.

Props! Pretty funny.