MCDU
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Interesting article on US Airways's labor groups "Snapback provision "
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I would think that US would have to get their own house in order before they even think of getting involved in another deal. The existing labor troubles at US will provide ammunition for those who will fight the US/American combination. They will use it as an example of why mergers can be a bad idea. If US wants to have any chance of getting AMR labor on their side they will need to get a list done and get a new, better quality joint CBA in place that offers a better deal than what the AMR unions are likely to get in court.
On Your Six
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AMR Executive Says Pilots Doubt Idea of US Airways Merger
By Mary Schlangenstein - Apr 10, 2012
An American Airlines executive said the carrier’s pilots, a pivotal group in a merger, are questioning the ability of potential suitor US Airways Group Inc. to orchestrate a successful takeover.
Pilots expect a hostile bid from US Airways and “have very serious concerns” about such a tie-up, Vice President for Flight John Hale wrote in a memo today to American Chief Executive Officer Tom Horton and other leaders at the third- largest U.S. airline.
“I’m confident pilots will continue to be very skeptical about US Airways’ ability to integrate separate workforces or grow the combined company,” he wrote. “The phrase ‘all hat and no cattle’ comes to mind. There’s little indication from anyone I’ve spoken to that a takeover by US would produce greater opportunity for our pilots than American’s business plan.”
Hale’s comments are a departure for American, which has generally declined to discuss any interest from outside parties while saying the AMR Corp. (AAMRQ) unit is focused on leaving bankruptcy as a stand-alone carrier. Horton said in a Feb. 3 interview that US Airways, No. 5 in the U.S. by traffic, was a “subscale” airline.
US Airways has confirmed hiring advisers to study a merger with Fort Worth, Texas-based American while saying the airline learned the value of courting stakeholders such as unions after its hostile bid to buy Delta Air Lines Inc. (DAL) collapsed in 2007. Delta’s pilots, the airline’s only major unionized work group, helped derail US Airways’ plans.
Pilots Union
The Allied Pilots Association, which represents more than 8,000 pilots at American, declined to comment because the union hasn’t received an official copy of the memo, said Howie Schack, a spokesman. US Airways’ John McDonald declined to comment.
American itself is at odds with pilots and other work groups after asking the bankruptcy court to let it reject current union contracts and replace them with new agreements that would cut labor spending by $1.25 billion a year.
Hale said American should expect continued comments from pilots “supportive of exploring a merger. There has been chatter among pilots that they will use US Air’s overtures in an attempt to exert bargaining leverage” during the legal process to reject existing union contracts.
American currently holds the exclusive right to propose a bankruptcy-reorganization plan and has said it wants to remain independent at least until it emerges from court protection.
Potential suitors can hold discussions with members of its unsecured creditors committee, who have a voice in major decisions made while the airline is in Chapter 11. The APA has a seat on the nine-member panel, as do the unions representing flight attendants, mechanics and baggage handlers.
The current US Airways is the product of a 2005 merger of a predecessor company of the same name, which was then in bankruptcy, with America West Holdings Corp. (AWA)
Pilots and flight attendants at Tempe, Arizona-based US Airways operate under separate contracts more than six years after the combination. Pilots have been unable to agree on a plan to merge their seniority lists, and flight attendants last month rejected a proposed contract.
To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc at Bloomberg. net
Godspeed!
The OYSter
By Mary Schlangenstein - Apr 10, 2012
An American Airlines executive said the carrier’s pilots, a pivotal group in a merger, are questioning the ability of potential suitor US Airways Group Inc. to orchestrate a successful takeover.
Pilots expect a hostile bid from US Airways and “have very serious concerns” about such a tie-up, Vice President for Flight John Hale wrote in a memo today to American Chief Executive Officer Tom Horton and other leaders at the third- largest U.S. airline.
“I’m confident pilots will continue to be very skeptical about US Airways’ ability to integrate separate workforces or grow the combined company,” he wrote. “The phrase ‘all hat and no cattle’ comes to mind. There’s little indication from anyone I’ve spoken to that a takeover by US would produce greater opportunity for our pilots than American’s business plan.”
Hale’s comments are a departure for American, which has generally declined to discuss any interest from outside parties while saying the AMR Corp. (AAMRQ) unit is focused on leaving bankruptcy as a stand-alone carrier. Horton said in a Feb. 3 interview that US Airways, No. 5 in the U.S. by traffic, was a “subscale” airline.
US Airways has confirmed hiring advisers to study a merger with Fort Worth, Texas-based American while saying the airline learned the value of courting stakeholders such as unions after its hostile bid to buy Delta Air Lines Inc. (DAL) collapsed in 2007. Delta’s pilots, the airline’s only major unionized work group, helped derail US Airways’ plans.
Pilots Union
The Allied Pilots Association, which represents more than 8,000 pilots at American, declined to comment because the union hasn’t received an official copy of the memo, said Howie Schack, a spokesman. US Airways’ John McDonald declined to comment.
American itself is at odds with pilots and other work groups after asking the bankruptcy court to let it reject current union contracts and replace them with new agreements that would cut labor spending by $1.25 billion a year.
Hale said American should expect continued comments from pilots “supportive of exploring a merger. There has been chatter among pilots that they will use US Air’s overtures in an attempt to exert bargaining leverage” during the legal process to reject existing union contracts.
American currently holds the exclusive right to propose a bankruptcy-reorganization plan and has said it wants to remain independent at least until it emerges from court protection.
Potential suitors can hold discussions with members of its unsecured creditors committee, who have a voice in major decisions made while the airline is in Chapter 11. The APA has a seat on the nine-member panel, as do the unions representing flight attendants, mechanics and baggage handlers.
The current US Airways is the product of a 2005 merger of a predecessor company of the same name, which was then in bankruptcy, with America West Holdings Corp. (AWA)
Pilots and flight attendants at Tempe, Arizona-based US Airways operate under separate contracts more than six years after the combination. Pilots have been unable to agree on a plan to merge their seniority lists, and flight attendants last month rejected a proposed contract.
To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc at Bloomberg. net
Godspeed!
The OYSter
Bringupthebird
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Parker could easily scuttle US and put the whole mess in the BK court hands, abrogate the contracts and start fresh. It is testimony to the hatred of the east pilot group, that this strategy would be one of the more welcome ones.
Just look at the destruction a few angry F/O's in the back of a van were able to unleash on this profession.
Just look at the destruction a few angry F/O's in the back of a van were able to unleash on this profession.
St. Nic
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CoC wasn't a problem bc uSAir bought the nearly bankrupt Awa before it went AWAy
Scoot 11
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:laugh:
This guy's pretty entertaining.
Really? We made a profit at this publicly held mess for the last two years and even though there is plenty of corruption in our company, courts and government I don't think they could slip that one by.
Turtle21
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Of course.. Everything is always negotiable (just like seniority integration). Parker has started negotiating the snapbacks... Counter offer is GFY :lol:.
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