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US Airways Restructuring TA Passes

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Cabin Heating & Air Tech.
Jun 5, 2002
The ballot count for the membership ratification vote on the Restructuring Tentative Agreement was completed this afternoon. The agreement was ratified by the membership and the results are as follows:

Out of 4331 eligible pilots 3732 or 86 percent participated in the vote:

2824 pilots or 75.67 percent voted in favor of the agreement.

908 pilots or 24.33 percent voted to oppose the agreement.

1070 furloughed pilots were not eligible to vote.
from furloughed USAir pilots website

Got this from a furloughed pilot website:

Newsflash Email #2
August 8, 2002

Ok so the US Airways pilots ratified an agreement by 75% majority.

While certainly there are quite a few more factors to be considered, we cant help but wonder, "What does it mean to us?"

How will the furloughed pilots be affected by this TA.

1. No-furlough language has been eliminated: This opens up several hundred pilots to the possibility of furlough. Obviously if these pilots are furloughed it will lengthen our own "vacations" as well as reduce or eliminate the possibility of meaningful Jets4Jobs participation by any of the 1070.

2. Minimum Fleet Size: The minimum fleet size will be no
less than 275 airplanes. (245 in the event of Chapter 11 bankruptcy) (...and fed by 465 RJs)

3. Minimum Block Hours: Minimum block hours shall be no
fewer than 934,400 per year (832,200 per year under Chapter 11). This also jeopardizes a significant number of mainline pilots and stands to, potentially, bury us under another several hundred furloughs.

4. Small-Jet code sharing authority: Small jet authority has
been increased to a total of 465 SJs and allows for further SJ
growth based upon mainline growth above 315 airplanes.

5. Mainline Airplane - Redefined: Any jet aircraft configured
with greater than 76 seats or with certificated MGTW of > 86,000 lbs
shall be operated by US Airways.

6. Small Jet - Redefined:
a. Small SJs: Max 44 seats, 46,600 lbs
b. Medium SJs: 45-50 seats, 65,000 lbs
c. Large SJs: 51-70 seats, 75,000 lbs + EMB170 & EMB175 configured
for 76 seats max.

7. Small Jet Placement:
  • 70 Existing small jets may remain regardless of whether they are owned by participating carrier.
  • "Small SJs" (turboprop replacements) limited to 150.
  • "Large SJs" to be operated by MidAtlantic Airways ONLY.
  • Next 70 "Medium SJs" may be placed at any carrier participating in Jets for jobs.
  • After the 70 in letter "d", "Medium SJs" may be placed at participating carriers subject to a ratio between these SJs and those at MDA. In bold because I think its important -- this commits the company to grow MDA after the next 70 RJs are online.
  • Small RJs may be placed at ANY Participating carrier.

Important: ONLY carriers who choose to participate in
Jets4Jobs will do any additional regional-jet flying. If they dont
agree, they dont get the code-share.

8. Flow-Through:
Once the furloughed pilots have been taken care of there will be an UNRESTRICTED flowthrough at US Airways.

Essentially, this means that the wholly-owned carriers (PSA,
Piedmont, OR Allegheny ONLY) who participate in Jets4Jobs will then create a combined seniority list. They will have the opportunity, as vacancies are created, to "flow" to MidAtlantic (carrying restricted longevity for pay) and then, assuming the company survives and grows, to flow through to the mainline. This is important because, according to the language in this agreement this flow is UNRESTRICTED --- no more new-hires at US Airways. If someone wants to be hired by US Airways, they must get hired by a participating wholly-owned and take part in the flow. If this is incorrect, I hope someone will correct me -- but thats how I read it.

What's Dave gonna do?: So the big question on everyone's mind is, "So is Dave going to furlough more pilots?".

It depends on who you ask, but there are a few things to remember:

  • US Airways ATSB application was based on revenue projections associated with a 311 airplane fleet. Reducing it to 275 would have serious revenue implications.
  • US Airways supposedly hinted to the negotiating committee that they simply needed the flexibility to furlough -- but they have no intention of doing so at this time. (I know...I know..you dont have to say it)
  • The ATSB loan guarantees require that the loan ($900 MILLION)
    be repaid within 7 years. Obviously the fewer airplanes we fly, the less likely the airline is to meet that target.
  • In order to reap the benefits of additional RJ "feed"(?), along with feed from the United code-shares, we have to be able to carry additional customers. For those of you who may have missed it, US Airways systemwide load factor this quarter was 77%. That is an extremely high load factor. One might even guess that INCREASED capacity would be necessary to recoup the benefits of all of this new "feed". (I'll cross my fingers too)

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