Brick Head wrote:
No it is not pilot salaries that are the issue at AC.
Pilot salaries? That is debatable. Pilots costs? That is a different story. And then there is the cost of every other employee group that piggyback on the ACPA scope of work language.
Brick Head wrote:Rudder,
Nothing in the pilot FOS will fix enough of the underlying fundamental problems.
More over, based on the last offer they are not even trying to reduce the employee foot print to any extent beyond what is happening at US carriers.
JMO. Calin gave up when he lost the CAW pension arbitration.
Since then? Preparation.
Here is an example of what could happen to AC if CR files. It would be the height of arrogance to assume that there might not be a competing restructuring plan.
AMR Unions Said Prepared to Back US Airways Takeover Offer
By Zachary R. Mider, Jeffrey McCracken and Mary Schlangenstein - Apr 19, 2012 19 PM CT
American Airlines’ three largest unions have agreed to support a possible takeover offer from US Airways Group Inc. (LCC) rather than remain independent, three people familiar with the matter said.
The groups plan to say that they believe they can reach better terms with US Airways than what they expect if American parent AMR Corp. (AAMRQ) exits bankruptcy by itself, according to the people, who asked not to be identified because the talks are private.
AMR Unions Said Prepared to Support US Airways Takeover
The labor consensus has emerged as Fort Worth, Texas-based American prepares to ask a federal bankruptcy court on April 23 for permission to void existing union contracts and impose new terms in its quest to cut 13,000 union jobs. A ruling on the request may not occur until early June.
US Airways has confirmed hiring advisers to assess a bid for American, the third-largest U.S. airline, and has discussed a takeover plan with some creditors and their advisers, people familiar with the matter said in March.
American’s plan to chop $1.25 billion from labor spending has aggravated labor tensions predating its Nov. 29 bankruptcy filing. The Allied Pilots Association, Association of Professional Flight Attendants and Transport Workers Union represent about 48,000 employees at the airline, whose workforce numbered about 73,800 when the job cuts were announced in February.
US Airways Shares
US Airways extended earlier gains, rising 7.9 percent to $8.85 at 22 p.m. in New York. The shares of the fifth-biggest U.S. airline rose 62 percent this year through yesterday.
Tom Hoban, a spokesman for the APA, declined to comment today when asked whether the union would back an offer by Tempe, Arizona-based US Airways. Calls to the flight attendants and to the TWU weren’t immediately returned.
The three unions said in an April 13 statement that they “must exercise due diligence and examine every possibility” to protect the jobs and retirement plans of members. The groups urged elected officials who spoke out against a possible merger bid to “withhold judgment about any industry consolidation that could involve our airline until all of the facts become known.”
Todd Lehmacher, a US Airways spokesman, declined to comment. American’s Bruce Hicks said the company wasn’t elaborating on a letter to employees earlier today in which Chief Executive Officer Tom Horton said “misleading information” may be circulating about the airline’s future.
“There continues to be much takeover speculation in the press fueled by those who seek to serve their own agendas,” Horton said. “I expect this to continue and to escalate. Naturally, there are many who do not want American to succeed.”
While American will seek court approval to reject existing contracts, it remains in talks with the TWU to reach a consensual agreement on concessions. It also has been meeting with the APA, while discussions with the flight attendants have been suspended.
To contact the reporters on this story: Zachary R. Mider in New York at zmider1@bloomberg.net; Jeffrey McCracken in New York at jmccracken3@bloomberg.net; Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
With the exception of last fall AC has been very consistent wrt what AC wants from ACPA. From TA1 to the latest conditions to return to negotiations. It should be public by now. Look south of the boarder.
I am sure reducing the AC employee footprint is part of the future. Due to successor rights it can not be done overnight however. It is not a magic pill.
So I will ask you this. AC signs a version of TA1 with ACPA.
Does it do enough?
Point for me to what AC has done to achieve sustainability. Explain to me viability moving forward.
Calin tried to negotiate with employees and suppliers but failed. Well one he found weak and cut their throat.
AC is insolvent. What has happend thus far at the bargaining tables has not changed that reality. Unlikely that the resolution of the IAM or ACPA contracts will change that either. The degree of change that is required has thus far eluded the parties. Suggestions that reworked vendor agreements are the answer are once again just a distraction from the root problem.
I presume that CR will show up for the last ditch bargaining with a significant ask list. Some of it may be directly related to a restructuring this side of CCAA. I suspect that he will show ACPA a coffin with their name on it. So ACPA can either embrace change and co-sponsor the outcome or start preparing for the arbitration which is significantly tilted in the company's favour.
But thus far I haven't seen where in the labour agreements that have been signed that AC will be able to generate the cash to meet pension obligations post-2013 and not risk a breach of the debt and credit card covenants that are in place. But AC is not looking for the perfect plan. They are just looking for a plan that will keep the lights on.
No it is not pilot salaries that are the issue at AC.
I suggest you look up AMRs chapter 11 filing and why the court approved the filing with 4 billion in the bank. After that re read CR letter to employees about AMRs filing
I suggest that you do a little research into CCAA and labour code in Canada, both are far more restrictive than the US. I highly doubt that the current shareholders will allow for their value to be wiped out and retain the current management structure. A CCAA filing would transfer control of AC to the creditors and they will walk with your DIP cash...
AC is insolvent. What has happend thus far at the bargaining tables has not changed that reality. Unlikely that the resolution of the IAM or ACPA contracts will change that either. The degree of change that is required has thus far eluded the parties. Suggestions that reworked vendor agreements are the answer are once again just a distraction from the root problem.
I presume that CR will show up for the last ditch bargaining with a significant ask list. Some of it may be directly related to a restructuring this side of CCAA. I suspect that he will show ACPA a coffin with their name on it. So ACPA can either embrace change and co-sponsor the outcome or start preparing for the arbitration which is significantly tilted in the company's favour.
But thus far I haven't seen where in the labour agreements that have been signed that AC will be able to generate the cash to meet pension obligations post-2013 and not risk a breach of the debt and credit card covenants that are in place. But AC is not looking for the perfect plan. They are just looking for a plan that will keep the lights on.
For an insolvent company, they seem to have had a good q4 with a $35 m profit...
Not sure what numbers your looking at but if I recall correctly Q4 was a net loss of 80 something million on a 100 something FOREX gain. The corporation had a near death experience in 2009. That was only solved by postponing the problem until 2014.
As for shareholders? What value?
Creditors? They will move in the direction of self interest. If there is a restructuring plan it would depend on what's offered
Labor Law? I dont fo
My rational is simply this. As is AC is not sustainable. Assuming that the last two CBAs end as it looks.
