USAirways Pilots Offer 12% Pay Cut
Alba Gu Brath
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Forgive my naivety (I don't claim to be an expert on US legislation or Chapter 11) but the rest of the aviation community must look at US Chapter 11 with a certain amount of envy. I can't help but wonder which US carriers would still be in existence if it weren't for the protection that Chapter 11 seems to offer.
Union Goon
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Very few carriers actually survive Chapt 11. Most the enter die.
Before you get so jealous, compare the deaths of Pan Am, Eastern, Braniff, Midway, with the number of National Carriers that have disappeared from the European scene (these are all of similar size) literaly 100s of second tier carriers (comparable to say Emerald, Thomoas Cooke) have also disappeared as well.
It is not the safe haven you think it is.
Cheers
Wino
Before you get so jealous, compare the deaths of Pan Am, Eastern, Braniff, Midway, with the number of National Carriers that have disappeared from the European scene (these are all of similar size) literaly 100s of second tier carriers (comparable to say Emerald, Thomoas Cooke) have also disappeared as well.
It is not the safe haven you think it is.
Cheers
Wino
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Yep the aviation world is heading for a shootout at the O.K. corral. We have USAir re-entered in chapter 11, UA already there and probably to be joined by Delta in the near future. Jetblue is having a poor quarter due to the hurricanes down in Florida whose effect could last all winter. The experts are telling us of a potential blood letting among the EU LCC’s. Adding to the woes is the high cost of fuel coupled with the high cost and uncertainty of security, too many empty seats chasing too few bums and we have the recipe for a perfect winter storm..
Have a nice day..
Have a nice day..
One or two days ago, there were some interesting points made in "Yahoo Airline News" by somebody who might be with a bankruptcy consulting firm, or such. The man stated that many airlines declare bankruptcy and then fairly quickly emerge from it. But in a very fast-paced industry, that is no time to throw down your shield and try to fight off the enemy with just a sword in hand, when you are already injured. He stated that remaining under the Chap 11 "protection" for about three years can allow the airline to adjust to many changes, some of which are very difficult to anticipate.
Which US industry is probably the ONLY US private industry to pay huge sums of money to the US government, to subsidize (in reverse order!) a government service? This extra, gigantic burden (in addition to the normal ticket taxes) on the airlines is quite strange for a government which is not usually considered socialist. Why can't Congress adjust other spending?
Which US industry is probably the ONLY US private industry to pay huge sums of money to the US government, to subsidize (in reverse order!) a government service? This extra, gigantic burden (in addition to the normal ticket taxes) on the airlines is quite strange for a government which is not usually considered socialist. Why can't Congress adjust other spending?
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5:03 PM EDT Tuesday
Senator faults 4 pilots for US Airways bankruptcy
Christopher Davis
Following a meeting Tuesday with US Airways Group Inc. president and CEO Bruce Lakefield, U.S. Sen. Rick Santorum laid blame for the airline's second bankruptcy filing on four pilots' union representatives from Pennsylvania and said the airline could liquidate by January "if everything continues to go poorly."
US Airways filed Sunday for Chapter 11 bankruptcy protection -- its second time in two years -- after failing to reach new labor agreements with the Air Line Pilots Association and its other labor unions. The airline was seeking $295 million in concessions from the pilots, as part of an overall labor concessions package of $800 million.
However, four members of ALPA's Master Executive Council -- the union's governing body -- voted last week to block a proposal from being submitted for consideration by rank-and-file members. The MEC members who voted against forwarding the new proposal represent pilots at US Airways' hub in Philadelphia and at Pittsburgh International Airport, where the carrier dominates.
Mr. Santorum, the Pennsylvania Republican and chairman of the Senate Republican Conference, spoke during an afternoon conference call with the media and U.S. Sen. Arlen Specter, a fellow Republican who also met with Mr. Lakefield Tuesday.
"The fact that there was no pilot contract led to this bankruptcy. That's a fact," Mr. Santorum said. "Those four individuals decided they were going to take this airline down and they did."
Mr. Santorum said his conclusion was based on "the information I gathered and the questions I asked."
An ALPA spokesman was not immediately available for comment. A US Airways spokesman said the airline would not comment on "private discussions" between the senators and the company.
US Airways, the nation's seventh-largest airline, emerged from bankruptcy protection in March 2003, but has struggled in the face of escalating competition from low-cost, low-fare carriers and rising jet-fuel prices. The company has been attempting to restructure to bring down expenses and rework its route network.
Mr. Santorum said Mr. Lakefield indicated during the meeting that time was running out for US Airways and that a decision regarding whether the Arlington, Va.-based company would liquidate could come by the beginning of next year.
"I said, 'How much time do you have to work this out?'" Mr. Santorum said. "I think he said several months."
"It was a sobering meeting," Mr. Santorum continued. "Things are not looking good. There are a lot of linchpins that are out there; any one of which could basically sink the airline. They're losing a million dollars a day, I think is what Mr. Lakefield said, and their contracts are just very out of whack with what they have to compete with."
Mr. Specter, who also represents Pennsylvania in Washington, expressed faith in Mr. Lakefield's ability to lead US Airways out of its current restructuring.
"If the airline can still be saved ... I think (Mr. Lakefield) is the man who can do it," Mr. Specter said. "It is apparent that Mr. Lakefield and the others do not intend to give up without exhausting every feasible alternative."
http://pittsburgh.bizjournals.com/pi...ml?jst=b_ln_hl
Senator faults 4 pilots for US Airways bankruptcy
Christopher Davis
Following a meeting Tuesday with US Airways Group Inc. president and CEO Bruce Lakefield, U.S. Sen. Rick Santorum laid blame for the airline's second bankruptcy filing on four pilots' union representatives from Pennsylvania and said the airline could liquidate by January "if everything continues to go poorly."
US Airways filed Sunday for Chapter 11 bankruptcy protection -- its second time in two years -- after failing to reach new labor agreements with the Air Line Pilots Association and its other labor unions. The airline was seeking $295 million in concessions from the pilots, as part of an overall labor concessions package of $800 million.
However, four members of ALPA's Master Executive Council -- the union's governing body -- voted last week to block a proposal from being submitted for consideration by rank-and-file members. The MEC members who voted against forwarding the new proposal represent pilots at US Airways' hub in Philadelphia and at Pittsburgh International Airport, where the carrier dominates.
Mr. Santorum, the Pennsylvania Republican and chairman of the Senate Republican Conference, spoke during an afternoon conference call with the media and U.S. Sen. Arlen Specter, a fellow Republican who also met with Mr. Lakefield Tuesday.
"The fact that there was no pilot contract led to this bankruptcy. That's a fact," Mr. Santorum said. "Those four individuals decided they were going to take this airline down and they did."
Mr. Santorum said his conclusion was based on "the information I gathered and the questions I asked."
An ALPA spokesman was not immediately available for comment. A US Airways spokesman said the airline would not comment on "private discussions" between the senators and the company.
US Airways, the nation's seventh-largest airline, emerged from bankruptcy protection in March 2003, but has struggled in the face of escalating competition from low-cost, low-fare carriers and rising jet-fuel prices. The company has been attempting to restructure to bring down expenses and rework its route network.
Mr. Santorum said Mr. Lakefield indicated during the meeting that time was running out for US Airways and that a decision regarding whether the Arlington, Va.-based company would liquidate could come by the beginning of next year.
"I said, 'How much time do you have to work this out?'" Mr. Santorum said. "I think he said several months."
"It was a sobering meeting," Mr. Santorum continued. "Things are not looking good. There are a lot of linchpins that are out there; any one of which could basically sink the airline. They're losing a million dollars a day, I think is what Mr. Lakefield said, and their contracts are just very out of whack with what they have to compete with."
Mr. Specter, who also represents Pennsylvania in Washington, expressed faith in Mr. Lakefield's ability to lead US Airways out of its current restructuring.
"If the airline can still be saved ... I think (Mr. Lakefield) is the man who can do it," Mr. Specter said. "It is apparent that Mr. Lakefield and the others do not intend to give up without exhausting every feasible alternative."
http://pittsburgh.bizjournals.com/pi...ml?jst=b_ln_hl
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Pilots Union Undecided on US Airways Deal
Leaders of Pilots Union at Bankrupt US Airways Undecided on Sending Deal on Pay Cut to Members
The Associated Press
CHARLOTTE, N.C. Oct. 2, 2004 — Leaders of the pilots union at bankrupt US Airways are taking their time to decide whether to forward a proposed contract to their members that would cut average pay by 18 percent.
A spokesman for the Air Line Pilots Association valued the concessions at $1.8 billion through five years the third concession that pilots have made to the company since 2002.
Union negotiators met Friday and Saturday with the union's management executive council and up to 80 pilots at a hotel in Charlotte, where US Airways has its largest hub. ALPA represents the airline's 3,000 pilots.
The meeting was adjourned Saturday afternoon with the conferees still undecided on whether to recommend that union members approve the tentative contract. The group will resume meeting Tuesday in Pittsburgh, union spokesman Jack Stephan said.
"Certain members have requested they have more time to review the documents and ask more questions of our advisers," he said. "After giving up as much as we have, coming to terms with this tentative agreement is difficult, to say the least."
The airline said the tentative agreement would save the struggling carrier $300 million annually nearly one-third of the cuts that US Airways says it needs to remain viable.
According to Stephan, salaries for captains now range from $120,000 to $150,000 per year, while first officers make between $75,000 and $100,000.
Bruce R. Lakefield, president of US Airways, praised the tentative agreement that was reached early Friday.
"This is a major step forward for our company, its employees, customers and all other stakeholders," Lakefield said.
Airline officials have said US Airways needs a cost-cutting agreement with pilots if it is to continue operating while in bankruptcy.
In a bankruptcy court filing Sept. 24, US Airways warned it could be forced to liquidate by February if the court did not impose a temporary 23 percent pay cut on union workers. An Oct. 7 hearing is scheduled on the issue.
US Airways employs 34,000 workers, most of whom are covered by union labor agreements.
According to the airline, dispatchers have already ratified a cost-saving deal, and the company has tentative agreements with flight crew training instructors and flight simulator engineers. Still in negotiations are US Airways' flight attendants, machinists and members of the Communications Workers of America.
Leaders of Pilots Union at Bankrupt US Airways Undecided on Sending Deal on Pay Cut to Members
The Associated Press
CHARLOTTE, N.C. Oct. 2, 2004 — Leaders of the pilots union at bankrupt US Airways are taking their time to decide whether to forward a proposed contract to their members that would cut average pay by 18 percent.
A spokesman for the Air Line Pilots Association valued the concessions at $1.8 billion through five years the third concession that pilots have made to the company since 2002.
Union negotiators met Friday and Saturday with the union's management executive council and up to 80 pilots at a hotel in Charlotte, where US Airways has its largest hub. ALPA represents the airline's 3,000 pilots.
The meeting was adjourned Saturday afternoon with the conferees still undecided on whether to recommend that union members approve the tentative contract. The group will resume meeting Tuesday in Pittsburgh, union spokesman Jack Stephan said.
"Certain members have requested they have more time to review the documents and ask more questions of our advisers," he said. "After giving up as much as we have, coming to terms with this tentative agreement is difficult, to say the least."
The airline said the tentative agreement would save the struggling carrier $300 million annually nearly one-third of the cuts that US Airways says it needs to remain viable.
According to Stephan, salaries for captains now range from $120,000 to $150,000 per year, while first officers make between $75,000 and $100,000.
Bruce R. Lakefield, president of US Airways, praised the tentative agreement that was reached early Friday.
"This is a major step forward for our company, its employees, customers and all other stakeholders," Lakefield said.
Airline officials have said US Airways needs a cost-cutting agreement with pilots if it is to continue operating while in bankruptcy.
In a bankruptcy court filing Sept. 24, US Airways warned it could be forced to liquidate by February if the court did not impose a temporary 23 percent pay cut on union workers. An Oct. 7 hearing is scheduled on the issue.
US Airways employs 34,000 workers, most of whom are covered by union labor agreements.
According to the airline, dispatchers have already ratified a cost-saving deal, and the company has tentative agreements with flight crew training instructors and flight simulator engineers. Still in negotiations are US Airways' flight attendants, machinists and members of the Communications Workers of America.
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The guys at US Air had better wake up and smell the coffee...before the end comes with a thud...as in finished.
Some never learn...and not likely to start now.
Why am I not surprised.
ALPO...down the yellow brick road to the end.
Some never learn...and not likely to start now.
Why am I not surprised.
ALPO...down the yellow brick road to the end.
Union Goon
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What's the point of giving concession after concession if the airline can't be saved anyway? I badly managed airline can have its planes flown for free by the cockpit and the cabin and still lose a ****load of money. USair is that badly managed an airline.
Employee concessions are not going to save this airline. Furthermore, No union ever killed an airline. MANAGEMENT kills the airline.
Cheers
Wino
Employee concessions are not going to save this airline. Furthermore, No union ever killed an airline. MANAGEMENT kills the airline.
Cheers
Wino
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I would disagree, Wino.
EAL was done in by the IAM...with others following suit.
CO was saved by the management in place at the time.
Yes, I know, pilots, and many others would like to 'blame' 'ole Frank Lorenzo, but the fact remains that CO was the weak sister of trunk airlines years ago, and would have died on the vine eventually, were it not for the agressive management that they received.
With US Air, I would certainly agree that the mismanagement that they have received in the recent past might do 'em in if they don't get their act together.
EAL was done in by the IAM...with others following suit.
CO was saved by the management in place at the time.
Yes, I know, pilots, and many others would like to 'blame' 'ole Frank Lorenzo, but the fact remains that CO was the weak sister of trunk airlines years ago, and would have died on the vine eventually, were it not for the agressive management that they received.
With US Air, I would certainly agree that the mismanagement that they have received in the recent past might do 'em in if they don't get their act together.
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