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Old 07-23-2012, 04:50 AM   #1 (permalink)
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Default AA "LBFO"/TA may be voted down

There seems to be growing sentiment to vote it down. The road shows have institutional bias to promote the "Last Best Final Offer" but it might not be enough to get it passed.

Lingering resentment over stagnation, the perception of a new B-scale for junior Captains (A-319 pay at $144 hr.) and a 6 year contract duration are making this vote too close too call.
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Old 07-23-2012, 04:57 AM   #2 (permalink)
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Well thats only 2/20 reasons to vote no
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Old 07-23-2012, 06:39 AM   #3 (permalink)
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Everyone on here was 100% sure the Delta TA was going to be voted down as well.
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Old 07-23-2012, 07:42 AM   #4 (permalink)
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Was there language in the TA, that 50% of domestic flying would be codeshare?
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Old 07-23-2012, 08:01 AM   #5 (permalink)
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Was there language in the TA, that 50% of domestic flying would be codeshare?
Definition of Commuter Air Carrier changed to aircraft (jet or turboprop) with a max of 79 seats (as operated for AA) and including aircraft such as the CRJ900, E170/175, MRJ70-90, or comparable aircraft. Eliminate owned/non-owned commuter carrier distinction – all commuter aircraft will now operate as owned.
The total number of regional small jets with greater than 30 seats can be up to 75% of the mainline narrowbody fleet count outlined as follows:

• The max number of regional small jets with greater than 30 seats, up to and including 65 seats cannot exceed 35% of the total mainline narrowbody fleet count. (See note below.)

• The max number of regional small jets with greater than 65 seats, up to and including 79 seats cannot exceed the following percentages of the total mainline narrowbody fleet count in the years indicated:

o 2012-2014: 25%
o 2015: 30%
o 2016 and beyond: 40%

• Note: The number of regional small jets with 31-65 seats may exceed 35% of the mainline narrowbody fleet count, provided the total number of regional jets does not exceed 75% of the mainline narrowbody fleet count.

Turboprops with less than 50 seats will not count toward the limits listed above. However, turboprops with less than 50 seats operated on behalf of American Airlines cannot exceed 10% of the mainline narrowbody fleet count.

Same as term sheet, with the addition of any airport where the average number of mainline daily departures exceeds 100 in the prior six months.

Company may enter into and maintain codeshare agreements under the following conditions:

• Alaska Airlines – the company can enter into unrestricted codesharing with Alaska with the exception of placing AA code on AS flights between Hawaii and DFW, LAX, SAN and ORD.

• Hawaiian Inter-island – the company can enter into unrestricted codesharing with Hawaiian Airlines for intra-Hawaii flights as long as American maintains a minimum average of 10 flights per day to Hawaii from the mainland. This will be measured on a rolling look-back period of 12 months.

In addition to the points listed above, the company may enter into domestic codeshare relationships as long as the total ASMs of all of the aircraft that American places its code during a rolling 12 month period do not exceed 50% of the AA domestic scheduled monthly ASMs during that same period.

International Baseline:

The International Baseline calculation will be modified such that new routes will not be added to the Baseline until the 3rd anniversary of AA’s operation of the route on either a year- round or seasonal basis. The International Baseline will be reset to the number of international block hours scheduled during July 1, 2011 through June 30, 2012.
Joint Ventures: Parties agree to work toward a fair allocation of flying for American in Joint Business Agreements. APA has the right to review initial JBAs and any material changes going forward.
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Old 07-23-2012, 08:18 AM   #6 (permalink)
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Definition of Commuter Air Carrier changed to aircraft (jet or turboprop) with a max of 79 seats (as operated for AA) and including aircraft such as the CRJ900, E170/175, MRJ70-90, or comparable aircraft. Eliminate owned/non-owned commuter carrier distinction – all commuter aircraft will now operate as owned.
The total number of regional small jets with greater than 30 seats can be up to 75% of the mainline narrowbody fleet count outlined as follows:

• The max number of regional small jets with greater than 30 seats, up to and including 65 seats cannot exceed 35% of the total mainline narrowbody fleet count. (See note below.)

• The max number of regional small jets with greater than 65 seats, up to and including 79 seats cannot exceed the following percentages of the total mainline narrowbody fleet count in the years indicated:

o 2012-2014: 25%
o 2015: 30%
o 2016 and beyond: 40%

• Note: The number of regional small jets with 31-65 seats may exceed 35% of the mainline narrowbody fleet count, provided the total number of regional jets does not exceed 75% of the mainline narrowbody fleet count.

Turboprops with less than 50 seats will not count toward the limits listed above. However, turboprops with less than 50 seats operated on behalf of American Airlines cannot exceed 10% of the mainline narrowbody fleet count.

Same as term sheet, with the addition of any airport where the average number of mainline daily departures exceeds 100 in the prior six months.

Company may enter into and maintain codeshare agreements under the following conditions:

• Alaska Airlines – the company can enter into unrestricted codesharing with Alaska with the exception of placing AA code on AS flights between Hawaii and DFW, LAX, SAN and ORD.

• Hawaiian Inter-island – the company can enter into unrestricted codesharing with Hawaiian Airlines for intra-Hawaii flights as long as American maintains a minimum average of 10 flights per day to Hawaii from the mainland. This will be measured on a rolling look-back period of 12 months.

In addition to the points listed above, the company may enter into domestic codeshare relationships as long as the total ASMs of all of the aircraft that American places its code during a rolling 12 month period do not exceed 50% of the AA domestic scheduled monthly ASMs during that same period.

International Baseline:

The International Baseline calculation will be modified such that new routes will not be added to the Baseline until the 3rd anniversary of AA’s operation of the route on either a year- round or seasonal basis. The International Baseline will be reset to the number of international block hours scheduled during July 1, 2011 through June 30, 2012.
Joint Ventures: Parties agree to work toward a fair allocation of flying for American in Joint Business Agreements. APA has the right to review initial JBAs and any material changes going forward.
In your highlighted section, does AA domestic scheduled monthly ASMs include outsourced RJs? Or is this purely mainline ASMs? It seems to me like it includes outsourced RJs.

If thats the case, you could end up with RJ planes being 75% of the mainline, regional props being 10%, and outsourcing being 50% of those combined ASMs.

With my handy calculator, that puts mainline at only 36% of AA's flying. Pretty scary.
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Old 07-23-2012, 10:47 AM   #7 (permalink)
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yikes, better support the usair merger
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Old 07-23-2012, 10:53 AM   #8 (permalink)
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The scope section alone seems reason enough to vote no. If the above is correct regarding outsourced flying this contract will obliterate any growth on mainline.
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Old 07-23-2012, 12:42 PM   #9 (permalink)
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In your highlighted section, does AA domestic scheduled monthly ASMs include outsourced RJs? Or is this purely mainline ASMs? It seems to me like it includes outsourced RJs.

If thats the case, you could end up with RJ planes being 75% of the mainline, regional props being 10%, and outsourcing being 50% of those combined ASMs.

With my handy calculator, that puts mainline at only 36% of AA's flying. Pretty scary.
NO, the domestic ASM's for codeshare DO NOT include RJ flying from commuters. At the current mainline domestic fleet count, I think this TA allows something like 350 RJ's that could be flown in the future with 40% of those 79-seaters. The 50% ASM's that unidentified codeshares can do does not even include any codesharing with Alaska Airlines or Hawaiian Airlines and all added up, it's pretty much a wipeout for AA pilots on scope.

It appears AMR's stand-alone plan is to hand New York JFK over to Jet Blue for domestic feed leaving AA only International and 767-200 transcons (to be replaced with A321's), LGA over to large RJ's flown by more then one carrier and perhaps some mainline A319's. The west coast will be forked over to Alaska. ORD will morph into a fairly modest International hub for AA and a large RJ operation for more then one carrier. DFW will likely see the A319 flown domestically for AA, and MIA to make good use of 737's and A319's for SA/Carribean ops. If the U merger occurs, it will almost certainly occue after exit from BK where AMR is the controller and not the controllee and Parker will run the show after AMR execs make their $$$. What Parker ultimately ends up doing with the merged carrier has yet to be determined.

As for the TA's chances of passing, I think that's going to be a close one. A lot of pilots are running around looking for places to hide, but a lot aren't. I give it 60/40 whichever way it goes, but right now it's tough to tell which way that will be. For the record, I'm a firm no vote.
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Old 07-23-2012, 12:45 PM   #10 (permalink)
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Originally Posted by Puros View Post
The scope section alone seems reason enough to vote no. If the above is correct regarding outsourced flying this contract will obliterate any growth on mainline.
Agreed. AA is most likely to stagnate at best and contract at worst for the forseeable future. 20 year F/O's will be 25 year F/O's in 5 years.
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