Originally Posted by
globalexpress
Or what if TWA ALPA said no way, we're not dropping our LPPs of our contract, we're not getting a good enough seniority deal, so TWA goes into bankruptcy. If you're the Board of TWA, and American is offering you the only viable offer, and the only thing stopping it is a pilot union's LPP, what's the first thing you do in bankruptcy? You go to the bankruptcy judge and void that section of the pilot contract immediately. Now you have 2500 pilots with no LPP and no deal with the APA at all to consider any seniority list integration. By willingly dropping the LPP under the advice of ALPA lawyers I assume, TWA ALPA at least had some sort of deal with the APA to consider integration, and ultimately some TWA pilots were integrated.
As a side note, if TWA had liquidated or fragmented or whatever and ALL the TWA pilots lost the opportunity the APA gave them by dropping the LPPs of their contract, do you sue ALPA for not pursuing that avenue when they had the chance? I wonder if ALPA gets sued either way!
Regardless, that's why I wonder what kind of damages the pilots can really expect. ALPA was found to have messed up, so they should definitely get something. But can a couple of thousand of pilots from a thrice bankrupt airline expect to be compensated for a decade of "lost" earnings that likely would have been "lost" anyway? We shall see I guess.
I hear this crap all the time...that TWA was in bankruptcy and would have been out of business. That's pure BS.
The final bankruptcy of TWA was CONTRIVED by TWA CEO Bill Compton and AA CEO Don Carty for over a year before it became public. Compton had talks with Carty about buying TWA long before anyone knew about it. But AA didn't want Carl Icahn involved in any way and Icahn had 2 years remaining in his very lucrative Karabu Agreement. TWA went into the winter of 1999 with more money in the bank than they'd ever had in decades. TWA was making money and winning J.D. Powers customer service awards left and right. That's the VERY reason AA agreed to the purchase, because TWA just would not die as quickly as AA had hoped and it appeared TWA was on the path to resurgence. Carty told Compton the only way to eliminate Icahn was through bankruptcy court...the problem at the time was that TWA had too much money in the bank and would have been laughed out of the courthouse. Compton undertook to pay forward on lease payments, gate leases, landing fees, fuel bills, etc. to eliminate the excess cash so as to make bankruptcy, and the subsequent AA purchase, viable to the court. Carty agreed that AMR would step in as the "white knight" and purchase TWA's assets.
Once in BK court, Carl Icahn bid for the assets and was dismissed by the court. Unfortunately for AMR, Jay Alex and Boeing also put up a viable bid to keep TWA together. Carty went into the hallway and discussed with his team. When he came back in he asked the judge "what would make the difference here"?. Judge Kimba Woods told him that her concern was for the employees of TWA. Carty then increased AMR's bid for the assets to match the Boeing offer AND agreed to take ALL TWA employees covered under a contract. Jay Alex and Boeing admitted their plan was to "necessarily downsize the company but Boeing would provide an entirely new fleet. Carty promised the judge that AMR would use their very best efforts to ensure a "fair and equitable integration" (that never happened).
Carty won the bidding war and the rest is history....but to say TWA was bankrupt and would not have survived is a blatant misrepresentation of the facts. I've also heard people say TWA would never have survived 9/11...that's also a crock. At the time, AWA was essentially in the very same financial position as TWA. In fact, merger talks between TWA and AWA had been explored for some time prior. Post 9/11 AWA received government bailout money that kept them alive through that period and still survives today. What makes you think TWA wouldn't have received government money and survived as well?
Bottom line - The TWA pilots DID tell AA/APA that they would not give up scope. The ALPA national attorneys physically SCREAMED at the MEC and DEMANDED that they give up scope. AMR threatened an 1113 filing and ALPA national told the TWA MEC they would not defend them in that proceeding. Essentially, the TWA pilots were RAILROADED by ALPA national into giving up the only protections they had and were left to twist in the wind.
Thus the jury has spoken.