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APA Information Hotline
This is APA Communications Director Gregg Overman with the APA Information Hotline for Tuesday, April 19.

APA BOARD OF DIRECTORS SPECIAL MEETING: The APA Board of Directors convened for a special meeting today at 9 a.m. at union headquarters in Fort Worth.

In his opening remarks, APA President CA Keith Wilson stated that he requested this week’s special board meeting to further the strategic planning process in response to the board’s stated priorities of 1) stopping the contractual/legal abuses by the company, 2) effecting implementation of contractual provisions agreed to in the joint collective bargaining agreement, and 3) effecting/facilitating lasting and durable cultural change. CA Wilson noted that the meeting agenda additionally allots time for scope and profit-sharing briefings by APA subject-matter experts. Also, he informed the board that Controller/Accounting Manager Barbara Barshes will retire April 29 after 23 years of service and Executive Secretary Sue Pyle will retire July 15 after 31 years of service.

Secretary-Treasurer CA Pam Torell asked the board for input regarding management’s proposed PBS incentive program. Management envisions the program as a means of ensuring a high rate of PBS-related training completion by the pilot group. CA Torell also asked the board to approve the minutes of the February 16-18 special board meeting. After stipulating a couple of corrections, the board approved the minutes.

Scope Committee Chairman FO Randy Neisius and attorney Evin Isaacson of general counsel James and Hoffman gave a Scope briefing. FO Neisius detailed the status of outstanding Scope grievances, indicating that the committee anticipates these grievances will soon be resolved in a mutually beneficial manner, based on ongoing discussions with management. In addition, FO Neisius reported that the most current information indicates management will remain in compliance with the regional jet limits set by Section 1.D.4. He confirmed that APA has continuously reminded management of these contractual limits, with the committee vigilantly monitoring compliance.

In response to the announcement that Alaska Air Group is seeking to acquire Virgin America, FO Neisius stated it’s too early to predict how the acquisition will affect American Airlines’ code-share relationship with Alaska. The committee, along with the Industry Analysis Committee and the Economic and Financial Analysis Department, will update the board as more information becomes available. The board then went into closed session for an attorney-client Q&A session and legal briefing by Ms. Isaacson.

Director of Economic & Financial Analysis Allison Clark and Analyst Chris Cole presented an overview of the American Airlines Group Inc. Global Profit Sharing Plan. Their briefing included definitions of certain key terms — such as “Eligible Employees,” “Payout Percentage,” and “Adjusted Pre-Tax Earnings” — that affect employees’ eligibility to participate in the Plan and the calculation of a potential profit-sharing award. Ms. Clark and Mr. Cole detailed the four main steps in determining award amounts: 1) determining the amount of annual adjusted pre-tax earnings, 2) calculating the total award pool, 3) determining the overall payout percentage, and 4) calculating individual employee’s awards using their own individual eligible earnings. The briefing included a comparison to the profit-sharing plans at Delta Airlines and United Airlines. It’s important to note that the sample awards used in the overview were for illustrative purposes only. They are not intended to provide a definitive indication of any future profit-sharing payouts.

After spending the bulk of the afternoon in closed session, the board recessed at 5 p.m. The meeting will resume at 9 a.m. tomorrow and is scheduled to continue through Thursday afternoon.

LEGISLATIVE ALERT: We are asking every APA member to help us convey to Congress our deep concerns regarding the Department of Transportation’s decision to grant tentative approval to Norwegian Air International’s application for a foreign air carrier permit. The DOT decision is now open for a brief public comment before the department makes a final determination. If the decision to grant approval stands, Norwegian Air International would be able to fly to and from the United States in direct competition with U.S. carriers on long-haul international routes.

As CA Wilson emphasized in a press release shortly after the DOT announced its decision last Friday, Norwegian Air International is a blatant flag-of-convenience scheme based on scouring the globe for cheap labor to undercut the competition. We need every member of Congress to understand the gravity of this issue for airline workers, so please take a couple of minutes to contact your U.S. Senators and U.S. Representative.

Thanks for checking this hotline.

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