EAGLE Letter to management
03-26-2014, 11:01 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Aug 2005
Posts: 3,707
EAGLE Letter to management
We had holly's biased view, I figured this biased view was better.
Better written also;
Mr. Fábregas,
I am in receipt of your clarification letter dated March 13, 2014 which enclosed a ten page document of excuses, rationalizations, illogical conclusions and the usual threats that the American Eagle pilots have been constantly forced to endure by a management that has no vision, expertize or business plan.
After carefully reading your 10 page document I came to the conclusion that it is nothing more than cheap bribery and clumsy blackmail. Management is once again trying to bribe the American Eagle pilots with a career at American Airlines in exchange for a long term concessionary agreement, and if the pilots refuse to take the bribe, management has threatened to drawdown American Eagle Airlines and financially harm the pilots.
In 1997 American Eagle management demanded a sixteen-year (16-year), industry average, arbitrator amended agreement. If the pilots did not agree to the 16-year Agreement, management threatened to not deploy any regional jets at American Eagle Airlines and the Eagle pilots would not be entitled to “flow-through” to AA because a Flow-Through pilot had to be jet qualified. Management stated that the regional jets would be deployed at Mesa Airlines.
As justification for demanding a sixteen-year agreement management stated that labor peace and industry average pilot costs would allow for stability and growth and position American Eagle Airlines to be the leading regional airline in the United States. Page 2 of the Pilot Agreement still, to this day, states:
The Association and the airlines operating as American Eagle (the Company) are desirous of promoting harmony, trust and confidence in the workplace, and working together towards our common goals of stability, economic opportunity, growth and advancement.
The sixteen-year agreement had not even reached its full term when management forced American Eagle Airlines into Chapter 11 bankruptcy in November 2011.
In each successive amendment round of the 16-year agreement, 2000, 2004, 2008, management demanded concessions and work rule changes. There was no stability, economic opportunity, growth or advancement, there was just decline. Even before the 16-year agreement’s final amendment round of 2012, management was demanding even more concessions from the pilots. It was called Plan B and it was in anticipation of the divestiture of American Eagle Airlines, so management claimed.
It was during the negotiations for Plan B that management transferred every American Eagle Airlines’ aircraft to American Airlines, no doubt a part of the planned imminent bankruptcy filing, and striped the American Eagle pilots of their Scope Protection which required that in the event operating assets were transferred away from American Eagle Airlines, the pilots operating those assets would be transferred with the assets. Every American Eagle pilot should have contractually transferred to American Airlines when the Eagle aircraft were transferred to AA.
While ALPA and management were actively promoting and selling Plan B, management placed American Eagle Airlines into Chapter 11 bankruptcy. Management seized on the opportunity presented by the bankruptcy filing to extort further concessions from the American Eagle pilots. Management used the threat of a Section 1113 bankruptcy court filing to coerce the pilots into agreeing to the concessions demanded by management.
In its motion urging the bankruptcy court to accept the new concessionary CBA (Eight-Year Agreement) management testified as follows. Below are excerpts from bankruptcy court docket #5716.
“The New CBA consensually resolves numerous issues and provides for the implementation of a collective bargaining agreement that Eagle believes appropriately recognizes the concerns of Eagle’s pilots while providing the Debtors with the necessary savings essential to their long-term viability and profitability.”
“This provision in the Settlement Letter was heavily negotiated and represents appropriate compensation for, inter alia, very significant work rule changes and contract modifications agreed to by the pilots.”
“The New CBA is fair and justified by the level of concessions and other restructuring benefits granted by the pilots. The New CBA will generate significant annual cost savings to Eagle (approximately $43.1 million, annually), coupled with many other provisions that substantially strengthen its operational and corporate flexibility.”
“For all of the reasons set forth above, Eagle’s decision to enter into the New CBA is in the best interests of Eagle, the other Debtors, and all of their economic stakeholders. The decision plainly reflects the sound business judgment of Eagle and the other Debtors. As noted, from the moment the New CBA becomes effective, these agreements will save Eagle and the other Debtors approximately $43.1 million a year and create significant operational efficiencies, which are vital to Eagle’s and the other Debtors’ transformation and long-term viability.”
More importantly, the New CBA, as management called it, has the following duration, also from the bankruptcy court filing by management.
“Eight years from the date of signing provided that, no earlier than February 1, 2016 but no later than March 1, 2016 (the “Amendment Round”), either party may serve written notice specifying which provisions of the CBA the party proposes to be deleted, added or amended, as provided in Section 30 of the New CBA.”
The “No earlier than February 1, 2016” did not last more than one year and management is back demanding further concessions. In less than one year the transformation, long-term viability and profitability of American Eagle Airlines that management testified to in bankruptcy court has evaporated, and management is back demanding more concessions and once again threatening the American Eagle pilots.
In your ten page document under the title of Flow Through and Job Security you patronizingly state:
“This agreement helps pilots achieve the lofty goal of flying for the top airline in the world – American- and consequently enjoying all the advantages and benefits that will bring (sic) to pilots and their families.”
Letter 3 had the same lofty goals and management violated Letter 3 at every opportunity it could, which resulted in numerous grievances and arbitrations. In 2010, thirteen years after agreeing to Letter 3, management was once again found, by an arbitrator, to have violated the terms and conditions of Letter 3.
In March 1997, the American Eagle pilots were assured by management that every American Eagle pilot, on the property at the time (1995 pilots), would transfer to AA in five years. In fifteen years, less than 500 pilots were given the opportunity to transfer to AA.
In note 2 of your document, when discussing why this new flow-through agreement (as you call it) is different from the last one, you state.
“Even prior to 9/11, the airline industry was having significant financial problems – the 9/11 terrorist attacks just accelerated and intensified them.”
This is complete nonsense. In the period prior to 9/11 American Airlines hired more than 2500 new-hire pilots off-the-street and placed 2300 TWA LLC pilots on the American Airlines Pilot Seniority List. One hundred and twenty four (124) American Eagle pilots transferred to AA and another approximately three hundred and eighty four (384) pilots were issued AA pilot seniority numbers.
The language, intent and assurances of Letter 3 was that a minimum of one out of every two new hire positions in a new hire class at AA would be offered to American Eagle pilots. Management grasped the benefits of the 16-Year Agreement, but when it came time to honor the commitment it made to the pilots under Letter 3, management violated Letter 3 continuously.
Note 4 of your document you state that “If pilots ratify this agreement, not only will our own pilots stop leaving for carriers other than American, but we will see more pilots apply for positions with Envoy.” Concessions are demanded from the American Eagle pilots because of management’s failure to staff American Eagle Airlines?
In your document you devote eight paragraphs to the fleet commitment as though this is something unique and unheard of in the airline industry. How do airlines, who wish to stay in business, not have long range fleet commitment? How else would you run a successful airline if there was not a fleet commitment?
In the bankruptcy court filing referred to above, management testified to the transformation and long-term viability and profitability of American Eagle Airlines. How exactly was management going to transform American Eagle Airlines to assure long-term viability and profitability without a fleet that served the regional airline market? I am sure management did not perjure itself in bankruptcy court by making numerous false statements.
Multiple documents exist wherein both management and ALPA assured the American Eagle pilots that if they ratified the 8-Year Agreement, American Eagle Airlines would be re-fleeted.
In your ten page document you claim that the reason that management is back demanding more concessions from the American Eagle pilots and a new 10-year Agreement is that “American’s merger with US Airways has completely changed the landscape. There is a management team in place with strategies and ideas that are different than what was put forward in bankruptcy.”
Airline labor agreements are governed by the Railway Labor Act and there is a specific procedure required for changing rates of pay, rules, and working conditions. Part of that procedure depends on the agreed amendment process. The American Eagle pilots have an 8-Year Agreement with an amendment round beginning no earlier than February 2016. The fact that a merger occurred and a new management team is in place, which has different strategies and ideas, is not a rational argument as to why management is once again demanding concessions and threatening the American Eagle pilots. It is an excuse by an opportunistic management team.
In your document, note 16 you ask “Why believe us?”
We do not! American Eagle Airlines’ management has violated every agreement it has signed. The current 10-year Tentative Agreement will be no different. History will repeat itself. The pilots only have to review the history of Letter 3, the 16-Year Agreement, Plan B and the 8-Year Agreement to understand that management will find some excuse, rationalization or illogical conclusion, when it suits management in the future, to once again demand concessions and changes to the 10-Year Pilot Agreement
I sincerely trust that the American Eagle pilots will not reward management’s duplicity and threatening behavior by ratifying the Tentative Agreement. It is time management lived up to its promises, assurances, commitments and signed agreements.
Sincerely,
Better written also;
Mr. Fábregas,
I am in receipt of your clarification letter dated March 13, 2014 which enclosed a ten page document of excuses, rationalizations, illogical conclusions and the usual threats that the American Eagle pilots have been constantly forced to endure by a management that has no vision, expertize or business plan.
After carefully reading your 10 page document I came to the conclusion that it is nothing more than cheap bribery and clumsy blackmail. Management is once again trying to bribe the American Eagle pilots with a career at American Airlines in exchange for a long term concessionary agreement, and if the pilots refuse to take the bribe, management has threatened to drawdown American Eagle Airlines and financially harm the pilots.
In 1997 American Eagle management demanded a sixteen-year (16-year), industry average, arbitrator amended agreement. If the pilots did not agree to the 16-year Agreement, management threatened to not deploy any regional jets at American Eagle Airlines and the Eagle pilots would not be entitled to “flow-through” to AA because a Flow-Through pilot had to be jet qualified. Management stated that the regional jets would be deployed at Mesa Airlines.
As justification for demanding a sixteen-year agreement management stated that labor peace and industry average pilot costs would allow for stability and growth and position American Eagle Airlines to be the leading regional airline in the United States. Page 2 of the Pilot Agreement still, to this day, states:
The Association and the airlines operating as American Eagle (the Company) are desirous of promoting harmony, trust and confidence in the workplace, and working together towards our common goals of stability, economic opportunity, growth and advancement.
The sixteen-year agreement had not even reached its full term when management forced American Eagle Airlines into Chapter 11 bankruptcy in November 2011.
In each successive amendment round of the 16-year agreement, 2000, 2004, 2008, management demanded concessions and work rule changes. There was no stability, economic opportunity, growth or advancement, there was just decline. Even before the 16-year agreement’s final amendment round of 2012, management was demanding even more concessions from the pilots. It was called Plan B and it was in anticipation of the divestiture of American Eagle Airlines, so management claimed.
It was during the negotiations for Plan B that management transferred every American Eagle Airlines’ aircraft to American Airlines, no doubt a part of the planned imminent bankruptcy filing, and striped the American Eagle pilots of their Scope Protection which required that in the event operating assets were transferred away from American Eagle Airlines, the pilots operating those assets would be transferred with the assets. Every American Eagle pilot should have contractually transferred to American Airlines when the Eagle aircraft were transferred to AA.
While ALPA and management were actively promoting and selling Plan B, management placed American Eagle Airlines into Chapter 11 bankruptcy. Management seized on the opportunity presented by the bankruptcy filing to extort further concessions from the American Eagle pilots. Management used the threat of a Section 1113 bankruptcy court filing to coerce the pilots into agreeing to the concessions demanded by management.
In its motion urging the bankruptcy court to accept the new concessionary CBA (Eight-Year Agreement) management testified as follows. Below are excerpts from bankruptcy court docket #5716.
“The New CBA consensually resolves numerous issues and provides for the implementation of a collective bargaining agreement that Eagle believes appropriately recognizes the concerns of Eagle’s pilots while providing the Debtors with the necessary savings essential to their long-term viability and profitability.”
“This provision in the Settlement Letter was heavily negotiated and represents appropriate compensation for, inter alia, very significant work rule changes and contract modifications agreed to by the pilots.”
“The New CBA is fair and justified by the level of concessions and other restructuring benefits granted by the pilots. The New CBA will generate significant annual cost savings to Eagle (approximately $43.1 million, annually), coupled with many other provisions that substantially strengthen its operational and corporate flexibility.”
“For all of the reasons set forth above, Eagle’s decision to enter into the New CBA is in the best interests of Eagle, the other Debtors, and all of their economic stakeholders. The decision plainly reflects the sound business judgment of Eagle and the other Debtors. As noted, from the moment the New CBA becomes effective, these agreements will save Eagle and the other Debtors approximately $43.1 million a year and create significant operational efficiencies, which are vital to Eagle’s and the other Debtors’ transformation and long-term viability.”
More importantly, the New CBA, as management called it, has the following duration, also from the bankruptcy court filing by management.
“Eight years from the date of signing provided that, no earlier than February 1, 2016 but no later than March 1, 2016 (the “Amendment Round”), either party may serve written notice specifying which provisions of the CBA the party proposes to be deleted, added or amended, as provided in Section 30 of the New CBA.”
The “No earlier than February 1, 2016” did not last more than one year and management is back demanding further concessions. In less than one year the transformation, long-term viability and profitability of American Eagle Airlines that management testified to in bankruptcy court has evaporated, and management is back demanding more concessions and once again threatening the American Eagle pilots.
In your ten page document under the title of Flow Through and Job Security you patronizingly state:
“This agreement helps pilots achieve the lofty goal of flying for the top airline in the world – American- and consequently enjoying all the advantages and benefits that will bring (sic) to pilots and their families.”
Letter 3 had the same lofty goals and management violated Letter 3 at every opportunity it could, which resulted in numerous grievances and arbitrations. In 2010, thirteen years after agreeing to Letter 3, management was once again found, by an arbitrator, to have violated the terms and conditions of Letter 3.
In March 1997, the American Eagle pilots were assured by management that every American Eagle pilot, on the property at the time (1995 pilots), would transfer to AA in five years. In fifteen years, less than 500 pilots were given the opportunity to transfer to AA.
In note 2 of your document, when discussing why this new flow-through agreement (as you call it) is different from the last one, you state.
“Even prior to 9/11, the airline industry was having significant financial problems – the 9/11 terrorist attacks just accelerated and intensified them.”
This is complete nonsense. In the period prior to 9/11 American Airlines hired more than 2500 new-hire pilots off-the-street and placed 2300 TWA LLC pilots on the American Airlines Pilot Seniority List. One hundred and twenty four (124) American Eagle pilots transferred to AA and another approximately three hundred and eighty four (384) pilots were issued AA pilot seniority numbers.
The language, intent and assurances of Letter 3 was that a minimum of one out of every two new hire positions in a new hire class at AA would be offered to American Eagle pilots. Management grasped the benefits of the 16-Year Agreement, but when it came time to honor the commitment it made to the pilots under Letter 3, management violated Letter 3 continuously.
Note 4 of your document you state that “If pilots ratify this agreement, not only will our own pilots stop leaving for carriers other than American, but we will see more pilots apply for positions with Envoy.” Concessions are demanded from the American Eagle pilots because of management’s failure to staff American Eagle Airlines?
In your document you devote eight paragraphs to the fleet commitment as though this is something unique and unheard of in the airline industry. How do airlines, who wish to stay in business, not have long range fleet commitment? How else would you run a successful airline if there was not a fleet commitment?
In the bankruptcy court filing referred to above, management testified to the transformation and long-term viability and profitability of American Eagle Airlines. How exactly was management going to transform American Eagle Airlines to assure long-term viability and profitability without a fleet that served the regional airline market? I am sure management did not perjure itself in bankruptcy court by making numerous false statements.
Multiple documents exist wherein both management and ALPA assured the American Eagle pilots that if they ratified the 8-Year Agreement, American Eagle Airlines would be re-fleeted.
In your ten page document you claim that the reason that management is back demanding more concessions from the American Eagle pilots and a new 10-year Agreement is that “American’s merger with US Airways has completely changed the landscape. There is a management team in place with strategies and ideas that are different than what was put forward in bankruptcy.”
Airline labor agreements are governed by the Railway Labor Act and there is a specific procedure required for changing rates of pay, rules, and working conditions. Part of that procedure depends on the agreed amendment process. The American Eagle pilots have an 8-Year Agreement with an amendment round beginning no earlier than February 2016. The fact that a merger occurred and a new management team is in place, which has different strategies and ideas, is not a rational argument as to why management is once again demanding concessions and threatening the American Eagle pilots. It is an excuse by an opportunistic management team.
In your document, note 16 you ask “Why believe us?”
We do not! American Eagle Airlines’ management has violated every agreement it has signed. The current 10-year Tentative Agreement will be no different. History will repeat itself. The pilots only have to review the history of Letter 3, the 16-Year Agreement, Plan B and the 8-Year Agreement to understand that management will find some excuse, rationalization or illogical conclusion, when it suits management in the future, to once again demand concessions and changes to the 10-Year Pilot Agreement
I sincerely trust that the American Eagle pilots will not reward management’s duplicity and threatening behavior by ratifying the Tentative Agreement. It is time management lived up to its promises, assurances, commitments and signed agreements.
Sincerely,
03-26-2014, 12:36 PM
#2
Gets Weekends Off
Joined APC: Nov 2012
Position: ERJ, CA
Posts: 718
Scathing! i don't know who wrote that, but I'm glad to see an institutional memory on these matters. One thing, is that I noticed some typos which detract from the overall impact of the message. Now that regional airline pilot has become a decade plus undertaking for many of us, we have to remember and learn from past frauds, scams and schemes of management, lest we fall for them again.
03-26-2014, 01:12 PM
#4
Gets Weekends Off
Joined APC: Dec 2012
Posts: 110
From my inbox, an e-mail from AE inviting me to interview:
3/21/2014
Pilot Candidate
Dear XXXXXX,
American Eagle Airlines and its pilots, represented by the Air Line Pilots Association, have reached a Tentative Agreement (TA) for the Pilots to vote on for ratification. This TA will offer increased flow to American Airlines for current American Eagle pilots. It will also offer flow through to future new hire pilots. This is an industry leading flow through agreement. Below, we have supplied a bullet point discuss on the TA.
Pilots who have not yet reached ATP minimum flight time can still apply and be considered for an interview. Selected pilots will be placed into new hire training once they meet ATP minimums and complete the ATP written exam. Don’t hesitate to apply and get to ball rolling towards a career with American Eagle.
To apply with American Eagle Airlines, complete an application at Airline Applications. Make sure you target American Eagle and complete the AE addendum section. We have also added a recommendation link in the American Eagle addendum section. You can now add recommendations directly to your AirlineApps profile. We look forward to hearing from you!
American Eagle - Careers :: Pilots
Bullet Point Discussion:
• Guaranteed fleet commitment
o Minimum of 170 aircraft commitment for each of the next 10 years
o Expectations to grow significantly beyond that number throughout this period
o This is far better than anything of its kind in the regional industry, and obviously offers substantially increased job security and stability for all of our pilots and your families
• Guaranteed new, large aircraft
o Minimum of 60 new E175s, with deliveries starting later this year
o Options for 90 more E175s
o This also is far better than anything of its kind in our industry, offering you a guaranteed opportunity to more higher-paying aircraft and career progression opportunities
• Guaranteed enhanced flow-through to largest airline in the world
o Each month that American hires pilots, all of those hires up to at least the 30th hire will be Eagle flow-through pilots
o Beyond those up to 30 initial Eagle flow-through hires in any given month, a minimum of at least 30 pilots or 50% of American’s additional pilot hires that month will be Eagle flow-through pilots
o Eagle flow-through pilots will be automatically hired and our pilots will not undergo a pre-hire screening at American
o Written promise of Eagle to cut block hours if needed to meet the Company’s flow-through requirements
o Preferential pilot hiring opportunities at legacy US Airways, pending the single carrier determination (and the hires at US will not reduce American’s flow-through hiring requirements described above)
o Again, all of this is far better than anything of its kind in our industry – indeed, independent regionals such as Republic cannot even pretend to offer anything comparable
• Competitive pay rates , with no reduction in any pilot’s current pay rate
o Signing bonus for all pilots
• Re-Opener Opportunities
o Opportunity in March 2019 for parties to review and negotiate changes regarding up to five (5) quality of life issues
o Provision for binding interest arbitration
o Reopener of the entire contract starting one year prior to the amendable date
• Long-term stability for our Company as a regional airline
o “No Furlough� protection. This is a tremendous plus for all of us, in an industry that has been continuing to undergo dramatic changes -- with a potential for more changes on the horizon
• Added job security
o The added job security that comes from our long-term stability will benefit our pilots and all of our employees -- including those pilots who choose not to flow through
3/21/2014
Pilot Candidate
Dear XXXXXX,
American Eagle Airlines and its pilots, represented by the Air Line Pilots Association, have reached a Tentative Agreement (TA) for the Pilots to vote on for ratification. This TA will offer increased flow to American Airlines for current American Eagle pilots. It will also offer flow through to future new hire pilots. This is an industry leading flow through agreement. Below, we have supplied a bullet point discuss on the TA.
Pilots who have not yet reached ATP minimum flight time can still apply and be considered for an interview. Selected pilots will be placed into new hire training once they meet ATP minimums and complete the ATP written exam. Don’t hesitate to apply and get to ball rolling towards a career with American Eagle.
To apply with American Eagle Airlines, complete an application at Airline Applications. Make sure you target American Eagle and complete the AE addendum section. We have also added a recommendation link in the American Eagle addendum section. You can now add recommendations directly to your AirlineApps profile. We look forward to hearing from you!
American Eagle - Careers :: Pilots
Bullet Point Discussion:
• Guaranteed fleet commitment
o Minimum of 170 aircraft commitment for each of the next 10 years
o Expectations to grow significantly beyond that number throughout this period
o This is far better than anything of its kind in the regional industry, and obviously offers substantially increased job security and stability for all of our pilots and your families
• Guaranteed new, large aircraft
o Minimum of 60 new E175s, with deliveries starting later this year
o Options for 90 more E175s
o This also is far better than anything of its kind in our industry, offering you a guaranteed opportunity to more higher-paying aircraft and career progression opportunities
• Guaranteed enhanced flow-through to largest airline in the world
o Each month that American hires pilots, all of those hires up to at least the 30th hire will be Eagle flow-through pilots
o Beyond those up to 30 initial Eagle flow-through hires in any given month, a minimum of at least 30 pilots or 50% of American’s additional pilot hires that month will be Eagle flow-through pilots
o Eagle flow-through pilots will be automatically hired and our pilots will not undergo a pre-hire screening at American
o Written promise of Eagle to cut block hours if needed to meet the Company’s flow-through requirements
o Preferential pilot hiring opportunities at legacy US Airways, pending the single carrier determination (and the hires at US will not reduce American’s flow-through hiring requirements described above)
o Again, all of this is far better than anything of its kind in our industry – indeed, independent regionals such as Republic cannot even pretend to offer anything comparable
• Competitive pay rates , with no reduction in any pilot’s current pay rate
o Signing bonus for all pilots
• Re-Opener Opportunities
o Opportunity in March 2019 for parties to review and negotiate changes regarding up to five (5) quality of life issues
o Provision for binding interest arbitration
o Reopener of the entire contract starting one year prior to the amendable date
• Long-term stability for our Company as a regional airline
o “No Furlough� protection. This is a tremendous plus for all of us, in an industry that has been continuing to undergo dramatic changes -- with a potential for more changes on the horizon
• Added job security
o The added job security that comes from our long-term stability will benefit our pilots and all of our employees -- including those pilots who choose not to flow through
03-26-2014, 01:31 PM
#7
Line Holder
Joined APC: Jan 2014
Posts: 77
Originally Posted by Bzzt
The deal isn't going to pass, I'm surprised they're sending that out.
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