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Pressure mounting at APA

Old 10-15-2005, 09:26 AM
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Default Pressure mounting at APA

A Message From The Majority of APA's Board of Directors


October 14, 2005

Fellow Pilots,

Since 2001, our industry and our company have been subjected to unprecedented economic pressures and changes. The majority of American Airlines pilots understand the problems in our industry, the challenges on the AA property, and the need to be proactive rather than reactive to the challenges ahead. The majority of your APA leadership also recognizes the need to be proactive while trying to preserve the pay and working conditions of our pilots. We do not want to go down the path of DAL, NWA, UAL, US Airways/America West or others.

We believe:
1. Bankruptcy is the worst outcome for our pilots and their families.
2. Avoiding bankruptcy remains the priority.
3. Stagnation or further shrinkage of our airline is not an acceptable path for our career expectations.
4. A growing airline is the only outcome that will ensure our future and address the membership’s best interests.

History shows airlines that come out of bankruptcy are smaller and offer reduced pay and quality of life for their labor groups. Even Continental Airlines has taken decades to recover, both as a company and as a pilot group.

The current economic situation is very similar to the time leading up to March 2003. The choices we made in early 2003 have us in the enviable position of still controlling our destiny. Unlike many of your peers working at carriers that are in Chapter 11, we still have the ability to explore options and come to consensus, but only if we are proactive and take advantage of the time available. Time is not a luxury that we can afford to waste. This is the beginning of a process that we believe must be prudently started to take maximum advantage of the time we have available. Anything done will be with your knowledge and your approval, as the membership must be a part of the process.

Unfortunately, there is currently a minority on the APA BOD that wants to maintain “Full pay to the last day.” You have heard this before. And while they may have a different slogan, “Maintain the status quo as long as possible,” the effect is the same—run out the timeline until we are once again facing a crisis. They claim bankruptcy is the farthest thing from their minds and if and when they determine some relief is necessary to ensure our Company’s future survival, they will be there. Yet they offer no alternatives or solutions. Their plan is to “hope” that things will turn around but history has shown that “hope” is not a valid business plan.

Make no mistake: there were attempts by a group of APA Board members, some who are still on the APA Board, to push this corporation into bankruptcy in 2003. There was an attempt to filibuster a vote to prevent a tentative agreement from being sent to you. That attempt failed. That same group was instrumental in initiating a lawsuit in Fort Worth designed to prevent you from voting on the 2003 package. As the judge acknowledged, had the plaintiffs been successful, the only outcome would have been to force American Airlines into Chapter 11.

If we must restructure again, we believe that everyone at our airline should participate. We believe that the industry demonstrates to us the pilot focus should be on productivity. The majority of your APA leadership does not want you to be forced into another diminished paycheck. W-2 protection is of paramount importance!

Here are some of our starting principals:
1. W-2 protection.
2. An upside payback or a profit-sharing program mirroring Southwest’s program.
3. Metered productivity increases tied to retirement attrition or AA expansion.
4. NO additional furloughs.
5. NO reduction in rates of pay.
6. Furlough recalls—only expansion from a healthy, growing airline will accomplish that consistently.
7. More flexibility for our pilots

One thing we do know is that a Chapter 11 filing will ultimately continue to shrink this airline and add more pilots to our list of furloughees. The only way to bring back pilots in appreciable numbers is with a profitable airline. When you examine successful carriers such as Southwest, the obvious difference in our contracts is that the Southwest contract provides flexibilities and incentives for their pilots to increase productivity—and therefore their W-2. That is one reason they are growing and hiring. Our contract, in contrast, prevents you from maximizing your income while decreasing your flexibility and productivity.

Because of the near-term uncertainty facing our pilots—including pending pension legislation—there is a possibility some pilots may take early retirement, which could require a small recall next year to cover short-term shortages. A recall under this scenario would be short-lived and reversed if we are unable to fix the factory, which cannot be done with our current contract in today’s challenging environment.
We believe that American Airlines can be a competitive airline in today’s environment and that a proactive role on our part will be in our long-term best interest. W-2 improvements and protections, increased flexibility, expansion, growth, and return of our furloughed pilots are goals that we believe are attainable if we choose to get involved and take advantage of the time available to us, rather than folding our arms and hoping for the good old days to return.

Soon, you will be receiving a copy of two studies: 1) a study commissioned by APA on the state of AMR by Airline Capitol Associates, and 2) the Performance Leadership Initiative. The Performance Leadership Initiative, also referred to as the Bain report, is a study of our airline that all three unions and management agreed to undertake. The Performance Leadership Initiative will show, contrary to some current claims, that we are far from the most productive pilot group. This is hurting every American Airlines pilot and placing our most junior pilots at great risk. We can either acknowledge the need to take action in a timely fashion, or continue to be the incredible shrinking airline.

Sincerely,

Captain James Sovich,Boston Domicile Chairman

Captain Robert Garrett,Boston Domicile Vice Chairman

Captain Ronald Hunt,Chicago Domicile Chairman

First Officer James Condes,Chicago Domicile Vice Chairman

Captain Jim Philpot, DFW Domicile Chairman

First Officer Michael Mellerski,DFW Domicile Vice Chairman

First Officer Mike Karn,Los Angeles Domicile Chairman

Captain Douglas Gabel,St. Louis Domicile Chairman

First Officer Steven Parrella,St. Louis Domicile Vice Chairman

Captain Mark Epperson,San Francisco Domicile Chairman

Captain Gary Boettcher,Washington, D.C. Domicile Chairman

Captain Keith Wilson,Washington, D.C. Domicile Vice Chairman
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Old 10-16-2005, 07:43 AM
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The Only Way To Survive Is To Do It The Southwest Way. They Have A Proven Track Record Of Success. You Must Change Your Whole Way Of Thinking.
 
Old 10-18-2005, 10:55 AM
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"Full Pay to the Last Day"? What a joke; these guys are not only ignorant of the perils of Chapter 11, but unrealistic as well. I guess every pilot group has it's militant, hard-liners that want to wreak havoc.
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Old 10-18-2005, 11:57 AM
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Originally Posted by UPS CPT
The Only Way To Survive Is To Do It The Southwest Way. They Have A Proven Track Record Of Success. You Must Change Your Whole Way Of Thinking.
Sounds so easy, but good management is what is at the heart of SWA's sucess.

Management sets the tone - there is where SWA's success lies.

Art
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Old 10-18-2005, 03:11 PM
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While I applaud the nice words about SWA's system (I should, I work there) what's best for SWA isn't necessarily best for AA. As much as managment wants to portray us as bitter rivals, the fact is that we have two entirely different products. We're simply a one-aircraft-type domestic shuttle. We don't want to see 737s at the top of the airline pay scale any more than you do. You deserve the higher pay associated with wide bodies, international flying, etc.

Good luck with the contract tweaking!

-- C
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Old 10-21-2005, 09:37 AM
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Management Sets The Tone, True. Even Though I Am A Line Pilot At Ups, I Trust Our Management To Set The Correct Tone. I Would Rather Be Secure Than Sorry. Our Management Team Does An Excellent Job. Obviously, I Cannot Say This Publicly, Because I Would Be Crucified By The "intimidators" At Our "bar And Grill"; But It Is True

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Old 10-21-2005, 12:05 PM
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ok i'll crucify you here!
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Old 10-21-2005, 12:09 PM
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Originally Posted by UPS CPT
Management Sets The Tone, True. Even Though I Am A Line Pilot At Ups, I Trust Our Management To Set The Correct Tone. I Would Rather Be Secure Than Sorry. Our Management Team Does An Excellent Job. Obviously, I Cannot Say This Publicly, Because I Would Be Crucified By The "intimidators" At Our "bar And Grill"; But It Is True

Ups Cpt

They do an excellent job at keeping the billions in profits to themselves.
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