US and AA....What happens next?
#21
Gets Weekends Off
Joined: Nov 2011
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From: A320 Capt
Yeah, there is more. Over 2 years ago the 9th circuit appeals court ruled that the Addington case was not ripe. Shortly after US Airways filed a DJ because they saw the great delay the Addington caused in getting a joint contract and here we are.
#22
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Nope nothing else. In 2007 a contract was being finished when the usair pilots kicked alpa out and decided to reopen 27 closed contract sections, as of today I think the east pilot controlled union has closed 3 sections, been convicted of dfr, convicted of an illegal job action and indefinatelly parked by the NMB. Parker only took advantage of what the east pilots did.
#23
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Joined: Nov 2011
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From: A320 Capt
Nope nothing else. In 2007 a contract was being finished she the usair pilots kicked alpa out and decided to reopen 27 closed contract sections, as of today I think the east pilot controlled union has closed 3 sections, been convicted of dfr, convicted of an illegal job action and indefinatelly parked by the NMB. Parker only took advantage of what the east pilots did.
#24
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I was at the meeting when it was decided to file early, it was done because the date of when the 6 month dfr clock started could not be 100% determined. Turns out we were right , usapa tried to argue we were past the date and too early at the same time. Guess what? We will never be to late and the 9th was wrong, if they weren't we wouldn't be back in federal court arguing the same case they punted.
#27
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Btw the adding ton caused the delay? Lol you guys are too funny.
#28
Line Holder
Joined: May 2005
Posts: 1,557
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From: B777/CA retired
Without this getting back into an East/West ****ing contest let me just put it in this perspective. UCAL has around 21 percent market share. Delta has around 20 percent. AA has 13 percent, LCC has 7. LCC merges with AA and the new AAways has 20 percent. That is why this looks good on the surface. You all can debate the realitive strengths of the different hubs and the route systems but those are the basic numbers.
Parker told us at AWA in 2004 after we got our contract that he knew management could not expect to subsidize operations through low wages forever. But, locked into a CASM fight with SWA at the time the low wage option was, and still is, the asiest method out there. It is hard to renegotiate leases. It is easy to play off workgroups and contract flying by regionals against each other. Parker looked to the opportunities in 2006 to diversify AWA away from a West centric route system and build more mass to compete. Where he dropped the ball was in allowing the high cost structure of the East to continue and hurt the entire package by weakening the West's ability to compete against SWA. Parker would have been better off to let AAA go away and look to merge with someone else but that is a moot point now. What he has done is make lemonade out of lemons. He has been able to offset the high East costs by building up ancillary revenue. He has cut 50 seat RJs and replaced them with 70 and 90 seaters. He has continued the profitability that AWA had and brought that to the East. That is why the American pilots need to look at this potential deal.
Parker may be a sonofa***** but he makes money for the company. He does business and he is not emotional about it. If it makes sense then he will do it. He turned a turd into a object d' art by putting a lot of polish on it. AA has a lot more going for it than US Airways did. AAA was a regional airline with a 20 widebodies. AA is a proven commodity that has a better route system and brand recognition than the old US Airways. This could be a lot better deal than in 2006 for everyone, especially when you factor in that one side won't be able to weasel out of binding arbitration again.
Parker told us at AWA in 2004 after we got our contract that he knew management could not expect to subsidize operations through low wages forever. But, locked into a CASM fight with SWA at the time the low wage option was, and still is, the asiest method out there. It is hard to renegotiate leases. It is easy to play off workgroups and contract flying by regionals against each other. Parker looked to the opportunities in 2006 to diversify AWA away from a West centric route system and build more mass to compete. Where he dropped the ball was in allowing the high cost structure of the East to continue and hurt the entire package by weakening the West's ability to compete against SWA. Parker would have been better off to let AAA go away and look to merge with someone else but that is a moot point now. What he has done is make lemonade out of lemons. He has been able to offset the high East costs by building up ancillary revenue. He has cut 50 seat RJs and replaced them with 70 and 90 seaters. He has continued the profitability that AWA had and brought that to the East. That is why the American pilots need to look at this potential deal.
Parker may be a sonofa***** but he makes money for the company. He does business and he is not emotional about it. If it makes sense then he will do it. He turned a turd into a object d' art by putting a lot of polish on it. AA has a lot more going for it than US Airways did. AAA was a regional airline with a 20 widebodies. AA is a proven commodity that has a better route system and brand recognition than the old US Airways. This could be a lot better deal than in 2006 for everyone, especially when you factor in that one side won't be able to weasel out of binding arbitration again.
#30
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Agreed cacti. I think Parker sees that AA can not only remove his current obstacles, but give him the material to actually do something. To be brutally honest, I think Horton knows what he can do and will indeed hand him AA, but wants to wait until after C11 exit. If Horton & Co. are stripped and bottle from the AA drivers seat while still in BK, they don't get rich. Additionally, it makes One World CEO positiion (and thus One World) less confidence inspiring.
What now ?
I think AMR will continue with their contract destruction and try and give every impression they are negotiating. Ultimately though to move forward with CBA as opposed to a work order, it would have to be something that the majority of the pilots approve (unless of course, AMR flips and agrees to binding arbitration) and that's going to be a very tall order. Only way I see that happening is a TA that convinces the bottom half of the seniority list there's a point in staying or caring.
As such, inevitably AA may end up having to force their term sheet and lighting the fuse of the unknown. Right now for many the term sheet is the boogyman under the bed and not a real monster that inflicts painful claw marks.
Once the monster becomes a real, breathing and clawing beast, does the entire equation change.
What now ?
I think AMR will continue with their contract destruction and try and give every impression they are negotiating. Ultimately though to move forward with CBA as opposed to a work order, it would have to be something that the majority of the pilots approve (unless of course, AMR flips and agrees to binding arbitration) and that's going to be a very tall order. Only way I see that happening is a TA that convinces the bottom half of the seniority list there's a point in staying or caring.
As such, inevitably AA may end up having to force their term sheet and lighting the fuse of the unknown. Right now for many the term sheet is the boogyman under the bed and not a real monster that inflicts painful claw marks.
Once the monster becomes a real, breathing and clawing beast, does the entire equation change.


You should see our lives. Groundhog day.............
