Term sheet needed for APA-US Airways...
 

tentative agreement...Please upload.

We all know it's tentative, and we might still hear from DAL, UAL and/or others.

But for now, this is it...

USAPA has an "informational conference call" on Sat. morning at 10AM. We could get some details from that meeting...but hopefully we'll have something to sink our teeth into before then.

Our new union President, Capt. Hummel, may just coming out smelling like a...huh...rose ;)

RUMOR only: Got this info...again...not official:

US Air offer:


DAL + 3% DOS (Date of Signing)
2 Years completed....DAL equal (Delta pilots in negotiations now)
5 Years completed...DAL/UAL average
10% B fund
4% 401K
A fund frozen
7 year fence
Scope: for every 2, 88 seaters, 1 mainline jet
E190 = Jetblue rates
A319 now MD80/737 bucket

Uh oh.... so with 1000 mainline jets, does that mean 500 88 seaters?

And please don't put out the new seniority list on APC just yet, because of privacy concerns. Thanks.

Got this from a AA friend. Sorry for the formatting.
>
>
>
> Fellow pilots,
> It was announced this morning that the three unions at American Airlines—Allied Pilots Association, Transport Workers Union and Association of Professional Flight Attendants, representing a total of 55,000 front-line employees—have agreed to support US Airways’ bid for a merger between American Airlines and US Airways. This endeavor has been underway for many months and your APA leadership has been in direct discussions with the senior leadership at US Airways since early March. In this letter, I want to explain why APA decided to support a merger, how the process came about, what the new American Airlines would look like, and provide a brief overview of what APA has already negotiated as the framework of a new collective bargaining agreement.
>
> AMR’s Business Plan
>
> The APA leadership does not believe that AMR’s business plan will produce an airline that is viable long term. I’ll just summarize with this: while AMR’s network and route structure have withered during the past decade, those at United and Delta have grown larger and stronger, resulting in the steady defection of American Airlines’ corporate accounts and vital high-value customers. A big component of AMR’s plan for restructuring is to force massive concessions on unionized employees to reduce them to below-market compensation. Another primary element is to rework the “Cornerstone” plan to try to bring in additional revenue by down-gauging AMR’s fleet and through dramatically expanded domestic code sharing. Combined with the substantially increased productivity management seeks and the large-scale outsourcing of pilot jobs that management envisions, the result would be a major loss of pilot jobs at American Airlines. The effects would be catastrophic, including further stagnation for a pilot group that has already suffered from the industry’s longest time to upgrade to captain.
>
> Our Futures
>
> Management has told us that we should be excited because AMR has ordered new aircraft and has options to purchase more. New aircraft orders — which primarily will go toward replacing our fuel-guzzling S80 fleet — do not constitute job security for our pilots. Most of the Wall Street analysts view American Airlines management’s efforts to achieve network parity with Delta and United as “too little, too late.” The same analysts also believe any such effort would probably destabilize an industry that has finally gained some meaningful degree of pricing power. We also need to be mindful of the fact that management intends to impose regional airline pay rates on large numbers of new Airbus aircraft—not an especially appealing prospect. So exactly how do pilots benefit from being displaced into much lower-paying equipment?
>
> Management’s Vision for a New Pilot Contract
>
> Based on management’s actions to date, their vision—quite simply—consists of rejecting our contract entirely. They are on the Harvey Miller high-speed train to terminate our contract in bankruptcy court (Miller was Frank Lorenzo’s lawyer at Continental and Eastern. He is now AMR’s lead restructuring attorney). Management has made no moves at the table that suggest any interest in trying to arrive at a consensual agreement. While APA has taken the high road and made every effort to negotiate in good faith, management has shown beyond a shadow of a doubt they’re not interested in reciprocating.
>
> The New American Airlines
>
> First and foremost, the combined carrier will be branded American Airlines, based in Fort Worth Texas and headquartered at CentrePort. It will be comparable in size and scope to Delta and United, with a robust domestic network capable of supporting significant international expansion. American Airlines’ relationship with oneworld will be maintained and strengthened. All of American Airlines’ aircraft orders with Boeing and Airbus will proceed. The former US Airways route system will be realigned with the American Airlines system to add more cities, more markets and better frequencies. The new American Airlines, under a lean, energetic and highly capable management team, will be able to compete on an equal footing to win back high-value customers. On the East Coast, which is the largest and most lucrative airline market in the world, American Airlines will go from No. 5 to a strong No. 1. In the Midwest, we will go from No. 4 to No. 1. In Miami, our dominance to South America will be enhanced by stronger East Coast traffic flows. For the first time in years, American Airlines will be in a position of strength in Chicago.
>
> How Did We Get Here?
>
> As your APA leadership has been emphasizing for some time, we are committed to evaluating all available alternatives to AMR management’s restructuring plan in an effort to provide a better outcome for our pilots. US Airways’ senior management has made no secret of their desire to further the process of industry consolidation by joining with American Airlines. For many months, a team from US Airways has been making presentations to various Wall Street analysts and investors, including one of APA’s advisers. After being briefed on the substance of the US Airways presentation, I initiated a dialogue with that airline’s leadership, which resulted in a series of meetings beginning last month. Their vision was compelling. Shortly thereafter, the APA Board of Directors was briefed and they gave a “thumbs up” to continue exploring a potential merger.
>
> The Negotiations
>
> When it started becoming clear that a merger with US Airways was a superior alternative to AMR’s stand-alone plan—and with the support from the APA Board of Directors—we assembled a team to begin substantive discussions with the senior leadership at US Airways. Accompanying me to Phoenix for those discussions were members of the APA Negotiating, Scope, Industry Analysis, Technical Analysis and Contingency Committees, as well APA’s General Counsel, bankruptcy counsel and a delegation from investment adviser Lazard. At this point, US Airways began discussions with the leadership at APFA and TWU, which had begun to evaluate this alternative course of action.
>
> Working with US Airways, APA was able to achieve in just over a week far more than we had been able to achieve in more than five years of trying to bargain with AMR management. Our interaction with US Airways was in stark contrast to what we have been experiencing with AMR. We dealt directly with the people whose jobs are to run an airline. Many of the talks consisted of president-to-president interaction. In accordance with the APA Constitution and Bylaws, there were always two members of the APA Negotiating Committee present during these negotiations. Completely absent from the discussion were the posturing and game-playing that characterizes the approach AMR management takes when dealing with us.
>
> Returning from Phoenix, we had accomplished a great deal toward constructing a framework for an agreement, but we still had several important unresolved issues to address. We convened a special APA Board of Directors meeting and the Board remained in session as the unresolved issues were negotiated. The APA Board of Directors then spent several days carefully studying and evaluating the plan of reorganization agreement. Upon the closeout of the last remaining issues, the APA Board of Directors voted unanimously to support the framework for a new CBA.
>
> A New Collective Bargaining Agreement for the Pilots of American Airlines
>
> APA has agreed with US Airways on a framework for a new collective bargaining agreement. Our agreement will be distilled into final contract language during the next 60 days and will be sent out for a membership ratification vote as specified in APA’s Constitution and Bylaws. Details on the specifics of the new CBA will be provided in a separate, upcoming communication from the APA Negotiating Committee. Please click here to access our special AA-US Airways merger page on the members’ side of alliedpilots.org. This page will be updated regularly as additional information becomes available.
>
> A Good Day for APA
>
> I would like to extend my personal thanks to the many APA officials and committee members who worked tirelessly to conclude this agreement. This includes my fellow National Officers, the APA Negotiating Committee, Scope Committee, Industry Analysis Committee, Pension Committee, APA Contingency Committee, Technical Analysis Committee, and last but certainly not least, the entire APA Board of Directors. All of these individuals have put in countless hours on behalf of their fellow pilots.
>
> Still a Long Road Ahead
>
> This merger, along with a new CBA and a much brighter future for American Airlines, is still far from certain. Chapter 11 restructuring is a difficult, complex process for all concerned.
> I urge all pilots to stay informed and involved. We will keep you updated as events warrant.
>
> In unity,
> Captain Dave Bates
> APA President

What the APA President describes above negotiating with American management, decribes USAPA's frustration negotiating with Parker et Co....they must have gone to the same school ;)

Good job, APA!

Heres what the FAs got.... anyone have somehing similiar for the pilots?

US Airways Q&A
This is APFA President Laura Glading with a Special Hotline Update for Friday morning, April 20, 2012.


The purpose of this address is to provide our members with the most critical facts. As you know, American Airlines management has made several excessive demands of our contract since filing for bankruptcy protection last November. Not only were their demands unreasonable, but their business plan was uninspired and not viable. My fellow union leaders and I had no choice but to evaluate alternatives.

Along with my counterparts at APA and TWU, I was approached by members of the US Airways’ management team who were interested in discussing a potential merger. Each of us – individually – came to the conclusion that a merger would be the best plan for our membership and the most successful option for the reorganization of our Company. In the days that followed APFA leadership, supported by our team of professionals, met with representatives from US Airways to hash out the details of how a merger would affect our flight attendants.

This agreement puts flight attendants in a far better position than any proposal American Airlines management has made. Equally important - is the business plan US Airways has put forward, which I strongly believe will bring American Airlines back to profitability and competitiveness. A combined US Airways and American Airlines will eliminate the competitive advantage of Delta and United and making us relatively competitive in both size and network.

After careful consideration, the APFA Board of Directors voted unanimously to sign an agreement in principle with US Airways, knowing that it was in the best interest of the membership.

Of course, this plan is not a perfect solution and we expect there to be bumps in the road, but I am confident that it is the best and most viable option available to us. More information can be found below and we will continue to update as material becomes available. Please check back frequently for the best and most accurate information.


Joint Union Press Release Regarding US Airways


Bridge Term Sheet Highlights

Early Out APFA's proposal accepted
No Furloughs
Wage Increases: 2.5% on effective date. 1.5% annually over next 5 years.
Retirement: Pension plan frozen. Replaced with a 401(k) contribution.
Current employees will receive automatic 401(k) contributions for 5 years, with no match requirement. Contribution levels as follows:
9.9% age 50 +
6.75% age 40 – 50
5.5% age 39 – below
At the conclusion of the 5 year period, all FAs would receive a 3% contribution with up to a 5.5% match.
Active Health Benefits: Better than AA’s proposed plan
Retiree Health Benefits: Implementation of Voluntary Employee Beneficiary Association (VEBA).
Bidding: Preferential Bidding System (PBS) with our input
Reserve:
Incorporate earlier Reserve assignment notification
Add AM/PM Ready Reserve shifts.
Allow Reserve pick-up on days off to be paid on top of guarantee.
Current reserve rotation will be maintained.
Sequence Pay Protection: APFA proposal
Schedule Maximum:
Minimum of seventy (70) credit hours and a maximum of ninety (90) credit hours per bid period.
Flex in the maximum line value by an annual amount of twenty (20) hours, but in no case more than five (5) hours during any given month.
Incentive Pay/Per Diem: Incentive pay eliminated. Per diem rates increased to:
Domestic: $2.00
International: $2.20
International Override:
$3.00 per hour for each international leg. Override for deadhead, trip and duty rigs and trips “not flown” consistent with CBA
Combined Domestic & International Operation
Current Duty Rigs Preserved
Expedited Negotiations for New Contract: Negotiations for a market based contract will take place immediately following a single-carrier certification. If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration.
Maintain all other provisions in our current Contract including:
Vacation accrual and pay
Current PVDs
Sick hour use and current sick policy
Current Hotel language
ATC/ Code 59
Galley pay

They all went to the same school Frank Lorenzo and Leo Mullen went to; Haahhvud.

Not going to happen.

What's not going to happen? If you mean "Parker honor any commitment", I think you're correct.

Why would APA just roll over on scope like that?

I sure hope they don't allow Pandora's box to open. 88 seaters would be a disaster for our careers. Each contract management get bigger jets at regionals. It's rediculous to even entertain such a proposal.

Probably best not to use these words when discussing merger terms with the East pilots of US Airways and the association leadership at USAPA.

They still have difficulty understanding what "final binding arbitration" means in creating the SLI from the previous merger.

I'm fairly certain CRJ900's configured to 90 seats are already allowed under UsAir scope. 93 CRJ900's to be exact.

As an aside, are we still ALPA? ;)

US Airways scope currently allows
175 aircraft in 50 seats or less,
212 aircraft with 51 - 70 seats,
153 aircraft with greater than 71 seats.
US Airways can have 540 regional aircraft and American has 255 aircraft (included are AE and Connection). There are already 795 aircraft allowed.
If Parker exercises the options of AA, there are over 460 new aircraft coming from the AA side not counting the 787 and 777 still on order.

Here is the latest: (more should be known Sat. 21, USAPA has a conf call at 10am, more details should be out at that time).

(This is still not official):

Notes from APA meeting:

1. Deal should be finished by end of summer
2. Expedited arbitration for seniority (DAL/NWA percentile)
3. Medical costs go from 14% to 17%
4. 787 orders will remain
5. 319 orders to be converted to 320/321
6. Keep current duty rigs
7. A Plan frozen. B Plan will be 14% to 401K
8. Stay with One World. Leave Star Alliance
9. Name remains AA
10. HQ is DFW not PHX
11. Pay is 5% raise on date of signing. 3% from 2 to 6 years, than average of
UAL/DAL 319 pay rates.
12. Vacation to 3+40 per day
13. East Pilots will eventually get between 25% to 30% pay raise, but no timeline given
14. Get rid of 50 seat aircraft.
15. Scope is reduced
16. Keep AA's Boeing/Airbus order. No word on A350 or US Airways orders

USA currently has 86 seats on some of the RJs

But those are flown by mainline, correct?

no just E190

Reduced as in more large "RJ's" or less large RJ's?

What they say they'll do before the fact will most certainly have no resemblance to what they'll say they have to do to make it fly after the fact. Put another way: watch your six for the bait and switch.

TW

Better formatting-

From the APA President to AA Pilots:

Fellow pilots,

It was announced this morning that the three unions at American Airlines—Allied Pilots Association, Transport Workers Union and Association of Professional Flight Attendants, representing a total of 55,000 front-line employees—have agreed to support US Airways’ bid for a merger between American Airlines and US Airways. This endeavor has been underway for many months and your APA leadership has been in direct discussions with the senior leadership at US Airways since early March. In this letter, I want to explain why APA decided to support a merger, how the process came about, what the new American Airlines would look like, and provide a brief overview of what APA has already negotiated as the framework of a new collective bargaining agreement.

AMR’s Business Plan

The APA leadership does not believe that AMR’s business plan will produce an airline that is viable long term. I’ll just summarize with this: while AMR’s network and route structure have withered during the past decade, those at United and Delta have grown larger and stronger, resulting in the steady defection of American Airlines’ corporate accounts and vital high-value customers. A big component of AMR’s plan for restructuring is to force massive concessions on unionized employees to reduce them to below-market compensation. Another primary element is to rework the “Cornerstone” plan to try to bring in additional revenue by down-gauging AMR’s fleet and through dramatically expanded domestic code sharing. Combined with the substantially increased productivity management seeks and the large-scale outsourcing of pilot jobs that management envisions, the result would be a major loss of pilot jobs at American Airlines. The effects would be catastrophic, including further stagnation for a pilot group that has already suffered from the industry’s longest time to upgrade to captain.

Our Futures

Management has told us that we should be excited because AMR has ordered new aircraft and has options to purchase more. New aircraft orders — which primarily will go toward replacing our fuel-guzzling S80 fleet — do not constitute job security for our pilots. Most of the Wall Street analysts view American Airlines management’s efforts to achieve network parity with Delta and United as “too little, too late.” The same analysts also believe any such effort would probably destabilize an industry that has finally gained some meaningful degree of pricing power. We also need to be mindful of the fact that management intends to impose regional airline pay rates on large numbers of new Airbus aircraft—not an especially appealing prospect. So exactly how do pilots benefit from being displaced into much lower-paying equipment?

Management’s Vision for a New Pilot Contract

Based on management’s actions to date, their vision—quite simply—consists of rejecting our contract entirely. They are on the Harvey Miller high-speed train to terminate our contract in bankruptcy court (Miller was Frank Lorenzo’s lawyer at Continental and Eastern. He is now AMR’s lead restructuring attorney). Management has made no moves at the table that suggest any interest in trying to arrive at a consensual agreement. While APA has taken the high road and made every effort to negotiate in good faith, management has shown beyond a shadow of a doubt they’re not interested in reciprocating.

The New American Airlines

First and foremost, the combined carrier will be branded American Airlines, based in Fort Worth Texas and headquartered at CentrePort. It will be comparable in size and scope to Delta and United, with a robust domestic network capable of supporting significant international expansion. American Airlines’ relationship with oneworld will be maintained and strengthened. All of American Airlines’ aircraft orders with Boeing and Airbus will proceed. The former US Airways route system will be realigned with the American Airlines system to add more cities, more markets and better frequencies. The new American Airlines, under a lean, energetic and highly capable management team, will be able to compete on an equal footing to win back high-value customers. On the East Coast, which is the largest and most lucrative airline market in the world, American Airlines will go from No. 5 to a strong No. 1. In the Midwest, we will go from No. 4 to No. 1. In Miami, our dominance to South America will be enhanced by stronger East Coast traffic flows. For the first time in years, American Airlines will be in a position of strength in Chicago.

How Did We Get Here?

As your APA leadership has been emphasizing for some time, we are committed to evaluating all available alternatives to AMR management’s restructuring plan in an effort to provide a better outcome for our pilots. US Airways’ senior management has made no secret of their desire to further the process of industry consolidation by joining with American Airlines. For many months, a team from US Airways has been making presentations to various Wall Street analysts and investors, including one of APA’s advisers. After being briefed on the substance of the US Airways presentation, I initiated a dialogue with that airline’s leadership, which resulted in a series of meetings beginning last month. Their vision was compelling. Shortly thereafter, the APA Board of Directors was briefed and they gave a “thumbs up” to continue exploring a potential merger.

The Negotiations

When it started becoming clear that a merger with US Airways was a superior alternative to AMR’s stand-alone plan—and with the support from the APA Board of Directors—we assembled a team to begin substantive discussions with the senior leadership at US Airways. Accompanying me to Phoenix for those discussions were members of the APA Negotiating, Scope, Industry Analysis, Technical Analysis and Contingency Committees, as well APA’s General Counsel, bankruptcy counsel and a delegation from investment adviser Lazard. At this point, US Airways began discussions with the leadership at APFA and TWU, which had begun to evaluate this alternative course of action.

Working with US Airways, APA was able to achieve in just over a week far more than we had been able to achieve in more than five years of trying to bargain with AMR management. Our interaction with US Airways was in stark contrast to what we have been experiencing with AMR. We dealt directly with the people whose jobs are to run an airline. Many of the talks consisted of president-to-president interaction. In accordance with the APA Constitution and Bylaws, there were always two members of the APA Negotiating Committee present during these negotiations. Completely absent from the discussion were the posturing and game-playing that characterizes the approach AMR management takes when dealing with us.

Returning from Phoenix, we had accomplished a great deal toward constructing a framework for an agreement, but we still had several important unresolved issues to address. We convened a special APA Board of Directors meeting and the Board remained in session as the unresolved issues were negotiated. The APA Board of Directors then spent several days carefully studying and evaluating the plan of reorganization agreement. Upon the closeout of the last remaining issues, the APA Board of Directors voted unanimously to support the framework for a new CBA.

A New Collective Bargaining Agreement for the Pilots of American Airlines

APA has agreed with US Airways on a framework for a new collective bargaining agreement. Our agreement will be distilled into final contract language during the next 60 days and will be sent out for a membership ratification vote as specified in APA’s Constitution and Bylaws. Details on the specifics of the new CBA will be provided in a separate, upcoming communication from the APA Negotiating Committee. Please click here to access our special AA-US Airways merger page on the members’ side of alliedpilots.org. This page will be updated regularly as additional information becomes available.

A Good Day for APA

I would like to extend my personal thanks to the many APA officials and committee members who worked tirelessly to conclude this agreement. This includes my fellow National Officers, the APA Negotiating Committee, Scope Committee, Industry Analysis Committee, Pension Committee, APA Contingency Committee, Technical Analysis Committee, and last but certainly not least, the entire APA Board of Directors. All of these individuals have put in countless hours on behalf of their fellow pilots.

Still a Long Road Ahead

This merger, along with a new CBA and a much brighter future for American Airlines, is still far from certain. Chapter 11 restructuring is a difficult, complex process for all concerned.
I urge all pilots to stay informed and involved. We will keep you updated as events warrant.

In unity,
Captain Dave Bates
APA President

I would think since there is talk of comparing to Delta, Delta management would want to get our agreement public asap which could bump "The New American" rates higher? That's assuming we have rates worth talking about.

Sorry, so far all we have are rumors. At least no official details. Too bad some APA guys could not put it out, as surely they would have it in their possession by now.

USAPA has a conference call that started at 10am, hopefully sometime this afternoon/evening we'll know some more details.

They are nowhere near the "rate" discussion. It will be the one of the very last things discussed.

Apa has requested we not post anything electronically wrt the US/AA merger term sheet.

Any agreements would have to go to vote by AA pilots. As a side note, AA's aircraft order is CURRENTLY for replacement, but they COULD be used for expansion if they keep the -80's chugging along another 5 years, THEN use the options for replacement. That would allow an order for larger RJ's. Since the E-190 is mainline that would seem to max the regionals to the E-175/CRJ-900. Still, I expect a smaller feeder network, but a larger percentage of these larger RJ's. The 50-seat and under market is questionable and perhaps you might have a small number of turboprops lingering there.

Horton's response will be interesting. Of course some say this has all been planned between them (herding the employees) and that's possible, but the "fight" seems to indicate Horton has been bushwacked.........well, actually he bushwacked himself. At any rate, the dogfight has begun between ole "steel spine" and Sir Rum Bottle. Seems AA employees universally prefer rum over steel. :D

Conf call cancelled, re-scheduled Monday night...

Found this in another thread:

Subject: Notes from APA Meeting

Name stays AA
HQ in DFW
US comes to Oneworld (hurts UAL)
Pay banding
Starting point is current green book.
5.5% raise on date of signing
3% / yrs 2-6, then avg of UAL/DAL
A319 no longer a sep payband
Vac goes to 3+40/day. Better accrual
Hard freeze & 14% DC Plan
PBS. US West pilots love it. Well managed. Lines 83. P/u to 90. Keep current rigs.
Scope committee is "giddy" with what is offered. Parker doesn't understand code share. He wants the revenue. Max Dom code share = 4% of total asm's.
Keeping AA's Boeing/Bus order. Very excited to get 787.
Unsure about AE. Parker wants to see books then decide. Hates 50 seaters. Prob convert most 319 orders to 320/321's.
Med costs will go from 14% to 17% (I think 1113 had it going to 26%.
Not a sure thing, but APA seems quite confident. No timeline given, more than 2 mos, possibly by end of summer. Horton is said to be steaming mad.
Seniority may go to expedited arbitration. Expect percentile in type over any DOH (aka DAL/NWA)
US East guys will get about 25-30% raise out of this.

Still at Kinkos gettin' that DOH list all printed out, eh?

Pay is current Delta minus, not DL +3%.

This is usapa at work, the east reps objected to not having a 48 hour notice and forced the cancellation. Just a small taste of what to expect from these buffoons

Come on, enough already. We all know you hate everything east but they are just following their by-laws....you take every opportunity to post negative information about anything the east or usapa does even when its the right thing. You are as much of the problem as usapa....

The majority of the reps wanted to take the call due to the seriousness of the situation. I'm the problem?

From todays cranky flyer article:

If the legacy American pilots can come to an agreement with US Airways so quickly, then the US Airways pilots would probably be insane not to take that same contract.


Good news is that the AA pilots hold all the voting control with a new contract, so we don't have to worry about USAPA screwing it up.

Well now that you put it that way ... .

OK, I seldom post so here goes-

Cactiboss, it really, really looks like you would be delighted with getting hosed in a US/AA integration just so you could cry, "See, I told you USAPA sucks!"

I understand your verbal battering with respect to the US/AW SLI. But seriously, what do you find constructive in what you've posted on this thread/subject thus far?

Now go run and start another "Why USAPA sucks" thread.

Back to the lurk in the murk,
Capt H

Because I know the union officers that were just elected were ready and willing to engage the apa (and management refuses to speak to usapa) and the clt/phl reps blocked it, because these same reps continue a jihad against the west pilots. Judge me all you want, but here is these same rep's latest update:

You tell me what is "constructive" about not engaging apa?