I interpret it as Delta payrates plus 3% added for the merged airlines payrates.

And USAPA's response:

(sounds like someone has been left in the dark)


Fellow Pilots,

This morning the Allied Pilots Association, the Association of Professional Flight Attendants, and the Transport Workers issued the following joint statement:


On behalf of nearly 55,000 American Airlines employees, including the 26,000 member Transport Workers Union (TWU), the 17,000 member Association of Professional Flight Attendants (APFA) and the 10,000 member Allied Pilots Association (APA), we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on term sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways.

This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy -- and fastest option -- to complete the restructuring of American Airlines, which will allow it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry.

As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the Company's standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. The contemplated merger would also offer improved job security with a commitment to no furloughs for any currently active pilots or flight attendants. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines' and US Airways' employees that are far superior to those available to employees at either airline on a standalone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly.

A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices.

In preparation for this much expected event, we have recently added committee members to the Merger Committee who are making the necessary preparations and analysis. In addition, we have made preliminary inquiries with several attorneys, including the Teamsters, as we explore a replacement for our professional negotiator.

Pursuant to discussions with Allied Pilots Association President David Bates, an invitation has been extended to have his Negotiating Chairman participate in an informational conference call with our BPR on Saturday morning at 10:00 a.m. Rest assured that your BPR and Officers will be keeping you informed as developments occur.


Respectfully,


Gary Hummel - President Rob Streble - Secretary-Treasurer

It means Bombardier stock will go ballistic. Current US Air fleet about 340. Delta Connection has about 613 jets in operation. Some will enjoy Delta pay +3% but I'm not too sure what that means during a displacement or furlough.

Watch your scope very carefully.

When you act like children is should be no surprise when you eat your holiday meal at the kid's table and you're not part of what's going on over at the adult table....

I do not know whose workrules will be used. I expect that that is all part of the framework that Bates was referring to. The West contract has very good workrules, superior in a couple of ways to AA. I do know that this deal will not go down if there is not a productivity boost on the part of the AA contract. LOA 93, which is the East contract has nothing of value in it to use as a basis for a joint contract.

I expect to see this go down similarly to the Delta merger. The AA pilots will get a new contract soon with whatever pay rates and productivity issues that have been agreed to with Parker. Then the LCC pilots will be given a take it or leave it deal on signing the contract. As long as the SLI process is done under binding arbitration there will be 1800 West votes to join the APA, thus nullifying the East.

Kirby said over a month ago that the lesson learned from the failed attempt to merge with Delta was that you have to get labor on board. I guess they learned their lesson.

...or in other words, "Dear Mr. Horton and attorneys: Suck It!". Regds, The Employees

The deal would not be done between the unions and Parker if there were going to be any mainline furloughs. That was the whole point, that there is no overlap. Look at the analysis of a LCC/AA merger from Bob Herbst. There are many strengths and the only gap is Pacific routes, which would imply growth because there are no partners in that region. LCC has a boatload of Airbus widebody orders coming, as well as more narrowbodies. AA announced their fleet renewal plan earlier. With age 65 kicking in later this year there will be a need for pilots sooner rather than later.

The regional feed will be a mess to sort out. I have no clue what that will entail, we have heard nothing on that.

Wonder if AA can be had separate from Eagle? The older Embraer jets are at the end of their economic cycle(s).

Hopefully DL gets new pay rates soon and it is a 3% raise on that

When the APA pilots get stapled after the West and East of USAirways it's going to increase the furloughs of AA pilots....hopefully not.