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AABB777
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APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 7:08 pm

Today the APA approved the proposed AMR/AA contract. Thankfully this closes one chapter in AA's reorganization efforts.

From Dallas News Airline Biz Blog:

American Airlines pilots Friday approved a proposed contract with the Fort Worth-based carrier, which now has new labor deals approved by all nine of its unionized bargaining units.

The decision by Allied Pilots Association members boosts American’s efforts to settle its affairs and emerge from bankruptcy court in the first part of 2013.

The pilots on Aug. 8 had rejected a previous proposal, known as American’s “last, best and final offer,” by a 61%-39% margin. U.S. Bankruptcy Judge Sean Lane on Sept. 4 approved American’s request to throw out the pilots’ existing contract, a concessionary deal dating from 2003.


More: http://aviationblog.dallasnews.com/
 
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LAXintl
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 7:20 pm

Kudos to all parties.

Gotta say, I am impressed with the APA for staring down the barrel of a gun and forcing AMR to come up with a more palatable offer.
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catdaddy63
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 7:29 pm

From the Information Hotline on the APA website:

http://public.alliedpilots.org/apa/default.aspx++

APA INFORMATION HOTLINE

This is APA President Keith Wilson with the APA Information Hotline for Friday, Dec. 7.

TENTATIVE AGREEMENT VOTE RESULTS: By a vote of 5,489 for and 1,951 against, the APA membership has voted to ratify the tentative agreement. More than 96 percent of eligible members participated in the ratification by casting a vote. Voting ended at noon Central today and BallotPoint then tabulated the results shortly thereafter. APA Secretary-Treasurer First Officer Scott Shankland has certified the results as accurate.

I want to thank everyone who took the time to cast a vote in this important ratification process. I also want to thank the APA Board of Directors and our many volunteers for their efforts throughout the past year since American Airlines entered Chapter 11 bankruptcy.

APA will now turn its focus to helping to ensure that full consideration is given to strategic alternatives before American Airlines’ restructuring concludes. The APA leadership continues to support a merger with US Airways as the best path to a stronger, more competitive American Airlines that will in turn enhance our pilots’ long-term career prospects.

That's it for now. Thanks for checking this hotline.
 
seatback
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 8:02 pm

I don't understand how the approved contract will play out in a US merger scenario. Is Doug going to give pilots a 13% stake in the combined carrier? Who knows what a combined AA/US pilot contract will look like. Probably not as good as this, since US has a horrible labor track record.

I don't understand why AA pilots are so supportive of a merger, other than revenge.
 
ckfred
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 8:22 pm

Quoting seatback (Reply 3):
I don't understand why AA pilots are so supportive of a merger, other than revenge.

The pilots don't have confidence in Horton, and that lack of confidence may be well founded. Frankly, the last good CEO at AMR/AA was Bob Crandall, although the unions had a love/hate relationship. (They hated him, but they loved that fact that he was AMR's CEO and not someone else's.)

So, while AMR/AA may indeed need a new senior management team, I don't think merging with US is the solution. US doesn't have a good track record of labor relations. The US and former HP pilots still can't agree to a combined seniority list. My pet peeve is that Doug Parker got his start at AMR. Considering that the culture at AMR formed the management style of the last three CEOs, I don't get why AA unions want to be led by another graduate of the AMR school of mismanagement.

I've said on othe threads that the unions would be better served to meet with other creditors/future AMR shareholders and try to ally themselves with enough entities to get a majority and create a new Board of Directors. The new BOD could then assemble a new management team, with a CEO who either comes from another carrier, with a track record of success, or from another sector of the travel industry (say hotels or cruise lines).
 
loggat
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 8:57 pm

I think the APA was smart by using US/Parker to help them with their negotiations with AMR. Now that they were able to use the leverage afforded to them, they might now be able to turn it on Doug Parker and say that they won't support or agree to a merger unless a new agreement bettering this one can be agreed to. Don't forget, it's US that needs AA, not the other way around.

Publicly they have said that they are still in favor of a merger, but it can't hurt their position anymore.

Well played by the APA.
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DeltaMD90
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RE: APA Members Approve AMR/AA Contract

Fri Dec 07, 2012 9:20 pm

Interesting this gets approved about the same time as this:

US Airways Makes Formal Merger Offer For AA (by 777law Dec 7 2012 in Civil Aviation)
 
XFSUgimpLB41X
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RE: APA Members Approve AMR/AA Contract

Sat Dec 08, 2012 7:21 am

Quoting DeltaMD90 (Reply 6):
Interesting this gets approved about the same time as this:

US Airways Makes Formal Merger Offer For AA (by 777law Dec 7 2012 in Civil Aviation)

It had to happen this way. Today was the day the vote result was announced. If the TA was voted down, then it would have been many weeks more before US could start to make its move because the process would have had to repeat.
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Byrdluvs747
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RE: APA Members Approve AMR/AA Contract

Sat Dec 08, 2012 9:22 am

Quoting loggat (Reply 5):
Now that they were able to use the leverage afforded to them, they might now be able to turn it on Doug Parker and say that they won't support or agree to a merger unless a new agreement bettering this one can be agreed to.

I sincerely hope they do, as this would raise costs under AA/US and make Horton's proposal far more palatable to the UCC.
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Revelation
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RE: APA Members Approve AMR/AA Contract

Sat Dec 08, 2012 1:52 pm

Quoting LAXintl (Reply 1):
Gotta say, I am impressed with the APA for staring down the barrel of a gun and forcing AMR to come up with a more palatable offer.

I'm both impressed and depressed, because it just re-enforces the message that if the pilots want to get anything from management they need to take things to their extreme limit, and it also reinforces the notion that there is a better offer waiting after the 'last and best final offer'.

Meanwhile, over at DL...
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cosyr
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RE: APA Members Approve AMR/AA Contract

Sat Dec 08, 2012 3:59 pm

Quoting loggat (Reply 5):
Don't forget, it's US that needs AA, not the other way around.

I'm not sure I agree with this statement, as US has been making a profit lately, and AA has not. If nothing else, AA can benefit from reduced competition. US also has a newer fleet (and a merged airline could dump old 737's/767's in a month), East coast strength, lacked by AA (PHL,CLT) and even PHX, which many people have written off, but is a growing city with a west coast presence, while LAX limits growth.
 
AAIL86
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RE: APA Members Approve AMR/AA Contract

Sat Dec 08, 2012 4:07 pm

So what does this mean for long haul flying, large RJs, and the 787? Perhaps AA will order E-Jets or firm up the 787s in the coming months?
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toltommy
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RE: APA Members Approve AMR/AA Contract

Sun Dec 09, 2012 3:37 pm

Quoting seatback (Reply 3):

I don't understand why AA pilots are so supportive of a merger, other than revenge.

Because it protects their interests. They've seen the pre-merger US pilots have their pensions ended, and the AA pilot group is very senior. I've read that AA has more pilots over age 60 than they do under age 40. In general they'll be more senior than the US and HP pilot groups, and able to retire from the combined carrier over the next few years. Only problem will be working out the seniority list, since the US East pilot group has shown they'll reneg on agreements if they don't get what they want. Time will tell.
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