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April 24, 2012

APA president: US Airways plans to submit an alternative reorganization plan

Allied Pilots Association president Dave Bates who is attending the Section 1113 hearing, said in a hallway interview that US Airways “plans to submit an alternative reorganization plan” to American – a move he supports because “a stand-alone plan is not viable in the long term.”

Bates said that he was reassured that corporate headquarters would stay in Fort Worth in a new, larger carrier with the American Airlines brand, by US Airways chief executive officer Doug Parker and president J. Scott Kirby.

“I’m trying to keep the best options for the airline, my members and the community,” said Bates.

But American senior vice president Jeff Brundage told reporters Monday evening that “this US Air thing is a creation of US Air and the unions. It’s not real.”

Bates, asked about Brundage’s comment, said, “It’s very real.”

Brundage said American’s effort to come out of bankruptcy through the 1113 process with its employees would make the company viable “and protect as many jobs as possible.”

-Maria Recio

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Comments

HJH

Sigh...and this is just the beginning. Everything I hear come out of Jeff Brundage's mouth indicates that he should be sent back to mangement school. In a service industry, it pays to have people happy to provide those services...you know, Herb Kelliher's philosophy. Brundage does nothing but alienate.

casual observer

How does Captain Bates know that a stand alone plan is not viable? It seems to me that US has a real problem on its own. Trying to merge 3 times in the past few years but no takers is an interesting track record to say the least. What's most comical is that US is playing AA union leadership for fools. A simple Google search will tell you all you need to know about US and its unkept promises to labor. Beware of a TWA in sheep's clothing!

AA Pilot

It just gets weirder and weirder: the president of the American pilots' union promoting and endorsing the corporate raider tactics of an airline CEO.

Weirder yet, the IAM which represents the machinists at USAir has publicly opposed this "merger," yet here's their union "brethren" at AA shoving it down their throat anyway.

Once again, from the union perspective, it's all about self-interest with little concern for the long term or the overall welfare of the entire company.

Chuck

A good match-up (or at least an interesting one) would be AA-LUV - as long as AMR's "management" is sent to the street.

Not sure if it would pass scrutiny but, hey - SWA wanted to get into the international end of things - here's a good way to do it and reap the benefit of controlling one's own maintenance (and keep the Scarebus aircraft in Europe where they belong).

BOHCA

Casual Observer you are absolutly correct. US Air has its own internal issues that can't get resolved. Even if this becomes a merger (hope not) it will take 10+ yrs to complete the entire process.

eaagle

Master Bates is so far up Parkers rear end that he can now act as his mouthpiece? That is pretty far.

TiredOfPanderingANDREA

Chuck,

You'd never get the "my-sh**-doesn't-stink" AMR arrogant employees or their BONUS-driven management to buy into the corporate productivity paradigm that pervades every nook and cranny at Southwest. Give up on that idea.

John S

I have to wonder how the unions at US Airways feel about this. Did old Doug Parker ask them if they minded that he was going to offer another company's employees more than his own get paid?

Ceaser

Go back to when Jimmy Carter deregulated the industry only one merger has really worked and that is Delta and Northwest. All the others have been outright filures.

DWR

Time to get rid of Horton and his 'whores'...like Brundage, Hale, Curtis, Vaughn. GO TEAM-PARKER!

Pat

I think you are hearing the unions at AA telling AA management anything is better than current management running the company. The evidence of the companies performance is clear. Consistently poor judgement & history will repeat itself over and over.

Richard

"Team Parker" will merge the airlines, and once they have what they want they will go for concessionary contracts with the threat of another bankruptcy.

I'm not making this stuff up. Look at the track record.

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