Sky Talk

Pilots ratify agreement with American Eagle

American Eagle pilots ratified a new contract agreement with the regional carrier, the union said on Monday.

The Air Line Pilots Association said that 75 percent of the votes were in favor of the agreement with 85 percent of eligible voters participating in the ratification.

"Although none of us wanted to navigate the bankruptcy process during our career, we are pleased that this difficult chapter is now behind us and we can focus on moving forward, exiting bankruptcy, re-fleeting, and pursuing paths to grow our company and ensure that we sustain solid piloting jobs well into the future," said ALPA master executive council chairman Tony Gutierrez.

UPDATE: Here is the statement from American Eagle spokeswoman Andrea Huguely. "We are pleased with our pilots’ ratification of the tentative agreement reached with ALPA, marking another important step forward in our restructuring. The ratified agreement will help us reach our targeted cost savings and set the stage for a strong, successful American Eagle."

-Andrea Ahles

Flight attendants union chief applauds buy out response

A message sent by Laura Glading, president of the Association of Professional Flight Attendants, to the union's membership Friday about response to the buy out program offered by American Airlines:

As you know, bidding for the VEOP closed late last night. A total of 2,205 flight attendants chose to take advantage of the voluntary early out.

The tremendous response from those electing to leave the company with the $40,000 that accompanies their exit will benefit the entire membership. In the coming year, flight attendants will be moving up the seniority list and off reserve. And not only will furloughs now be avoided completely, but the VEOP participants will finally be able to enjoy a well-deserved retirement.

Since 1999 when I first started negotiating for APFA, I pushed the company for a dignified path to retirement for our most senior members. And in 2008 as President, it became a top priority for the negotiating team and me. Many of you will remember how long and hard we fought for an early out package worthy of our membership. Too many flight attendants have been living in career limbo for too long.

I am happy these 2,205 will now have the security they need to enter the next chapter of their lives. Thank you for your patience!

Please join me in congratulating our 2,205 colleagues. We thank you and we wish you only the best.

In Unity,
Laura Glading
APFA President

- Bob Cox

Flight attendants back Southwest flying over water routes

Flight attendants with Southwest Airlines have narrowly approved contract changes that would allow the airline to fly over water routes.

The vote by Transport Workers Union Local 556 clears one more obstacle to Southwest eventually flying to Hawaii and international routes, and fully integrating Air Tran by 2015.

The change to the union's existing labor contract with Southwest was approved by a 3,073 to 2,800 vote, with 57 percent of the eligible union members voting.

“We’re very pleased to reach this agreement, with terms that will allow the company to grow and prosper, protect the interests of the flight attendants and allow us to continue to provide the exceptional customer-first service that Southwest is known for,” Stacy K. Martin, president of the local, said in a statement.

Southwest pilots had already approved chages to their contract. "Those are the two labor hurdles we had to surpass and we're happy to get them," said Southwest spokesman Paul Flaningan. 

Southwest purchased AirTran 2011 with expressed plans to merge operations of the two airlines and offer flights to Mexico, the Caribbean, Central America and northern parts of South America by mid-2015.  

AirTran, which is now operating as wholly-owned subsidiary of Southwest, already operates some over water flights to Mexico and Caribbean destinations.

- Bob Cox 

 

Judge oks AMR paying fees for hedge funds that may provide financing

This from Dow Jones:

A judge on Thursday said AMR Corp. (AAMRQ) can pay the legal and professional fees incurred by a group of hedge funds negotiating to provide financing for the American Airlines parent in the event it doesn't merge with another airline upon exiting bankruptcy.

Judge Sean H. Lane of the U.S. Bankruptcy Court in Manhattan gave AMR the right to pay the fees of the bondholder group and many other parties in AMR's case, but was careful to tell the company that it's expected to keep other financing options open.

"It's not to the exclusion of any other parties," Judge Lane said of the negotiations. Weil, Gotshal & Manges LLP's Harvey Miller, AMR's lead bankruptcy lawyer, confirmed that the talks aren't exclusive.

Last month, AMR requested to pay the fees and disclosed it is in talks with the hedge funds about financing that would help the company exit bankruptcy. The investors, who hold about $900 million in several types of AMR bonds, are negotiating exit financing in the $1 billion to $2 billion range, sources familiar with the talks said last month. The bondholders would also backstop the offering, sources said. Getting fees paid by the estate is common for parties in bankruptcy, as long as they make a "substantial contribution" in the case.

- Bob Cox

2,205 flight attendants volunteer to leave American Airlines

American Airlines reports that 2,205 of its flight attendants have volunteered to take a severance package and leave the company, which should eliminate the need for flight attendant layoffs.

Indeed, American says it will begin recruiting additional flight attendants later this year.

As part of the renegotiated contract with the Association of Professional Flight Attendants that was approved by the union membership last month, American offered $40,000 severance payments to flight attendants with at least 15 years of employment. That is in addition retirement and other benefits they may have earned.

American spokesman Bruce Hicks issued the following statement:

“We are happy to report that given the 2,205 Early Out volunteers we have, and the staffing projections looking forward, we don’t anticipate furloughing any flight attendants as a result of the near-term restructuring changes. We will also begin recruiting new flight attendants later this year.

“In October, our flight attendants who signed up for the voluntary exit will be able to request a desired month of departure, and we will then stagger departures over the next year, based on seniority and operational needs.

“Providing this voluntary Early Out incentive for our flight attendants is another positive step forward in our restructuring.”

- Bob Cox

 

American Airlines comments on cause of flight cancellations and delays

American Airlines put out a statement late Thursday in response to the earlier post by the APA. 

"We are confident in the causes of the recent operational challenges of flight cancellations and delays. Prior to the recent issues, American had been running a good operation, with on-time performance and reliability measures at their best levels in many years The recent disruptions are primarily due to the significant increase in maintenance write-ups by our pilots, many right at the time of departure. Additionally, continued higher-than-normal sick usage by pilots, which has been up more than 20 percent year over year and has been elevated for months, impacts the availability of reserve pilots, which can ultimately lead to cancellations. Our pilot staffing - without the recent actions regarding maintenance write-ups and the continued increase in sick time - is adequate to meet our scheduling needs and recalling pilots from furlough would not be needed.

First, we apologize to all of our customers for the inconvenience this has caused. We understand how irritating and unfortunate this is in interrupting or delaying their travel plans. We appreciate their patience and hope for their understanding. We also appreciate very much the extra and difficult work this has caused so many of our people and especially appreciate the fabulous job our maintenance crews have been doing in taking care of these additional write-ups and getting planes back on schedule as fast as possible. In addition, our inventory of spare parts is at the highest level in years.

American has taken significant steps to try to limit the impact on our customers. We have carefully selected some 300 flights this week to pre-cancel to allow us to re-accommodate passengers in advance. And, through October we have reduced our schedule 1 to 2 percent as well. In addition, we have increased staffing in all other areas to assist in re-accommodating customers and are reaching out to customers proactively to notify them of the options available and the ability to standby for earlier flights at no charge.

We remain committed to doing all we can to serve our customers to provide safe, reliable transportation, just as they have always expected and received from American Airlines."

 Bruce Hicks, American Airlines spokesman

-Bob Cox

Eagle pilots to vote on tentative agreement

American Eagle pilots will vote on a tentative agreement with the regional carrier in the next few weeks.

The Air Line Pilots Association announced that its leaders met in Dallas on Wednesday and approved the full contract language.

"This decision was neither easy nor taken lightly, and it was made in full view of the result of the APA-AA 1113 decision, Eagle’s 1113 filing on the TWU, and this morning’s announcement of RFP awards," said ALPA MEC chair Tony Gutierrez.

The agreement does not include pay cuts or cuts to pilots' seniority.

American Eagle spokesman Bruce Hicks said the regional carrier was pleased to reach the tentative agreement with the union.

"The company and the ALPA negotiating teams have worked together over the past several months to reach this agreement, and made significant progress in August by reaching an agreement in principle which paved the way for this tentative agreement," Hicks said. "This agreement represents another significant step forward in the successful restructuring of our company."

Keep reading for the full ALPA hotline message.

-Andrea Ahles

Fellow American Eagle Pilots,

This week your elected MEC leaders met in Dallas and voted to approve the full contract language of the Agreement in Principle (AIP) reached with management in August.  With this approval, the MEC now has a Tentative Agreement (TA) with Eagle management that will require pilot ratification.  The bullet point details of the AIP were made available to the pilot group in August.  With this MEC approval and an official TA, full contract language will shortly be made available for all Eagle pilots to review prior to voting.  This decision was neither easy nor taken lightly, and it was made in full view of the result of the APA-AA 1113 decision, Eagle’s 1113 filing on the TWU, and this morning’s announcement of RFP awards.

During the last few weeks, the Negotiating Committee has been meeting with management to write contract language codifying the bullet point concepts contained in the AIP.  The MEC has been provided the final language throughout the process in order to provide continual guidance and feedback to the Negotiating Committee as the process ensued.  During this week’s MEC meeting, the members of the MEC verified that the written contract language properly reflects the conceptual ideas contained within the bullet point AIP.

The Strategic Planning Committee will begin domicile roadshows next week to provide more details about this TA and to answer all of your questions. The roadshow schedule will be sent out this week.  We urge every pilot to make an effort to attend a roadshow whether you’re currently a “yes” or “no” vote.  Our goal is to provide complete and factual information on every aspect of this TA.  In addition to domicile roadshows, the SPC will record the first live presentations to provide a recorded version that will be available on the EGL ALPA website.

In addition to videos available on our website, we will also be publishing all contract language modifications on the EGL ALPA website for your review.


Fraternally,

Captain Tony Gutierrez
MEC Chairman

Eagle pilot union president: "This is a bad day for all of us."

American Eagle pilots union president called Wednesday a "bad day for all of us," following the announcement that the carrier will be closing its Los Angeles hub.

In a message sent to Eagle pilots, Air Line Pilots Association MEC chair Tony Gutierrez said he expects American to sign more regional flying contracts as the carrier restructures.

"Since last year’s divestiture negotiations, we have known that AMR was determined to diversify its regional feed.  But knowing this doesn’t begin to lessen the emotion of seeing it come to fruition.  LAX is one of our most senior domiciles.  Dozens of pilots make their home in Southern California and will now be forced to uproot their families and relocate, or commute for what could be the remainder of their careers," Gutierrez wrote.

He added that the master executive council for ALPA's Eagle group is meeting this week to decide if it will send the agreement-in-principle it has with Eagle out to members for a vote. ALPA represents about 3,000 Eagle pilots.

Keep reading for the full message.

-Andrea Ahles

Fellow American Eagle Pilots:

Last week, we distributed a candid Hotline message about the reality the APA faces following the rejection of their contract by the bankruptcy court.  This week, the bad news reaches much closer to home -- American Airlines announced today that they awarded feed contracts to SkyWest and ExpressJet Airlines. As a result, SkyWest will take over Eagle’s LAX operation with approximately eleven CRJ-200 aircraft.  Our EMB-140s will be reallocated from LAX to flying in DFW and MIA, with one aircraft possibly going to NY, and our LAX pilot domicile will close by November 15th.  Additionally, ExpressJet was awarded a contract for approximately 11 EMB-145 aircraft for flying at DFW, which replaces Eagle’s previous ATR flying.

Since last year’s divestiture negotiations, we have known that AMR was determined to diversify its regional feed.  But knowing this doesn’t begin to lessen the emotion of seeing it come to fruition.  LAX is one of our most senior domiciles.  Dozens of pilots make their home in Southern California and will now be forced to uproot their families and relocate, or commute for what could be the remainder of their careers.  Meanwhile, DFW is our corporate home and our second largest domicile and also not immune from AMR’s desire to diversify its regional feed.

This type of “diversification” is not new to most of the regional industry, but nonetheless, this is new to Eagle pilots and the world we now find ourselves in.  If there is one small benefit of this announcement, it is that you now have all of the facts surrounding the disposition of the APA 1113 motion, a full view of Eagle’s 1113 filing on its mechanics, ground school instructors, and dispatchers, and you now know the result of the 50-seat RFP that was distributed a number of months ago.  It is better that you have all of this information when you consider how to vote on the tentative agreement that maintains almost all of our contract, while providing job protections for the number of aircraft allocated to Eagle in AMR’s plan of reorganization.  It should not shock you that more RFP’s are likely to come since this is the state of the regional industry.  AMR has a fleet plan for Eagle, and we are told that this RFP is not a replacement for that but that this RFP is part of AMR’s plan for OAL regional feed.  If you didn’t already see value in our Agreement in Principle’s (AIP) job protections that create a financial incentive against shrinking Eagle beyond AMR’s fleet plan, I would ask you to re-think that analysis.

Yesterday, we commenced a special MEC meeting during which your local representatives are deliberating over whether to allow the American Eagle pilots to vote on the AIP or whether to take our chances in court.  While the MEC deliberates this extremely important choice, we again ask you to familiarize yourself with the AIP in the expectation that you may soon be casting the most important vote of your career.

This is a bad day for all of us.  It marks the beginning of a new chapter for our airline.  We are feeling the same anger that you feel today.  But the following must be said: although our parent company has betrayed us, we cannot betray each other with our actions.  This is the time for professionalism.  We must focus on the destination, not on the en route challenges.  That destination is to exit bankruptcy preserving as much of our contract as humanly possible, and by doing so, preserving our careers and preserving our profession.  As early as a few weeks from now, you may be casting a vote and that vote should be cast on education and logic, not on emotion or retaliation.  Year after year, Eagle pilots demonstrate our professionalism and maturity in the face of adversity.  This time will be no different.

Fraternally,

Captain Tony Gutierrez
MEC Chairman

Eagle won't fly American feed out of LAX, closing pilot and flight attendant base

With the announcement on Wednesday morning that SkyWest will be handling some regional flying for American Airlines, regional carrier American Eagle said it will be closing its pilots and flight attendant base in Los Angeles and will no longer provide 44-seat aircraft service for American Airlines out of LAX.

In a letter sent to employees, American Eagle chief executive Dan Garton said Eagle will continue to provide regional feed with the CRJ-700 out of Los Angeles, using flight crews from Chicago.

Skywest's carrier, ExpressJet, will have a small portion of the flying out of Dallas/Fort Worth airport starting on February 14, Garton said. 

With the changes at Los Angeles and DFW Garton said he does not anticipate any furloughs and will offer positions throughout the system to employees that might be impacted.

"So, why is all of this change happening at once? Judge Lane’s decision to allow American to reject its pilots’ contract means that American will be relieved from certain scope provisions that only allowed American Eagle to provide regional feed. American sent out an RFP earlier in the year in anticipation of the return of the ATRs, but couldn’t act on that RFP until now. Additionally, over the last few months American has indicated that it is going through a rebranding exercise. As a result of this, American will soon discontinue the use of the AmericanConnection brand and will use the American Eagle brand for all of its regional flying. Although we all share a pride with the American Eagle name, the name and the brand belong to AMR, and it is not surprising that American would want to have a consistent brand for all of its regional flying – just as all other mainlines have one brand for their regional partners. So, for now, we will continue to be American Eagle Airlines, but over the coming months we will be looking into creating a new name and identity for our company and our people," Garton said in the letter.

Garton added that American Eagle will begin recalling all of its furloughed pilots on Wednesday and anticipate hiring pilots. The carrier is currently hiring flight attendants, mechanics and ground employees.

Keep reading for the full letter.

-Andrea Ahles

Dear Eagle and Executive Colleagues:

Today, American Airlines announced the addition of two new regional carriers to its network – SkyWest Airlines and ExpressJet Airlines. These companies were awarded contracts as the successful bidders in the RFP process American announced and initiated earlier in the year. American has awarded flying for a total of 23 50-seat regional jets to be operated out of Los Angeles and Dallas/Fort Worth. This development is consistent with American’s plan to diversify its regional feed as part of its business plan to emerge from restructuring as a much stronger airline. Additionally, for the first time, this flying will be done by non-affiliate regional partners under the stronger American Eagle brand and livery – not the AmericanConnection brand and livery.

For us, this is again, more change. And change is never easy.

As a result of the awarding of this bid, we will no longer provide American with 44-seat regional feed out of Los Angeles (LAX). SkyWest will now do this regional flying for American at LAX, beginning Nov. 15. This will unfortunately mean the closure of the LAX pilot and flight attendant domiciles, as well as a reduction in the number of M&E, stores and management positions at LAX. However, American has asked us to continue to provide regional feed with the CRJ-700 out of LAX, with Eagle’s Chicago crews. We will also continue to provide ground handling services for all of American’s regional operations at LAX, including ground handling of SkyWest. We do not anticipate any furloughs as a result of the downsizing at LAX, as there are vacancies throughout the rest of the system for employees in all workgroups.

As part of the bid, ExpressJet was also awarded a small portion of 50-seat flying out of Dallas/Fort Worth (DFW). This flying will begin with the Feb. 14, 2013 schedule change. As is the case at LAX, American has asked us to continue providing ground handling services for all of its regional operations at DFW. We don’t know how other aspects of the ExpressJet flying will affect our operations, but some impact to our employees and our schedule should be expected. However, we do not anticipate any furloughs, and will offer positions throughout our system to any employee who may be impacted.

And, as previously announced, American has negotiated the early return of the ATRs. This fleet is old, and there are very high maintenance and leasing costs associated with these aircraft. This action will result in the closure of the Miami (MIA) Executive pilot and flight attendant domiciles on Nov. 15. However, all Executive pilots and flight attendants will be able to use their seniority to bid for positions at American Eagle – including positions at MIA. We do not foresee any furloughs as a result of this displacement. We do anticipate that American Eagle will be providing more regional jet flying out of MIA to replace some of the discontinued ATR flying. Additionally, all MIA and Key West Executive employees will become American Eagle employees as of Jan. 1, 2013.

So, why is all of this change happening at once? Judge Lane’s decision to allow American to reject its pilots’ contract means that American will be relieved from certain scope provisions that only allowed American Eagle to provide regional feed. American sent out an RFP earlier in the year in anticipation of the return of the ATRs, but couldn’t act on that RFP until now. Additionally, over the last few months American has indicated that it is going through a rebranding exercise. As a result of this, American will soon discontinue the use of the AmericanConnection brand and will use the American Eagle brand for all of its regional flying. Although we all share a pride with the American Eagle name, the name and the brand belong to AMR, and it is not surprising that American would want to have a consistent brand for all of its regional flying – just as all other mainlines have one brand for their regional partners. So, for now, we will continue to be American Eagle Airlines, but over the coming months we will be looking into creating a new name and identity for our company and our people. I’ll let you know the progress of this rebranding effort as it continues to develop.

I do not want to diminish the impact these changes may have on us, but with a successful restructuring, we can have a bright future. We will still continue to be the main provider of regional feed for American in Dallas/Fort Worth, Miami, Chicago and New York. Later today, we will begin the process of recalling all of our furloughed pilots, and we anticipate hiring pilots soon. We currently are hiring flight attendants, mechanics and hundreds of ground employees needed to staff the new ground handling contracts.

Now, more than ever, it is critically important that we complete our restructuring. This includes achieving consensual, ratified agreements with our labor unions in order to be in a position to participate in any large regional jet flying that American will be seeking in the future. Likewise, it is more important than ever that we maintain our performance and prove every day that we are a worthy partner for American and other mainline carriers.

This is an extraordinary company with extraordinary people. There is no doubt in my mind that even though these changes are challenging, we will be in a better position to win more business from American in the future.

Thank you for your continued hard work. Together we will redefine our company and continue to build a successful future by incorporating the values and culture of our proud past.

Regards, Dan

SkyWest to operate 23 regional jets for American

Regional carrier SkyWest announced on Wednesday that it will fly 23 regional jets for American Airlines under the American Eagle name.

SkyWest, which also operates flights under the United Express and Delta Connection brands, said it will begin flying American flights on November 15 using Bombardier CRJ200 aircraft. Most of the aircraft will be operated out of Los Angeles and Dallas/Fort Worth airports with all of the aircraft in service by the end of the first quarter in 2013.

The agreement between American and SkyWest lasts four years and SkyWest said it anticipates 12 of the planes will be flown by SkyWest Airlines and the other 11 aircraft will be flown by ExpressJet. SkyWest bought ExpressJet in 2010.

SkyWest said the 50-seat jets are in the company's existing fleet and have been previously used by another carrier.

"This agreement is indicative of the credibility of the people and the operational quality of SkyWest, Inc.," said SkyWest president Bradford R. Rich. "We look forward to operating under the American Eagle designation and establishing ourselves as a trusted and valuable long-term partner for American."

What Wednesday's announcement means for the future of American Eagle is unclear.

As part of its restructuring, American has indicated that it wants to use more third-party carriers for  regional flying. Prior to filing for bankruptcy, American's parent company, AMR Corp., said it wanted to spin-off its regional carrier, American Eagle, partly to lower its costs of regional flying.

American already has a contract with Chautauqua Airlines to operate flights under the AmericanConnection brand, providing over 50 daily flights out of Chicago O'Hare.

-Andrea Ahles