Tag Archives: USAPA

US Airways/USAPA Injunction Update: Union Issues Notice To Pilots

As per U.S. District Court Judge Conrad’s order that was issued earlier this week, the US Airlines Pilots Association (USAPA), which represents the pilots at US Airways, posted the following letter to its members on its website today.

Funny thing is — it is not posted on the public part of the site. You have to use a member user name and password to access it behind the firewall, or be on the union’s email list. Or, as in my case, have a copy forwarded to me by an American Airlines’ pilot.

Interestingly, the last publicly posted piece on the union’s website is an article dated May 25, 2011, headlined, “US Airways Pilots Protest Slow Pace of Contract Talks.”

Methinks there has been one heck of a lot of news that has involved the union since then. Perhaps a news update might be in order.

______________________________________________

USAPA Update on Injunction Order

In compliance with Section IV of Judge Conrad’s ruling in the United States District Court, Western District of North Carolina, USAPA is distributing the following notice to all US Airways pilots by the most expeditious means possible. USAPA will provide more information as soon as it becomes available. Thank you for your prompt and thorough review of the following:

NOTICE TO ALL US AIRWAYS PILOTS

In July 2011, US Airways filed a complaint against USAPA alleging USAPA had violated and was violating the Railway Labor Act (“RLA”) by, among other things, engaging in a concerted effort to interfere with US Airways’ airline operations, including but not limited to a slowdown, work stoppage, strike, sick-out, work to rule campaign, and other concerted refusals to perform normal pilot operations. At the time it filed the complaint, US Airways sought a preliminary injunction to prevent USAPA from engaging in the acts and conduct alleged in the complaint. After a full evidentiary hearing conducted on August 19 and 22, 2011, by decision and order dated September 28, 2011, the Court found there was evidence sufficient to meet the legal burden that USAPA had engaged in actions that violated the RLA.

The September 28, 2011 order specifically enjoins USAPA and its members, agents, and employees, and any persons and organizations acting in concert with, through, or under it, or by and through its order, from violating the status quo provisions of the Railway Labor Act and from permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal to perform normal pilot operations in violation of the RLA. This order continues in effect unless and until modified by the Court.

All US Airways pilots are instructed to fully perform their normal working schedules and practices.

All US Airways pilots who are engaging in a concerted refusal to perform normal pilot operations are directed to cease and desist from any concerted refusal to perform normal pilot operations, by engaging in acts including but not limited to slow taxiing, writing up all maintenance items, calling in fatigued, delaying flights, refusing to answer a call from the scheduling, refusing to fly an aircraft that meets the requirements for flight, or refusing to accept voluntary or overtime flying, and to cease and desist all exhortations or communications encouraging same.

USAPA will take all steps and measures to comply with the letter and spirit of the Court’s order and instructs and directs all US Airways pilots to do the same. Any and all acts and conduct in violation of this Order may subject individuals and those acting in concert with them to punishment under the contempt powers of the Court.

A copy of the order issued by the Court is shown below.

US AIRLINE PILOTS ASSOCIATION

________________________________

ORDER ISSUED BY THE COURT

September 28, 2011

The Court . . . HEREBY ORDERS:

1. USAPA and its members, agents, and employees, and all persons and organizations acting by, in concert with, through, or under it, or by and through its order, are enjoined from permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal to perform normal pilot operations in violation of the RLA, pending a hearing on the permanent injunction.

2. USAPA shall take all reasonable steps within its power to prevent the aforesaid actions and to refrain from continuing the aforesaid actions if commenced, including, but not limited to, the following:

a. Instructing all pilots represented by USAPA and employed by Plaintiff to resume their normal working schedule and practices and providing Plaintiff a copy of all such instructions;

b. Notifying all pilots represented by USAPA and employed by Plaintiff, by the most expeditious means possible, of the issuance, contents, and meaning of this Preliminary Injunction and providing Plaintiff a copy of all such notices;

c. Including in such notice a directive from USAPA to US Airways’s pilots who are engaging in a concerted refusal to perform normal pilot operations, including but not limited to, slow taxiing, writing up all maintenance items, calling in fatigued, delaying flights, refusing to answer a call from the scheduling, refusing to fly an aircraft that meets the requirements for flight, or refusing to accept voluntary or overtime flying, to cease and desist all such activity and to cease and desist all exhortations or communications encouraging same.

d. Posting the notice described above on Defendant USAPA’s internet websites and providing Plaintiff a copy of the notices;

e. Including the contents of such notice on any and all recorded telephone hotlines under control of USAPA, until such time as the Court has acted on Plaintiff’s Motion for a Permanent Injunction, and providing Plaintiff a copy of all such messages; and

f. Distributing the contents of such notice through all non-public communication systems maintained by USAPA, including any telephone trees, text message lists, pilot-to-pilot communication systems, or similar systems, and providing Plaintiff a copy of the notices.

3. USAPA is prohibited from including in such notices (or distributing contemporaneously with such notices) any statements that are intended or could reasonably be interpreted to mean that pilots should continue to engage in the previously-described conduct notwithstanding the Preliminary Injunction.

4. USAPA shall report to the Court by 5 p.m. on October 4, 2011, by sworn affidavit, the methods used to effect the notice described above to all USAPA-represented pilots, and furnish to the Court copies of all notices required to be furnished to the Plaintiff under the Court’s Order.

US District Court Grants US Airways Preliminary Injunction Against Pilot Union

gavel 3.jpg

It took a little longer than some people had anticipated, but this afternoon U.S. District Court Judge Robert Conrad granted US Airways a preliminary injunction against the airline’s pilot union, US Airlines Pilot Association (USAPA).

As you may recall, US Airways sought the injunction in August, when it claimed that the pilot union had been involved in actions to deliberately slow down and/or disrupt the airline’s operations.

Judge Conrad apparently agrees.

In his ruling, USAPA and its members are now prevented from “permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal toperform normal pilot operations in violation of the RLA, pending a hearing on the permanent injunction.”

Conrad instructed the organization very clearly as to how and what they now need to communicate to its members.

USAPA was ordered to report to court no later than 5 p.m., on Oct. 4, what methods it has used to comply with the court order.

For those of you who are legal eagles like I am, click here for a .pdf of the complete TRO document.

I think you will agree that Conrad has read the union the proverbial “riot act.” Not a whole lot of positives in this order for the union. Not surprisingly, however, given how strong the airline’s initial complaint was, as we noted last month in PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpg

Hello everyone. It’s that time again. Time for this week’s issue of PlaneBusiness Banter. This week we take our in-depth view at the recent earnings calls and results from Hawaiian Holdings, Delta Air Lines, JetBlue, and the newest member of the U.S. publicly traded airline community — Spirit Airlines.

Spirit easily blew past analyst expectations for the quarter, and I must admit, it was fun to listen to a call from an airline that has such a very different business plan. Reminds me of when Allegiant first came on the scene. And years before that, Southwest Airlines was the airline that was pushing its lower costs, its “different” business model of simply low fares, and its low cost structure. Now — the new kid on the low cost, high-growth block is Spirit Airlines.

In addition to our earnings coverage, we spend a lot of time talking about pilots and pilot unions this week. From pilots calling in sick at Continental to ALPA severing a mutually beneficial deal with the Allied Pilots Association that had included the services of a well-respected union negotiator Seth Rosen, as a result of APA hot heads sending out anti-ALPA missives to American pilots — it has been a very “labor-intensive” week you might say.

But all of this angst pales in comparison to the paperwork that accompanied US Airways’ request for a preliminary injunction against its pilot union, USAPA, and the union’s President, Michael Cleary.

The suit, which was filed last Friday accuses the pilot union of of “directly instigating the illegal slowdown by encouraging pilots to delay flight departures, not complete certain training requirements, decline to fly on the basis of fatigue, increase maintenance write-ups, and generally slow down in the performance of their duties — and also by threatening to expose and retaliate against those pilots who do not participate in the slowdown. Although USAPA is encouraging pilots to change their behavior under the guise of “safety,” USAPA’s own communications confirm the true purpose of its campaign is illegally to slowdown US Airways’ operation in order to gain leverage in contract negotiations.”

But it’s not all unions and earnings.

Oh no.

Then there is the latest from Washington.

While the people who were elected to Congress finally managed to cobble together some kind of debt ceiling/budget compromise and both the Senate and the House managed to sign off on it, one thing that was not taken care of before both the House and Senate shut down work for the rest of the month was — a funding authorization bill for the FAA.

That’s right.

The bad news is that this means FAA-funded projects across the country will remain stopped in their tracks, more than 4000 FAA employees will remain laid off, and other FAA workers will continue to work more or less on an emergency basis.

But — on the plus side — (at least if you are an airline CEO or CFO) this could mean an additional $1.5 billion in revenues for the U.S. carriers — as a result of the ticket tax not being collected. That is, unless they begin to start rolling out a series of off-the-wall fare wars.

All this and much, much more in this week’s issue of PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpg

Hello everyone. I feel like I need to crank up the theme song from “Rocky” tonight. Yes, it’s earnings week here at the Worldwide Headquarters of PlaneBusiness Banter. Or rather, the first of three heavy earnings weeks. Or is it four? Oh, they are so much fun — who’s counting?

This week Alaska, United Continental, AMR and US Airways in-depth earnings reviews are on tap for PBB readers. I know it’s hard to believe, given how long some of our earnings reviews have run in the past, but I do believe we may have posted our longest earnings review ever tonight. Alaska’s call attracted a lot of analyst attention and they all asked a lot of great questions.

That’s what happens when you are an airline and you post a fantastic pretax margin, operating margin, and an even more impressive ROIC. (That’s return on invested capital for those of you who are not financial geeks.)

Funny. I can remember quarters in the past when Alaska executives would give their presentations on the airline’s earnings call and there were hardly any analysts on the calls asking questions. I used to feel sorry for them.

Things change when you begin running one of the most profitable and well-run airlines in the U.S.

American Airlines? Oh. Earnings. Did the airline report earnings last week? Kind of hard to remember what with all the hoopla the airline generated about its split Airbus/Boeing order of an entire fleet of aircraft. Actually I’m sure the airline would prefer that nobody remembered that they also reported 2Q earnings. And we’ll talk about why that is the case.

No question American would much rather we talk about nice new shiny airplanes.

One thing’s for sure. Wall Street was not happy with the news about all the nice new shiny airplanes. We give readers a selection of analyst comments to pour over this week — and the gist of the feedback goes something like this: new airplanes do nothing to change the underlying problems with the current business model or the brand. Or the operational issues. Or the cost issues. Or the continued less-than-industry peer revenue performance.

Much less mounting cash flow issues.

Bu they, don’t worry, be happy. I sometimes think that AMR management is convinced the airline is simply “too big to fail.” That’s a somewhat dangerous assumption to make. Just ask Lehman Brothers.

United Continental is, of course, still in its transition mode, but so far so good. The airline’s revenue performance was good in 2Q, but I suspect we are going to see the airline’s revenue performance get even better over the next 12 months. My biggest concern with United Continental remains its continuing labor negotiations. Particularly the ones involving the airline’s two pilot groups.

Then there is US Airways. Even without fuel hedges, the airline still posted a profit for the quarter. All things considered, that’s not a bad thing. However, US Airways also happens to have a rather dysfunctional pilot union that still can’t negotiate a seniority agreement, much less a contract. Last week that same union decided to go public with its “safety” concerns at the airline. Uh-huh. Everything new is old again, isn’t it?

We also talk about other things this week of course. But I won’t spill the beans. That will just have to be a surprise.

Subscribers can access this week’s issue of PlaneBusiness Banter here.

PlaneBusiness Banter Now Posted!

home-typewriter copy 1.jpg

This week’s issue of PlaneBusiness Banter is now posted. This week’s issue is one of those “kitchen sink” issues. First we peer into the financial reports of the four largest airline pilot unions — ALPA, APA, SWAPA and USAPA — spurred by my wonderings about just how much the US Airways’ pilot union, USAPA, is paying out in legal fees. Boy, did I open a nice big Pandora’s box. Who says we only have to dissect the financial statements of the airlines?

Then there is American Airlines. No, the airline is apparently not in talks to do a deal with Mexicana, even though press reports south of the border indicated otherwise over the weekend.

Meanwhile, tomorrow is not only the day that American Airlines announces its first quarter loss. It is also protest day for American employees. Concurrent with the airline’s executive level bonus allocations, the Association of Professional Flight Attendants are going to be protesting — and I would bet there will be some other airline employees contributing to the effort.

On the corporate travel front, American filed suit against Travelport and Orbitz last week. They even dropped the “Sherman” antitrust bomb in their filing. Yep, American thinks there is some anti-trust issues here. Travelport and Orbitz, not surprisingly, think this is merely a play for leverage.

Speaking of earnings, we have a line-up of heavyweights on Thursday, followed by another heavy day next Tuesday. We get you up to date on analyst expectations and reporting dates.

If it is time for first quarter earnings, then Proxy Statements are also in the mix. Those are those horribly confusing and hard-to-figure out SEC filings that tell us just how much the top executives at the airlines took home in compensation during 2010.

Southwest Airlines filed their proxy statement last week, and, well, let’s just put it this way. Remember when the airline used to have the lowest top-tier compensation levels in the industry — and they made a big deal about the fact this was the case? And they were proud of the fact? It’s not the case anymore.

Oh, we talk about that, we talk about how airline stocks did last week, we talk about the TSA’s patdown of the six-year-old, we alert you to a museum collection of air sickness bags, and we talk about a lot more — in this week’s issue of PlaneBusiness Banter.

Subscribers can access this week’s issue here.