American Airlines answers other questions about what the merger with US Airways means for American

This is from an article in the Dallas Morning News

SEC1Here are selected questions and answers as disclosed in a Securities and Exchange Commission filing.


When will the 4.3 percent raise take effect and what will the equity stake be valued at?

The 4.3 percent raise will take effect on the date that the AA/US Airways merger and Plan of Reorganization (POR) becomes effective. The TWU will receive a 4.8 percent equity that will be divided amongst the workgroups covered by the 7 labor agreements. The value of the equity is not known at this time.

Will former TWA IAM members be granted their full occupational seniority?

The current seniority lists at American and US Airways will be integrated according to procedures prescribed by federal law. The goal of those statutory procedures is to achieve a single unified seniority list that fairly and equitably reconciles the interests of all of the employees in the merged groups.

What are the immediate and long term plans for the Tulsa base?

For now, the American maintenance bases will continue to operate as they do today. We have yet to work with US Airways on how we will integrate our operations and our maintenance programs in the long term.

How will the merger impact MCLA [Miami, the Caribbean and Latin America] operations?

We have yet to determine what the merger will mean for our MCLA employees. We will take into account the unique labor and legal frameworks of each country as we progress through the integration process.

Will we bring back previously-announced outsourced work with this merger?

The current TWU collective bargaining agreements remain in place, as do the terms associated with scope and the ability to outsource certain work.

Will this merger return back RIF [reduction in force, or laid-off] employees and re-open AFW base [Alliance maintenance base in Fort Worth] some time in the future?

Right now, the current TWU collective bargaining agreement remains in place, which means the AFW base is still set to be closed this spring. However, TAESL [a joint engine venture with Rolls Royce] will continue to operate at AFW.

Will any of the US Airways aircraft be maintained by the Tulsa Maintenance Base?

We have yet to determine how we will integrate our maintenance operation with the US Airways’ maintenance operation.

Will US Airways continue to outsource maintenance?

We have yet to determine how we will integrate our maintenance operation with US Airways’ maintenance operation.

What is going to happen to the TWA captains that have been captains for more than 15 years, but have a seniority number of about 6,000 and a hire date of 1988?

American cannot speculate on the outcome of the seniority integration process. The MOU provides that, if the merger is approved, the new company and committees representing the interests of the pilots will conduct a seniority integration process that complies with the federal McCaskill-Bond legislation. That process would begin with negotiations, but if the parties are unable to achieve a single seniority list through those discussions, the matter would be submitted to arbitration as outlined in the legislation. For more information on the anticipated timeline for seniority integration and other processes, please refer to Merger 101 on new Jetnet.

What systems and processes will the new American use for its operation?

At this point, it’s too early to know exactly what our operation will look like. The carriers will appoint a transition team of people from both airlines to develop a carefully constructed integration process to help ensure a smooth transition – the entire process of combining operations could take a year or two.