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Airlines news

Sunday, December 8, 2013

Misc - HL 192 (4)



Funny episode affecting the CVG Board:
Date: 12/6/2013 1:39:49 AM
To: marksztanyo
Subject: CVG board votes to hire investigator for butt-dialed call


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 Subject: Marketing campaign

Delta Pilots Association
Check out the beginning of our new nationwide billboard campaign! Located on I-85 in ATL/PTC area, this will reach many new Delta Pilots. Donate today to help us spread the word.

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December 7th Anniversary of Pearl Harbor

Date: 12/7/2013 8:18:21 AM
Subject: REFLECTIONS ON PEARL HARBOR

On The Green Side
George
Tour boats ferry people out to the USS Arizona Memorial in Hawaii every thirty minutes.
We just missed a ferry and had to wait thirty minutes..  I went into a small gift shop to kill time.  In the gift shop, I purchased a small book entitled, "Reflections on Pearl Harbor " by Admiral Chester Nimitz.


Sunday, December 7th, 1941--  Admiral Chester Nimitz was attending a concert in Washington D.C.   He was paged and told there was a phone call for him.
When he answered the phone, it was President Franklin Delano Roosevelt on the phone.  He told Admiral Nimitz that he (Nimitz) would now be the Commander of the Pacific Fleet.
Admiral Nimitz flew to Hawaii to assume command of the Pacific Fleet.  He landed at Pearl Harbor on Christmas Eve, 1941.  There was such a spirit of despair, dejection and defeat--you would have thought the Japanese had already won the war.
On Christmas Day, 1941, Adm. Nimitz was given a boat tour of the destruction wrought on Pearl Harbor by the Japanese..
Big sunken battleships and navy vessels cluttered the waters every where you looked.
 

As the tour boat returned to dock, the young helmsman of the boat asked, "Well Admiral, what do you think after seeing all this destruction?"
Admiral Nimitz's reply shocked everyone within the sound of his voice.  Admiral Nimitz said, "The Japanese made three of the biggest mistakes an attack force could ever make, or God was taking care of America.  Which do you think it was?"
Shocked and surprised, the young helmsman asked, "What do mean by saying the Japanese made the three biggest mistakes an attack force ever made?"
Nimitz explained:
Mistake number one:
the Japanese attacked on Sunday morning.  Nine out of every ten crewmen of those ships were ashore on leave.  If those same ships had been lured to sea and been sunk--we would have lost 38,000 men instead of 3,800.
Mistake number two:
When the Japanese saw all those battleships lined in a row, they got so carried away sinking those battleships, they never once bombed our dry docks opposite those ships.  If they had destroyed our dry docks, we would have had to tow every one of those ships to America to be repaired.  As it is now, the ships are in shallow water and can be raised.  One tug can pull them over to the dry docks, and we can have them repaired and at sea by the time we could have towed them to America.  And I already have crews ashore anxious to man those ships.

Mistake number three:
Every drop of fuel in the Pacific theater of war is in top of the ground storage tanks five miles away over that hill.  One attack plane could have strafed those tanks and destroyed our fuel supply.

 
 

That's why I say the Japanese made three of the biggest mistakes an attack force could make
or
God was taking care of America ..
I've never forgotten what I read in that little book.  It is still an inspiration as I reflect upon it.
In jest, I might suggest that because Admiral Nimitz was a Texan, born and raised in Fredricksburg,Texas--he was a born optimist.
But anyway you look at it--Admiral Nimitz was able to see a silver lining in a situation and circumstance where everyone else saw
only despair and defeatism.
President Roosevelt had chosen the right man for the right job.  We desperately needed a leader that could see silver linings in the midst of the clouds of dejection, despair and defeat.
There is a reason that our national motto is, IN GOD WE TRUST
Why have we forgotten that?
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Date: 12/7/2013 6:31:03 AM
Subject: Fw: Interesting Post on AA Merger

It's so much easier watching the circus than being in one of the rings..
Congressman Ed Marky (D Ma) posted the following on the TWA pilots message board 3/6/2013
Hi Everyone, 
It's been quite some time since I've posted here, but I was encouraged to do so by some TWA  friends
who are active on this board. We are in regular contact and I had recently sent them my views
regarding the merger. They suggested I post those thoughts here for whatever they're worth. 

I noticed on another thread that this had been posted and it got me thinking that perhaps I
could help set the record straight: 

"It is still American Airlines. "new" AA is the surviving carrier. This was a classic all stock
merger with ownership consisting of 72% AA stock/debt holders and 28% US stock/debt holders.
USAirways did not buy anyone. Future employees will come to work for American Airlines as in the
past.  USAirways will join the dozens of airlines who no longer exist."

 With all due respect, in my opinion I don't think anything could be further from the truth.  The
fact is, the 72% AA ownership consists primarily of creditors as well as a small  union interest,
mostly pilots. The stockholders will see their holdings wiped out as is usually the case in
bankruptcy situations.

The fact is that US Airways management will be in charge and AA management will hold only a
minority of seats on the new board of directors. AA is NOT going to be running this show -- US
Airways will be calling all of the shots. This is a self-inflicted wound on the part of inept AA
management aided by deceptive and ill-conceived tactics on the part of the duplicitous APA
leadership at the AA pilots union. Under the merger agreement, AA CEO Tom Horton will remain
as  a non-executive chairman (ie no real authority) for only a year after which he goes away. US CEO Doug Parker is going to be the CEO running the show into perpetuity. 

The whole thing is a sad state of affairs. AA was never bankrupt to begin with. You aren't
bankrupt when you file BK with $4.5 billion cash on hand. You're not bankrupt when you need
debtor in possession financing and you're not bankrupt when your multi-billion dollar 'largest
airplane order in history' remains untouched with no cancellations nor even any deferred
deliveries. The whole thing is a scam. Former AA CEO Gerard Arpey resigned largely because he was
opposed. 

AA thought they could lower costs, especially by imposing unilateral labor contracts on their
work groups, particularly their despicable pilots union. The union got the  last laugh, making a
side deal with US while being employed by AA -talk about treason.  The AA pilots union leaders
are truly idiots -- they think they're gonna get a smooth seniority integration with US, but the
US pilots still operate under two separate contracts along with fences, and have for the
last seven years since America West and US Airways merged. That's seven years of pilot food
fights over there at US that are STILL going on because the two pilot groups have been unable to
settle their differences.

That's where Doug Parker, CEO of US came from -tiny America West. He pulled off a similar coup
when he was able to take over much larger US, again with the help of US's BK.  After getting the
AA pilots and F/A's on board, he then slickly got the AA creditors on board too, convincing them of
the need for new management. So the whole AA BK thing backfired on AA management. What AA isn't
saying is that tiny US, which is half their size, is taking over AA and they were able to do it by
leveraging AA's self-imposed vulnerability as a result of the bankruptcy process assisted by
duplicitous labor  groups, the APA in particular. What we don't know is whether Parker will turn
out to be another Frank Lorenzo. I have my suspicions and I think the AA pilots will ultimately get screwed. Just repeat after me –you were bankrupt, you're lucky to have a job", etc, and all the other stuff AA unions told TWA workers when they stapled them to the bottom.  

My thinking has been that the Department of Justice should approve the merger despite the
clear anti-trust implications, bad as it is for competition and the free market, simply because
they allowed the UA/CO and DL/NW mergers to go through and it would be inequitable to then deny
AA/US the same opportunity. UA/CO and DL/NW both leveraged phony bankruptcies in a similar fashion
To what we're seeing now. Neither merger should have passed DOJ Anti-trust muster and been
approved, but in those cases both partners were in Chapter 11 BK as part of their merger
strategy. 

Now,  I'm beginning to rethink this and I'm not so sure the DOJ should allow this merger. To claim
that giant AA can't compete unless they merge, or that smaller US can't survive when they are
consistently at the top in terms of profitability, is self evidence of how ludicrous
their arguments are. Reducing the US airline industry to three giants and some smaller,
domestic low-cost carriers is not a good thing. It boarders on monopoly  power. We've already been
there with four giant Wall Street banks that were (and remain) too big to fail. In fact, they're
bigger than ever after the government compelled them to absorb "smaller" failing banks such as
Washington Mutual and Wachovia. These giant banks brought our economy to its knees and then to add
insult to injury, we taxpayers had to bail out the bastards!
  
In addition, what has AA done with previous mergers? Nothing but utterly waste a ton of
money. Absolutely zip. What remains of TWA's people, facilities, hubs, aircraft, and other
assets? Nothing. You may recall the sworn testimony before Congress at that time by both
then AA CEO Don Carty and TWA CEO Bill Compton promising that the AA/TWA deal would save 20,000
TWA jobs, TWA's STL hub and Kansas City maintenance base, among other things. These would
all be lost without that deal they said, and government opposition to the agreement quickly
evaporated.
  
AA had also previously bought AirCal and Reno Air and absolutely nothing remains of either of
them as well, and that happened within a year or two of AA buying them. So what he hell did they
buy them for to begin with?  Ditto with US's purchase of PSA. It was the result of AA abandoning the AirCal and Reno assets and US doing likewise with PSA that opened the door really wide for Southwest to waltz into California and the west and take over, which they've done in spades thank you very much.
  
What we really need is new bankruptcy laws. Corporate interests who are far from actually
bankrupt should not be allowed to use/abuse these laws in order to lower costs by squeezing their
workers dry, not to mention screwing vendors, suppliers, lenders and other providers and
creditors. Meantime those same bankruptcy laws, which were  revised about ten years ago by the
Republican controlled Congress and the Bush administration, were also changed at that time to
really screw the little guys. While corporations file phony BK's to unilaterally cut their costs,
individuals can no longer relieve themselves of unsustainable debt. That's right, the laws were
rewritten to require individual filers to submit a repayment plan to the courts. 

These BK's certainly don't hurt the credit of big airlines, but little guys not only have their
credit destroyed by the BK filing,  they cannot even walk away from their debts --and that
INCLUDES unsecured debts like credit cards. You know, all those generous credit card providers
(see above mentioned too big to fail banks) who charge exorbitant  interests rates that in another
era would have been considered usury, justify these  ripoff rates by claiming that they're
taking more risk by providing unsecured credit. Now the BK laws make the little guys who are
genuinely bankrupt pay back that unsecured credit. Individual BK now resembles chapter 11,
not chapter 7. The whole damn thing is upside down. Good, decent taxpaying citizens who
encounter hard times -- many as a result of the economic collapse caused by the Wall St. banks --have their feet held to the fire while those big financial institutions, major airlines, and all
kinds of other corporate interests, walk away Scot free, at the expense of those same
taxpayers! How outrageous is that??

 As far as the situation in which AA and its people now find themselves, there's plenty of
arrogance and blame to go around including AA management, the APA, the FA's union which has
been no angel in this either, and the general atmosphere of both corporate and union greed and
mistrust. It distresses me greatly to see this, but the bottom line is, American Airlines as we
know it is going away. The "new" American Airlines will be what was formerly known as US
Airways.

OK, that's my missive for the day. 
Take  care, 
Marky
 


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