December 28, 2000
This is MEC Chairman Roger Cox with the MEC hotline message for Thursday, December 28. Topics tonight are:
Holiday Sick Calls
Reserve Rest Break
Management Exits
Stock Buy Back
Happy New Year
Holiday Sick Calls
We�ve had a few recent reports of pilots being told by schedulers that they require a doctor�s statement for a sick call. It�s pretty black and white. See Section 14C.3.b. If it�s not a specified holiday, no statement is required.
Reserve Rest Break
We had a little difference of opinion this week about the required length of a rest break if you�re a reserve. According to our Grievance and Scheduling Committee experts, if you�ve been on reserve and haven�t flown your break is 10 hours by Section 12C.8. If you�ve been on reserve and you have flown or performed other duty your break is 11 hours under 12D.3. We�ll check on that to be sure, but that�s the word as of now. I personally find this to be unnecessarily confusing. We�ll shoot for a simpler, clearer rule in our new Section 12.
Management Exits
Diane Welle has resigned as Director of Employee Benefits and Gail Mildenberg will soon be leaving as Manager of Hotel Accommodations. Both were well acquainted with our pilots and Committee Chairmen. Gail has been a very long time AWA employee. Jim Rizor has already departed his position in charge of corporate real estate. No replacements have been announced.
Stock Buy Back
AWA bought back the class A shares held by Continental this week. Continental got a little over $68 per share and gave up first right of refusal to purchase the A shares held by TPG Partners. Continental couldn�t exercise that right without Northwest�s approval anyway. So why are those shares worth $10.8 million? Probably a nominal fair rate of return for the use of their money for 6 years. The $10 million approximates what Continental paid David Bonderman to facilitate the Northwest settlement, so America West takes on some of the cash crunch that Continental had. TPG gets a free hand to sell control to the highest bidder, but a subsequent owner does not have a free hand. AWA can trump them for ownership, unless Bill Franke ceases to be CEO. So TPG can cash out and the new owners of the A shares still have to fight Franke and his B share Board for control.
Confused? You�re supposed to be. This is commodity stock options, and air transportation is the commodity. You have more in common with a pork belly than you ever thought. The purpose of this kind of optioning is to enable a bet on the future. The smart money says the Bush administration will approve a modified UAL-Airways deal and the smaller players will be up for grabs. The guy who has control when the price goes up wins.
Speaking of cash crunch, which I did just a moment ago, why the $34 fares, and why, after seven weeks, has the new training center not begun? Our “growth” plan depends on training, which depends on simulators being moved and installed next summer. It�s not happening. So, what growth plan?
Happy New Year
The year 2000 draws to a close. Our company has gotten worse, our union has gotten better. 2001 is going to be a shootout, and we�ll have to be better than ever. I must express my gratitude to the pilots who really worked this year to make us better. It�s the workers, not the whiners, who will help us succeed. Say thanks to the Chairmen and members of these committees: Negotiating, Grievance, System Board, R & I, Merger, Family Awareness, Pilot to Pilot, Government Affairs, Aeromedical, HIMS, Professional Standards, Central Air Safety, Accident Investigation, Training, Air Carrier Security, Scheduling, Hotel, Jumpseat, PBS, Uniform, Crew Lounge, Crew Meals and Membership. I�m not going to tell you their names or phone numbers or mail boxes. You should know. You should speak to them. They worked for you. We�ll be calling on each of you to support them and and to do your part. When you�re called on, say thanks, and say yes.
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