So a letter from the USAirways CEO to employees and
filed with the SEC today:
****
Dear Fellow Employees –
Today, we filed a statement (a form
called an 8-K) with the Securities and Exchange Commission disclosing that we
have signed agreements with the three unions that represent nearly 55,000
American Airlines employees. These unions are the Allied Pilots Association
(APA), the Association of Professional Flight Attendants (APFA) and the
Transport Workers Union (TWU), which represents all of American Airlines’
mechanics and fleet service employees. Shortly after our disclosure, these three
unions issued a public statement announcing their support of a US
Airways-American Airlines merger and that they have agreed to terms that would
govern collective bargaining agreements for their members at the merged airline.
I want to explain to you why we have done this and what it means.
First of all, today’s news does not
mean we have agreed to merge with American Airlines. It only means we have
reached agreements with these three unions on what their collective bargaining
agreements would look like after a merger, and that they would like to work with
us to make a merger a reality. To get to an actual merger, many more things must
happen including gaining the support of AMR’s creditors, its management team and
its Board of Directors. But this is obviously an important first step along that
path and we are hopeful we can all work together to make this happen.
All of you have heard me talk about
the benefits consolidation has created for US Airways and our industry. You have
also heard me say that US Airways does not need to merge with anyone, as
evidenced by our team’s outstanding results. That is still the case, but after
studying American Airlines’ current state and their future plans, we have
concluded that a merger with American, while they are undergoing their
bankruptcy restructuring, represents a unique opportunity that we should not
ignore. These beliefs are shared by the three American labor unions and we are
delighted to have their support. Like us, they recognize the potential of a
merger to improve the current and future careers of both airlines’ employees.
Combining American Airlines and US
Airways would create a preeminent airline with the enhanced scale and breadth
required to compete more effectively and profitably. Our intention would be to
put our two complementary networks together, maintaining both airlines’ existing
hubs and aircraft, and create an airline that could compete successfully with
United, Delta and other carriers within our industry. A merged airline would
provide competitive, industry-standard compensation and benefits, as well as
improved job security and advancement opportunities for all employees of the
combined airline. Most importantly, in American’s standalone strategy, over
13,000 employees at American will lose their jobs. Our merger contemplates
saving at least 6,200 of these positions. For the US Airways team, the
agreements we have reached with the unions representing employees at American
would also provide enhancements to the compensation and benefits currently in
place here.
Today is one step in what will be a
much longer process. For now, it remains business as usual. We must continue to
provide the outstanding service that customers have come to expect from US
Airways.
In the meantime, if you have any
questions, please stay connected via Wings (www.wings.usairways.com) and
we will continue to provide updates on our progress. Thanks for all that you
continue to do to take care of our customers. Together, whether a merger is our
future or not, we will continue to run a great airline and have a bright future
ahead of us.
Sincerely,
/s/ Doug
Doug