ALPA National President Captain Duane Woerth
issued the following press release on Monday morning:
"The aviation industry has been dealt yet another blow
today as one of this nation's greatest airlines was
forced to file for Chapter 11. Pilots across the
country are saddened, disappointed and angry that an
airline as eminent as United, which was used
symbolically by terrorists to carry out mass
destruction, is now in bankruptcy. It pains me to
acknowledge that terrorism scored another victory
today, and this Administration let it happen.
"It was evident that the industry was entering an
economic downturn prior to 9/11, but the spiraling
effects of that tragedy, with the fall-off of passenger
travel, increased security costs, ever escalating
aviation taxes and mounting airline debt created a
crisis in commercial aviation. Congress recognized this
immediately following 9/11 by granting short-term
financial aid and establishing the Air Transportation
Safety and System Stabilization Act to guarantee
long-term loans for those airlines most severely
impacted by terrorism. Yet the Board that is in charge
of guaranteeing these loans has turned its back on two
airlines hit hardest by 9/11, United and U.S. Airways,
whose core East coast operation nearly shut down when
Washington Reagan airport closed indefinitely for
security reasons. Instead of stabilizing the industry,
the ATSB is doing its best to de-stabilize it, and this
Administration - which has intervened in more than one
dispute citing fears of crippling the economy - is
ironically idly sitting by and letting another of our
nation's premier airlines go into bankruptcy.
"Perhaps President Bush needs to go beyond ousting his
two top economic advisors and take a close look at the
workings of the ATSB, for they are doing our industry
more harm than good, and certainly not living up to
their Congressional mandate. Even the head of the Air
Transportation Association, Carol Hallett, recently
said the only solution to our industry's malaise may be
to nationalize the airlines! Is this on the
Administration's agenda, or are they merely out to
hammer down airline employee wages regardless of the
consequences? Isn't it enough that to finance the War
on Terrorism, the industry that was its primary victim
is being asked to pay for the war through increased
user fees and security costs, laying much of the burden
on the backs of airline employees?
"Somebody should start asking why the ATSB would not
guarantee a loan for an exceptional company such as
United, especially after its labor groups agreed to
billions of dollars in wage concessions over five and a
half years. Is this Administration so worried about the
nation's poor economy that it believes the present
economic downturn will last that far into the future,
and thus prevent an airline as great as United from
making a profit and paying back its loan?
"And, somebody should also ask why the global airline
industry is doing so much better than that in the U.S.?
Their labor costs are higher and productivity lower
than U.S. carriers, but they're still profitable. Could
it be that the sudden drop in business travel revenue,
excessive Internet fare discounting, mismanagement of
pension funds, bad business plans and relentless U.S.
government increases in user fees and taxes on our
industry, in addition to the tragedy of 9/11, have
something to do with the state of the U.S. airline
industry? Taxes alone make up 44 percent of a $100
domestic ticket, higher than even the cigarette "sin
tax" of 18 percent!
"Unlike this Administration, ALPA will not give up on
our U.S. airlines or its employees. Pilots have worked
closely with United Airline's management to support the
ATSB loan process, and they will continue to work with
them to save their airline. ALPA will put the full
weight of its resources behind the United pilots to
help them work through this bankruptcy."
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