Grinstein b!tch slapped Doogie!

[USA320Pilot]

If this merger proposal was DOA why did Delta fight so hard to remain independent? After all, if Delta was such a strong business enterprise why fight?

Delta exhibited an enormous effort to prevent the merger such as holding rallies, passing out tens of thousands of buttons, engaging their Congressional delegation to hold a Senate hearing on so-called industry consolidation, and misrepresenting information.

I was in favor of the proposed merger because I believe it would have benefited every Delta and US Airways employee, but after witnessing Delta's actions I would like to see US Airways & Northwest combine and then United & Continental, which would make Delta the weakest legacy carrier who would struggle against the likes of UA/CO, US/NW, and AA, maybe with no domestic code share partner.

Regards,

USA320Pilot

P.S. Those who laugh last last best!

 

[delta777]

If this merger proposal was DOA why did Delta fight so hard to remain independent? After all, if Delta was such a strong business enterprise why fight?

Delta exhibited an enormous effort to prevent the merger such as holding rallies, passing out tens of thousands of buttons, engaging their Congressional delegation to hold a Senate hearing on so-called industry consolidation, and misrepresenting information.

I was in favor of the proposed merger because I believe it would have benefited every Delta and US Airways employee, but after witnessing Delta's actions I would like to see US Airways & Northwest combine and then United & Continental, which would make Delta a weaker weakest carrier who would struggle against the likes of UA/CO, US/NW, and AA, maybe with no domestic code share partner.

Regards,

USA320Pilot

P.S. Those who laugh last last best!

It's just a shame nobody wants to merge with LCC. Aside from a decent domestic network, you offer nothing.

 

[gaucho99]

It's just a shame nobody wants to merge with LCC. Aside from a decent domestic network, you offer nothing.

Except for the most profitable airline in the industry for 2006. Which is better, a huge international route structure that can't make money, or a mostly domestic route structure making a half billion a year in profits?

 

[US1YFARE]

Except for the most profitable airline in the industry for 2006. Which is better, a huge international route structure that can't make money, or a mostly domestic route structure making a half billion a year in profits?

Factor in the red dress and it's a tough call, don't you think? :unsure:

 

[PITbull]

What I gleam from the unsecured creditors decision is that Dougie needs to prove to the industry that his operation and airline can sustain profitability and that his "team" can garner employee support and respect from his own little universe before anyone can trust that he can be a success by branching outward.

Taking employee consessions as the only cost savings advantage when every other major is using the same BK scheme to reach the same cost savings advantage doesn't make for an airline that can sustain profitability.

Doug has been CEO of a Major for 18 months. He has been able to achieve profitability because the economy is strong and he inherited an airline that shed many of its debts by restructuring.

What else can this guy do to ensure U succeeds and can compete with U's competitors that have restructured their airline in the same way? What other advantage does U have other than to attempt hostile takeovers? What is Doug's focus to ensure that he can not only please the loyal customers, but he can lure customers from other carriers?


How does one measure a truly successful CEO that would be deserving of the accalades and the "red carpet treatment"? Hell, Doug already received bonus compensation this past summer to the tune of $9 million. I think he was looking for another stock surge.



Dougie's letter to the employees:

An Important Message from CEO Doug Parker
US Airways Withdraws Offer For Delta Air Lines
January 31, 2007

Dear US Airways Employees,

We received word earlier today that Delta’s Official Unsecured Creditors’ Committee would not be able to meet our demands by the Feb. 1, 2007 deadline. As a result, we have withdrawn our offer to merge with Delta Air Lines. While we are disappointed that the Committee has chosen to ignore its fiduciary obligation to Delta’s creditors, we are excited about our future and proud of our team’s performance during this process.

As a standalone carrier, we have a tremendous future ahead of us. As announced yesterday, we earned over $500 million (excluding special charges) in 2006 and will cut profit sharing checks later this quarter. We expect an even better 2007 and I look forward to working with all of you to make US Airways an even better airline than it is today.

We have the best team in the business, from our operations team to all of the support and administrative staff. We’re improving on customer service measures, bringing back furloughed employees and hiring new members to our team. Our future is bright.

In closing, I couldn’t be more proud of the professionalism that US Airways employees showed since announcing our proposal over two months ago. Thanks for all your support and encouragement you gave our team during this process. Let’s focus on running the best airline we can and have a great 2007. As always, thanks, too, for taking care of our customers.

 

[PITbull]

Except for the most profitable airline in the industry for 2006. Which is better, a huge international route structure that can't make money, or a mostly domestic route structure making a half billion a year in profits?

Do you think that the profitability is sustainable?

Under Gangwal, U made $500 million in the year 1998, and that was during a booming economy too. The airline was much larger back then, lower fuel prices, but labor costs pre 9/11 and pension plans intact.

 

[BoeingBoy]

Do you think that the profitability is sustainable?

Very peretinent question, PITBull.

Jim

 

[Informed1]

http://www.ajc.com/business/content/busine...31bizdelta.html

Looks like the old goat taught that little brown-nosed bed-wetter a thing or two about playing hardball.

KDMD KDMD KDMD KDMD KDMD KDMD KDMD KDMD KDMD KDMD KDMD KDMD

This is soooo old. I still have not figured out how anyone thinks any flight attendant, depending on what airline they work for, is any better than another. We all sling peanuts/pretzels and sodas. We all handle inflight emergencies and are trained to evacuate airplanes. We are all essentially the same!! Am I missing something here?

 

[Rico]

I don't think so. First of all, DL ALPA held a voting postion on the official unsecured creditors committee and as such had a very big say. In addition, the threat of labor unrest was a real one and the pilots did a very good job of making that quite clear.
DL management was sucessful in garnering enough vocal political support to put serious doubts about whether or not a merge could be successfully consummated. The congressional hearings put Parker on the hot seat.
In addition, as it has been pointed out on numerous occasions, there has never been a successful hostile takeover in the ailrine industry. Parker never stood a chance as long as DL management refused to endorse the deal.

Sigh... <_<

Ok, so the sky IS a pretty blue color in your world, thanks for the update.

But you are kidding yourself if you think labor "unrest" means squat to the creditors. All they cared about was what kind of a return on what they were owed, period.

That is all the decision was based upon. Nothing else.

 

[Itestwell]

Factor in the red dress and it's a tough call, don't you think? :unsure:

Was that for me, US1YFARE? Because to me, that was the most exciting part about the merger!!!

 

[BoeingBoy]

Since neither plan came with guarantees, it's probably safe to assume that the Official Committee weighed the risks and came to a consensus on which plan carried the lowest risk/reward ratio.

A post-merger integration not going as smoothly as Parker claimed is one of those risks, and lack of employee support affects that. So while the Committee may not care one iota about the employees per se, they care about the employee's effect on a potential integration.

Dismiss it all you want, but the DL employee's united stand against the merger probably gave the Committee food for thought.....

Jim

 

[US1YFARE]

Was that for me, US1YFARE? Because to me, that was the most exciting part about the merger!!!

well, duh, it was the most exciting thing for the pax too. However, it doesn't come in sizes bigger than an 8, so you may have to sew 2 together. Some of the mommas working the FCO trips may need to sew 3 together.

 

[PITbull]

Sigh... <_<

All they cared about was what kind of a return on what they were owed, period.

That is all the decision was based upon. Nothing else.

Really? $10.8 billion, and may have increased even higher couldn't convince these creditiors? Just how much is DL worth?

My opinion, had much to do with U's management's credibility in the industry. U's recent history doesn't bode well with congressional leaders, or the Department of Transportation...kinda "burned their bridges".

It will take a long time for U to garner respect with passengers and employees to the standards expected of an airline. And that's just the first step.

 

[Breath_of_Fresh_USAirways]

I don't think so. First of all, DL ALPA held a voting postion on the official unsecured creditors committee and as such had a very big say. In addition, the threat of labor unrest was a real one and the pilots did a very good job of making that quite clear.
DL management was sucessful in garnering enough vocal political support to put serious doubts about whether or not a merge could be successfully consummated. The congressional hearings put Parker on the hot seat.
In addition, as it has been pointed out on numerous occasions, there has never been a successful hostile takeover in the ailrine industry. Parker never stood a chance as long as DL management refused to endorse the deal.

Did you see the guy driving the billboard mobile around US Airways HQ in Tempe? He's been out there, hired by DALPA, for a few days. One side says "keep delta my delta" and the other is a message to USA employees that Doug Parker is mortgaging the company. Too funny. Funnier yet was that he was still out there, going around and around the block, at 1 pm, Phoenix time (MST or GMT-7) today -- at least 3 hours after the announcement that USA was no longer persuing a DL merger. I guess DALPA forgot to tell him. USA employees were pointing and laughing. Poor guy. He didn't appear to be a DL employee.

 

[delta777]

Sigh... <_<

Ok, so the sky IS a pretty blue color in your world, thanks for the update.

But you are kidding yourself if you think labor "unrest" means squat to the creditors. All they cared about was what kind of a return on what they were owed, period.

That is all the decision was based upon. Nothing else.

Then using your argument as fact, DAL made better financial sense for the creditors, otherwise they would have went with LCC. I happen to think the massive opposition LCC encountered with labor and practically everybody else had a part as well. It seems the only people who were pro-merger were Senior LCC management and some short-minded hedge fund managers.

This was a completely different set of circumstances compared to when Doogie saved US Air, they were at death's doorstep, prepared for Chapter 7, Delta couldn't be more further removed from that situation. US Airways begged for a life saver and it just so happened Doogie answered the call, DAL never did because we never needed it. Perhaps had Doogie let US Airways die a natural death, everybody, especially Doogie, wouldn't be crying about too much industry capacity.