FrequentFlierCA
Veteran
- Feb 25, 2008
- 591
- 35
Looks like not everyone is as enamored with this merger idea as AA's unions are. It's about time someone started pointing out the warts on this deal.
http://www.washingtontimes.com/news/2012/may/24/no-merger-for-american-airlines/
"US Airways‘ own history is a tumultuous one. In 2005, it announced a merger with America West. During the negotiations, the company claimed the deal would generate $600 million in revenues and integrate both airlines’ workforces. Instead, seven years later, the company’s operational labor groups remain divided along former lines and it has been unable to resolve disputes. According to US Airlines Pilots Association President Gary Hummel, “there have been very few tangible benefits for US Airways pilots as a result of the 2005 merger.”
Nor have customers benefitted from the previous US Airways merger. In fact, in the two years following the merger, US Airways finished last among the largest carriers in the number of customer complaints and reports of mishandled bags. Last year, almost a third of US Airways‘ flights arrived late, according to the Department of Transportation’s standards.
It may be a tough pill to swallow, but the only true remedy to American Airlines‘ problems is allowing the company to proceed through the restructuring process under bankruptcy protections. The carrier has not ruled out merger options after it has done so, but trying to coerce it into one now would be caustic not just for the airlines involved, but for the entire industry. And in that case, travelers across the United States are the ones who stomach the true costs."
http://www.washingtontimes.com/news/2012/may/24/no-merger-for-american-airlines/
"US Airways‘ own history is a tumultuous one. In 2005, it announced a merger with America West. During the negotiations, the company claimed the deal would generate $600 million in revenues and integrate both airlines’ workforces. Instead, seven years later, the company’s operational labor groups remain divided along former lines and it has been unable to resolve disputes. According to US Airlines Pilots Association President Gary Hummel, “there have been very few tangible benefits for US Airways pilots as a result of the 2005 merger.”
Nor have customers benefitted from the previous US Airways merger. In fact, in the two years following the merger, US Airways finished last among the largest carriers in the number of customer complaints and reports of mishandled bags. Last year, almost a third of US Airways‘ flights arrived late, according to the Department of Transportation’s standards.
It may be a tough pill to swallow, but the only true remedy to American Airlines‘ problems is allowing the company to proceed through the restructuring process under bankruptcy protections. The carrier has not ruled out merger options after it has done so, but trying to coerce it into one now would be caustic not just for the airlines involved, but for the entire industry. And in that case, travelers across the United States are the ones who stomach the true costs."
