merger could come in 2 weeks

[Phoenix]

[sub]Yes back office, non front line employees. [/sub]
[sub]I think managers and directors at AMR have a lot to worry about and I think accountants, analyst, etc, at US have a lot to worry about.[/sub]

Accountants and analysts from a record profitable company being tossed in favor of those at a bankrupt company... Yeah, in this business I wouldn't expect it any other way.

 

[skinvalve]

This stuff would make a great TV series. Something like DALLAS of old with the oil industry. This could be called AIRLINER and with all the crap that's gone on for the past 30 years, the story line material is endless. It could be written as non-fiction but nobody would believe it.

 

[jimntx]

Not garrenteeing this will happen b/c we have also heard of some pretty strong rumers of a SWA/AS hook up, just not too sure if SWA would want to go thru the employee integration part again.

As much as I admire SWA for its success over the years, I'm fairly comfortable in saying that a hookup with AS is just that...an unfounded rumor. AS has made it clear on several occasions in recent years that they are happy just as they are. Beside that, who could afford them?

As of a few minutes ago...
Airline Share price Market CAP
LUV $11,62 $8.55 Billion
DAL $14.82 $12.56 Billion
UAL $25.70 $8.55 Billion
ALK $47.66 $3.36 Billion

Alaska's market cap is 40% of Southwest or United, and 25% of Delta. That would be a huge pill for ANY U.S. airline to swallow.

 

[Phoenix]

As much as I admire SWA for its success over the years, I'm fairly comfortable in saying that a hookup with AS is just that...an unfounded rumor. AS has made it clear on several occasions in recent years that they are happy just as they are. Beside that, who could afford them?

As of a few minutes ago...
Airline Share price Market CAP
LUV $11,62 $8.55 Billion
DAL $14.82 $12.56 Billion
UAL $25.70 $8.55 Billion
ALK $47.66 $3.36 Billion

Alaska's market cap is almost half of Southwest or United, and 25% of Delta. That would be a huge pill for ANY U.S. airline to swallow.

ALK less than $4B..? That's barley enough to declare bankruptcy... AMR style!

 

[signals]

I don't see WN getting involved with another merger given where they are with lingering AT one. The AB fleet would also complicate issues for WN with them striving to keep an all 737 fleet.

I don't see another merger for WN either. I was talking about their attempt to take F9 when it was in BK, before the AT merger.

 

[signals]

As always, threads here tend to take a left turn

For the record, back when WN was trying for F9, they did say the ABs are history.

Now, congrats on a sure merger

 

[700UW]

http://finance.yahoo.com/news/exclusive-amr-creditors-meet-february-221419000.html

 

[usa1]

http://online.wsj.com/article/SB10001424127887324906004578288613741394262.html

 

[UPNAWAY]

[sup] Now we all get to sit back and hear AA employees and VFFs tell us how great AA was and how everything new sucks! :blush: [/sup]

 

[jimntx]

Oh, you mean the way former Piedmont people are still posting on here about how it was the greatest airline ever? Or, US East pilots point out that pre-AWA, US lead the world? What goes around comes around.

P.S. As a flight attendant, all I've heard from our FF'ers is that they will move to DL and/or UAL if this merger goes through. Usual statement..."I used to be a US Airways million miler. I will never fly them again unless I have no other choice to get where I am going." (That, of course, remains to be seen.)

 

[nycbusdriver]

Oh, you mean the way former Piedmont people are still posting on here about how it was the greatest airline ever? Or, US East pilots point out that pre-AWA, US lead the world? What goes around comes around.

P.S. As a flight attendant, all I've heard from our FF'ers is that they will move to DL and/or UAL if this merger goes through. Usual statement..."I used to be a US Airways million miler. I will never fly them again unless I have no other choice to get where I am going." (That, of course, remains to be seen.)

You're right, it remains to be seen. They may return if Parker doesn't "America Worstify" the New American the way he did to US Airways. I swear Tempe staged a concerted, well-planned effort to alienate the US Airways frequent flyers to resounding success. The FFs left in droves, and now US Airways is the Ma&Pa Kettle airline that was America Worst.

That's why you hear what you are hearing. I simply can't imagine that the AA labor groups back this guy who may very well destroy your airline with his home-grown "improvements."

 

[700UW]

Cant be too many leaving when US made record profits last year while AA showed losses.

 

[jimntx]

700, as I posted on another thread, the phrase "record profits" is a meaningless term unless put into context. If US Airways had never made a profit ever, but made $1.42 profit last quarter, it would still be a record profit. Also, as I asked wings396, please recalculate those profits with AA pilot/flight attendant pay rates instead of LCC pay rates, and tell me how much of that profit is left. DP has "promised" us not only our current pay rates, but restoration of some of the pay and benefits we have lost. I'm going to assume that your pilots and flight attendants will not stand for us getting pay and benefits that they do not receive; so, where is the money coming from to pay for all this largesse? Merger synergies? That's consulting company claptrap. Show me the money.

I think this merger might prove fatal to both our airlines. I hope I am proved wrong.

 

[jimntx]

A negative vote for the question I asked, or for my opinion at the end? The question is valid. DP is making profits because your pilots and flight attendants (the major payroll for any airline) are paid much less per hour than other airlines including AA. None of you at LCC seem willing to answer the question...how much of the profit would be left if DP had been paying AA level wages? Ok, I'll answer it for you. NONE of the profit would be left. According to Horton, that's why we are in bankruptcy...the employees are being paid too much. Where is DP going to get the money to pay the AA unions what he promised? Are you as LCC employees going to stand for financing raises for others that you are not getting?

As far as my opinion at the end, I have a right to it as many of you have said about your own opinions. And, a number of those reliable sources that wings396 likes to quote have also pointed out that where AMR is truly weak is in Asia. What does LCC bring to that table? You have about the same number of flights to Europe, but a number of those are to secondary cities. LCC profits are not large enough, and AMR's employees are too disaffected to make the effort that a merger will require for it to work.

And, you are taking on a very senior workforce that is now not able to afford to retire (I'm not talking about the pilots) thanks to the bankruptcy machinations of the current AMR management; so, the AMR side of the house is going to be top-heavy with top of scale people for some time to come. Let's see how the profits flow under these conditions.

 

[johnny kat]

Jim,

What are the f/a staffing levels on AA's many aircraft types?