Merger Relief for American Airlines: April 24, 2012

[WorldTraveler]

and just one week after Parker's notice of intent to pursue an AA merger via AA's labor groups, there is no evidence that the 1113 process will be terminated or that the non-labor creditors have any interest in pursuing a AA-US merger.
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As much as the labor groups don't want to go thru the 1113 process - and I can certainly understand why - the reality is that AA will be a strong competitor - and US' future will be more cloudy than ever.
US now has the prospect of facing AA, DL, UA, and WN all w/ much greater strength on the east coast and all with much deeper resources to compete and much larger networks throughout the US and the world.

 

[wings396]

Damn, I thought that you gave it up...
I knew it was to good to be true...
It was a nice few days without reading your hype.....
Gloom and doom for US, and all great for DL.

 

[WorldTraveler]

and leave the US PR machine to rule the interwebs? never.
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We will be here to remind you that reality WILL set in and US will be forced to compete or be...hmmm.... marginalized.
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In about a year and a half when AA emerges on its own, I suspect we will see US still w/o a partner but now with 4 network carriers including WN to compete w/ on the east coast.
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Other carriers are doing what they said they would do... if US did what it said it would do in either one of its BKs OR its merger w/ HP, we wouldn't be having this conversation today.

 

[777flyer]

US Airways and America West have been through this before. The US Airways-AA merger will use the blue print of the US Airways-America West merger, which BoeingBoy described. The major reason it has to be part of the POR is so that Doug Parker can use the bankruptcy court to void any contract, lease, or other obligations he desires before AMR loses its abiliyt to shed costs with court assistance. This will make the combined business entity stronger post emergence.

I suspect Horton's objection to the merger is that he and his team will lose their "formal reorganization" bonus payments and he and his team will lose their jobs if the merger occurs upon bankruptcy exit. If the merger happens after bankruptcy exit AMR could remain in control of the combined carrier, Horton and his team could be the surviving management team, and the airline will be weaker with less cost cuts.

USA320Pilot

US Airways has permission to treat the AA pilots exactly the way AA pilots treated the TWA pilots. That would be fair, right?

 

[wings396]

I'm no PR machine you jackass, I have an actual vested interest in the viability of the company unlike yourself.
I did get word that you indeed DID work for DL, but left for some " unknown" reason. I guess that you hope all of your pro DL bootlicking may get you a job with them again. You are a pathetic POS to be so involved with an industry that you no longer work in. An attempt to predict and hope for the demise of any company that supports American workers is pathetic at best. I hope this merger goes thru just so myself along with everyone on these boards can laugh in your face. It has already gone further than you predicted, and you are squirming. For some unknown reason, you have some hidden agenda here. Is your Bro gonna get the axe at AA? Are you truly a lobbyist for someone?

Hell, if you knew half as much as you thought, you wouldn't be wasting your pathetic little life here as a Delta wannabee. I may be wrong at times, but at least I have a few on here on the same page with me, with the APA leadership being one of them. You have ZERO in your corner, not even any of your Delta folks come to your aide. You are fighting a one man battle on all fronts. You are more against this than ANY AA employees it seems.
Your bitterness towards US makes little sense as well, did they hurt you at some point? Didn't offer you a job? Lost your bags?

 

[wings396]

and leave the US PR machine to rule the interwebs? never.
.
We will be here to remind you that reality WILL set in and US will be forced to compete or be...hmmm.... marginalized.
.
In about a year and a half when AA emerges on its own, I suspect we will see US still w/o a partner but now with 4 network carriers including WN to compete w/ on the east coast.
.
Other carriers are doing what they said they would do... if US did what it said it would do in either one of its BKs OR its merger w/ HP, we wouldn't be having this conversation today.

Who is "we"?????

 

[WorldTraveler]

Who is "we"?????

me, myself, and I.

I have nothing except US.... all I expect is for US to compete just like every other company and survive or fail based on its own merits.
I have said multiple times that US has done as good of a job of competing as can be expected given what it has to work with - but let's keep in mind that US has given up one opportunity after another to grow its presence alongside the largest carriers.
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Nobody told US to pull back to its hubs - which meant shedding its presence in NYC, the largest market on the East Coast, a market in which AA, DL, and UA all have a much larger presence.
You do realize that the largest market from just about every city on the east coast is NYC - and w/ the slot swap US gave up that presence which in many cases was shared with DL and UA/CO?
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Yet somehow there are those who expected that US w/ the slot swap was setting itself up for a merger - by gaining a position in DCA that the DOJ has said is as big as it can be - which means any acquired slots would have to be given up.
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No, I have nothing against US - but I am tired of hearing why they deserve a merger yet continue to make strategic decisions that make you scratch your head and wonder what they are thinking.
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You can make this personal or you can accept that a successful emergence of AA from BK along with a strengthened DL and CO that is now part of a much stronger UA on the east coast PLUS WN which continues to grow on the east coast makes US' future look far from certain.
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I said before US pulled this effort to go after AA's labor unions that AA's best course of action was to restructure on its own and emerge indepedently. I'm sorry if you see that as anti-US but really it is pro-what is best for the companies that have demonstrated an ability to compete. Those who can't compete are relegated to their appropriate places in history.

 

[MCI transplant]

and leave the US PR machine to rule the interwebs? never.
.
We will be here to remind you that reality WILL set in and US will be forced to compete or be...hmmm.... marginalized.
.
In about a year and a half when AA emerges on its own, I suspect we will see US still w/o a partner but now with 4 network carriers including WN to compete w/ on the east coast.
.
Other carriers are doing what they said they would do... if US did what it said it would do in either one of its BKs OR its merger w/ HP, we wouldn't be having this conversation today.

------- "compete or be....assimilated?" "Beam me up Scotty!"

 

[robbedagain]

I believe if US can woo at least 2 or more creditors to their side then this merger would pretty much be all complete if you will. gotto admit this time US seems to have learned some hard lessons from the hostile take over attempt of DL

 

[WorldTraveler]

except that any 2 add'l creditors have no affiliation w/ labor and see their greatest benefit from cutting the deepest from labor - thus their interest is not going to be to support a plan that doesn't give them the maximum ability for recovery.
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US learned that they need labor - but labor still doesn't carry the vote in any BK proposition because there are more costs - and thus great opportunity to cut costs - other than with labor.

 

[FrequentFlierCA]

Despite all the teeth nashing and armchair experts out there, this merger is going to happen. Arpey's thesis of "you don't have to be the biggest" has been a failure. Jack Welch's idea that you have to be #1 or #2 has been proven right. AA stands no chance with organic growth in large markets with disgusted employees and the competitve response from other larger carriers.

If Tom Horton wins, he collects $50 million from an eventual IAG buyout after the Republicans change the foreign ownership rules within two years, and after he buys USAirways with investor money flocking to AA because his employees are locked into indertured servitude contracts for a decade to come.

If Tom Horton loses, he leaves AA without his chance at $50 million.

Follow the ball, no matter what, someone will be cheering at the end of the game. It's all about Horton's payoff.

I don't see this as about what's good for Tom Horton. Frankly I could not care less about the guy or what his stake in this is. It's the AA employees who are going to suffer if this merger happens. Doug Parker is a snake in the grass. He's lied to his own employees, and he's lying to AA'ers now when he says he'll raise their pay and not cut any jobs.

Can you name one airline merger in history that has resulted in higher pay and no job cuts?

What Parker is selling is pure fantasy.

 

[700UW]

Really?

AA wants to lay off over 13,000, US will only lay off just over 6,000.

Dont let the facts get in your way now.

 

[MCI transplant]

<_< --- And it would all depend on how badly he would want this to happen! ----- Some times you have to prime the pump to get something out the other end!

 

[Mach85ER]

FF,

AMR has raised it's scummy tactics to new levels in the last 10 years (at least to my pilot side), I'm done with them.

AA employees not going to suffer with Hortons plan? On my end it is pure scum, pure insult, pure greed and pure incompetence.

It will take several years to just get even with the lift we gave to DAL with around 40 B757's. Rode on one of them in DAL's jumpseat, full airplane. FO turns around and tells me, "Thanks for the airplanes dude, we're kickin' a## with them". He was right. You think DAL and UAL will stand around without a competive response? sure, we'll stroll right in and take them down. Maybe we'll do it with the A319's. Great plan AA has paying it's Captains $100,000/year less then Asian carriers. The should go well with the turnover and training expenses. Call up Bev Goulet in NY. Ask her what cost number she used for that one.

While you're at it with the 'name one merger' game, tell me one labor intensive, service orientated company that succeeded with an expansion after kicking their employees in the face. I can only speak for the pilot group. We are done with the current AA leadership. That group includes current and former military officers, including Colonels/LT Colonels/Commanders. Business school MBA graduates, med school graduates, Ivy league law school graduates. In fact it's a group with a far more impressive academic pedigree than exists in the upper levels AA/AMR. Ask around about Senior VP Jeff Brundage's education. Two years of culinary school.

 

[MCI transplant]

FF,

AMR has raised it's scummy tactics to new levels in the last 10 years (at least to my pilot side), I'm done with them.

AA employees not going to suffer with Hortons plan? On my end it is pure scum, pure insult, pure greed and pure incompetence.

It will take several years to just get even with the lift we gave to DAL with around 40 B757's. Rode on one of them in DAL's jumpseat, full airplane. FO turns around and tells me, "Thanks for the airplanes dude, we're kickin' a## with them". He was right. You think DAL and UAL will stand around without a competive response? sure, we'll stroll right in and take them down. Maybe we'll do it with the A319's. Great plan AA has paying it's Captains $100,000/year less then Asian carriers. The should go well with the turnover and training expenses. Call up Bev Goulet in NY. Ask her what cost number she used for that one.

While you're at it with the 'name one merger' game, tell me one labor intensive, service orientated company that succeeded with an expansion after kicking their employees in the face. I can only speak for the pilot group. We are done with the current AA leadership. That group includes current and former military officers, including Colonels/LT Colonels/Commanders. Business school MBA graduates, med school graduates, Ivy league law school graduates. In fact it's a group with a far more impressive academic pedigree than exists in the upper levels AA/AMR. Ask around about Senior VP Jeff Brundage's education. Two years of culinary school.

<_< ____ Hey! The head of our Union, the, TWU, has all those degrees also!----- Just ask him! He got them from that mail order outfit in Florida!!? :huh: