Parker agrees with DL CEO advise about IT systems

[Barfbag]

Now it is only because DL's CEO told him to do it? PRICELESS!!!

Maybe Parker maybe thinking ahead to the next merger, DL and take a $400 mil parachute. They criticized Icahn and called him a greenmailer and other things I can't post when he pirated TWA.

In the end it's a guy with a choice, keep banging your head against the wall in the corner office, or take the suitcase full of unmarked bills and head for the exit.

God Bless the USA..

 

[john john]

What both the original HP/US and CO/UA share from their past experience was displaying an arrogance that it was their way or the highway.

It's hard *not* to learn from that type mistake, especially when it results in bad press.

A little trip down memory lane on the last merger of the computer system
http://www.airlineforums.com/topic/34214-cwaibt-letter-to-doug/
Letter to Doug Parker from Larry Cohen and James P.Hoffa
March 12, 2007
CWA
As you are well aware, this switchover – along with the malfunctioning kiosks -- caused an enormous amount of turmoil at airports across the system and particularly along the East Coast. This resulted in agents, who take pride in their professionalism and their ability to serve US Airways customers, being unable to do so, and in many cases, being blamed by local managers for the meltdown.
http://atwonline.com/it-distribution/article/us-airways-bigger-cutover-problem-was-complexity-closing-flights-0309
Kirby told analysts at the JPMorgan Aviation and Transportation Conference that "we had made it needlessly complex to close a flight," a process that involves tallying passengers and bags and collecting other data before an aircraft can push back from the gate.
That compounded the problems that resulted from differences in the way the merged carriers' systems had handled changes in electronic tickets.

http://usatoday30.usatoday.com/travel/flights/2007-03-05-us-airways-monday-update_N.htm
When the new system started over the weekend, it failed to communicate with ticketing kiosks at airports. That forced all passengers to check in at airport counters, creating massive lines. On a normal day, 40% of passengers would use kiosks to check in, Kirby said.
Some passengers on Monday still faced lengthy waits: 90 minutes in Philadelphia, and 45 minutes in Charlotte, for example.
http://www.zdnet.com/blog/btl/us-airways-reservation-system-glitch-strands-passengers/4593
When the kiosk crashed customers had to wait hours in some cases to talk to ticket agents. US Airways had talked up its integration savvy when it was wooing Delta late last year. Delta shot down US Airways' acquisition attempt.

 

[WorldTraveler]

I said this:

Of course Parker is smart. He cannot afford to run the risk of an IT failure like UA has had. Being smart is listening to the success of others, regardless of whether they are competitors or not. Wall Street wants to know that Parker won't make the same mistake he made before or that UA just made.

By acknowledging that DL did it right and he is accepting Anderson's advice, Parker is soothing Wall Street concerns about potential IT problems.

you responded with this...

All Anderson did is state the obvious -- you go with the systems that require the least amount of integration. It's hardly some panacea of merger advice...

Again, it's common sense, and not some new & radical thinking coming only out of the Atlanta brain-trust. Referring to Anderson was just convenient name-dropping that the audience would be able to relate to.

The simple fact is that DL set the standard for doing a megamerger right.

It may not be rocket science but they did it. I said on this website years ago that DL would do a merger that would rival anything any large airline has ever done.

More importantly other mergers including HP/US were not done near as well.

They did it with Western which was the last full merger DL did.

Get past the idea that it was DL and acknowledge that Parker has to say that he will do what it takes to do his merger as good as anything that has ever been done. Investors will accept no less at this point.

The fact that it was DL who provides the yardstick doesn't matter to Parker other than to tell investors he will follow the pattern of whatever merger he needs to copy in order to succeed.

 

[hula-flyguy]

USAir bought PSA, my way or the highway. USAir bought Piedmont, my way or the highway. HP bought (argue amongst yourselves) my way or the highway. Now maybe it will be done the right way with AA/US. Buh bye SHARES! Welcome back SABRE! We only went with SHARES because it was cheaper. Hopefully that mindset will change as well.

 

[IORFA]

The point is that AA-US has learned from the mistakes of others - that is the benefit of going last. AA got thru BK faster than others... we can hope the merger will be equally impved because of being able to learn from what others did.....good, bad, or indifferent.

that is the real point of what Parker said.

Point is they learned from their own mistakes, not necessarily from others. They also said this on the 14th. The morning of the announcement. Well before your Mr. Anderson would have known or been able to give his "advice". Nice try. Continue with your spin!

 

[etops1]

You surely are a peice of work WT . Parker already mentioned this at the press Conference the day of the announcement . I am sure Anderson had nothing to do with Parker's decision . You owe me a gift card btw .

 

[WorldTraveler]

you'll have to send your personal contact information.

the reason he mentioned DL and Anderson is to show Wall Street that he would follow a pattern that worked.

He could care less if it was Saks or any other company... he just wants to convince Wall Street he won't make the same mistake twice - or follow on the heels of UA's IT disaster.

This thread shows how far some people will go to deny the success that DL is demonstrating.

DAL stock is trading at its 52 week high, DAL has a market value of almost $13.5B - far higher than UA which is larger and higher also than the proposed value for AA/US or any other US airline - and DL has one of the highest market caps for an airline in the world.

DL is doing what they do well, Wall Street knows it, and Parker isn't afraid to say he will copy what DL is doing in order to gain their confidence.

 

[eolesen]

This thread shows how far some people will go to cheerlead for DL.

Good for DL. Yea for DL.

Take it to the DL thread. Or have you alienated everyone over there again?

 

[Barfbag]

This thread shows how far some people will go to cheerlead for DL.

Good for DL. Yea for DL.

Take it to the DL thread. Or have you alienated everyone over there again?

Let's face facts DL went into the Bankrutcy hopper long before AMR and has years of Bankrutcy/Merger experience. AMR was reluctant to go into Bankruptcy and was blindsided by the merger.

I don't beleive that DL is finished with their quest to becoming a monopoly in air travel and Parker "ain't no airline man", rather a used airline buyer and seller.

As soon as he gets some of the kinks out of the new American, he'll steer it right in DL's arms.

Don't take this business personal, it's just business.

 

[traderjake]

This thread shows how far some people will go to cheerlead for DL.

Any guesses as to the color of WT's pom poms?

 

[eolesen]

I don't ever plan on getting close enough to find out, thanks.

 

[WorldTraveler]

This thread shows how far some people will go to cheerlead for DL.

Good for DL. Yea for DL.

Maybe I've enjoyed watching you get wound up about it?

 

[robbedagain]

I THINK in all respects to the merger i believe parker wants to avoid the ua/co fiasco and i believe there was an article thru www.justplanenews.com that did state parker was listening to richard anderson however i thought there was one that the ual ceo also talked with parker but i honestly dont remember

 

[etops1]

you'll have to send your personal contact information.

the reason he mentioned DL and Anderson is to show Wall Street that he would follow a pattern that worked.

He could care less if it was Saks or any other company... he just wants to convince Wall Street he won't make the same mistake twice - or follow on the heels of UA's IT disaster.

This thread shows how far some people will go to deny the success that DL is demonstrating.

DAL stock is trading at its 52 week high, DAL has a market value of almost $13.5B - far higher than UA which is larger and higher also than the proposed value for AA/US or any other US airline - and DL has one of the highest market caps for an airline in the world.

DL is doing what they do well, Wall Street knows it, and Parker isn't afraid to say he will copy what DL is doing in order to gain their confidence.

I don't deny Delta 's success at all . I actually think Delta is an industry leader and has true innovation .... For now though

 

[yoyodyne]

I don't deny Delta 's success at all . I actually think Delta is an industry leader and has true innovation .... For now though

Right, I'm sure that MiserAAble Airways West will be much better....