U.S. government, two airlines say open to settling merger fight

[WorldTraveler]

One-third of US' flights from PHX are to cities east of the Mississippi which means they could easily be served from DFW or ORD.
US has no choice but to bulk up PHX because it doesn't have any hubs between the east coast and PHX.

It is a given that AA will build out its flying from ORD and DFW to secondary cities that otherwise might flow over PHX using the E175s.

 

[UPNAWAY]

PHX could actually be bulked up on/with more west coast flights post merger. But in the end it really isn't about geogra[hic hubs but profitable routes. If a PHX to back east flight is profitable it will stay (If not it won't) even though you could route people through ORD or DFW.

 

[WorldTraveler]

US is competing on most of the PHX-west flights with WN who has lower costs and which will continue to look better relative to US based on the labor agreements necessary to secure the merger.

PHX' profitability will shrink post merger - moreso than any other hub.
Anyone can figure out what that means for the future.

 

[freedom]

South wests labor costs are high and getting higher ...their labor force of fleet service agents are getting worn down physically and I could see medical costs start to take a much higher toll on the company as the years go on ...

Overall I think WN is on the decline .

 

[T5towbar]

What else that the DOJ is looking for? I know that it can't be NYC, since US traded slots w/DL between LGA and DCA. So if it is DCA, how many slots do you suppose would satisfy the DOJ??

And BTW: Since the combined companies will have over 100,000 employees, how many heads will be cut? That's a lot of attrition........ I'm trying to figure that one out, because I'm living thru a merger right now, and it ain't pretty........

 

[T5towbar]

South wests labor costs are high and getting higher ...their labor force of fleet service agents are getting worn down physically and I could see medical costs start to take a much higher toll on the company as the years go on ...

Overall I think WN is on the decline .

But one thing they have on their side is better management than everybody else. Even though they make more than us, they won't screw their employees over. I haven't seen any evidence of it yet. But the cost cutting pressures will come, and how they will deal with it is the question. We all know how everyone else will do it..........

 

[WorldTraveler]

South wests labor costs are high and getting higher ...their labor force of fleet service agents are getting worn down physically and I could see medical costs start to take a much higher toll on the company as the years go on ...

Overall I think WN is on the decline .

WN's labor force is far more efficient than any network carrier's. And WN also is not afraid of having a higher percentage of their costs come from employees because those employees generate so much more revenue than other employees.

WN does face challenges including an aging workforce but they have an enormous headstart that they are not going to let go of.

Expecting your success to come because of someone else's decline is a very risky proposition and one that in this case is highly unlikely to happen.

 

[traderjake]

Expecting your success to come because of someone else's decline is a very risky proposition and one that in this case is highly unlikely to happen.

Says the Delta cheerleader who opposes the American merger.

 

[FWAAA]

what amazes me the most in that statement is that the doj keeps mentioning 1000 city pairs... where is the list of all 1000 city pairs that theyre talking about

Here is a link to the complaint:

http://s3.documentcloud.org/documents/756967/u-s-justice-dept-complaint-us-airways-amr-merger.pdf

 

[LD3]

It appears that a majority of the complaint are assumptions by the DOJ.....

 

[WorldTraveler]

Says the Delta cheerleader who opposes the American merger.

it's actually a truism of life that if you expect you will gain on the hope that someone else fails, you yourself will probably be the one that loses.

It appears that a majority of the complaint are assumptions by the DOJ.....

that would be your assumption.

 

[FWAAA]

It appears that a majority of the complaint are assumptions by the DOJ.....

Civil complaints are generally full of allegations that the plaintiff believes can be supported and proven by evidence at trial.

 

[robbedagain]

thanks fwaa thats very interesting to say the least... some of those arguments.. the companies can say we can raise those fees and prices today etc etc but a concern is the slot deal aa/b6 did whereas if the judge oks the merger then b6 could be left out of the slots so i wonder if say b6 wn want more slots at dca then may be that would help us/aa for their beloved merger... 🙂

 

[Crash Pad DCA]

Giving up slots in DCA. The first of many jobs eliminated to get the merger approved. who knows how many jobs will be eliminated if this merger is realized. One thing is certain... it is just the tip of the iceburg. Good luck PHX.

7,000-15,000 jobs will be eliminated.

UA has 82,489 employees
DL has 74,546 employees
US+AA will have 31,020+59,163 = 90,183 9% larger than UA, 21% bigger than DL.

Why will US+AA need 7,600 more employees than UA and 15,000 more employees than DL to do the same job?

I guess the "good news" is AA already cut 5,400 jobs (8.4% of its workforce!) in bankruptcy.

Quick! Let's all run out to the DOJ and protest the merger and then saunter back to the station to collect our pink slips while DP and Co triple their take home pay. Sounds like a good plan to me.

Good luck PHX! With DL domestic and international strongholds in PDX, SEA, LAX and SLC, and UA domestic and international strongholds in DEN, SFO and LAX, US+AA looks pretty weak with the LAX and PHX duo managing a weak domestic 3rd position in the west, and completely relying on JAL, Quantas and BA for international connections to Asia and Europe. That situation won't last long....

http://www.miamihera...ll-cutting.html
Many big airlines still cutting jobs

The Associated Press


The 10 largest U.S. airlines by full-time-equivalent employees, and their one-year change in job numbers:
— United Airlines, 82,498, down 0.1 percent.
— Delta Air Lines, 74,546, down 3.9 percent.
— American Airlines, 59,163, down 8.4 percent.
— Southwest Airlines, 45,216, down 2 percent.
— US Airways, 31,020, up 2.1 percent.
— JetBlue Airways, 13,029, up 2.7 percent.
— American Eagle, 11,166, up 13.5 percent.
— Alaska Airlines, 9,564, up 3.7 percent.
— SkyWest Airlines, 9,422, up 0.2 percent.
— ExpressJet, 8,998, down 4.5 percent.
American and American Eagle are both owned by AMR Corp.
Southwest figures include AirTran Airways subsidiary
ExpressJet is a SkyWest subsidiary
All totals are for June 2013 compared with June 2012. Two part-time jobs are counted as one full-time job.
Source: U.S. Department of Transportation.

http://www.usatoday....ecline/2726227/
The DOT said that American cut about 5,400 jobs, or 8.4% of its workforce, as it slashed costs during bankruptcy. American had the equivalent of 59,163 full-time workers in June.

DOT Data (See Table 6)
http://www.rita.dot....eases/bts039_13

 

[700UW]

Freedum

I guess you dont understand WN has the highest percentage of unionized workers, highest paid workers and the most profitable airline.