And Akins thinks everyone is so stupid as to think that AA's slight decline in the key business markets of NYC, CHI and LAX wil be turned around by joining forces with an airline (US) that lacks any significant market share in those three key business markets. Acquiring hubs in PHX, PHL and CLT and a decent presence in WAS will help AA regain strength in those three key business markets where it has lost market and revenue share? That's the disconnect that nobody has answered, yet.
US-AA Merger Articles (Merged Topics)
- Thread starter USA320Pilot
- Start date
mike33
Veteran
- Joined
- Nov 7, 2007
- Messages
- 2,252
- Reaction score
- 1,128
Yes something has to give and i think PHX will be giving.........IMO
Freighterguynow
Veteran
- Joined
- Jan 5, 2004
- Messages
- 1,276
- Reaction score
- 1,207
Carry on
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
US Airways Bank of America Merrill Lynch Global Transportation Conference
http://www.usairways...ns/webcast.html
Kirby: We expect an AMR-US Airways merger to resolve our pilot seniority dispute
http://aviationblog....mr-us-airw.html
US Airways Exec: AMR Merger Would End Pilot Seniority Mess
http://www.thestreet...oo&cm_ven=YAHOO
AMR Merger With US Airways Inevitable, Union Expert Says
http://www.bloomberg...ells-court.html
Economist: American Airlines needs a merger, not a stand-alone plan
http://aviationblog....irlines-ne.html
Expert witness for union favors American Airlines merger with US Airways
http://www.star-tele...ion-favors.html
Unsecured creditors committee asks some pointed questions of APFA expert
http://aviationblog....-committee.html
American Airlines responds to APFA expert
http://aviationblog....ponds-to-1.html
US Airways exec says ready to work out a deal with American
MIT airline analysts William Swelbar is, to say the least, a tad skeptical of the idea of US Airways-American marriage working out nicely
http://us.mc1147.mai....jsrand=1231084
http://www.usairways...ns/webcast.html
Kirby: We expect an AMR-US Airways merger to resolve our pilot seniority dispute
http://aviationblog....mr-us-airw.html
US Airways Exec: AMR Merger Would End Pilot Seniority Mess
http://www.thestreet...oo&cm_ven=YAHOO
AMR Merger With US Airways Inevitable, Union Expert Says
http://www.bloomberg...ells-court.html
Economist: American Airlines needs a merger, not a stand-alone plan
http://aviationblog....irlines-ne.html
Expert witness for union favors American Airlines merger with US Airways
http://www.star-tele...ion-favors.html
Unsecured creditors committee asks some pointed questions of APFA expert
http://aviationblog....-committee.html
American Airlines responds to APFA expert
http://aviationblog....ponds-to-1.html
US Airways exec says ready to work out a deal with American
MIT airline analysts William Swelbar is, to say the least, a tad skeptical of the idea of US Airways-American marriage working out nicely
http://us.mc1147.mai....jsrand=1231084
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
Does US Airways Have AMR in Checkmate?
http://www.thestreet.com/story/11541603/1/does-us-airways-have-amr-in-checkmate.html?puc=yahoo&cm_ven=YAHOO
US Airways Courts AMR
http://www.bloomberg.com/video/92946435/?cmpid=yhoo
http://www.thestreet.com/story/11541603/1/does-us-airways-have-amr-in-checkmate.html?puc=yahoo&cm_ven=YAHOO
US Airways Courts AMR
http://www.bloomberg.com/video/92946435/?cmpid=yhoo
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
US Airways exec says ready to work out deal with American
US Airways President Scott Kirby is bullish about the airline industry and about the prospects for combining his airline with American Airlines.
Speaking to a Bank of America-Merrill Lynch investors conference in Boston on Thursday, Kirby said a merger of US Airways and American "would create a company that can compete with United and Delta," the two airline heavyweights created by prior mergers.
A rebuilt American would as a result of the merger have a much stronger route network with greater efficiencies and capacity for creating revenues, particularly from premium business travelers.
"You have to have a route network like Delta and United if you're going to compete with Delta and United," Kirby said.
Americans announcement last week that it was at least willing to discuss a possible merger while it is in bankruptcy was a positive step. "We're encouraged that we're able to work with American and the creditors committee," Kirby said. "At the end of the day we hope to get the deal done."
Kirby was asked why US Airways believes it can pull of a merger with American and integrate the two airline's operations when it hasn't fully completed the integration with America West. The company does not have new labor agreements with its pilots because the two groups of pilots have not come to an agreement on seniority issues, and are involved in a court fight.
US Air pilots would have a "huge incentive" to get a deal done and to work one out with American's pilots, Kirby said. The terms of the proposed deal US Air has worked out with the Allied Pilots Association, the American pilots union, US Air pilots would be in line for sizable pay raises if the two carrier are merged.
A replay of Kirby's presentation is available on the US Airways web site.
Meanwhile, MIT airline analyst William Swelbar is, to say the least, a tad skeptical of the idea of US Airways-American marriage working out nicely. He thinks USAir officials are wearing rose colored glasses, somehow claiming that under their the combined airline could compete with United despite having thousands more employees.
In its quest to acquire American Airlines, US Airways sounds like a teenager with its first credit card, spending money it doesn’t have. Paper wealth. What cracks me up about this “plan” is the new math I mentioned. Critics pan AA’s goal of creating $1 billion in new revenue as bogus because, among other issues, it assumes no competitive response. Does anyone really think United and Delta are going roll over and let US Airways improve its revenue generation at their expense? Not a chance.
But neither United nor Delta are afraid of competition much less the threat posed by the paper tiger US Airways/American combination. Smisek and Delta’s Richard Anderson are smart. They know the synergy formula US has seduced some media and AA’s unions with is but a calculation at this point. Even American’s own pilots admitted in bankruptcy court this week its faux “deal” with US doesn’t include cost assumptions or valuations.
US Airways President Scott Kirby is bullish about the airline industry and about the prospects for combining his airline with American Airlines.
Speaking to a Bank of America-Merrill Lynch investors conference in Boston on Thursday, Kirby said a merger of US Airways and American "would create a company that can compete with United and Delta," the two airline heavyweights created by prior mergers.
A rebuilt American would as a result of the merger have a much stronger route network with greater efficiencies and capacity for creating revenues, particularly from premium business travelers.
"You have to have a route network like Delta and United if you're going to compete with Delta and United," Kirby said.
Americans announcement last week that it was at least willing to discuss a possible merger while it is in bankruptcy was a positive step. "We're encouraged that we're able to work with American and the creditors committee," Kirby said. "At the end of the day we hope to get the deal done."
Kirby was asked why US Airways believes it can pull of a merger with American and integrate the two airline's operations when it hasn't fully completed the integration with America West. The company does not have new labor agreements with its pilots because the two groups of pilots have not come to an agreement on seniority issues, and are involved in a court fight.
US Air pilots would have a "huge incentive" to get a deal done and to work one out with American's pilots, Kirby said. The terms of the proposed deal US Air has worked out with the Allied Pilots Association, the American pilots union, US Air pilots would be in line for sizable pay raises if the two carrier are merged.
A replay of Kirby's presentation is available on the US Airways web site.
Meanwhile, MIT airline analyst William Swelbar is, to say the least, a tad skeptical of the idea of US Airways-American marriage working out nicely. He thinks USAir officials are wearing rose colored glasses, somehow claiming that under their the combined airline could compete with United despite having thousands more employees.
In its quest to acquire American Airlines, US Airways sounds like a teenager with its first credit card, spending money it doesn’t have. Paper wealth. What cracks me up about this “plan” is the new math I mentioned. Critics pan AA’s goal of creating $1 billion in new revenue as bogus because, among other issues, it assumes no competitive response. Does anyone really think United and Delta are going roll over and let US Airways improve its revenue generation at their expense? Not a chance.
But neither United nor Delta are afraid of competition much less the threat posed by the paper tiger US Airways/American combination. Smisek and Delta’s Richard Anderson are smart. They know the synergy formula US has seduced some media and AA’s unions with is but a calculation at this point. Even American’s own pilots admitted in bankruptcy court this week its faux “deal” with US doesn’t include cost assumptions or valuations.
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
Judge to Rule in AMR Labor Trial by Late June
NEW YORK—American Airlines will have to wait longer than previously expected for a bankruptcy judge's decision on whether the carrier can impose new labor contracts.
Judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan on Friday pushed back the timeline for his decision by about two weeks to June 22 as parent AMR Corp. pursues efforts to replace contracts that it said are unsustainable. The airline's three main unions reject AMR's plans and support a potential merger between the airline and smaller rival US Airways Group Inc.
Judge Lane announced the new date after the second week of evidence and testimony in a trial that will help determine the fate of the third-largest U.S. carrier by traffic. Both sides had originally agreed for the judge to rule by June 6.
The judge's move, prompted by the volume of exhibits and transcripts in the case, will in theory afford time for more talks between the airline and its unions. Previous efforts by bankrupt carriers have seen negotiated settlements before a court ruling on whether contracts can be replaced.
However, AMR has struggled for five years to secure new accords, and other airlines haven't had a potential suitor circling that is backed by AMR's own staff.
The unions are expected to wrap up their case early next week, and then AMR—which presented a five-day case that ended two weeks ago—will have a chance to offer a rebuttal.
AMR has said that it wants consensual agreements with the unions but that it had to terminate the contracts and go through with the court trial in case no deals are reached. If no deal is made and Judge Lane decides the contracts can be nixed, AMR can make unilateral changes to the agreements with the unions.
The airline last week agreed to include exploring a merger as part of restructuring efforts that have focused on its emergence as a stand-alone company.
US Airways has offered all three unions what they say is a better set of terms than AMR. But AMR has said US Airways hasn't offered enough details about how its deals would work.
AMR must show Judge Lane that it bargained in good faith and has treated all sides equally in order to get approval to end the collective-bargaining agreements. The unions have tried to show that AMR's stand-alone business plan makes too many rosy assumptions and that it doesn't have to cut as much in labor costs as it says.
Also Friday, the judge authorized AMR to make $162 million in deposit payments for hundreds of Boeing Co. and Airbus aircraft ordered last year. AMR hadn't made any payments since seeking Chapter 11 protection in November, and the new planes are central to its turnaround strategy, replacing less efficient aircraft and allowing expansion at its five main hub airports.
TWU members won't get hit before other American airlines employees
The flight attendants' union put expert witness Leon Szlezinger, a managing director at Jefferies & Co., to testify that about Jeffries' review of American's business plan
http://aviationblog.dallasnews.com/archives/2012/05/twu-members-wont-get-hit-befor.html
Judge gets more time to rule on contract rejections at American Airlines
http://aviationblog.dallasnews.com/archives/2012/05/ruling-on-american-airlines-co.html
Expert witness for union favors American Airlines merger with US Airways
American Airlines "is in a corner" and has to look to a merger with US Airways Group to turn around the bankrupt airline, an expert witness for the airline's flight attendants union testified Thursday. American's business plan isn't viable, and a merger would create a network allowing it to compete better with larger rivals, said Daniel Akins, an airline industry economist
"It's not an option. It's not an alternative. It's inevitable," Akins said when asked about a possible merger with US Airways in U.S. Bankruptcy Court.
http://www.star-telegram.com/2012/05/17/3968715/expert-witness-for-union-favors.html
US Airways-American merger: Is it 'inevitable?'
http://travel.usatoday.com/flights/post/2012/05/us-airways-american-merger-inevitable/696469/1
APA INFORMATION HOTLINE: May 18, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Friday, May 18.
BANKRUPTCY COURT JUDGE CHANGES DEADLINE FOR RULING TO JUNE 22, ASKS APA TO PARTICIPATE IN MEDIATED NEGOTIATIONS:
APA has been notified that Judge Sean Lane has indicated plans to issue a ruling on Friday, June 22 on AMR management’s request to terminate the company’s collective bargaining agreements. The judge’s original deadline for issuing his ruling had been Wednesday, June 6.
According to our attorneys, this deadline change was prompted by the case’s complexity and the judge’s need to review a large volume of related material before issuing his ruling. The Dallas Morning News quoted AMR attorney Jack Gallagher as saying that airline management was “eager to accommodate the court” and suggested June 22 as the new deadline.
In addition, the judge has requested that APA participate in mediated negotiations with AMR management in New York beginning the week of Monday, June 4. APA has agreed to do so and will have a full team prepared to engage with management. The mediator will be Judge James Peck. Like Judge Lane, Judge Peck is a Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York.
BANKRUPTCY COURT HEARING CONTINUES:
With APA and APFA having completed their testimony, the TWU began presenting its case today. The next phase will consist of two days of rebuttal by management, followed by closing arguments, which may occur after the Memorial Day holiday.
As we learn more details concerning the mediation schedule and the ongoing hearing, we will keep you informed. That’s it for now. Thanks for checking this hotline.
NEW YORK—American Airlines will have to wait longer than previously expected for a bankruptcy judge's decision on whether the carrier can impose new labor contracts.
Judge Sean H. Lane of U.S. Bankruptcy Court in Manhattan on Friday pushed back the timeline for his decision by about two weeks to June 22 as parent AMR Corp. pursues efforts to replace contracts that it said are unsustainable. The airline's three main unions reject AMR's plans and support a potential merger between the airline and smaller rival US Airways Group Inc.
Judge Lane announced the new date after the second week of evidence and testimony in a trial that will help determine the fate of the third-largest U.S. carrier by traffic. Both sides had originally agreed for the judge to rule by June 6.
The judge's move, prompted by the volume of exhibits and transcripts in the case, will in theory afford time for more talks between the airline and its unions. Previous efforts by bankrupt carriers have seen negotiated settlements before a court ruling on whether contracts can be replaced.
However, AMR has struggled for five years to secure new accords, and other airlines haven't had a potential suitor circling that is backed by AMR's own staff.
The unions are expected to wrap up their case early next week, and then AMR—which presented a five-day case that ended two weeks ago—will have a chance to offer a rebuttal.
AMR has said that it wants consensual agreements with the unions but that it had to terminate the contracts and go through with the court trial in case no deals are reached. If no deal is made and Judge Lane decides the contracts can be nixed, AMR can make unilateral changes to the agreements with the unions.
The airline last week agreed to include exploring a merger as part of restructuring efforts that have focused on its emergence as a stand-alone company.
US Airways has offered all three unions what they say is a better set of terms than AMR. But AMR has said US Airways hasn't offered enough details about how its deals would work.
AMR must show Judge Lane that it bargained in good faith and has treated all sides equally in order to get approval to end the collective-bargaining agreements. The unions have tried to show that AMR's stand-alone business plan makes too many rosy assumptions and that it doesn't have to cut as much in labor costs as it says.
Also Friday, the judge authorized AMR to make $162 million in deposit payments for hundreds of Boeing Co. and Airbus aircraft ordered last year. AMR hadn't made any payments since seeking Chapter 11 protection in November, and the new planes are central to its turnaround strategy, replacing less efficient aircraft and allowing expansion at its five main hub airports.
TWU members won't get hit before other American airlines employees
The flight attendants' union put expert witness Leon Szlezinger, a managing director at Jefferies & Co., to testify that about Jeffries' review of American's business plan
http://aviationblog.dallasnews.com/archives/2012/05/twu-members-wont-get-hit-befor.html
Judge gets more time to rule on contract rejections at American Airlines
http://aviationblog.dallasnews.com/archives/2012/05/ruling-on-american-airlines-co.html
Expert witness for union favors American Airlines merger with US Airways
American Airlines "is in a corner" and has to look to a merger with US Airways Group to turn around the bankrupt airline, an expert witness for the airline's flight attendants union testified Thursday. American's business plan isn't viable, and a merger would create a network allowing it to compete better with larger rivals, said Daniel Akins, an airline industry economist
"It's not an option. It's not an alternative. It's inevitable," Akins said when asked about a possible merger with US Airways in U.S. Bankruptcy Court.
http://www.star-telegram.com/2012/05/17/3968715/expert-witness-for-union-favors.html
US Airways-American merger: Is it 'inevitable?'
http://travel.usatoday.com/flights/post/2012/05/us-airways-american-merger-inevitable/696469/1
APA INFORMATION HOTLINE: May 18, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Friday, May 18.
BANKRUPTCY COURT JUDGE CHANGES DEADLINE FOR RULING TO JUNE 22, ASKS APA TO PARTICIPATE IN MEDIATED NEGOTIATIONS:
APA has been notified that Judge Sean Lane has indicated plans to issue a ruling on Friday, June 22 on AMR management’s request to terminate the company’s collective bargaining agreements. The judge’s original deadline for issuing his ruling had been Wednesday, June 6.
According to our attorneys, this deadline change was prompted by the case’s complexity and the judge’s need to review a large volume of related material before issuing his ruling. The Dallas Morning News quoted AMR attorney Jack Gallagher as saying that airline management was “eager to accommodate the court” and suggested June 22 as the new deadline.
In addition, the judge has requested that APA participate in mediated negotiations with AMR management in New York beginning the week of Monday, June 4. APA has agreed to do so and will have a full team prepared to engage with management. The mediator will be Judge James Peck. Like Judge Lane, Judge Peck is a Bankruptcy Judge of the United States Bankruptcy Court for the Southern District of New York.
BANKRUPTCY COURT HEARING CONTINUES:
With APA and APFA having completed their testimony, the TWU began presenting its case today. The next phase will consist of two days of rebuttal by management, followed by closing arguments, which may occur after the Memorial Day holiday.
As we learn more details concerning the mediation schedule and the ongoing hearing, we will keep you informed. That’s it for now. Thanks for checking this hotline.
Swelbar isn't really an academic researcher at MIT but apart of a program at Sloan which is sponsored in part by American Airlines where "industry professionals" get to say they are researchers at MIT while working for the very sponsors of the program giving the appearance of academic legitimacy to their "research".
Description of the program...
http://web.mit.edu/airlines/airline_industry_consortium/airline_industry_consort_overview.html
List of members...
http://web.mit.edu/airlines/airline_industry_consortium/airline_industry_consort_members.html
Reading from his recent blog posting cause your link appears to require me to sign in to yahoo...
http://www.swelblog.com/articles/musings-from-the-last-five-weeks.html?lastPage=true#comment18154218
It's obvious that Swelbar isn't MIT academia material based on his writing style alone and I would argue that given his 30 experience consulting that is either willfully misleading in his analysis or lacks fundamental understanding of the industry.
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
"William S. Swelbar is a Research Engineer in MIT’s International Center for Air Transportation, where he is affiliated with the Global Airline Industry Program and Airline Industry Consortium. Prior to accepting his research position at MIT, Bill was President and Managing Partner of Eclat Consulting, Inc., etc, etc, etc..."
Sloan does fund the MIT program, but Swelbar doesn't work for Sloan.
Jim
Sloan does fund the MIT program, but Swelbar doesn't work for Sloan.
Jim
From the link...
"Members of the MIT Airline Industry Consortium support and participate in the research and educational efforts of the Global Airline Industry Program"
Membership fee's
http://web.mit.edu/airlines/airline_industry_consortium/airline_industry_consort_fees.html
AA is a member as is United...
http://web.mit.edu/airlines/airline_industry_consortium/airline_industry_consort_members.html
Swelbar said in the recent blog posting...
"Most readers of www.swelblog.com know I was asked by United to help study the findings of the Houston Airports System (HAS) report about Southwest flying internationally from Houston Hobby Airport. HAS and its consultants originally claimed that 23 flights by SWA from Hobby would create in excess of 18,000 jobs and generate more than $1.6 billion in new economic activity for the City of Houston."
I don't see where he discloses the funding or contribution of "support" on the blog page despite the first comment to his analysis which was posted 3 days ago. I suppose that it's possible that he hasn't read the comments to his post in the 3 days since he put it up but such a disclosure is expected in academic research so the request seems reasonable considering he's doing research at MIT, IMO. Here is the comment...
[background=rgb(243, 241, 235)]
Mr Swelbar,
I was pleased to see you disclose that United funded your Houston airport study. In the interest of full disclosure are you or your institute currently taking money from AA, DAL, or continuing to accept money from UA? CNBC contributors must disclose their stakes or dealings with companies they comment on, it seems in the climate of more openness you would be willing to disclose your "attachments" also.[/background][background=rgb(243, 241, 235)]
Thanks,
BK[/background]
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
Don't mistake the airline industry consortum with the global airline industry program - the first is a subset of the second, so those members are just the airline industry reps to the program.
So Swelbar still does some consulting work? Probably 80-90% of university/college professiors do the same in their field. They also do studies/projects funded by outside sources. Does that mean that they don't work for the university/college?
I assume that Swelbar said something that you disagree with so instead of refuting what he said you would rather attack him. Heck, I don't agree with everything he writes in his blog but he's entitled to his opinion.
Jim
So Swelbar still does some consulting work? Probably 80-90% of university/college professiors do the same in their field. They also do studies/projects funded by outside sources. Does that mean that they don't work for the university/college?
I assume that Swelbar said something that you disagree with so instead of refuting what he said you would rather attack him. Heck, I don't agree with everything he writes in his blog but he's entitled to his opinion.
Jim
I understand that the is affiliated with the industry subset for which there appears to be a fee requirement for membership which could be nominal or material without having more information or disclosure than appears available. I also understand that the members review the research as well as support and participate in the research. He's published analysis as an MIT research engineer on United and AA which both are members to the subset program for which he is doing research. This is my understanding thus far.
I agree that all sorts of people in academia also work in the private sector and I think we agree that generally speaking when your research is supported by the subject of your published analysis that a disclosure of the conflict should be made, right?
I read the analysis today based on the post in this thread citing an MIT researcher and was not prepared for a blog posting containing unsupported claims and lots of opinion. You are correct in that based upon what I read in this analysis, his 30 years experience consulting in the industry and that he currently working on research at MIT that it seemed unlikely to me that there wasn't something wrong or I overestimated his credentials.
Anyway, I don't feel I'm attacking him at all. I think if you publish as an expert analysis in your field from a school like MIT you should know what your talking about and be prepared to disclose conflicts of interest should they exist. Would you agree this is a reasonable expectation?
BoeingBoy
Veteran
- Joined
- Nov 9, 2003
- Messages
- 16,512
- Reaction score
- 5,865
Basically you're saying that anyone who does some research for various companies and unions can't have their own opinion because they have a conflict of interest. You presumably work for US so should you disclose that conflict of interest after every post?
If that blog entry was funded by AA or whoever, it should have been disclosed. Otherwise what's the problem with him publishing, via his blog, his opinion. As I said, refute what he says if you disagree rather than attempt to discredit him. Why is the opinion of someone like Ted Reed, a former PR hack for US and now glorified reporter, apparently above reproach while someone who has been analyzing the industry for years and works at MIT on industry issues held up for ridicule? Could it be that qualifications aren't the problem but whether you agree with the opinion is what matters to you and it's easier to attack the person than refute what he says.
Jim
Similar threads
Latest posts
-
Southwest to cut 15% of workforce, mainly from corp.
- Latest: CremaDiLimone
-
-
-
-
-
