US-AA Merger Articles (Merged Topics)
- Thread starter USA320Pilot
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It is a thinly veiled political hit piece, tying Romney to the theme of "Romney is a callous money maker for the rich and is bad for workers because he kills jobs, especially "labor" jobs. Obama on the other hand saved the auto industry and has saved or created millions of blue collar, salt of the earth, working man labor jobs (and he walked on water too, once or twice
).USA320Pilot
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Could we not turn this thread into a personal discussion? Please allow this one topic to be merger news only. I believe it would be best if an individual wants to start a discussion then he or she can start a new thread. Thank you for your consideration.
CWA urges NMB to go ahead with American Airlines vote
http://aviationblog.dallasnews.com/archives/2012/05/cwa-urges-nmb-to-go-ahead-with.html
CWA urges NMB to go ahead with American Airlines vote
http://aviationblog.dallasnews.com/archives/2012/05/cwa-urges-nmb-to-go-ahead-with.html
USA320. gotta say your idea for this thread is just dumb, the problem on most message boards is people opening up multiple threads on the same topic and that is exactly what you are trying to force people to do. What is the point of linking articles if you do not want comments, it is pointless. If you need a place to store articles create a folder and save them yourself on your own PC. This is not your own personal filing cabinet!
nycbusdriver
Veteran
It's not pointless. His point is to show you and everyone else just how smart and how connected to the heartbeat of the airline he is. But, even more to the point, that he is smarter and more connected than you and everyone else.
USA320Pilot
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APA, American Airlines spar over how much each other’s proposal would cost
http://aviationblog....r-coverage.html
TWU members divided on new AMR contracts
The TWU, as well as the unions representing the flight attendants and the pilots, support a merger with US Airways Inc., which American said Friday it would consider.
http://www.star-tele...on-new-amr.html
TWU details contract agreements and disagreements with American
http://blogs.star-te...h-american.html
http://aviationblog....r-coverage.html
TWU members divided on new AMR contracts
The TWU, as well as the unions representing the flight attendants and the pilots, support a merger with US Airways Inc., which American said Friday it would consider.
http://www.star-tele...on-new-amr.html
TWU details contract agreements and disagreements with American
http://blogs.star-te...h-american.html
USA320Pilot
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Bates: How American Airlines can regain its fading dominance
http://www.star-telegram.com/2012/05/14/3959620/bates-how-american-airlines-can.html
AMR Pilots Back US Airways Deal to Compete With Rivals
http://mobile.bloomberg.com/news/2012-05-14/amr-pilots-back-us-airways-deal-to-compete-with-rivals-1-.html
Some unionized workers accept American Airlines' contract offer
http://www.star-telegram.com/2012/05/15/3962968/some-unionized-workers-accept.html
APA is on the stand again Wednesday, with APFA perhaps to begin in the afternoon
http://aviationblog.dallasnews.com/archives/2012/05/apa-is-on-the-stand-again-wedn.html
AMR/US Airways Deal Faces Pilot Seniority Hassles
http://business-news.thestreet.com/dallas-morning-news/story/amrus-airways-deal-faces-pilot-seniority-hassles/11536486
US Airways considers nonstop Asia flights from Philadelphia International
http://www.philly.com/philly/business/20120516_US_Airways_considers_nonstop_Asia_flights_from_Philadelphia_International.html
APA Update (Bankruptcy Court Hearing Resumes): May 14, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Monday, May 14.
BANKRUPTCY COURT HEARING RESUMES: The bankruptcy court hearing on AMR management’s request to terminate the company’s collective bargaining agreements resumed today in New York. APA was the first union to present testimony, with our attorneys and various witnesses presenting our case in opposition to management’s request.
In his opening statement, APA General Counsel Ed James stated that APA approached post-bankruptcy negotiations recognizing that the union would have to soften its stance on key issues such as productivity and potential merger activity. However, Mr. James emphasized APA’s view that management overreached in their Feb. 1 term sheet, asking for considerably more than they need to restructure the airline successfully.
APA Negotiating Committee Chairman First Officer Neil Roghair’s testimony covered a broad range of areas, including the sacrifices our pilots have made to ensure American Airlines’ survival, management’s refusal to negotiate their cost target or to engage in meaningful bargaining with APA, and management’s failure to provide key information that is critical to our ability to evaluate their proposals accurately. He also testified about management’s refusal to assign sufficient value to APA concessions in the restructuring talks. For example, management has valued APA’s preferential bidding and scheduling concessions at only $11 million, which is significantly less than the value management assigned to the same givebacks before the Chapter 11 filing. First Officer Roghair also cited our recent negotiations with US Airways management as evidence that APA is capable of concluding a labor agreement quickly with a negotiating partner who is willing to accept market-based proposals.
In accordance with the bankruptcy court’s protocol, APA submitted a series of written declarations and filings with the court during the past couple of days summarizing our case. Click here to review these documents for a detailed overview of our approach to this phase of the hearing. You will notice that a few sections have been “blacked out.” These redactions were done to preserve confidentiality of information that AMR has determined to be competitively sensitive.
We will continue providing updates this week as the hearing continues. That’s it for now. Thanks for checking this hotline.
APA Update (First-round Bidding Begins, Bankruptcy Court Hearing Continues): May 14, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Tuesday, May 15.
FIRST-ROUND BIDDING BEGINS: APA posted the June bid package material to alliedpilots.org today. Management had delayed primary bidding for June for several days, as we reported in last Wednesday’s hotline. Please note that second-round bidding will open on Friday, May 25.
In response to the delay, APA President Captain Dave Bates filed a presidential grievance for management’s violation of Section 15.B.2.a. of the APA-American Airlines Collective Bargaining Agreement, which states: “Monthly trip selections and allocations shall be available via electronic means prior to the opening of primary bidding. Monthly bidding for primary trip selections shall open at 0001 on the twelfth (12th) calendar day of the contractual month.”
BANKRUPTCY COURT HEARING CONTINUES: The bankruptcy court hearing continued today on AMR management’s request to terminate the company’s collective bargaining agreements. APA Director of Industry Analysis Allison Clark testified that management is understating by $90 million the amount of money its latest contract offer would reduce pilot-related costs. Ms. Clark cited analysis that illustrates management has undervalued cuts they plan to make in medical and pension benefits and in various other areas. In addition, Ms. Clark testified that APA has concluded management plans to cut more pilot jobs during the next several years than they have publicly acknowledged.
The current phase of the hearing is scheduled to continue for the rest of the week. As noted yesterday, APA has submitted a series of written declarations and filings with the court summarizing our case, which you may review by clicking here. The blacked-out sections you will see are intended to preserve confidentiality of information that AMR has determined to be competitively sensitive.
FIVE OF SEVEN TWU BARGAINING UNITS APPROVE FINAL OFFERS FROM AMR: The Transport Workers Union announced this morning that five TWU-represented workgroups—Fleet Service, Dispatch, Maintenance Control Technicians, Simulator Technicians, and Ground School and Simulator Pilot Instructors—ratified “last, best” offers from AMR. The Maintenance and Related employees—the largest TWU workgroup with 11,576 represented employees—voted “no,” as did Store Clerks.
The headline in the TWU’s press release detailing the vote results stated that “TWU’s lawyers continue to argue on behalf of all members in NYC bankruptcy court today while union leadership promotes merger with US Airways as best option for American Airlines, its customers, and employees.”
A related AMR press release stated that “we are disappointed that the Mechanic & Related and Stores workgroups did not ratify the company’s latest settlement proposals. For these groups, we will continue to pursue our 1113 Motion to Reject the current labor agreements. It’s important to note that if the 1113 motion is approved, American will move forward with implementation of the March 22 term sheets, which do not offer the job savings and improvements offered in the settlement proposals.”
MAY PENSION UPDATE: APA Secretary-Treasurer First Officer Scott Shankland distributed the Pension Committee’s May update in a system-wide e-mail today encouraging all APA members eligible for retirement to read the update as soon as possible. The update outlines one possible scenario in which the B Plan “look-back/lock-in” mechanism could be lost in the near future. There’s also a reminder about the calculator on the Pension Committee Web page that will estimate each pilot’s Pension Benefit Guaranty Corporation benefit in the event of an A Plan termination. This calculator also helps pilots determine their benefits in the event of a frozen (non-terminated) A Plan.
CAPTAIN BATES SPEAKS OUT IN FORT WORTH STAR-TELEGRAM: Today’s edition of the Fort Worth Star-Telegram features an opinion editorial by APA President Captain Dave Bates on the prospect of an American Airlines-US Airways merger. In this article, he states that “the almost-universal consensus is that AMR management’s stand-alone plan will not work, and that American Airlines and US Airways should merge now. By doing so, American Airlines would become an airline comparable in size to United and Delta. We would be the largest carrier on the East Coast and the largest carrier in the central region. This dramatically enhanced domestic network would provide the foundation for further expansion into profitable overseas markets.”
Click here to read the full text of Captain Bates’ article.
DELTA PILOTS REACH TENTATIVE AGREEMENT WITH AIRLINE MANAGEMENT: The Air Line Pilots Association announced today that negotiators for the Delta pilots have reached a tentative agreement with airline management. In making the announcement, ALPA quoted from a letter by Delta master executive council chairman Captain Tom O’Malley stating “the Negotiating Committee and its expanded team have accomplished a great deal of work in the last two months, reaching a comprehensive Section 6 agreement in just over two months, a process that normally takes years.” The letter noted that beginning today “and throughout the week, the tentative agreement will be presented to the Delta MEC, the union’s governing body, for deliberation. Until that process is complete, details of the TA will not be released.”
COMMUNICATIONS WORKERS URGE CONTINUATION OF REPRESENTATION ELECTION: The Communications Workers of America is urging the National Mediation Board to proceed with a representation election for American Airlines’ passenger service agents. Management filed a lawsuit in U.S. District Court in Fort Worth on May 2 seeking to block the election. As of this recording, no hearings have been scheduled in the lawsuit.
That’s it for now. Thanks for checking this hotline.
http://www.star-telegram.com/2012/05/14/3959620/bates-how-american-airlines-can.html
AMR Pilots Back US Airways Deal to Compete With Rivals
http://mobile.bloomberg.com/news/2012-05-14/amr-pilots-back-us-airways-deal-to-compete-with-rivals-1-.html
Some unionized workers accept American Airlines' contract offer
http://www.star-telegram.com/2012/05/15/3962968/some-unionized-workers-accept.html
APA is on the stand again Wednesday, with APFA perhaps to begin in the afternoon
http://aviationblog.dallasnews.com/archives/2012/05/apa-is-on-the-stand-again-wedn.html
AMR/US Airways Deal Faces Pilot Seniority Hassles
http://business-news.thestreet.com/dallas-morning-news/story/amrus-airways-deal-faces-pilot-seniority-hassles/11536486
US Airways considers nonstop Asia flights from Philadelphia International
http://www.philly.com/philly/business/20120516_US_Airways_considers_nonstop_Asia_flights_from_Philadelphia_International.html
APA Update (Bankruptcy Court Hearing Resumes): May 14, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Monday, May 14.
BANKRUPTCY COURT HEARING RESUMES: The bankruptcy court hearing on AMR management’s request to terminate the company’s collective bargaining agreements resumed today in New York. APA was the first union to present testimony, with our attorneys and various witnesses presenting our case in opposition to management’s request.
In his opening statement, APA General Counsel Ed James stated that APA approached post-bankruptcy negotiations recognizing that the union would have to soften its stance on key issues such as productivity and potential merger activity. However, Mr. James emphasized APA’s view that management overreached in their Feb. 1 term sheet, asking for considerably more than they need to restructure the airline successfully.
APA Negotiating Committee Chairman First Officer Neil Roghair’s testimony covered a broad range of areas, including the sacrifices our pilots have made to ensure American Airlines’ survival, management’s refusal to negotiate their cost target or to engage in meaningful bargaining with APA, and management’s failure to provide key information that is critical to our ability to evaluate their proposals accurately. He also testified about management’s refusal to assign sufficient value to APA concessions in the restructuring talks. For example, management has valued APA’s preferential bidding and scheduling concessions at only $11 million, which is significantly less than the value management assigned to the same givebacks before the Chapter 11 filing. First Officer Roghair also cited our recent negotiations with US Airways management as evidence that APA is capable of concluding a labor agreement quickly with a negotiating partner who is willing to accept market-based proposals.
In accordance with the bankruptcy court’s protocol, APA submitted a series of written declarations and filings with the court during the past couple of days summarizing our case. Click here to review these documents for a detailed overview of our approach to this phase of the hearing. You will notice that a few sections have been “blacked out.” These redactions were done to preserve confidentiality of information that AMR has determined to be competitively sensitive.
We will continue providing updates this week as the hearing continues. That’s it for now. Thanks for checking this hotline.
APA Update (First-round Bidding Begins, Bankruptcy Court Hearing Continues): May 14, 2012
This is APA Communications Director Gregg Overman with the APA Information Hotline for Tuesday, May 15.
FIRST-ROUND BIDDING BEGINS: APA posted the June bid package material to alliedpilots.org today. Management had delayed primary bidding for June for several days, as we reported in last Wednesday’s hotline. Please note that second-round bidding will open on Friday, May 25.
In response to the delay, APA President Captain Dave Bates filed a presidential grievance for management’s violation of Section 15.B.2.a. of the APA-American Airlines Collective Bargaining Agreement, which states: “Monthly trip selections and allocations shall be available via electronic means prior to the opening of primary bidding. Monthly bidding for primary trip selections shall open at 0001 on the twelfth (12th) calendar day of the contractual month.”
BANKRUPTCY COURT HEARING CONTINUES: The bankruptcy court hearing continued today on AMR management’s request to terminate the company’s collective bargaining agreements. APA Director of Industry Analysis Allison Clark testified that management is understating by $90 million the amount of money its latest contract offer would reduce pilot-related costs. Ms. Clark cited analysis that illustrates management has undervalued cuts they plan to make in medical and pension benefits and in various other areas. In addition, Ms. Clark testified that APA has concluded management plans to cut more pilot jobs during the next several years than they have publicly acknowledged.
The current phase of the hearing is scheduled to continue for the rest of the week. As noted yesterday, APA has submitted a series of written declarations and filings with the court summarizing our case, which you may review by clicking here. The blacked-out sections you will see are intended to preserve confidentiality of information that AMR has determined to be competitively sensitive.
FIVE OF SEVEN TWU BARGAINING UNITS APPROVE FINAL OFFERS FROM AMR: The Transport Workers Union announced this morning that five TWU-represented workgroups—Fleet Service, Dispatch, Maintenance Control Technicians, Simulator Technicians, and Ground School and Simulator Pilot Instructors—ratified “last, best” offers from AMR. The Maintenance and Related employees—the largest TWU workgroup with 11,576 represented employees—voted “no,” as did Store Clerks.
The headline in the TWU’s press release detailing the vote results stated that “TWU’s lawyers continue to argue on behalf of all members in NYC bankruptcy court today while union leadership promotes merger with US Airways as best option for American Airlines, its customers, and employees.”
A related AMR press release stated that “we are disappointed that the Mechanic & Related and Stores workgroups did not ratify the company’s latest settlement proposals. For these groups, we will continue to pursue our 1113 Motion to Reject the current labor agreements. It’s important to note that if the 1113 motion is approved, American will move forward with implementation of the March 22 term sheets, which do not offer the job savings and improvements offered in the settlement proposals.”
MAY PENSION UPDATE: APA Secretary-Treasurer First Officer Scott Shankland distributed the Pension Committee’s May update in a system-wide e-mail today encouraging all APA members eligible for retirement to read the update as soon as possible. The update outlines one possible scenario in which the B Plan “look-back/lock-in” mechanism could be lost in the near future. There’s also a reminder about the calculator on the Pension Committee Web page that will estimate each pilot’s Pension Benefit Guaranty Corporation benefit in the event of an A Plan termination. This calculator also helps pilots determine their benefits in the event of a frozen (non-terminated) A Plan.
CAPTAIN BATES SPEAKS OUT IN FORT WORTH STAR-TELEGRAM: Today’s edition of the Fort Worth Star-Telegram features an opinion editorial by APA President Captain Dave Bates on the prospect of an American Airlines-US Airways merger. In this article, he states that “the almost-universal consensus is that AMR management’s stand-alone plan will not work, and that American Airlines and US Airways should merge now. By doing so, American Airlines would become an airline comparable in size to United and Delta. We would be the largest carrier on the East Coast and the largest carrier in the central region. This dramatically enhanced domestic network would provide the foundation for further expansion into profitable overseas markets.”
Click here to read the full text of Captain Bates’ article.
DELTA PILOTS REACH TENTATIVE AGREEMENT WITH AIRLINE MANAGEMENT: The Air Line Pilots Association announced today that negotiators for the Delta pilots have reached a tentative agreement with airline management. In making the announcement, ALPA quoted from a letter by Delta master executive council chairman Captain Tom O’Malley stating “the Negotiating Committee and its expanded team have accomplished a great deal of work in the last two months, reaching a comprehensive Section 6 agreement in just over two months, a process that normally takes years.” The letter noted that beginning today “and throughout the week, the tentative agreement will be presented to the Delta MEC, the union’s governing body, for deliberation. Until that process is complete, details of the TA will not be released.”
COMMUNICATIONS WORKERS URGE CONTINUATION OF REPRESENTATION ELECTION: The Communications Workers of America is urging the National Mediation Board to proceed with a representation election for American Airlines’ passenger service agents. Management filed a lawsuit in U.S. District Court in Fort Worth on May 2 seeking to block the election. As of this recording, no hearings have been scheduled in the lawsuit.
That’s it for now. Thanks for checking this hotline.
nycbusdriver
Veteran
Yeah...like someone tallies the votes at the end of the thread and decides a winner. I'm sure Judge Silver and the AA unions are keeping close count.
That whole feature is basically moronic, and especially so in most US Airways threads.
USA320Pilot
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AMR Ready To Take Flight With US Airways As Creditors Take Closer Look
http://www.trefis.co...e=TheMotleyFool
What did Dave Bates say and why did he say it?
http://startelegram....d.com/sky_talk/
American Pilots finish making their case in New York
http://startelegram....d.com/sky_talk/
More from the APA on American bankruptcy proceedings
http://startelegram....d.com/sky_talk/
Glading: We’re not going to pull the trigger ourself
http://aviationblog....ng-to-pull.html
American Airlines: Judge made right decision in passenger service agent’s case
http://aviationblog....dge-made-r.html
AMR can cut wages, benefits before union election
http://www.star-tele...d-benefits.html
American Airlines job cuts: 14,107 – 1,314 = 12,793
http://aviationblog....b-cuts-141.html
APA Negotiating Committee Update: May 16, 2012
APA presented its case in court this week, with our witnesses testifying in opposition to the management motion to reject our collective bargaining agreements. To view our witnesses’ declarations, click here.
There were a couple of recurring themes that emerged during the cross-examination of our team. Management is clearly very angry about our agreement with US Airways and they made every effort to criticize the deal. We think the agreement is a strong statement to the court of our willingness to cooperate with a party that bargains in good faith. From our perspective, AA put a take-it-or-leave-it proposal in front of us and crossed their arms, other than making a handful of very superficial moves. We made it clear to the court that we can bargain with those who bargain in good faith, and we cannot successfully bargain with a team that is not truly negotiating.
Another major management focus during cross-examination was scope. Management tried to make the argument that flying aircraft in the 51- to 90-seat range isn’t really our flying, since we haven’t performed that flying in decades. Which raises the question ― if it isn’t our flying, why are they asking us for it? AA management is clearly upset that we reached an agreement with US Airways that allows modernization of the regional jets under the new airline, on a ratio basis, in exchange for the company putting 82- to 110-seat jets at the mainline. AA has never embraced such a similar concept and refuses to take seriously any discussion that requires them to put small jets at the mainline.
Our team spent a substantial amount of time on the stand defending the valuations of our proposals and painting a picture for the court of a very disingenuous valuation effort from management. We argued that management claims the $370 million target is non-negotiable and they have manufactured valuation disputes so that the only way to get to “the target” is to accept all of their proposals. Andrew Yearly from Lazard provided testimony that strongly criticized the appropriateness of the $370 million target number, which he framed as having nothing to do with the market and everything to do with plugging a hole in a weak business plan.
It became very clear this week just how much pressure our deal with US Airways is putting on AMR management. Every bankruptcy is different and ours is unique due to the US Airways development. AA is now communicating directly with pilots in a concerted effort to undermine the APA leadership and criticize the US Airways agreement. We expect these efforts to intensify.
Our case finished today and we will be followed by the Association of Professional Flight Attendants and the Transport Workers Union. We anticipate management will present their rebuttal case sometime next week. We also anticipate entering into court-directed mediated talks at some time in the near future. We will provide updates as these dates become firm.
Finally, we would like to extend a special thank you to the pilots who took the time to travel to Manhattan to be with us in the courthouse for these important proceedings.
Your APA Negotiating Committee
http://www.trefis.co...e=TheMotleyFool
What did Dave Bates say and why did he say it?
http://startelegram....d.com/sky_talk/
American Pilots finish making their case in New York
http://startelegram....d.com/sky_talk/
More from the APA on American bankruptcy proceedings
http://startelegram....d.com/sky_talk/
Glading: We’re not going to pull the trigger ourself
http://aviationblog....ng-to-pull.html
American Airlines: Judge made right decision in passenger service agent’s case
http://aviationblog....dge-made-r.html
AMR can cut wages, benefits before union election
http://www.star-tele...d-benefits.html
American Airlines job cuts: 14,107 – 1,314 = 12,793
http://aviationblog....b-cuts-141.html
APA Negotiating Committee Update: May 16, 2012
APA presented its case in court this week, with our witnesses testifying in opposition to the management motion to reject our collective bargaining agreements. To view our witnesses’ declarations, click here.
There were a couple of recurring themes that emerged during the cross-examination of our team. Management is clearly very angry about our agreement with US Airways and they made every effort to criticize the deal. We think the agreement is a strong statement to the court of our willingness to cooperate with a party that bargains in good faith. From our perspective, AA put a take-it-or-leave-it proposal in front of us and crossed their arms, other than making a handful of very superficial moves. We made it clear to the court that we can bargain with those who bargain in good faith, and we cannot successfully bargain with a team that is not truly negotiating.
Another major management focus during cross-examination was scope. Management tried to make the argument that flying aircraft in the 51- to 90-seat range isn’t really our flying, since we haven’t performed that flying in decades. Which raises the question ― if it isn’t our flying, why are they asking us for it? AA management is clearly upset that we reached an agreement with US Airways that allows modernization of the regional jets under the new airline, on a ratio basis, in exchange for the company putting 82- to 110-seat jets at the mainline. AA has never embraced such a similar concept and refuses to take seriously any discussion that requires them to put small jets at the mainline.
Our team spent a substantial amount of time on the stand defending the valuations of our proposals and painting a picture for the court of a very disingenuous valuation effort from management. We argued that management claims the $370 million target is non-negotiable and they have manufactured valuation disputes so that the only way to get to “the target” is to accept all of their proposals. Andrew Yearly from Lazard provided testimony that strongly criticized the appropriateness of the $370 million target number, which he framed as having nothing to do with the market and everything to do with plugging a hole in a weak business plan.
It became very clear this week just how much pressure our deal with US Airways is putting on AMR management. Every bankruptcy is different and ours is unique due to the US Airways development. AA is now communicating directly with pilots in a concerted effort to undermine the APA leadership and criticize the US Airways agreement. We expect these efforts to intensify.
Our case finished today and we will be followed by the Association of Professional Flight Attendants and the Transport Workers Union. We anticipate management will present their rebuttal case sometime next week. We also anticipate entering into court-directed mediated talks at some time in the near future. We will provide updates as these dates become firm.
Finally, we would like to extend a special thank you to the pilots who took the time to travel to Manhattan to be with us in the courthouse for these important proceedings.
Your APA Negotiating Committee
nycbusdriver
Veteran
Which "party that bargains in good faith" can they possibly be referring to? If they are referring to the Tempe Brain Trust, they are oh-so-sadly deluded.USA320Pilot
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Merger Articles: May 17, 2012
US Airways says its pilots would support AMR merger
US Airways says looking forward to working with AMR to get deal done
US Airways says American Airlines combination "compelling" for all stakeholders
US Airways says demand environment remains strong for summer
US Airways sees May unit revenue up in mid-single digits
US Airways initiated with an Outperform at Raymond James
http://www.theflyonthewall.com/permalinks/entry.php/LCC;AAMRQid1638019/LCC;AAMRQ-US-Airways-says-looking-forward-to-working-with-AMR-to-get-deal-done
US Airways/Brief (URGENT)
http://www.reuters.c...panyNews&rpc=43
American mechanics say offer was substandard
http://www.tulsaworl...448571&allcom=1
AA flight attendants make their case in court
http://www.wfaa.com/...-151823575.html
US Airways says its pilots would support AMR merger
US Airways says looking forward to working with AMR to get deal done
US Airways says American Airlines combination "compelling" for all stakeholders
US Airways says demand environment remains strong for summer
US Airways sees May unit revenue up in mid-single digits
US Airways initiated with an Outperform at Raymond James
http://www.theflyonthewall.com/permalinks/entry.php/LCC;AAMRQid1638019/LCC;AAMRQ-US-Airways-says-looking-forward-to-working-with-AMR-to-get-deal-done
US Airways/Brief (URGENT)
http://www.reuters.c...panyNews&rpc=43
American mechanics say offer was substandard
http://www.tulsaworl...448571&allcom=1
AA flight attendants make their case in court
http://www.wfaa.com/...-151823575.html
mike33
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- Nov 7, 2007
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"NEW YORK -- Airline industry economist Dan Akins, an expert witness for the Association of Professional Flight Attendants, said Thursday that American Airlines' standalone plan has little chance for success.
Speaking in U.S Bankruptcy Court in lower Manhattan, Akins made a strong pitch for a merger between American and US Airways Group, a deal that would move American from a distant No. 3 to United Airlines and Delta Air Lines to being the largest airline in the world.
"It's not an option," Akins said of a potential merger between American and US Airways. "It's not an alternative. It's inevitable."
APFA is an enthusiastic support of a US Airways-American Airlines merger, with US Airways executives running the combined carriers. US Airways has acknowledged it is pursuing a merger with American, and has conditional deals with American's unions, including APFA, Allied Pilots Association and Transport Workers Union, on labor contracts if a merger should occur.
American/AMR chairman and chief executive officer Tom Horton has said since the Nov. 29 bankruptcy filing that any mergers should wait until after American and parent AMR emerge from bankruptcy.
However, the pressure from US Airways - which has been pushing its case with American's creditors - forced American to agree to join the unsecured creditors committee to look into strategic alternatives, per an announcement last Friday.
Akins said American's plan to grow "organically" - by adding its own flights at its five "cornerstone" cities, bolstered by codesharing with other carriers - has little chance for success and likely will provoke a competitive response.
American's business plan, revealed Feb. 1, is to grow its departures 20 percent at New York, Chicago, Los Angeles, Miami and Dallas/Fort Worth International Airport by 2017. It has clarified those plans to say that it intends to keep domestic capacity essentially flat into 2014, and that it wants to increase the percentage of its capacity in international flying.
Akins said American is not doing well in New York, Chicago and Los Angeles, and isn't likely to success in those places because it doesn't have the network as other carriers in those markets. It is doing well in Miami and D/FW where it dominates, and should continue to do well, Akins said.
But overall, the growth connected to the cornerstone plan doesn't work for American Airlines and "it also threatens the stability of the industry if you've got a rogue carrier out there disturbing the capacity discipline," Akins said.
Asked to explain by U.S. Bankruptcy Judge Sean Lane what he meant by destabilizing the industry, Akins said that airlines - except mainly for American - have become profitable in the past few years because they matched the capacity they flew to the demand from passengers.
If American adds a lot of capacity, the balance between demand and capacity is disturbed, particularly as carriers respond to American's growth in their markets, he said.
Earlier, he said American fell behind its competitors in recent years after the Delta-Northwest Airlines merger in 2008 and United-Continental merger in 2010 because American's network became too small compared to its primary carriers.
As a result, high-value customers increasingly have moved to the bigger Delta and United markets, he said.
American's share of revenues in the five cornerstone cities dedclined from 35 percent of total revenues in 2006 to 33 percent in 2011, Akins said.
"It's the lack of a competitive network," he said. "In places where American has strength, two cities, it performs much better. In places where American doesn't have strength, it performs much worse."
Finally a true analysis......its really about disturbing the industry........and its profits
Speaking in U.S Bankruptcy Court in lower Manhattan, Akins made a strong pitch for a merger between American and US Airways Group, a deal that would move American from a distant No. 3 to United Airlines and Delta Air Lines to being the largest airline in the world.
"It's not an option," Akins said of a potential merger between American and US Airways. "It's not an alternative. It's inevitable."
APFA is an enthusiastic support of a US Airways-American Airlines merger, with US Airways executives running the combined carriers. US Airways has acknowledged it is pursuing a merger with American, and has conditional deals with American's unions, including APFA, Allied Pilots Association and Transport Workers Union, on labor contracts if a merger should occur.
American/AMR chairman and chief executive officer Tom Horton has said since the Nov. 29 bankruptcy filing that any mergers should wait until after American and parent AMR emerge from bankruptcy.
However, the pressure from US Airways - which has been pushing its case with American's creditors - forced American to agree to join the unsecured creditors committee to look into strategic alternatives, per an announcement last Friday.
Akins said American's plan to grow "organically" - by adding its own flights at its five "cornerstone" cities, bolstered by codesharing with other carriers - has little chance for success and likely will provoke a competitive response.
American's business plan, revealed Feb. 1, is to grow its departures 20 percent at New York, Chicago, Los Angeles, Miami and Dallas/Fort Worth International Airport by 2017. It has clarified those plans to say that it intends to keep domestic capacity essentially flat into 2014, and that it wants to increase the percentage of its capacity in international flying.
Akins said American is not doing well in New York, Chicago and Los Angeles, and isn't likely to success in those places because it doesn't have the network as other carriers in those markets. It is doing well in Miami and D/FW where it dominates, and should continue to do well, Akins said.
But overall, the growth connected to the cornerstone plan doesn't work for American Airlines and "it also threatens the stability of the industry if you've got a rogue carrier out there disturbing the capacity discipline," Akins said.
Asked to explain by U.S. Bankruptcy Judge Sean Lane what he meant by destabilizing the industry, Akins said that airlines - except mainly for American - have become profitable in the past few years because they matched the capacity they flew to the demand from passengers.
If American adds a lot of capacity, the balance between demand and capacity is disturbed, particularly as carriers respond to American's growth in their markets, he said.
Earlier, he said American fell behind its competitors in recent years after the Delta-Northwest Airlines merger in 2008 and United-Continental merger in 2010 because American's network became too small compared to its primary carriers.
As a result, high-value customers increasingly have moved to the bigger Delta and United markets, he said.
American's share of revenues in the five cornerstone cities dedclined from 35 percent of total revenues in 2006 to 33 percent in 2011, Akins said.
"It's the lack of a competitive network," he said. "In places where American has strength, two cities, it performs much better. In places where American doesn't have strength, it performs much worse."
Finally a true analysis......its really about disturbing the industry........and its profits
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