US Air to Address Creditors on Takeover plan

[Mrs. McFly]

Don't forget those "33 cities" that someone mentioned....
I wonder if they generate a total of 500 passengers/day on average.

Jim

Yep...that makes it worth it!

 

[PHX-F/A]

You get it.

With the DAL/NWA merger, there was a foundation in place with SkyTeam.. SkyTeam, DAL/NWA have been functioning since 2004. The networks were VERY complimentary pre-merger.

Same with UAL/CO. Large international presence on both Atlantic and Pacific sides of the US, like DAL/NWA.

Attach the LCC network to AA and look at what needs cut. AND, there will be cuts, mostly to the portions LCC brings to the dance.

So the choices faced by the AA people are: Do we do a deal with LCC, integrate seniority lists, Hope that the "synergies" created by the High cost+ high cost operations generate enough $ to keep us afloat and guarantee the pay raises that will surely be promised by Parker and Co....wait for the cuts that will be required, and watch AA jobs wash down the drain to be replaced by LCC jobs?

Or, wait and have a look at the offers in the pipe....

Or, come to a negotiated agreement with AA, and position ourselves better going forward.


A merger with LCC would be a disaster for the AA employees, and debilitating post merger with the cuts needed to make it work. Not to mention it would do NOTHING for us in NYC and LAX.

5 out of 7 creditors voted no on US/DL. It was uphill the whole way on that offer

 

[damajagua]

8 out 9 will vote Nooooooooooo on US/AA

 

[wings396]

Wow, I guess that you have personally spoken to them. You must be pretty high up there....
I can,only assume that you are basing this on how the DL creditors voted, even thought they were a different group. Did it ever occur to you that DL presented a better plan to them that what AA has to offer? I have said it numerous times on here, that the NW deal was on the board when Parker made his run for DL.

 

[WorldTraveler]

Let's keep this in perspective once again... even the US press spin can only say accurately that there have been INFORMAL discussions with SOME of the AMR creditors - in other words, US has not been invited to speak to the committee as a whole and it is very likely they won't be given that opportunity for months.
.
Anyone can make promises about the potential revenue gains that could be had - but the track record that one has speaks far louder about the ability to deliver.
US continually - and accurately - says it has a revenue disadvantage to the industry even though the HP/US merger was supposed to bring revenue benefits.
In fact, an AA/US merger would at best help to close the revenue disadvantage US has relative to the industry right now.
.
US has reported its March traffic and RASM... second in the process. DL reported a 13% RASM increase while US reported 8% which is in line with what it has reported in recent quarters - about middle of the pack in the industry.
AA has been middle of the pack as well.... WN and UAL will likely underperform the industry based on their recent performance and guidance.
.
It remains very unlikely that US will provide AA with the ability for AA to improve AA's revenue performance.

 

[frontline]

No. NO WAY am I working for US Scareways. Personally I think all this is just so much talk, but the voices are getting louder and it's starting to rattle me a little.

For those of you on the fence, here are some highlights of what we could expect if a merger did take place:

* Getting stapled to the bottom of seniority lists
* Lower pay, and work rules that would have us doing far more for less
* Years and years of integration battles

Frankly I can't see why ANYONE who works for AA would support this.

 

[EastCheats]

8 out 9 will vote Nooooooooooo on US/AA

Add me to the no votes.

We've spent years trying to bail water out of the Titanic. I hope this deal is sunk before it leaves the dock. From what I have seen here, AA does not want to be a part of another un-merger under Douggie's leadership. Delta employees locked their doors and boarded up the windows when Parker was knocking. As it turned out, Delta is in a much better position today. AA take note.

 

[BoeingBoy]

US has reported its March traffic and RASM... second in the process. DL reported a 13% RASM increase while US reported 8% which is in line with what it has reported in recent quarters - about middle of the pack in the industry.

Ya gotta be careful about direct comparisons. US only includes PSA and PDT in it's "consolidated" monthly numbers, leaving out a large majority of Express ops.

Jim

 

[WorldTraveler]

yes, we have the endless "slice and dice of data" question... but bottom line profit margins are not sliced and diced...
.
and it still comes down to that if those regional carriers were generating RASMs as good as or better than what US wants to include, they would be included.

 

[BoeingBoy]

yes, we have the endless "slice and dice of data" question... but bottom line profit margins are not sliced and diced...

But also not included in the monthly reports...

and it still comes down to that if those regional carriers were generating RASMs as good as or better than what US wants to include, they would be included.

Probably not - US has consistently reported monthly numbers this way since the merger. I assume that since US has so many contract Express carriers it doesn't want to wait for all the numbers to come in so includes only the owned Express carriers but that's just a guess.

Jim

 

[WorldTraveler]

What numbers does US need to wait for? these are capacity purchase agreements. US controls the revenue - they price and sell the seats and collect the revenue.
.
Why does US need to wait for anything from anyone on flights which they sell as their own revenue?

 

[BoeingBoy]

For starters, revenue is only half the RASM formula.

Some are revenue sharing agreements, not fixed rate.

It may be the ASM numbers - the other half of the RASM formula - since the contract carriers have direct control over mechanical cancellations, weight/balance limits on allowable number of passengers, and the like.

But as I said, that's just my assumption since Parker hasn't called to discuss it with me.

Jim

 

[wings396]

Ask WT to give him a shout, I'm sure his valued biased opinion will mean a lot to Doug....
This is all assuming that he can get out from under Anderson's desk long enough to use the phone....

 

[WorldTraveler]

For starters, revenue is only half the RASM formula.

Some are revenue sharing agreements, not fixed rate.

It may be the ASM numbers - the other half of the RASM formula - since the contract carriers have direct control over mechanical cancellations, weight/balance limits on allowable number of passengers, and the like.

But as I said, that's just my assumption since Parker hasn't called to discuss it with me.

Jim

Again, US knows the capacity that is being flown under their code... the reservations is all handled in US' res system. They know the seat map, type of aircraft being used (in case one is substituted), and whether the flight operated. If a flight cancels, the inventory is removed from the res system. All US carriers manage CAPACITY PURCHASE codeshares thru the host carrier's res system.
There are verifications that are done using comparisons to operations data which may not be done using the same system as the mainline carrier, but all revenue and capacity data is in the mainline carrier's res systems which are linked to the revenue accounting systems.
.
Tell me how much of US' regional carrier capacity is flown under non-CPAs. And so far as I know, US has no joint ventures which are reported differently.

 

[etops1]

No. NO WAY am I working for US Scareways. Personally I think all this is just so much talk, but the voices are getting louder and it's starting to rattle me a little.

For those of you on the fence, here are some highlights of what we could expect if a merger did take place:

* Getting stapled to the bottom of seniority lists
* Lower pay, and work rules that would have us doing far more for less
* Years and years of integration battles

Frankly I can't see why ANYONE who works for AA would support this.

Well ,well .. Someone is scared to be Stapled to the bottom huh ? Go talk to your TWA friends and see how they feel about that . Seriously though, if a merger or Buy Out were to happen , We at US would not staple anyone to the bottom at least on the flight attendant side we won't .