US isn't the one currently in bankruptcy, or am I missing something?
US Airways CEO: We don’t have to merge, but maybe it makes senseRead more here: http://www.charlotte
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US isn't the one currently in bankruptcy, or am I missing something?
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Did USAPA and ALPA kiss and make up, or am I missing something? 🙄
Phoenix
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Doesn't matter, if you merge APA will call the shots!
Phoenix
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If.. If... If..
He's bitter.
USA320Pilot
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US Airways CEO Talks Merits of Consolidation
By SUSAN CAREY
SCOTTSDALE, Ariz.Doug Parker is the longest-serving current chief executive of a U.S. airline, having stepped into the post at America West Airlines just days before the Sept. 11 terrorist attacks. In 2005, he engineered a merger with US Airways Group Inc., acquiring that old-line East Coast carrier as it emerged from its second bankruptcy reorganization.
The combined carrier, called US Airways and now the nation's fifth largest by traffic, has been trying to get bigger through another merger but has been outmaneuvered by competitors. Delta Air Lines Inc. DAL -0.71%repelled a hostile takeover bid from US Airways. United Airlines twice had talks with the company but ended up combining with Continental.
US Airways CEO Doug Parker says consolidation has saved the airline industry.
Now Mr. Parker, 50 years old and a 26-year veteran of the airline industry, has set his sights on AMR Corp.'s American Airlines, which entered bankruptcy protection four months ago. US Airways disclosed in January that it had hired advisers to help it assess a bid for American, despite AMR's goal of emerging from Chapter 11 solo.
In an interview with The Wall Street Journal, Mr. Parker declined to discuss the particulars of his interest in American. But he did lay out his thesis on the merits of consolidation. Edited excerpts:
WSJ: You're a longtime advocate of consolidation. Why?
Mr. Parker: In 2005, there were 12 airlines in the U.S. with at least 1% market share. Now there are seven. I don't know that seven is the right number, but I know 12 is too many. That fragmentation resulted in an irrational business model that had too many airlines chasing the same customers, leading to terrible loss years. With fewer airlines, there are fewer of us trying to get the same number of customers.
WSJ: Why do you think US Airways lost out in past merger attempts?
Mr. Parker: I don't think we lost out. Consolidation was necessary, and it was a strategic imperative to get the industry well. As I look back over the past five, six years, consolidation has helped us have a more viable industry. To the extent that we helped compel the mergers of Delta and Northwest and United and Continental, it made us stronger.
WSJ: Why is American interesting to US Airways as a potential partner?
Mr. Parker: There may be tactical opportunities that arise. When there are, we explore them. The American bankruptcy might provide opportunities for us. If we could get our hands on better assets, we could do more things.
WSJ: Your 2006 hostile bid for Delta was repelled by Delta's management, employees and creditors. What did you learn from that experience?
Mr. Parker: You need to have allies, particularly the employees. You need labor to be excited about the transactions. In other businesses, value wins. That's certainly not the case in this business.
WSJ: Your rivals sometimes discredit US Airways as a potential merger partner because your pilots aren't yet integrated seven years after your merger. Why the delay?
Mr. Parker: We unfortunately still do not have our pilots on a joint contract. Until the two pilot groups give us a joint seniority list, we can't get to a joint contract. The process is in court. We're unhappy about it, but we're managing it.
WSJ: Your operational and financial turnaround hasn't received much attention in the past couple of years. Why does perception lag reality?
Mr. Parker: I think it is being appreciated and understood, certainly by our customers. We did things we needed to do. We focused our flying on places where we have a competitive advantage. We've done a really nice job of improving operating reliability. We've kept costs down. At the same time the industry is doing better, our relative performance has gotten much better.
CEO of American Airlines parent works toward quick exit from bankruptcy
Click here to read the story.
American Airlines seeks to void labor contracts
Click here to read the story.
By SUSAN CAREY
SCOTTSDALE, Ariz.Doug Parker is the longest-serving current chief executive of a U.S. airline, having stepped into the post at America West Airlines just days before the Sept. 11 terrorist attacks. In 2005, he engineered a merger with US Airways Group Inc., acquiring that old-line East Coast carrier as it emerged from its second bankruptcy reorganization.
The combined carrier, called US Airways and now the nation's fifth largest by traffic, has been trying to get bigger through another merger but has been outmaneuvered by competitors. Delta Air Lines Inc. DAL -0.71%repelled a hostile takeover bid from US Airways. United Airlines twice had talks with the company but ended up combining with Continental.
US Airways CEO Doug Parker says consolidation has saved the airline industry.
Now Mr. Parker, 50 years old and a 26-year veteran of the airline industry, has set his sights on AMR Corp.'s American Airlines, which entered bankruptcy protection four months ago. US Airways disclosed in January that it had hired advisers to help it assess a bid for American, despite AMR's goal of emerging from Chapter 11 solo.
In an interview with The Wall Street Journal, Mr. Parker declined to discuss the particulars of his interest in American. But he did lay out his thesis on the merits of consolidation. Edited excerpts:
WSJ: You're a longtime advocate of consolidation. Why?
Mr. Parker: In 2005, there were 12 airlines in the U.S. with at least 1% market share. Now there are seven. I don't know that seven is the right number, but I know 12 is too many. That fragmentation resulted in an irrational business model that had too many airlines chasing the same customers, leading to terrible loss years. With fewer airlines, there are fewer of us trying to get the same number of customers.
WSJ: Why do you think US Airways lost out in past merger attempts?
Mr. Parker: I don't think we lost out. Consolidation was necessary, and it was a strategic imperative to get the industry well. As I look back over the past five, six years, consolidation has helped us have a more viable industry. To the extent that we helped compel the mergers of Delta and Northwest and United and Continental, it made us stronger.
WSJ: Why is American interesting to US Airways as a potential partner?
Mr. Parker: There may be tactical opportunities that arise. When there are, we explore them. The American bankruptcy might provide opportunities for us. If we could get our hands on better assets, we could do more things.
WSJ: Your 2006 hostile bid for Delta was repelled by Delta's management, employees and creditors. What did you learn from that experience?
Mr. Parker: You need to have allies, particularly the employees. You need labor to be excited about the transactions. In other businesses, value wins. That's certainly not the case in this business.
WSJ: Your rivals sometimes discredit US Airways as a potential merger partner because your pilots aren't yet integrated seven years after your merger. Why the delay?
Mr. Parker: We unfortunately still do not have our pilots on a joint contract. Until the two pilot groups give us a joint seniority list, we can't get to a joint contract. The process is in court. We're unhappy about it, but we're managing it.
WSJ: Your operational and financial turnaround hasn't received much attention in the past couple of years. Why does perception lag reality?
Mr. Parker: I think it is being appreciated and understood, certainly by our customers. We did things we needed to do. We focused our flying on places where we have a competitive advantage. We've done a really nice job of improving operating reliability. We've kept costs down. At the same time the industry is doing better, our relative performance has gotten much better.
CEO of American Airlines parent works toward quick exit from bankruptcy
Click here to read the story.
American Airlines seeks to void labor contracts
Click here to read the story.
nycbusdriver
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Well, Mr. Parker, if that's a prerequisite, USAirways will never merge with American (or anybody else, for that matter.) American Airlines employees are not blind, nor stupid, any more than the Delta employees of 2006 were. And US Airways employees are not ready for you to again work you "merger magic" on American while the US/AW merger, still lingering after nearly 7 years, is yet years away from completion. (That's at least partially your fault due to your nearsighted, miserly, arrogant, insulting "Kirby proposal.") The US Airways employees have no desire to impose the "Tempe Brain Trust" on our colleagues at American Airlines. They have enough problems right now without throwing you into the mix.
Employee allies on either side? Fuggedaboudit!
Why should the airline employee’s support the Pilot Equitable Treatment Act if there is noting in it to address the rest of the airline employee’s retirement.It is hard to get support when just a select few get protection
Amen.
wings396
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Because it's all about the pilots, always has been. Didn't you know that they are the only ones that make the airline happen.
The rest of us are just standing on the sidelines collecting a paycheck
crazystnic
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agreeed NYC BUS... actions speaker louder then words....
MGMT has nobody supporting their actions.
Move2CLT
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Whoa, whoa, whoa. Are you saying that if the Kirby proposal wasn't nearsighted, miserly, arrogant, and insulting, then you would have voted for it with the Nic?
Because if that's not the case, then no matter what Parker threw at you, we'd still be where we're at right now, right?
Are you once again blaming someone else for a situation you guys so clearly put us in? I do remember the east MEC telling its membership how they "told" Doug Parker to stay out of SLI and that "we would handle it."
Move2CLT
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The west will support the company if its detrimental to USAPA. Remember that job action that went unsupported by the west last summer?
I wouldn't mind seeing your pilot group left behind, maybe spun off to Republic. Nothing says the west can't pick up that market. We're already flying 24% of your flights.
Move2CLT
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OK, in all seriousness. Parker wasn't referring to this pilot group for support. He only cares about AA's work groups.
We, especially the east, have little to no leverage to stop anything.
So save your chest beating. All its doing is making you guys look foolish.
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