US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover

[USA320Pilot]

Why would you expect the US F/A TA to be ratified?? I haven't heard any support of it on the East. I don't even need to hear or read anymore about it.

Because it's industry leading or near industry leading, the time value of money, people getting older, inflation, and scope protections. If it fails what would you do next?

When the company does a side by side industry comparison in front of the NMB what will the mediator do? Release the parties with a democratic administration? Attempt to force US Airways to give up more from a company who had a scant $100 million 2011 profit with energy prices on the way up?

The vote won't effect me either way, but I believe the AFA will be convincing at the road shows because it's not 2000 it's 2012. People are tough guys on the line and they never vote "yes", but at the end of the month when they're looking at their checking account balance "no" votes often become "yes" votes. And, if it's so bad around here why have people not quit and continue to fly at US Airways? Management understands this too...

 

[signals]

So then, why are you here?

Last I checked this is the United States of America. It's still a free country

 

[Move2CLT]

I didn't say you weren't allowed here.

I ask why you were here and posting on a topic you know little to nothing about.

 

[signals]

I didn't say you weren't allowed here.

I ask why you were here and posting on a topic you know little to nothing about.

Hmmmm...new here, huh? For someone who hasn't been here 6 months, you sure have alot to say. Are you giving your supreme knowledge or have no life that you hang out here?

Look around, nobody knows nothing about anything. EVERY one just voices their opinion. I may be totally wrong, but you aren't totally right

If you go in other forums, well have you met WorldTraveler, you would see that nobody knows anything about anything that goes against the ideology of their Delta or other airline.

So continue to live in your box, while I watch from the outside, newbie

 

[Move2CLT]

When one voices their opinion, others hope they do it based on knowledge and some level of intimacy with the topic.

You, not having worked, or even flown, in the industry have neither. So you waste our time.

It would be the same if you posted in a FF forum. You have nothing to offer.

 

[AstroLounge]

When one voices their opinion, others hope they do it based on knowledge and some level of intimacy with the topic.

You, not having worked, or even flown, in the industry have neither. So you waste out time.

It would be the same if you posted in a FF forum. You have nothing to offer.

Well stated. Nothing, nada, zilch.

 

[signals]

When one voices their opinion, others hope they do it based on knowledge and some level of intimacy with the topic.

You, not having worked, or even flown, in the industry have neither. So you waste our time.

It would be the same if you posted in a FF forum. You have nothing to offer.

He-heh. Welcome to your screwed up world. It is US that has enlightened me. I just use their knowledge against them. How's the pilot issue going?

 

[Move2CLT]

He-heh. Welcome to your screwed up world. It is US that has enlightened me. I just use their knowledge against them. How's the pilot issue going?

1. Enlightened you to what?

2. What knowledge, against whom, and for what personal gain?

3. Pilot issue? Depends on who you ask.

 

[USA320Pilot]

Mergers in the Wings: DAL, LCC, AMR

Click here to read the story.

 

[Be Careful What You Wish For.]

I haven't heard any support of it on the East. I don't even need to hear or read anymore about it.

That's because the one's who are for it don't need to talk about it.

I don't even need to hear or read anymore about it.

"I see nothing, nothing!"

"There are no tanks in Baghdad!"

 

[AAviator]

Here are three key points in Reuters' article:

1. Some creditors want AMR management to explore other options that may lead to a better recovery of their claims, including a potential combination with another carrier.

2. While different creditors have different economic interests at stake, the sources said consensus is growing at the committee on the need to look at other alternatives.

3. Even labor unions, which traditionally do not like mergers because they come with job cuts, want to explore how a deal with a rival carrier would affect their members even though they may not necessarily favor it.

Click here to read the story.

Reports from BPR members indicate that in US Airways' last attempt to acquire United Airlines Doug Parker invited USAPA President Mike Cleary and Vice President Randy Mowrey to Tempe to meet in the "executive suite" with the company's officers. Parker presented Cleary and Mowrey with a new contract proposal of Delta + 1% in exchange for merger support, acceptance of the Nicolau Award as the SLI, and the CoC clause. Cleary and Mowrey took the offer and flew to CLT for the BPR's regularly scheduled quarterly meeting.

Before the BPR could act Jeff Smisek trumped US Airways' bid to merge with United and Continental merged with the Chicago-based carrier.

With the AFA TA in place, which I expect to be ratified, US Airways will eliminate another merger obstacle while the pilot's DJ lawsuit moves closer to conclusion (replies to the Summary Judgment are due to be filed in District Court on February 21, which is less than two weeks away).

In my opinion, if Parker elects to move forward he will buy labor support and go public with his labor offers. The deals will be industry leading contracts such as Delta + 1%. Parker has repeatedly told US Airways' employees this is the only way they can obtain industry leading contracts. Therefore, American Airlines' employees may have the option to accept management's term sheet, which could get worse if the unions do not agree to new contracts and the company keeps burning cash or limit their losses significantly by merging most likely with US Airways.

The SLI's would be covered by the MacCaskill-Bond amendment and for US Airways' pilots I suspect the Nicolau Award will be the list used in the next arbitration.

You've tried to say the same thing 3 different ways...

BTW, UAL's interest in LCC was a ruse used only to get CAL to listen to what UAL wanted to do. You guys were used... UAL was never serious about LCC in that time frame.


Chip,
Its obvious to everyone that you want a merger. A Delta pay rate for you represents a 40% pay bump. Right now DAL rates are only 5% more than the 1113c term sheet at AA. You can put the "look at all this money you'll be making" sentiment to rest, because it's really an empty bag.. You've never substantiated HOW the combined company will generate the revenues necessary to make that possible beyond an elementary school like, off the shelf, statement such as "less competition prices will go up" remark. But thats another topic.

I'm going to ask you to be pragmatic for a moment, and acknowledge the elephant in the room. Specifically, other scenarios that offer superior LONG (career) term benefits and opportunities for AA and its employees.

You may recall that back in early November, the company expressed interest in domestic code share in their settlement offer to APA. You can find it on page 1 (the 6th page of the .pdf) of the Comprehensive Settlement offer made to APA on November 14th.
http://www.aanegotiations.com/documents/AAComprehensiveProposal_ExecutiveSummaries_000.pdf

The company wants to be able to code share on a shuttle product.. Notice they didn't specify LCC, rather, a "Shuttle product".

They also want to code share to address "gaps" in JFK.. They want to code share with AS to help grow the LAX gateway..

Take a moment to peruse this wiki on airports for a minute. (i hate quoting wikipedia, but in this case, it is a consolidated point of reference)

http://en.wikipedia.org/wiki/List_of_the_busiest_airports_in_the_United_States
In terms of traffic, revenue, departures, business contracts, city pair offerings, and any other metric you an come up with, and see how well LCC fits into the picture, VS THE OTHER ALTERNATIVES OUT THERE. (Yea, that elephant in the room)

You've thrown a bunch of acronyms out there that unless converted to layman's terms, nobody knows what the hell you're talking about.. LOA93, CoC, Nic, Declamatory judgement etc, are apparent obstacles, and sticking points i.e. baggage a lesser combination carries to the table. Of course, -the cleaner option(s)-, -less problematic and expensive option(s)- non-union, no wide body, no RJ dependent, common fleet, JFK slot rich B6, or even zero overlap, great hub location and point to point operation, common fleet AS, have none of these impediments, angry pilot groups, poor hubs highest labor cost, ancient 767/757 fleets in need of replacement that LCC has. These alternate combinations bring far fewer employees with much better, and immediate benefit to AA and OneWorld than LCC.

You can keep spouting "Parker said" and "I read" and "Captain so and so said", or The M&A money said until the cows come home... We know your message, and the drivers behind it. We've known for some time your "Polly Anna" and "Town Crier" approach to industry consolidation, and how LCC will be an acquirer.

Its the seemingly absent pragmatism I'm looking for from you.. Just for a minute.. If you're capable.

Yes, AA is in bankruptcy. GDP is growing at almost 3%. Despite claims that there's no room for growth in the industry, as GDP grown, so will air travel. We have firm orders/options from Boeing 296/158, AirBus, 260/365.. From an AA pilot perspective, LCC offers the least desirable of all options short of liquidation, and we both know that that is the least likely of all options.

 

[fatherabraham]

"Chip,
Its obvious to everyone that you want a merger. "


AA,

Please know that he represents/speaks for a tiny % of LCC folk.

FA

 

[autofixer]

Yes, AA is in bankruptcy. GDP is growing at almost 3%. Despite claims that there's no room for growth in the industry, as GDP grown, so will air travel. We have firm orders/options from Boeing 296/158, AirBus, 260/365.. From an AA pilot perspective, LCC offers the least desirable of all options short of liquidation, and we both know that that is the least likely of all options.

Final 2011 GDP 1.7%

http://articles.businessinsider.com/2012-01-27/markets/30669494_1_gdp-report-private-inventory-investment-real-gdp

 

[FWAAA]

Final 2011 GDP 1.7%

http://articles.businessinsider.com/2012-01-27/markets/30669494_1_gdp-report-private-inventory-investment-real-gdp

AAviator was referring to the fourth quarter GDP growth, which at 2.8% was "almost 3%."

Yes, for 2011, GDP grew at just 1.7%. However, as the link below shows, the trend was up in each quarter last year:

http://www.bea.gov/newsreleases/national/gdp/gdphighlights.pdf

 

[usa1]

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