US Airways Makes Case for Merger With American

[USA320Pilot]

US Airways Makes Case for Merger With American

For more information on this story click here.

 

[USA320Pilot]

US Airways Pushing Hard for American Airlines Merger: Report

For more information click here to read the story.


US Air sees $1.5 bln synergies from AMR merger-WSJ

US Airways has told creditors of AMR that a potential combination of the two carriers could generate roughly $1 billion in additional revenue and some $500 million in nonunion cost savings

For more information click here to read the story.

 

[SparrowHawk]

US Airways, itself the result of a 2005 merger with America West Airlines, has its own labor issues, however. Seven years after the merger, its pilots and flight attendants still aren't under combined labor contracts and unified seniority lists. The combined flight attendants last week shot down a tentative joint contract as insufficient, and the pilots from the two premerger carriers are battling each other and management in court.

Am I the only guy in the world that sees the meat of this paragraph as a deal breaker?

 

[Move2CLT]

Yes, you are.

 

[flyingskier]

Putting together American's powerful hubs in Chicago, Dallas and Miami with US Airways' dense network of East Coast cities, anchored by hubs in Philadelphia, Charlotte, N.C., and Washington would give passengers in cities such as Buffalo, N.Y., Raleigh/Durham, N.C., and Richmond, Va., more choices of flights and routes than American can now offer—choices that are far fewer than those available on United and Delta.

The combination, according to a recent J.P. Morgan research note, would bring 33 East Coast cities that American doesn't serve to its global Oneworld alliance, giving American's main trans-Atlantic partner, British Airways, more markets to reach and giving American more of a catchment area to fill its domestic and international flights.




Where does PHX fit in this picture?

Skier

 

[Phoenix]

Am I the only guy in the world that sees the meat of this paragraph as a deal breaker?

Seeing it as a "Deal breaker" is a bit dramatic and a short sighted surrender. Look at the big picture and try to figure out what the paragraph is telegraphing. Don't read flyingskier yet, unless you want the spoiler first.

 

[Move2CLT]

Calm down boys. Your limps are premature.

Funny how you guys get all excited about stuff only to have the rug pulled out from under you.

 

[SparrowHawk]

Seeing it as a "Deal breaker" is a bit dramatic and a short sighted surrender. Look at the big picture and try to figure out what the paragraph is telegraphing. Don't read flyingskier yet, unless you want the spoiler first.

Look I realize that the pilots could work out their differences out on Thursday and sing Kumbaya on Friday, with the F/A's doing background, vocals. However until that happens as an investor I'm keeping my money in my pocket. Now I'm a Conservative Investor so thus the deal breaker comment.

 

[wings396]

An issue Yes, a deal breaker, no....

 

[SparrowHawk]

An issue Yes, a deal breaker, no....

Upon further review the merger could be used to force a settlement. Guess the answer is "It Depends"

 

[BoeingBoy]

If Parker is saying that a merger with AA would result in better pay and loss of fewer jobs than AA is offering, which means bringing US employees up to those pay rates, how do you put the two highest cost carriers together and make it work financially better than a stand-alone AA?

Jim

 

[necigrad]

Here's a question. If a merger happened, what would happen with the pilot dispute? I'm a bit uneducated in the matter, but I'd venture that post merger any seniority fights now would be rendered moot, replaced by new seniority disputes. You can't argue US v. AWA, but you could argue US/AWA v. AA or US v. AWA v. AA. At least that's my amateur analysis.

 

[fodase]

If Parker is saying that a merger with AA would result in better pay and loss of fewer jobs than AA is offering, which means bringing US employees up to those pay rates, how do you put the two highest cost carriers together and make it work financially better than a stand-alone AA?

Jim

Parker claims the combined airlines revenues can support better contracts, don't forget the merger will come with lots of investor cash which a stand alone amr won't have.

 

[fodase]

Here's a question. If a merger happened, what would happen with the pilot dispute? I'm a bit uneducated in the matter, but I'd venture that post merger any seniority fights now would be rendered moot, replaced by new seniority disputes. You can't argue US v. AWA, but you could argue US/AWA v. AA or US v. AWA v. AA. At least that's my amateur analysis.

Well if u were to thing like the eAst pilots, then the american pilots could just reorder the list at will since they would be the majority.

 

[BoeingBoy]

The short answer is nobody knows.

The APA would be one NMB representative election away from being the bargaining agent for all US/AA pilots, or maybe even one NMB ruling away. Then, east logic says that APA decides how the seniority lists are put together as long as it follows the law (negotiate, mediate, arbitrate) - they've claimed all along that USAPA isn't bound by the previous bargaining agent's policies. West logic says that it would be an integration of the Nic and APA list while following the law. So according to both side's logic it wouldn't be a 3-way integration.

Jim