US Airways Makes Case for Merger With American

[gabby]

Look for the word "synergies" to be overused again.

 

[Move2CLT]

Actually the ATSB agreed to lower the amount of cash collateral 2 or 3 times, and US was still on the verge of defaulting on the loan 27 days before the merger. Also, the ATSB didn't let US use the money as DIP financing.



As did all the other outside investors except Air Wisconsin, who provided DIP financing which was spent as fast as it came in. That's why I keep saying it doesn't matter who raised the money - the merger was what enabled it to be raised. No merger, no money. If Parker had said no, like everyone else did, US would have liquidated.

Jim

Did you easties get that?

 

[Beancounter]

Did you easties get that?

I doubt it. They've got their fingers in their ears, going, "Nah, nah, hah, la, la, DOH, DOH, nah, nah, I can't hear you, la, la."

Bean

 

[Art at ISP]

From the sidelines, a couple of thoughts occur to me. Were it not for the industry lowest wages currently being paid to pilots and other workgroups at US, one has to wonder exactly how profitable the company would be right now. Parker and Kirby are expert at "smoke and mirrors" accounting, and can get a spreadsheet to show whatever they want it to show.

In a meeting I had with Doug (and 100 other flyers), about a year and a half ago, he stated clearly that the amount of the profit was equal to the amount of the ancillary fees collected in the same period. I don't want to rehash that argument, but that is dangerous. If the public gets tired of nickel and diming (it's taking longer than we thought but there are some signs), or if they were forced to adjust the fees for competitive reasons (US is only one step above Ryanair and Spirit when it comes to fees), I think profitability would be affected. ALSO, if Doug's labor rates went up through union contract or other means (merger?), I am not sure the enterprise' financial picture would be as rosy as it has been.

I go back to a fundamental issue. Doug and US management have a disdain for their employees and their customers. We are both viewed as liabilities rather than assets. Until that mindset changes, and there is no sign that it will, I don't think the future for US as a merger partner is as bright as many think. Time will tell, but he's already over his head with this merger, why give him another, much larger airline to ruin?

That said, on the operational front, the front line at US has done an amazing job, and is more responsible for service improvements and performance than any of the suits--so I salute you guys and gals out there in the field. Imagine what you could do with better management relations, decent morale, and better tools!!!

Happy Easter Everyone!

 

[AAviator]

Swelbar Blog on a possible merger

Jim

THAT'S gonna leave a mark! 😀

 

[AAviator]

After thinking about Swelbar's well written column there seems to be many more questions than answers. Why does Swelbar ask so many questions?

In my opinion, there are two major issues that Swelbar did not address.

One, what about the social issue? Tom Horton has repeatedly addressed his desire for AMR to remain independent, successfully independently restructure, and then possibly complete a corporate combination after they company emerges from it formal reorganization. Why? Most likely he wants to keep his job, AMR's management team wants to keep their jobs, and they want to run a major airline.




Tom Horton could care less about his paycheck from AA. If he walked away from AA, his phone would be ringing off the hook with offers to start tomorrow morning. Pilots are a dime a dozen, not so with top dogs, even recycled ones.
Look at where Steven Wolfe, landed:

http://people.forbes.com/profile/stephen-m-wolf/63618

How about Glenn Tilton: http://en.wikipedia.org/wiki/Glenn_Tilton

Ever Rakesh Gangwal: http://people.forbes.com/profile/rakesh-gangwal/59607

To think he's worried about his job is pure lunacy.



two, will AMR's unions accept the company's drastic labor contract concessions (in some cases for example the pilots deeper than LOA 93 with a 1:4 trip rig and RJs paying Captain rates of $109/hour) or Doug Parker's apparent offers that would be less of cut? According to the WSJ, "US Airways could try to persuade the unions representing pilots, flight attendants, mechanics, airport ground workers and others, that the higher revenue the combined airline would generate could be shared with labor by way of less-drastic contract concessions than AMR is seeking."


1. Labor has two choices right now. Negotiate a new deal, or live by the 1113c, should the judge grant the filing. Want to bet there will be consensual agreements around the 3rd week of May? Part two.... How the hell will Parker afford such and offer? Just recently, some light bulbs are starting to go on that airline "synergies" live next door to the tooth fairy. Besides the 1113c BLOWS AWAY LCC compensation packages.

2. Bates will listen to anyone who may provide a better long term deal for AA pilots. This includes Parker, and the rest of the interested parties that will be turning up. Part of the dance sunshine.



Bill Swelbar is a bright man he he has been writing a number of columns that seem to argue against US Airways completing its attempt to acquire AA. But, I'm curious why Swelbar did not address the two points above and how will these two questions affect Doug Parker's plans?

Probably because its BS. There are no social issues. The problem is, the issues are structural, economic, network and, logistical.

 

[crazystnic]

THAT'S gonna leave a mark! 😀

I'm AAA east and in no mood to merge with AA anyway...
so stick it and enjoy

a merger just means delay to our attrition.

 

[Move2CLT]

I'm AAA east and in no mood to merge with AA anyway...
so stick it and enjoy

a merger just means delay to our attrition.

Start making peace with your delay then because its going to happen. Hummel was out here last week to discuss merger with Parker.

And your CLT reps seem to thinks its going to happen as well.




Merger WATCH- How do we prepare
The speculation of a merger deal with AMR and US Airways has been a crew room topic since American filed for bankruptcy protection on November 28, 2011. Our Management's recent statements and actions indicate that a merger attempt is a strong possibility. It appears the question is not "if" but "when" and it is our opinion that merger events will unfold sooner rather than later. Beyond this speculation, what we know as of today April 7, 2012 are:
* The US Airways Board of Directors will be meeting the week of April 9, 2012 in their regularly scheduled quarterly meeting.
* We have information that Captain David Bates of the APA has made at least one trip to Tempe to meet with Doug Parker in the last few weeks without notice to USAPA or our pilots.
* Speculation from Wall Street analysts as well as Aviation experts indicate that there will be attempts by several entities (including US Airways) to benefit from the assets and debt reductions that will occur during the bankruptcy process at AMR.
* Numerous news and business articles have surfaced this week regarding the merger prospects of US Airways and AMR.
* Your newly elected team of Officer-Elects ventured out to PHX on their own this week, unannounced to the pilots, without disclosure to the BPR or current Officers, and without briefings from the sitting officers, legal, merger, NAC, or (to the best of our knowledge) any USAPA resource prior to their travel. Speculation abounds, and without the facts of what the Officer-Elects were doing, in our opinion transparency is nonexistent.
The question now becomes how we move to prepare for all possible contingencies. The good news is that Jess Pauley our Merger Committee Chairman and attorneys Pat Szymanski and Roland Wilder have done the preliminary work on potential scenarios. They have performed initial analytical evaluations regarding our contractual protections, industry evaluations, and merger potentials. At the recommendation of the Merger Committee Chairman at the March 29th Special BPR meeting, the Board hired Mr. Szymanski as our merger counsel. Along with Michael Boyd of the Boyd Group as our industry analyst, the BPR directed the team to begin the work necessary to protect and prepare our pilots in the event of a sudden merger announcement. This team was directed to continue the process of strategically planning for all scenarios that could come to fruition, and it is our opinion that all signs indicate the merger train will soon to be upon us.

 

[Beancounter]

I'm AAA east and in no mood to merge with AA anyway...
so stick it and enjoy

a merger just means delay to our attrition.

You'll still get your attrition, the difference is instead of getting you an upgrade it will keep you from being back on the street. Not meant as a rub, just a statement of possibility.

Bean

 

[USA320Pilot]

Rivals push merger scenario for AMR

Click here to read the story.

 

[USA320Pilot]

Why would USAPA CLT Domicile Rep's said?

Charlotte Domicile Update: April 7, 2012

Merger WATCH- How do we prepare

The speculation of a merger deal with AMR and US Airways has been a crew room topic since American filed for bankruptcy protection on November 28, 2011. Our Management's recent statements and actions indicate that a merger attempt is a strong possibility. It appears the question is not "if" but "when" and it is our opinion that merger events will unfold sooner rather than later. Beyond this speculation, what we know as of today April 7, 2012 are:

* The US Airways Board of Directors will be meeting the week of April 9, 2012 in their regularly scheduled quarterly meeting.

* We have information that Captain David Bates of the APA (Allied Pilot's Association President or the President of the AAs Pilot's Union) has made at least one trip to Tempe to meet with Doug Parker in the last few weeks without notice to USAPA or our pilots.

* Speculation from Wall Street analysts as well as Aviation experts indicate that there will be attempts by several entities (including US Airways) to benefit from the assets and debt reductions that will occur during the bankruptcy process at AMR.

* Numerous news and business articles have surfaced this week regarding the merger prospects of US Airways and AMR.

* Your newly elected team of Officer-Elects ventured out to PHX on their own this week, unannounced to the pilots, without disclosure to the BPR or current Officers, and without briefings from the sitting officers, legal, merger, NAC, or (to the best of our knowledge) any USAPA resource prior to their travel. Speculation abounds, and without the facts of what the Officer-Elects were doing, in our opinion transparency is nonexistent.

The question now becomes how we move to prepare for all possible contingencies. The good news is that Jess Pauley our Merger Committee Chairman and attorneys Pat Szymanski and Roland Wilder have done the preliminary work on potential scenarios. They have performed initial analytical evaluations regarding our contractual protections, industry evaluations, and merger potentials. At the recommendation of the Merger Committee Chairman at the March 29th Special BPR meeting, the Board hired Mr. Szymanski as our merger counsel. Along with Michael Boyd of the Boyd Group as our industry analyst, the BPR directed the team to begin the work necessary to protect and prepare our pilots in the event of a sudden merger announcement. This team was directed to continue the process of strategically planning for all scenarios that could come to fruition, and it is our opinion that all signs indicate the merger train will soon to be upon us.

 

[signals]

Just because the President of the APA met with Tempe, doesn't mean an agreement was reached...unless he left with an extra large luggage 😛h34r:

I can't see any union benefiting from union scabs!

Your industry perfected outsourcing, and your airline perfected "divide and conquer" 😛

 

[Move2CLT]

Looks like signals is out for a bit of trolling.

 

[signals]

I find it laughable just irritating you (deleted by moderator)

 

[SparrowHawk]

In addition to not adding anything of substance here, you're not even doing that.

OH??? Well if that's the criteria for posting on Aviation Forums then I think you'd best notify the Moderators and have them delete the 4500+ pages of drivel known as "US Pilots Labor Discussion"