US Airways Makes Case for Merger With American

[fodase]

Btw the wests attorneys have already layed out the apa's jeopardy if they go along with usapa and harm the west. Not to worry because the company will abandon the east in a heart beat to make this merger happen, look no further than the company's dj filings where they make the west case better than the west does

 

[BoeingBoy]

Btw...

Plus, if breeze is so sure a merger is going to happen a ruling favorable to the west will end this battle - they won't need any more cards to play. US, AA, and APA will have a court telling them all that the Nic must be used and a joint contract will be negotiated by the APA and the AA pilots will have the majority to pass it. So breeze's whole "we'll just keep voting a TA down" goes down the drain...

Jim

 

[fodase]

Plus, if breeze is so sure a merger is going to happen a ruling favorable to the west will end this battle - they won't need any more cards to play. US, AA, and APA will have a court telling them all that the Nic must be used and a joint contract will be negotiated by the APA and the AA pilots will have the majority to pass it. So breeze's whole "we'll just keep voting a TA down" goes down the drain...

Jim

Lol, yet they are so obtuse they cannot see any scenario but their own

 

[Phoenix]

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

Unmerged labor groups are of little concern... especially in the context, of all things, merging .

 

[BoeingBoy]

So how does Parker answer if the unsecured creditors ask how he's going to get all those synergies if he hasn't been able to fully merge US and HP in over 6 years? Do you think that might concern them just a little?

Jim

 

[nevergiveup]

Plus, if breeze is so sure a merger is going to happen a ruling favorable to the west will end this battle - they won't need any more cards to play. US, AA, and APA will have a court telling them all that the Nic must be used and a joint contract will be negotiated by the APA and the AA pilots will have the majority to pass it. So breeze's whole "we'll just keep voting a TA down" goes down the drain...

Jim

Does the transition agreement allow for a third party?

 

[john john]

So how does Parker answer if the unsecured creditors ask how he's going to get all those synergies if he hasn't been able to fully merge US and HP in over 6 years? Do you think that might concern them just a little?

Jim

The airline is running good enough and parker is saving money with bankruptcy contracts. Bad consequence for the airlines not finalizing labor contracts and a timely matter. Not seeing it.This what airline(AA,US) management does


Management can always walk into court and get or use the injunction if status quo is not exercise

 

[luvthe9]

Lol, yet they are so obtuse they cannot see any scenario but their own

Ah, Somebody just watched "Shawshank" and learned a new word. Great movie!!!!

 

[ggiby]

US Airways Makes Case for Merger With American

For more information on this story click here.

April 3, 2012
US Airways sees USD$1.5 billion in synergies from a potential merger with AMR, the bankrupt parent of American Airlines, The Wall Street Journal reported on Tuesday.

US Airways has told creditors of AMR that a potential combination of the two carriers could generate roughly USD$1 billion in additional revenue and some USD$500 million in non-union cost savings, the report said.

US Airways previously has said it hired advisers to explore a potential merger with AMR. The airline on Tuesday declined to comment on any talks that may be under way with creditors.

"The process lends itself to many conversations, but we do not plan to confirm or disclose the substance of any of those conversations that may take place during that assessment," a US Airways spokesman said.

People familiar with the matter have said previously that unsecured creditors of AMR are concerned about the airline's plan to remain independent and want to explore benefits from a potential merger with US Airways or another carrier.

While there have been informal conversations between US Airways and members of AMR's unsecured creditors committee, the committee has been focused on examining the business plan presented by AMR management, and has not had formal talks with US Airways about benefits of a merger, these sources have said.

(Reuters)

 

[Res Judicata]

The deal breaker is the fact that the merger will be held up in Federal court for 10 years. USAPA...who is to stupid to help themselves, will of course attempt to merge a DOH list with APA. Then, of course, the West class will sue anyone and everyone dumb enough to lay a finger on the DOH list. We all know the following iterations of appeals and the endless years of waiting on a Judge. Investors aren't willing to play that pointless game. USAPA already cost the United deal, and it will ultimately tank AA to.

Which of course will just expedite US Air's long deserved demise.

 

[UPNAWAY]

thus the deal breaker comment.

From a deal standpoint they only need the AA unions on board, although a kumbaya by all would be nice it is not necessary at this stage.

 

[BoeingBoy]

Does the transition agreement allow for a third party?

Depends on what you mean by a third party. There are already three parties, but two are now represented by USAPA since USAPA took one's separate representation away. Other than that the current language only covers US and it's pilots. All sides would have to agree to a change to add two more parties - AA and APA - since adding only AA or the APA wouldn't accomplish anything because the other wouldn't be bound by the transition agreement.

Much more likely, since just adding AA and APA to the current agreement without major changes to the terms of the agreement would not do any good, is a new transition agreement replacing the current one IF there were to be a merger. However, any change to the language specifying how the east/west seniority integration is handled, which resulted in the Nic, would bring an immediate DFR suit from the west. So maybe 4-5 years later there would be a new transition agreement in place and negotiations for merging seniority lists and getting a merged contract could start. APA and the company know that, so neither would likely be in the east's corner.

Jim

 

[BoeingBoy]

US Airways has told creditors of AMR that a potential combination of the two carriers could generate roughly USD$1 billion in additional revenue and some USD$500 million in non-union cost savings, the report said.

So the same additional revenue AA is claiming and less cost savings since US is reportedly telling the AA unions that their cuts will be less with a merger and US employees will have to be brought up to the pay/benefits offered to AA's employees (that's close to $500 million/year for just the US pilots). Like I've said all along, Parker's problem is convincing the UCC that a merged AA/US will have a better chance of success than a stand-alone AA and what's being leaked so far will make it hard to accomplish that.

Jim

 

[Move2CLT]

Does the transition agreement allow for a third party?

Your very own Jack Stephan wrote you a letter warning you that if you voted in USAPA you'd be locking the Nic in place.

The reason being is the third part (the west) disappearing. With no third party, altering the TA became impossible. USAPA has been unable to do it after all these years.

And no, you can't use AOL or anyone to represent the west in SLI. Only USAPA is recognized as our CBA.

 

[Move2CLT]

From a deal standpoint they only need the AA unions on board, although a kumbaya by all would be nice it is not necessary at this stage.

Ding, ding, ding, ding.

When this merger starts, USAPA will disappear faster than a fart in a hurricane.

It'll be the APAs show.