USA320Pilot
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US Airways Merger Updates - Jan. 24, 2007
- Thread starter USA320Pilot
- Start date
JAMAKE1
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I think that DP (Doug Parker, not Double Penetration) needs to re-focus his efforts on completing the first integration and negotiating transition agreements with the respective workforces. By distracting himself with the Delta merger he is losing his focus and it could lead to his downfall.
Delta has made great strides in revamping its product, including introducing Richard Tyler-designed uniforms for the company's cabin crewmembers, upgrading its Business Elite cabins, ehancing the international service offerings in Economy (eye shades, menus, ear plugs, ptv's, etc), not to mention a significant expansion of its international presence across the globe.
Contrast this with Tempe, who has removed first class seats from the USAirways fleet, removed coat closets, lessened seat pitch, and altered Dividend Miles perks for the airline's most frequent customers.
From the perspective of a rather distant observer, I would hate to see Delta's image tarnished in the way that USAirways' image has been tarnished. Without any disrespect to the "Westies", America West was a second-rate carrier, both operationally and in the level of service offered. They have never been on par with with likes of American, Continental, or United. That's just a fact.
Additionally, I find it troubling that the new USAirways would go after a carrier that brings little to the table in terms of an expanded route presence. The mergers and acquistions that have been historically successful, are the ones that brought enhanced market presence to the acquiring carrier. The Delta-Western merger and the United-Pan Am route purchases, are very good examples.
Should the US-DL merger prevail...and I really hope it doesn't...my belief is that PHL and CLT (and possibly SLC) will be the most vulnerable cities to service cut-backs and work-force reductions during the next economic downturn.
In summary, I do not see the US-DL merger as an undertaking by a visionary mastermind. One only needs to look at the history of airline consolidation during the mid-to-late eighties, when, for the most part, employees, communities, customers, and stakeholders were left disillusioned by the fallout that resulted. (e.g. US-PS, US-PI, AA-OC, CO-FL-PE-NY).
That;s my two-cents, for what it's worth...
Delta has made great strides in revamping its product, including introducing Richard Tyler-designed uniforms for the company's cabin crewmembers, upgrading its Business Elite cabins, ehancing the international service offerings in Economy (eye shades, menus, ear plugs, ptv's, etc), not to mention a significant expansion of its international presence across the globe.
Contrast this with Tempe, who has removed first class seats from the USAirways fleet, removed coat closets, lessened seat pitch, and altered Dividend Miles perks for the airline's most frequent customers.
From the perspective of a rather distant observer, I would hate to see Delta's image tarnished in the way that USAirways' image has been tarnished. Without any disrespect to the "Westies", America West was a second-rate carrier, both operationally and in the level of service offered. They have never been on par with with likes of American, Continental, or United. That's just a fact.
Additionally, I find it troubling that the new USAirways would go after a carrier that brings little to the table in terms of an expanded route presence. The mergers and acquistions that have been historically successful, are the ones that brought enhanced market presence to the acquiring carrier. The Delta-Western merger and the United-Pan Am route purchases, are very good examples.
Should the US-DL merger prevail...and I really hope it doesn't...my belief is that PHL and CLT (and possibly SLC) will be the most vulnerable cities to service cut-backs and work-force reductions during the next economic downturn.
In summary, I do not see the US-DL merger as an undertaking by a visionary mastermind. One only needs to look at the history of airline consolidation during the mid-to-late eighties, when, for the most part, employees, communities, customers, and stakeholders were left disillusioned by the fallout that resulted. (e.g. US-PS, US-PI, AA-OC, CO-FL-PE-NY).
That;s my two-cents, for what it's worth...
Since when are you working with Doug?
Flying Titan
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Jamke1,
It's just business (read numbers $$$). Employee feelings or attitudes have proven not to matter in these mergers. The plums in this deal are big airframes, revenue, and market share, all translating into a huge ROI for the money guys and management. Figure on the order of $1 Billion profit in FY1 of the operation, with more to follow.
The preponderance of big airframes in DL's fleet will enable US to expand its presence globally almost overnight. I don't expect to see many 767s in and out of LGA or FLL anymore, these will be over water somewhere, either in the east or west. Profitable routes are out there, US just doesn't have the hardware. This merge will solve that and rationalize DL's fleet deployment, further enhancing profitability.
The other plum is the relative size of the workforces and the non-union status of most of the workgroups. US-DL combined could be almost completely non-union in short order.
Obviously, the money guys at the big houses think US mgmt has the magic formula for making money. They like that. Whereas, DL mgmt has proven themselves unable to manage their company into profitability without the aid of ch.11. I understand that US had to BK twice and merge to make money, but management was changed either prior to or directly after BK proceedings - the guys that failed were out the door. DL's upper mgmt should expect the same.
Here's to the future. May we all prosper.
Cheers..
It's just business (read numbers $$$). Employee feelings or attitudes have proven not to matter in these mergers. The plums in this deal are big airframes, revenue, and market share, all translating into a huge ROI for the money guys and management. Figure on the order of $1 Billion profit in FY1 of the operation, with more to follow.
The preponderance of big airframes in DL's fleet will enable US to expand its presence globally almost overnight. I don't expect to see many 767s in and out of LGA or FLL anymore, these will be over water somewhere, either in the east or west. Profitable routes are out there, US just doesn't have the hardware. This merge will solve that and rationalize DL's fleet deployment, further enhancing profitability.
The other plum is the relative size of the workforces and the non-union status of most of the workgroups. US-DL combined could be almost completely non-union in short order.
Obviously, the money guys at the big houses think US mgmt has the magic formula for making money. They like that. Whereas, DL mgmt has proven themselves unable to manage their company into profitability without the aid of ch.11. I understand that US had to BK twice and merge to make money, but management was changed either prior to or directly after BK proceedings - the guys that failed were out the door. DL's upper mgmt should expect the same.
Here's to the future. May we all prosper.
Cheers..
brokenwrench
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Jeez,
US/HP have a combined 3 BK filings. You are right that most of the uppper managers that presided over these are gone. The same is true for the upper managers that drove DL into its first BK, they are gone as well.
The majority of DL's workforce is non-union due to the fact that minus this stint in BK DL has paid at or above market rate. Heck, they are in BK and most of there groups still make more than if they were at US. I do not think they would or the US employees would be better off being non union at a "new delta."
The "big airframes" at DL you talk about have long stopped doing the FLL-LGA runs and except for the non-ETOPS 67's are flying international. As is this merger is more than likely dead. US needs to turn its attention inward and run the airline. The employees of US/HP deserve nothing less, in fact I am surprised that there is not grassroots effort demanding it.
US/HP have a combined 3 BK filings. You are right that most of the uppper managers that presided over these are gone. The same is true for the upper managers that drove DL into its first BK, they are gone as well.
The majority of DL's workforce is non-union due to the fact that minus this stint in BK DL has paid at or above market rate. Heck, they are in BK and most of there groups still make more than if they were at US. I do not think they would or the US employees would be better off being non union at a "new delta."
The "big airframes" at DL you talk about have long stopped doing the FLL-LGA runs and except for the non-ETOPS 67's are flying international. As is this merger is more than likely dead. US needs to turn its attention inward and run the airline. The employees of US/HP deserve nothing less, in fact I am surprised that there is not grassroots effort demanding it.
hp_fa
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The HP bankruptcy of 15 years ago isn't relevent to any current discussion of the US bankrupticies. It was done for totally different reasons in a totally different time frame.
CV580ETOPS
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That is very true. He is retired and apparently has an internet ready computer 24 hours a day. I bet you that he would be able to find something wrong even if "USA320Pilot" says that the sun rises in the East.
