The unions take the stand lone plan if there is one ("Unfounded Speculation") or else
US Airways seen buying American
- Thread starter USA320Pilot
- Start date
Why AA will go along with the merger ...... in the end.
http://uk.finance.yahoo.com/news/Costs-key-AMR-fleet-routes-reuters_molt-3493388472.html?x=0&.v=1
http://uk.finance.yahoo.com/news/Costs-key-AMR-fleet-routes-reuters_molt-3493388472.html?x=0&.v=1
Substantiate your assumption. I see no mention of LCC in the article.
Before you do that though, have a look at the most current data posted on Airline financials.
Here's the link.
http://www.airlinefinancials.com/Airline_financial_data.html
Click on the .pdf versions of LCC and AA. Compare the average ticket prices. Compare CASM.
Where AA trails is in fuel expense. That is being addressed in BK and with the order of 460 new NB aircraft that start coming about 15 months.
Labor expense: Well, we know where LCC is in the industry, and there seems to be a belief that LCC will have to pay UP sooner or later... And of course AA's cost will be going down.
LCC revenue stream is heavily dependent on boat loads of regional feed, at a very high cost per seat mile...
How on Gods green earth can you conclude that all roads lead to a LCC combination with AA?
Honest to Pete, my dog could fart and some of you would claim that thats proof AA and LCC will merge!
One more point. Have you been paying attention to all the law suits AA has been involved with with distribution? Travelocity, Expedia... We were delisted for a while, discriminated against, listed unfavorably? Do you think that might be impacting revenue a bit??
aquagreen73s
Veteran
- Aug 22, 2005
- 1,979
- 1,877
I wouldn't count on that. LCC's pilot's union is not known for its effectiveness.
Yup. All that's changed since old US Air's two bankruptcies is that labor rates went through the floor and have stayed there, and the West operation has had a moderating influence on the East's historically high CASM.
You can't. It's nothing but wishful thinking on the part of LCC employees. There is no way in he77 Robert Crandall who still runs AMR (let's not kid ourselves) will let AMR tie up with anybody, especially this place. The circumstances and timing of the AMR BK tells anyone on the outside that the move was designed to insure AMR stays AMR.
jimntx
Veteran
Precisely. All of this speculation about who will finance (pick one) A. Doug Parker to purchase AMR, B. AMR for DIP financing, C: AMR to exit bk, D: choose your own airline fantasy, is daydreaming.
The reason AMR went into bankruptcy with $4+billion in the bank is that the money negates the need for Debtor-in-Possession financing which other airlines have needed because they waited too long before admitting the inevitable. We all knew that AMR was going to file bankruptcy. It was just a question of when.
Depending on how much of the $4billion has to be spent to satisfy creditors, the remainder will be used to negate the need for BK exit financing. DL went into bk with approx. $2.5billion. AMR, I think, plans to come out of bk with that much or as close to it as they can manage. As long as (at least) $1billion is left, there will be no exit financing. Just as Doug has people willing to step up and loan him money, the same people (no doubt) will be willing to loan the money directly to AMR if asked. (Nothing personal, but the people with the money are only looking to make a profit. Who does that for them is of no real consequence--whether it is DP at US or Horton at AMR.)
The two creditor groups who will be hit the worst...airplane lessors and employees. Most of the MD80's that are leased are worth far less than their current lease amounts. The creditors will have no choice except to accept lower lease payments or get an almost worthless pile of aluminum left on their doorstep. This is one of the major benefits of bankruptcy--matching assets to their true value.
The employees--specifically, the pilots, f/as, and mechanics (the unionized folk)--will get it in the shorts. The pilots worse than the others. The main object of this bankruptcy is to drop the Defined Benefit Pension plans. Since the unions have those written into their current contracts, then contract abrogation is the name of the game.
The other gain to the company will be avoiding paying back to the union folks those concessions we made in 2003 and which the company proceeded to squander. After 8 years of $1billion+ salary savings contributed to the company's financial well-being for naught, the company wanted us to accept raises in the 1-3% range stretched out over the length of the next contract.
If they accomplish these things in bankruptcy (which as others have pointed out, there is no recent historical precedent for a failure to screw employees in bk), they will have no need to merge with anyone for any reason.
Oh, to those who are predicting massive pilot furloughs, I'm afraid you are going to be sorely disappointed. First off, AMR has no plans to make massive route cuts. (I feel compelled to add "at this time." Total honesty with the employees has never been the strong suit for AMR executives.) The a/c they plan to get rid of are almost surplus anyway. Most of the 450 a/c on order will be used to replace existing a/c, not to increase the fleet. AA pilots are an aging group (just as we f/as are
). Neither group has hired anyone from the outside since 2001. (No, I am not forgetting the side LOA which allowed AA to hire 30 Mandarin speakers while there are still f/as on furlough. In the case of a furlough now, those 30 go first. The company would have to cease the LAX-PEK service.) I'm not sure about pilots, but the average age of the flight attendants is 50. Unlike the f/as, the pilots reach a mandatory retirement age--whether they can afford to retire or not. A number of our pilots are approaching the magic cutoff age.Look for both sides to shrink ..... only the best of "each" airline meshed together. It's almost like US Air gets to enjoy the benefits of a another trip through the BK process, by being able to adjust her side of the equation (routes etc) .... can reap more cost savings as she merges with AA.
Plenty of employee pain on both side of the tracks in this merger. So why do you think the folks at US Air are pushing for it? They're "not" really. I can understand fully why Delta loyalest don't want to see it? AA's now a third-tier player and they want to make sure it stays that way. And they also think they have US Air on the ropes .... but they have been thinking that for 15 years.
Plenty of employee pain on both side of the tracks in this merger. So why do you think the folks at US Air are pushing for it? They're "not" really. I can understand fully why Delta loyalest don't want to see it? AA's now a third-tier player and they want to make sure it stays that way. And they also think they have US Air on the ropes .... but they have been thinking that for 15 years.
LOL!! You went right from "why" to "how"!Look for both sides to shrink ..... only the best of "each" airline meshed together. It's almost like US Air gets to enjoy the benefits of a another trip through the BK process, by being able to adjust her side of the equation (routes etc) .... can reap more cost savings as she merges with AA.
Plenty of employee pain on both side of the tracks in this merger. So why do you think the folks at US Air are pushing for it? They're "not" really. I can understand fully why Delta loyalest don't want to see it? AA's now a third-tier player and they want to make sure it stays that way. And they also think they have US Air on the ropes .... but they have been thinking that for 15 years.
I guess there's no need to expect a reasonable response from someone who thinks USAirways the company has been around for 15 years... The books on the USAir you're refferring to closed a loooong time ago. A couple of times!!
:unsure: *sniff sniff*
"WHOOOO!" "Was that you Fido?" "Better get the paint scraper, because that canine flatulence is a sure sign that this merger between US and AA is a DONE DEAL!!"
N965VJ
Veteran
Any new graffiti on the crew bag room walls?
I will check! Will get back to you !Any new graffiti on the crew bag room walls?
He has been laying low.
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
OP
USA320Pilot
Veteran
- May 18, 2003
- 8,175
- 1,539
Dog Wonder
Veteran
The article never mentions US Airways or American.
Similar threads
