Why not merge PSA and Piedmont?

tahitigirl

Senior
Aug 19, 2005
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With all the talk about how consolidation being good for the industry why don't they merge PSA and Piedmont?
 
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I'm sure that since they fly RJ and Dash8 they can't be merged into mainline. Not including we haven't finished the last merger. But I don't see why they couldn't merge the two express companies. They operated as US express, they wear the same uniform, and they have the same unions. Just think of all the money that could be saved consolidating training centers, scheduling, bases, and management.
 
Just think of all the money that could be saved consolidating training centers, scheduling, bases, and management.
I believe they already use U's training facilities in CLT so that won't change the $$$ picture much. However, getting rid of some more deadwood management types is always a great idea!!
Of course, if they merged the two, U wouldn't be able to use their "voodoo accounting practices" to hide money when they need to.
 
They're worth more separately than they are together. Also, it makes it easier to sell and/or spin them off if necessary. Even with the administrative costs of having them as wholly-owned subsidiaries, the ability to quickly dump them if they need cash is worth more to them.

This is true in many businesses and not just the airline industry.

Both have independent operating certificates and, by virtue of that, they amount to two ready-made airlines ready to go for a potential buyer.
 
Piedmont isnt union except for the F/A and Pilots. Im not sure about mechanics and the dispatchers. PSA is unionized. Also I have very serious doubts the mainline pilots would allow the Pi to fly anything beyond 69 seats. Which they lost quite a bit out on the DASH-8-400Qs that would have been a nice aircraft in EN colors. PSA cant operate the 900 crj series due to mainline pilots scope clause
 
Merging USE into US would bust its business model wide open.

When my job in Consumer Affairs moved to PHX, I took a job with USE Training in CLT.
My pay was cut in half - literally.
Yet, somehow, I didn't shed 50% of my responsiblities and my amount of travel increased threefold.

Our department did the same stuff (and more) than Mainline training (no offense to Mainline CS training, they do a great job, but we wore more hats), except we made half the wages. Same goes for all other work functions - airport, pilot, f/a, etc.

There would be some obvious synergy savings, but I suspect it would be completly wiped out by salary differences.

Express pay is pathetic for the amount of work they do. Sadly, a lot of people don't give them the respect they are due.
 
Mid atlantic dispatch was handled by their own dispatchers located on the second floor
of the OCC building in pit...fyi
 
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The topic is nit lets merge express to mainline. It's why not merge the the two express companies. Same uniforms, liveries and company they represent.
 
I believe they already use U's training facilities in CLT so that won't change the $$$ picture much. However, getting rid of some more deadwood management types is always a great idea!!
Of course, if they merged the two, U wouldn't be able to use their "voodoo accounting practices" to hide money when they need to.

PSA uses the Dayton Airport Hotel, which is being demolished, for training. The simulator is in Charlotte.

Deadwood management like Keith Houk? LCC could save quite a bit of money by firing incompetent duplicitous management like Keith Houk.
 
Besides in Tempe's eyes why own operate and manage something you can buy elsewhere for less money?

Have you ever seen Air Wisconsin taxi on both engines? Single engine taxi is not in Air Wisconsin's Operations Specifications. Air Wisconsin does not taxi single engine.

LCC pays for Air Wisconsin's Jet A.
 

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