American-US Air Merger Would Bolster The Industry

[RevThruster]

Thank you Maark 767
There are many pundits out there salivating the dismise
of AA. We have not even gone thru bankruptcy once
and there are people out there talking like it was the end
of AA. Every major airline in the USA has gone thru bankruptcy at least once. In some cases two. The way I look at it even if we do go bankrupt AMR still has some value.
I personally never went around screaming "we are number one" when AA was the biggest airline in the world. So nothing about aarogance here. I just don't want anything to do with USairways. USAIR might be profabitable; but the one reason it is: it's because the employees have been subsidizing the company. The rate of pay at US is pathetic,
It baffles me that people works there.

Wait a second, the AA workers don't subsidize AA through concessions, EVEN without a BK? From the posts on here, I would think the workers of AA have given AA billions of dollars worth of concessions. The kicker to that is, AA still isn't profitable, and USAIRWAYS is. AA employees gave concessions too, let's not forget. POT meet KETTLE!

 

[Maark767]

That may be the case, but it won't be up to anyone who posts on Airlineforums to decide. I wish the best for everyone, it can be humbling and painful to be knocked off one's high horse...been there.

Well get back up and move on!!

 

[JFK Fleet Service]

Not concern with merging with USAirways. AA is buying 460 jets to grow from within. A319s are going to go into many new and old markets. We dont need US.

Only problem with that is the Eagle ASM cap doubling and those 319 flights (Should the type ever make it on the property) would in all probablity be handled by Eagle.

 

[FWAAA]

Wait a second, the AA workers don't subsidize AA through concessions, EVEN without a BK? From the posts on here, I would think the workers of AA have given AA billions of dollars worth of concessions. The kicker to that is, AA still isn't profitable, and USAIRWAYS is. AA employees gave concessions too, let's not forget. POT meet KETTLE!

Wow. USAir is profitable to boot? Doug Parker is a genius and US is so much better than AA! That's amazing.

No, actually, it's not. If AA had the labor costs of US, AA would save $2.2 billion per year, according to Vaughn Cordle:

http://seekingalpha.com/article/300743-is-bankruptcy-the-best-solution-for-amr?source=yahoo

If AA had that kind of cost advantage, AA would have no problem reporting large profits.

As an example, nonunion jetBlue pilots have a higher pay rate for the A320 and E190 than the East US pilots. US flight attendants enjoy very low pay compared to their legacy peers. Fleet? Agents? Similarly underpaid.

The only reason US has been profitable has been the substantial subsidies provided by the low-paid employees.

 

[Buck]

Republic Soars Most Since 2004 With Frontier Separation Plan

Heres a target for USair.......

 

[WorldTraveler]

Wow. USAir is profitable to boot? Doug Parker is a genius and US is so much better than AA! That's amazing.

No, actually, it's not. If AA had the labor costs of US, AA would save $2.2 billion per year, according to Vaughn Cordle:

http://seekingalpha.com/article/300743-is-bankruptcy-the-best-solution-for-amr?source=yahoo

If AA had that kind of cost advantage, AA would have no problem reporting large profits.

As an example, nonunion jetBlue pilots have a higher pay rate for the A320 and E190 than the East US pilots. US flight attendants enjoy very low pay compared to their legacy peers. Fleet? Agents? Similarly underpaid.

The only reason US has been profitable has been the substantial subsidies provided by the low-paid employees.

let's remember, though, that AA has had access to some of the top markets in the world and they form the basis of its network. Domestically, AA's network was built around NYC, LAX, and ORD - top markets; MIA and DFW were added later but there is no denying that AA has all of the right DNA to generate industry leading revenues. Internationally, they went after LHR and Latin America and have used those acquisitions to built network strength.
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But, AA has been unable to defend its considerable investment in its network from competitors, both low cost and other network carriers.
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With the possible exception of UA - and I would argue that in many ways AA historically had more going for it from a network perspective than even UA's network pre-merger CO, AA had everything it needed to be and remain THE single business airline.
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But the world doesn't stand still and AA's competitors have run circles around AA and continue to do so... while AA has proverbially shut down an engine at 41,000 feet and expected that the flight would continue without event. We all know how that maneuver works.
.
US never had the revenue advantage AA had and still has, even if it is rapidly diminishing. US has been and will continue to opportunistically look for ways to grow its revenue base.
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Other carriers which had far less historical access to top revenue markets have grown and continue to grow into the industry's top revenue markets inclduing those formerly dominated by AA. Those airlines' employees are reaping the advantage of their employers focus on obtaining top revenue for the company. For well over a year, AA's revenue performance (RASM growth) has been trailing the industry - largely to DL and UA, fulfilling exactly what was expected that consolidation would result in the ability for larger airlines to better compete for top revenue.
AA's ability to pay premium wages and ensure the success of its employees is directly tied to its ability to maintain and expand its network including defending it from competitive attacks. It is unrealistic for anyone to say or AA employees to believe that they can have industry average pay, let alone industry leading, if AA cannot generate industry average or better revenue and then ensure that AA's revenue base is not eroded by other competitors.

 

[Maark767]

Only problem with that is the Eagle ASM cap doubling and those 319 flights (Should the type ever make it on the property) would in all probablity be handled by Eagle.

I dont think APA would go for that... AE would be doing it know if the contract allowed.

 

[IORFA]

I dont think APA would go for that... AE would be doing it know if the contract allowed.

I think he/she means the ramp and or CSA's, not the flight deck. In some out stations, the ramp is handled by Eagle, even in cities that have zero Eagle flights.

 

[Rookie Jr]

We rather be liquidated than to be associated with with USairways!!!

I don't know anyone here at US Airways that's anxious to hook up with American either. We're just not dumb enough to want to liquidate over rejecting a merger. Unemployment, in this economy, must be hell.

 

[Rookie Jr]

I am just happy to have a job, brother!

The smartest thing said on this thread.

 

[Rookie Jr]

Wow. USAir is profitable to boot? Doug Parker is a genius and US is so much better than AA! That's amazing.

No, actually, it's not. If AA had the labor costs of US, AA would save $2.2 billion per year, according to Vaughn Cordle:

http://seekingalpha.com/article/300743-is-bankruptcy-the-best-solution-for-amr?source=yahoo

If AA had that kind of cost advantage, AA would have no problem reporting large profits.

As an example, nonunion jetBlue pilots have a higher pay rate for the A320 and E190 than the East US pilots. US flight attendants enjoy very low pay compared to their legacy peers. Fleet? Agents? Similarly underpaid.

The only reason US has been profitable has been the substantial subsidies provided by the low-paid employees.

True. Looks like you guys will either join US in "subsidizing" your company or face BK and possible loss of employment. Tough choices but we all must make them eventually.

 

[johnny kat]

I don't know of anyone at US that wants anything to do with American. Sure, there are some blue sky thinkers that comment about the positives of a merger.

Everyone at US realizes and appreciates the seriousness of what is happening at AA. The employees at AA must decide just what they are willing to sacrifice in order to maintain employment within the airline industry. While it is easy to say bad things about US, the truth of the matter is the people of USAirways have made the "tough hard as hell decisions" about just what they will accept in order to keep employment. And the employees are still dealing with those concessions to this day in the form of lower wages increased work loads and all the other consequences that come with concessionary contracts.

IMHO it is in the best interests of the AA employees to make the tough decisions and then see how they feel about them before merging with anyone. As for US we are more than content to get our own mess worked out so that we can regain some of what was given up in bankruptcy. To have anything to do with AA in its' current state scares the hell out of most US employees.

So, to all of you at American GOOD LUCK! And from everyone at USAirways "Been there, done that!

 

[Maark767]

I don't know of anyone at US that wants anything to do with American. Sure, there are some blue sky thinkers that comment about the positives of a merger.

Everyone at US realizes and appreciates the seriousness of what is happening at AA. The employees at AA must decide just what they are willing to sacrifice in order to maintain employment within the airline industry. While it is easy to say bad things about US, the truth of the matter is the people of USAirways have made the "tough hard as hell decisions" about just what they will accept in order to keep employment. And the employees are still dealing with those concessions to this day in the form of lower wages increased work loads and all the other consequences that come with concessionary contracts.

IMHO it is in the best interests of the AA employees to make the tough decisions and then see how they feel about them before merging with anyone. As for US we are more than content to get our own mess worked out so that we can regain some of what was given up in bankruptcy. To have anything to do with AA in its' current state scares the hell out of most US employees.

So, to all of you at American GOOD LUCK! And from everyone at USAirways "Been there, done that!

Well said...... but just so you know, AA employees took big cuts in 2003. We restructured outside of Bankruptcy. I took a 14 % pay cut along with loss of sick time/VC time and many other cuts. This whole idea of US and AA merging is only because we are the only two large carriers that have not done so. The public just assumes that the two will merge. If you look at the whole picture you can surely see that this is not a good merge. Two totally different companies in many ways. Answer the question, what would AA want from US? The planes, no..... the routes, no.....I cant see anything worth merging for. No disrespect intended. If you look at AAs direction, you'll see the growth will come from within. All the jets on order (460, Airbus/boeing, 42-787s and 13-777-300s) clearly indicate that a big growth plan is on the way. Sure AA management will have you thinking otherwise b/c of opened contracts.Once the deals are signed, look for big profits. Good luck to US employees.