Us Airways Searches For Cash

[zonecontroller]

Dawn Gilbertson
The Arizona Republic
Apr. 9, 2005 12:00 AM

America West Airlines CEO Doug Parker has repeatedly said the Tempe airline wants to be a player in the expected consolidation of the troubled industry.

One industry analyst said Friday that America West may have bankrupt US Airways in its sights.

Full Story:
http://www.azcentral.com/arizonarepublic/b...09amwest09.html

 

[jimcfs]

A merger like this is an explanation of why certain CCY decisions have been made the way they have played out. I've had this idea sitting in my head the whole time.

 

[PHL]

Oh BOY! Here we go again..... Are both airlines represented by ALPA, and if so (or not), how will the US pilots feel about being stapled to the bottom of the list.. That factor alone could make the deal difficult. US320 - what are your thoughts on such a reorg?

 

[TransatlanticFlyGuy]

I know for a fact that the flight attendants at HP and US are represented by AFA. I think the FAs at HP are fairly junior. Can anyone verify that? A merged seniority of US and HP FAs aint gonna be pretty folks. :blink:

 

[LGA / 037]

A merger like this is an explanation of why certain CCY decisions have been made the way they have played out. I've had this idea sitting in my head the whole time.

[post="261424"][/post]​

In my opinion, it may be a threesome with UAL included. Almost everything that was going to happen had the merger between UAL and U occured has happened.
ie. PIT is gone as a HUB , Res has been shrunk to one office, both airline route structures have been shrunk with very little overlap with the smokescreen of a code-share. In addition, why has'nt UAIR brought back that many pilots from furlough when they are needed ? Both UAIR and UAL have little overlapping with HP. Finally, look at all the regional positioning from AirWis, Republic, Chataqua, States, and even MDA. That would make a solid feed structure for a HUB, as well as a point to point network. Mesa could possibly be left on the outside looking in. I would expect a announcement soon in the Jun30 or at latest Sep30 time frame. But then again , just my opinion.

 

[Art at ISP]

Why would you necessarily assume that US pilots wouold be stapled at the bottom? I would think that the most senior HP pilot is 1983 since that's when they started up--most of U's pilots have more than that....and I am sure some sort of equitable seniorty could be arrived at somehow...

And just to be the devil's advocate, who says that HP would be the surviving entity?? Stranger things have happened.............

Overall it might actually make sense though..it really does look like recent moves at US are preparationg for some kind of transaction...

 

[700UW]

Two ALPA carriers would use Dove Tail seniority intergration.

 

[ClueByFour]

Folks, if it happens, it'll happen in Chapter 11--assets, not people. ALPA or no ALPA, the AmWest pilot group will staple the U pilot group, or AmWest will take assets without people.

 

[oldiebutgoody]

Folks, if it happens, it'll happen in Chapter 11--assets, not people.  ALPA or no ALPA, the AmWest pilot group will staple the U pilot group, or AmWest will take assets without people.

[post="261448"][/post]​

Sorry, won't happen that way. Can't take assets without taking the folks. It's in ALL the labor contracts, both sides. Bankruptcy has nothing to do with it. That may be why UAIR has been so motivated to get rid of the employees before any sort of merger could happen.

 

[FlyUs]

What would AW offer US as far as route structure? Sounds like another PSA to me. US is way better off with UA in one form or another.

 

[USA320Pilot]

In regard to the two companies, both pilot groups are represented by ALPA. If there was corporate combination between America West and US Airways ALPA Merger Policy is required by the ALPA constitution and by-laws. Furthermore, the current US Airways ALPA contract still has Allegheny-Mohawk LPPs for seniority integration protocol.

For this to work, I believe a private investor would be required, just like with any other legacy carrier, and virtually all of US Airways and its employees would transfer to the surviving business entity.

US Airways' network footprint is too big for an asset sale and the only way a US Airways-America West would be successful, or a United merger for that matter, would be to create economy of scales requiring network integration.

I would like to see US Airways remain independent, but if the company does merge, I would like to see it dump its domestic code share with United and team up with Northwest or America West. Why? Both of these companies are financially stronger than United.

Regards,

USA320Pilot

 

[FWAAA]

US Airways' network footprint is too big for an asset sale and the only way a US Airways-America West would be successful, or a United merger for that matter, would be to create economy of scales requiring network integration.

[post="261455"][/post]​

Uh-huh. A lot of misinformed people probably thought the same way about TWA in late 2000. The events of early January, 2001 were real eye-openers to those with heads in the sand.

Clue is correct; an acquisition of USAir is gonna be via an asset deal with no baggage attached. US employees will be offered employment with the acquirer, nothing more. Prepare for stapling.

 

[700UW]

The TWA case was a prepackaged bankruptcy where the employees of TWA agreed to new contracts that took out Labor Protection Provisions, which let the TWU have their way with seniority.

I doubt you will ever see employees at US give up their LPPs.

 

[Kev3188]

Mesa could possibly be left on the outside looking in.

[post="261427"][/post]​

I'd think they'd have a seat at the table considering that they do almost (if not) all the HP express flying.

 

[jimntx]

FWIW, I was on the hotel shuttle bus this am with some HP f/as and an HP pilot. They were talking about the company's notice to the employee groups that they were returning [some or all, it wasn't clear to me] the 737s to the lessor because they could no longer afford the leases.

The HP employees on the bus were thinking that furloughs might follow. Where would the money come from for this alleged merger?