US Airways Shares Slip Despite Merger Chance, Strong Demand

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US Airways Shares Slip Despite Merger Chance, Strong Demand

Regarding the possibility of a merger with bankrupt AMR, McKenzie wrote "we like the combination, assuming no overpayment," partially because mergers in bankruptcy are preferable to mergers outside bankruptcy. While American management remains opposed to a merger, McKenzie said a deal "could provide US Airways a path to resolving the seniority dispute" between pilot groups, which have failed to sign a joint contract nearly seven years after a 2005 merger. "If US Airways merges with another airline, we presume a new collective bargaining agreement would be negotiated among the three pilot groups," McKenzie wrote.

Lee Moak, president of the Air Line Pilots Association, voiced a similar view last month during a conference call with reporters. "I think what's going on with the American Airlines bankruptcy brings renewed focus onto the US Airways/America West matter," Moak said. "You end up with an opportunity to finally address that situation," he said. "I'm encouraged right now, with current [merger and acquisition] activity, that it will put that matter to bed."


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Besides Ted Reed, there's only one other person I've seen so constantly obsessed with a potential combination between US and AA.
 
oil goes up, airline stocks go down. Not being hedged simply makes US more vulnerable than some others.
 
oil goes up, airline stocks go down.
Generally true, but yesterday oil went down and airlines went down BUT the market was down the most in a single day this year. Plus US' RASM increase was a little disappointing considered that Kirby said it would be a double-digit increase a little over a month ago.

Jim
 
I fail to see how mixing US East, US West, and AA pilots will "resolve" the seniority issue. Seems to me it will just make the situation worse--possibly, much worse.
Federal law [M-B] would ensure that a final resolution was achieved. Pilots may not like the final product, but there would be no possibility of wiggling out through uncharted RLA territory such as USAPA has wondered off into. The current integration will be resolved by the courts, possibly this year, but that is at least five years longer than it should have taken.
 
Generally true, but yesterday oil went down and airlines went down BUT the market was down the most in a single day this year. Plus US' RASM increase was a little disappointing considered that Kirby said it would be a double-digit increase a little over a month ago.

Jim
Thanks, I didn't look at the numbers yesterday, just went with the trend. Right now is a tough time for investors, there are compelling arguments for the market going in either direction.
 
US Airways Shares Slip Despite Merger Chance, Strong Demand

Regarding the possibility of a merger with bankrupt AMR, McKenzie wrote "we like the combination, assuming no overpayment," partially because mergers in bankruptcy are preferable to mergers outside bankruptcy. While American management remains opposed to a merger, McKenzie said a deal "could provide US Airways a path to resolving the seniority dispute" between pilot groups, which have failed to sign a joint contract nearly seven years after a 2005 merger. "If US Airways merges with another airline, we presume a new collective bargaining agreement would be negotiated among the three pilot groups," McKenzie wrote.

Lee Moak, president of the Air Line Pilots Association, voiced a similar view last month during a conference call with reporters. "I think what's going on with the American Airlines bankruptcy brings renewed focus onto the US Airways/America West matter," Moak said. "You end up with an opportunity to finally address that situation," he said. "I'm encouraged right now, with current [merger and acquisition] activity, that it will put that matter to bed."


Click here to read the story.

Why would Lee Moak care? Except for the damage his inept predecessor caused, what difference can this possible make to ALPA? Last time I checked, both American and US Airways pilots successfully kicked his dysfunctional outfit to the curb.
 
Why would Lee Moak care? Except for the damage his inept predecessor caused, what difference can this possible make to ALPA? Last time I checked, both American and US Airways pilots successfully kicked his dysfunctional outfit to the curb.

A good measure of the functionality-- or dysfunctionality-- of a union is the pay and work rules of it's members. By that definition, USAPA may the most dysfunctional pilots' union in history.
 
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I fail to see how mixing US East, US West, and AA pilots will "resolve" the seniority issue. Seems to me it will just make the situation worse--possibly, much worse.
While I tend to agree, there's one possibility that would resolve the East v West debate once and for all: If AA and US combine, the APA (Allied Pilots Association) would win the representation election, as there are far more AA pilots than US pilots. If the APA went with arbitration to fairly integrate the APA and USAPA lists, the arbitrator might use the Nic list as the starting point for US pilots and then integrate the APA list with the Nic list. If Nicolau were selected to arbitrate the case, I think it's obvious that he would use his earlier outcome (the Nic list). That might shut down the East v West nonsense that has paralyzed the US pilots since 2005.
 
While I tend to agree, there's one possibility that would resolve the East v West debate once and for all: If AA and US combine, the APA (Allied Pilots Association) would win the representation election, as there are far more AA pilots than US pilots. If the APA went with arbitration to fairly integrate the APA and USAPA lists, the arbitrator might use the Nic list as the starting point for US pilots and then integrate the APA list with the Nic list. If Nicolau were selected to arbitrate the case, I think it's obvious that he would use his earlier outcome (the Nic list). That might shut down the East v West nonsense that has paralyzed the US pilots since 2005.

Agreed the APA would win a union election. I would imagine that would be supported from most of the East pilots.

The NIC list is NOT an official seniority list of US Airways. If it were, it would be being used now, it's not. You cannot use an unofficial list for a new integration. The only official lists at US Airways are the East, West and new hires.

The only way for the NIC seniority list to become the official list is if it's included in a new contract between the East and West pilots and US Airways management. Adding American Management and the American pilot seniority list would never allow for the trigger that would make the NIC official to happen...

Now if the East and West negotiate a joint contract containing the NIC and it's ratified before a merger, then it would of course be the list used... I doubt that has time to happen before a merger could take place, if it even does...

I'm sure Manegement knows this and is therefore not concerned that our labor issues causes any undue stress on a merger. Nor would they likely be inclined to get a new contract anyway that would raise labor costs. I'm sure they would like to keep our costs down until a merger happens, where they realize the cost would then go up...
 
A good measure of the functionality-- or dysfunctionality-- of a union is the pay and work rules of it's members. By that definition, USAPA may the most dysfunctional pilots' union in history.

I was not aware that USAPA had negotiated any work rules and pay rates. Last I heard all the current stuff we are working under is an ALPA product.
 
I was not aware that USAPA had negotiated any work rules and pay rates. Last I heard all the current stuff we are working under is an ALPA product.
We are working under an ALPA product because USAPA is dysfunctional.

The fact that USAPA has done nothing is a perfect measure of its effectiveness or, in the case, lack thereof.
 
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We are working under an ALPA product because USAPA is dysfunctional.

The fact that USAPA has done nothing is a perfect measure of its effectiveness or, in the case, lack thereof.

Ah yes, It seems that both AOL and USAPA have the same track record to date. Both sides have held the other one to a stalemate. Looks like both sides have seem to have met some of their goals. Too bad the two sides could not meet in the middle somewhere huh? That might be quite the successful venture. Oh wait...I forgot that whole NIC or nothing thing. :)