US Airways Shares Slip Despite Merger Chance, Strong Demand

Discussion in 'American Airlines' started by USA320Pilot, Mar 6, 2012.


  1. USA320Pilot

    USA320Pilot Veteran

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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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  2. FWAAA

    FWAAA Veteran

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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.
     
  3. cynic

    cynic Veteran

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    oil goes up, airline stocks go down. Not being hedged simply makes US more vulnerable than some others.
     
  4. BoeingBoy

    BoeingBoy Veteran

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    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
     
  5. jimntx

    jimntx Veteran

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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.
     
  6. CallawayGolf

    CallawayGolf Veteran

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    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.
     
  7. cynic

    cynic Veteran

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    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.
     
  8. nycbusdriver

    nycbusdriver Veteran

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    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.
     
  9. goneflyin

    goneflyin Member

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    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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  10. FWAAA

    FWAAA Veteran

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    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.
     
  11. algflyr

    algflyr Veteran

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    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...
     
  12. Move2CLT

    Move2CLT Veteran

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    The Nic list is the official list and it will be used in the next merger.

    That list is the culmination of the east and west's position. It is final and binding and USAPA cannot use any other list to represent the west other than the Nic.

    Get over it.
     
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  13. Keroseneuser

    Keroseneuser Veteran

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    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.
     
  14. Move2CLT

    Move2CLT Veteran

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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.
     
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  15. Keroseneuser

    Keroseneuser Veteran

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    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. :)
     
  16. BoeingBoy

    BoeingBoy Veteran

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    That often happens when "the middle" is one side's demands...

    Jim
     
  17. Move2CLT

    Move2CLT Veteran

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    AOLs track record is fine. We stopped your DOH cramdown and the Nic is ready to be used.

    USAPA was formed to put DOH on the property. Even with a majority, you failed to do so.

    Negs are over and USAPA has no one to meet in the middle with. The Nic is the list accepted by the company.

    End of story.

    You want to move forward, you do it with the Nic.
     
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  18. nevergiveup

    nevergiveup Veteran

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    rrrrrrr
     
  19. Move2CLT

    Move2CLT Veteran

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    Excellent response.

    You've argued your point well. :lol:
     
  20. Keroseneuser

    Keroseneuser Veteran

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    Nah, having too much fun watching you waste your life on these boards! :)
     

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