Airline execs discuss mergers, innovation

[USA320Pilot]

Airline execs discuss mergers, innovation

US Airways' Kirby said that his carrier could not merge with airlines that have a smaller market share, such as JetBlue Airways or Alaska Air

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[whatkindoffreshhell]

Airline execs discuss mergers, innovation

US Airways' Kirby said that his carrier could not merge with airlines that have a smaller market share, such as JetBlue Airways or Alaska Air

See Story

Nor would a smaller airline want to merge with USAir and be saddled with that mess.

"What we end up paying for the product doesn't come close to covering the costs . . . at least not now," Parker said.

Hey Doug, that includes your salary too. Can't wait to open that airline consulting business with Tilton, eh?

 

[700UW]

No airline will want to merge with US, no bank or Wall Street would even support it as the current merger is going on over 5 years and counting and its not completed.

 

[freedom]

No airline will want to merge with US, no bank or Wall Street would even support it as the current merger is going on over 5 years and counting and its not completed.

i don't see why any airline would care that our labor contracts aren't settled ...

if anything i would think they would see frozen contracts as a plus ....

 

[USFlyer]

No airline will want to merge with US, no bank or Wall Street would even support it as the current merger is going on over 5 years and counting and its not completed.

All depends on perspective. US admits it's saving a lot of $ by having two employee work groups working on contracts negotiated during the bankruptcy days. From Wall Street's perspective, the merger is done.

Plus, if US merges with a bigger company (and all the possibilities are about twice the size, if not more, of US), the combined work force would likely make the existing US unions moot after a representation vote, and I would think there are benefits in a merger of not having signed contracts with the existing US employees. I'm not convinced the endless delays on the negotiations front is not part of a larger plan.

 

[700UW]

How can you try to merge and integrate when it isnt even done at US yet?

And there are signed CBAs in effect.

 

[WorldTraveler]

good article... but I think it further highlights that US wants to be in the driver's seat with regard to the next round of mergers and acqusitions and this conference appeared to be part of reaching that end... or at least the focus was on US and its future.
.
not sure what Wi-Fi actually costs but it can't be a terribly expensive upgrade... I agree that the net result if everyone adds it is not necessarly revenue positive but the reality is that the onboard product has changed... in-flight video wasn't part of the product even if projected onto a screen during the first couple decades of transoceanic jet travel and it is the norm to have inseat AVOD. The product evolves and you can't just ignore those changes... but passing the costs and benefits to a service provider is a reasonable question to explore.

 

[No Land Green]

.
I'm not convinced the endless delays on the negotiations front is not part of a larger plan.

You see it the way I do. It's refreshing to see someone else who has "The Big Picture"

 

[AstroLounge]

i don't see why any airline would care that our labor contracts aren't settled ...

if anything i would think they would see frozen contracts as a plus ....

EXACTLY! There is a reason why integrated contracts have NOT been reached..........and all at the Benefit of Mgmnt. Keeping the East and West SEPARATED, labor costs LOW and what appears to be UNFINISHED Business could easily be seen as a positive in a Merger. There is NO WAY they plan on giving NEW Contracts and Pay Raises to a STRONGER UNIFIED Workforce- and do not fool yourselves. The Sandcastle likes the labour discord and it is obvious in their negotiations. It is ALL part of a Plan.

 

[bigbusboy]

I'm not convinced the endless delays on the negotiations front is not part of a larger plan.

Bingo!!!!! I couldn't agree more.

 

[usa1]

Merger Chatter .... http://www.fool.com/investing/general/2011/04/19/is-us-airways-targeting-a-huge-merger.aspx

 

[IberiaMAL]

Merger Chatter .... http://www.fool.com/investing/general/2011/04/19/is-us-airways-targeting-a-huge-merger.aspx

Fool.com more or less just tells us what all we know such as

US Airways didn't taste success even as the industry witnessed a spree of consolidations. Last year, United Airways acquired Continental to become the largest carrier in the United States. In 2008, Delta acquired Northwest Airline.

Whether a deal takes place remains to be seen.

 

[BoeingBoy]

Fool.com more or less just tells us what all we know such as

If nothing else, the number of potential partners is shrinking.

- FL is about to be bought by WN.

- B6 has interline agreements with 9 carriers now, all but AA and Cape Air are European carriers (Aer Lingus included), with 3 already capable of booking on B6's or the other carrier's site. The others will be added to the reciprocal booking deal over the next year or so.

- AS hasn't made any attempt to hide it's desire to remain unmerged.

- AA has enough troubles of it's own to add the problems of a merger

- Frontier (or Republic Holding) isn't doing well financially competing with UA and WN - for example, they get significantly less yield than UA or US in the DEN-PHX market.

- HA hasn't indicated any interest and WN is making noises about serving the mainland-Hawaii market possibly resulting in a drop in fares. Plus, as a doorway to the Far East, HA doesn't make sense for a mainland carrier since it adds a connection (time) and is out of the direct line from the mainlind U.S. and the Far East (adding time and cost).

Jim

 

[Travelpro72]

Keep hikin' yer skirt girl......put that lipstick on. maybe just maybe someone will drive by and wanna pick you up.

 

[BoeingBoy]

Or at least rent you for an hour...

Jim