Airline execs discuss mergers, innovation
- Thread starter USA320Pilot
- Start date
whatkindoffreshhell
Veteran
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?
freedom
Veteran
- Feb 15, 2006
- 3,244
- 274
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 ....
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.
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
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.
.
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
Veteran
- Oct 2, 2010
- 760
- 558
You see it the way I do. It's refreshing to see someone else who has "The Big Picture"
AstroLounge
Veteran
- Oct 10, 2005
- 1,491
- 213
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.
Bingo!!!!! I couldn't agree more.
IberiaMAL
Advanced
- Dec 30, 2008
- 118
- 23
BoeingBoy
Veteran
- Nov 9, 2003
- 16,512
- 5,865
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
Veteran
- Jan 30, 2005
- 4,964
- 455
Keep hikin' yer skirt girl......put that lipstick on. maybe just maybe someone will drive by and wanna pick you up. 
