American-US Airways merger proposal expected to come soon

[signals]

usairways is the only airline in the world that operates 2 seperate aggreements and east crews with east only planes and west with west planes

Which is yet another perk for Parker because having such a divided union(s) will avoid strikes and contract negotiations can be on a take-it, or leave-it bases. Blame Parker, or don't blame him, he is giving the stockholders what they want.

Pure genius, imo!

 

[signals]

At one point, UA had approached CO about a possible merger. After CO went thru UA's books, they had no interest in merging. When Parker got serious with UA, it sort of forced CO's hand into taking another look. As we have seen, CO was able to call the shots to a certain extent by keeping their CEO and their livery with the UA name. The location of the HDQ is about all that UA won out on.
This is why some have credited Parker when it comes to industry consolidation. Had he not made a play for UA, its possible that they may not have merged with CO.
CO pretty much went along with a merger in order not to be the odd man out. Had either one of them been able to predict the AA BK, things may have played out differently.

See I respect your input because you are on the inside, and know what I don't.

I just go by what I read...
http://dealbook.nyti...rse-for-united/

And then came...
http://dealbook.nytimes.com/2010/05/04/us-airways-c-e-o-were-not-the-ugly-girl/

and you actually wonder why I say what I do?

 

[zethya]

AMR CEO says creditors need 70% equity for a merger deal. What's he really saying? Yeah that can happen or FAT chance!

Since the AMR CEO is NOT a creditor, neither is he in favor or the creditors choosing a merger, then I find it strange that HE is speaking for the creditors as if he knows what THEY need.

Since he opposes a merger then it stands to reason his comment is designed to impede the chances of it. Is he standing on the sidelines and yelling out negotiating proposals?

The AMR assets are probably worth close to 70% of the total value of a merged company. That number doesn't sound like too much of a stretch when you start looking more closely at it.

Here is a an article (WSJ) regarding the pertinent details of what Horton said:
http://finance.yahoo...27a9&tls=la,d,0

One could a assume the deal is moving along - or Horton is setting up a plan to test Parker's limit. If Parker sells out at 80%, he literally "gave away the store". IMO, he'll walk away from the deal above 70% - maybe 75% tops and let AMR and its Creditors sink or swim on their own.

There are some interesting, somewhat veiled, comments regarding Horton's expectations of what the merger process would/will entail.

 

[firedougparker]

Word right now is that the AMR creditors don't think Parker can afford to do this deal. They see him as in way over his head, which he is.

I've heard this from multiple reliable source already. If I get any more details I'll put a post on the blog.

 

[PHL]

Doug Parker alone is not doing this deal. The creditors already know what US financial picture is, as well as AA's. If they want this deal, they'll do it and stipulate that Dougie takes a hike. I really don't see how, if everything else looks attractive (on paper), they would back out of a deal because of a single person.

 

[UPNAWAY]

Every union job in the company would have over 100 applicants for each and any position openings, that alone proves the company pays more than what the job is worth!

 

[AAviator]

JFK/BOS vs. PHL/CLT

(think blue)

 

[AAviator]

Do you fix the foundation or replace windows first?

 

[john john]

Every union job in the company would have over 100 applicants for each and any position openings, that alone proves the company pays more than what the job is worth!

The HP/Mesa business model if you have applicants on file you’re paying too much

 

[EastUS1]

Every union job in the company would have over 100 applicants for each and any position openings, that alone proves the company pays more than what the job is worth!

By that very curious "logic" (or wholesale lack thereof); it follows that if any applicants would even want YOUR job, that you're paid more than you're worth, as would be anyone currently employed anywhere in positions others, for whatever their reasons, would be willing to take.

"...would have over 100 applicants for each and any position openings,.." Curiosity begs the question as to just what magic hat or crystal ball that particular BS was pulled from and laughably offered up as a statement of fact?

 

[nycbusdriver]

The HP/Mesa business model if you have applicants on file you’re paying too much

As far as all the applications Hoggs brags that are on file, I would like to know three things:

1. Assuming all are qualified as regards the new FARs, how fresh are the applications?

2. Interesting, but impossible to know would be how many applicants have also applied to all the other carriers?

3. The follow-on to that: How many, given a choice, would choose US Airways, or hang around US Airways, if Delta, United or Southwest subsequently offered them a position?

Unless Parker improves the situation for all pilots here very soon, those applications on file will be all but worthless and those that do accept jobs here will only be here to get the time and type ride while still actively looking elsewhere (training contracts be damned!)

 

[nycbusdriver]

Word right now is that the AMR creditors don't think Parker can afford to do this deal. They see him as in way over his head, which he is.

I've heard this from multiple reliable source already. If I get any more details I'll put a post on the blog.

Assuming the AA management does not succeed in getting the UCC to approve its POR, Parker will move forward with the purchase of AA.

It's not about what Parker can afford. It's about what the financiers lined up by Parker can afford and are willing to pay. In 2005, Parker, i.e. AWA, couldn't afford a pot to piss in, yet here we are merged and "enjoying the good life." Ahem.

And, if those financiers want Parker in charge, he will be in charge...AA board be damned!

 

[UPNAWAY]

I think they got over 5000 applicants for a few Hundred FA psotions and American had over 10,000 recently. They could easily fill all current positions with qualified and experinced people who want your jobs. If current employees are not leaving and there is a line out the door of people wanting in then in no scenario can you claim to be underpaid. It all goes back to faulty expectations sold to you by your unions and lack of basic economic understanding.

 

[AAviator]

Assuming the AA management does not succeed in getting the UCC to approve its POR, Parker will move forward with the purchase of AA.

It's not about what Parker can afford. It's about what the financiers lined up by Parker can afford and are willing to pay. In 2005, Parker, i.e. AWA, couldn't afford a pot to piss in, yet here we are merged and "enjoying the good life." Ahem.

And, if those financiers want Parker in charge, he will be in charge...AA board be damned!

[size="-1"]When AA stakeholders would end up with 70%+ of the equity in the combined company, it is hardly an acquisition/purchase.[/size]

 

[ChockJockey]

I think they got over 5000 applicants for a few Hundred FA psotions and American had over 10,000 recently. They could easily fill all current positions with qualified and experinced people who want your jobs. If current employees are not leaving and there is a line out the door of people wanting in then in no scenario can you claim to be underpaid. It all goes back to faulty expectations sold to you by your unions and lack of basic economic understanding.

Lol, because everyone who applies for a job is automatically qualified and experienced, right? A new hire can seamlessly, immediately and without cost acquire the know-how and experience it took another employee years to learn, is that how this works?

I laugh because I've seen this employment model at work at Mesa and now at Piedmont on the ramp for some time now. They have no trouble getting new hires (much attracted by the prospect of flight bennies), training them and fielding them; except for when these folks experience firsthand the atrocious pay-to-treatment ratio and discover that, contrary to what you claim, the market-determined wage for the job they are working is not enough to retain them, and they flee in droves, and those that stay are regularly under threat of losing their jobs from managers desperate to maximize productivity from a chronically understaffed workforce. The supercharged turnover this facilitates creates a workforce with a decreasing average experience and non-existent morale, those senior agents that do stick around constantly carry the slack of new employees and are constantly training new coworkers, only to see them disappear and be replaced by another green vest.

So what do you get when a large workforce with little average experience is pressed into a high workload? Increased AC damage, increased injuries, higher MBR, toxic work environment, et cetera and so on. I strongly suggest you apply for a ramp position with Piedmont in PHX so you can enjoy firsthand just how "well" market-determined compensation works in the airline industry. Sure, it's a great way to save a buck, but a sh**ty way to run an airline.