Been hearing that some didn't like the sold out aspect from both ends of the vote. Could explain the silence about US specifically lately. Having an agreement essentially dumped in pilots laps before merge and get the agreement from US that we didn't vote on nor know the nitty gritty details of" didn't sit so well.
http://aviationblog....s-airways.html/
There were lots of pilot middle fingers on display directed to a few different audiences with this vote.
Good negotiating strategy doesn’t involve laying all of your cards on the table… AA labor threw their support behind US even if it was only an effort to “show the finger to AA mgmt”. But since US is the only airline that has made an offer public, it isn’t at all known that US is the best option for AA pilots and I am sure there are plenty of AA pilots – and other employees – who were happy to use the US overtures to their advantage – but weren’t about ready to sign on the dotted line. Perhaps those voices are beginning to grow stronger.
It isn’t a coincidence that DL settled a labor agreement very quickly right as AA pilots are looking at all of the options. UA was quick to trot out its AIP w/ its pilots although many are wanting to see real details; UA is just as interested as DL in seeing that AA not take steps that would allow them to regain some of their competitive strength that has been lost. Both deals add alot of cost to labor agreements that AA or US would have to make in order to bring pilots - the most vocal group so far - up to industry standard levels which is where AA pilots want to be.
It is also possible that AA’s most recent statements about perhaps deciding about a merger partner in a couple weeks are due in part because other parties besides US, perhaps including DL, are more aggressively talking w/ AA’s creditors – and perhaps some of AA’s labor groups. BA could see AA ripped out of oneworld and is pressuring AA to merge w/ US if necessary rather than allow someone else to threaten AA/BA in LHR.
Given that about 12% (maybe more) of IAG is held by one or more Spanish banks that have said they need to get rid of that stock in order for Spain to obtain EU financial aid, IAG is in a difficult position in trying to prevent part of itself from falling into hostile hands (could be AF/KL or DL) while also trying to protect AA. Factor in that JL is about ready to be relisted and there is a lot of equity involving oneworld airlines that is in play – and any part of that falling in the wrong hands could threaten oneworld.
In the US, DOT data shows that B6, NK, and VX are making significant dents in AA – and UA’s – revenues and market shares at ORD and DFW. In both cities, network carriers are holding their shares relatively constant but B6 and VX are both gaining up to 20% market share in the markets where they directly compete and average fares in the markets where they compete with AA and UA are falling. NK is not generating the same level of market share but average fares in those markets are still falling and NK, despite having limited schedules, is attracting passengers. The creditors know that AA has to address the encroachment of low fare carriers in its markets; DFW and ORD have had relatively little low fare activity but that is changing. AA and US both have not done well in limiting the growth of low cost carriers in their markets over the past 10 years – with US’ success in PHL coming after years of losses to LFCs. Knocking a couple hundred millions of revenue off of AA or the combined AA/US’ plan to account for growing LFC presence makes AA and/or Parker’s job more difficult.
DL could be attempting to do a couple things by meddling in AA’s BK – force the price higher for US, force AA to merge prematurely (before BK has played out) resulting in higher costs and more difficulties competing once out of BK, create dissatisfaction among AA stakeholders who might have doubts whether there aren’t better options available, OR actually purchase parts of AA as an asset sale or jointly w/ another partly.
IN an asset sale, it is far less necessary – if at all necessary – for AA’s costs to be reduced to levels necessary to compete since the buyer of the assets manages those assets within their own business plan. Once again, AA's high cash levels - most of which is secured by aircraft which hold their value - make it alot less necessary to hold out for a restructuring if an acquisition - even in pieces - yields a higher return.
ALK's market cap is 1 1/2 X LCC's despite having a fraction of the revenues while DL's is 4.5X that of LCCs.
AA might have exclusivity to propose a plan but the creditors are not going to agree to any plan that doesn’t provide them the best return.
Finally, word is that Delta’s ALPA unit is meeting this week and one of the topics is AMR. Some DL pilots were miffed that DALPA endorsed the latest contract while saying that there were strategic reasons why DL needed to have a contract soon and which DALPA leadership could not speak about.
DL and NW ALPA agreed to a merger integration plan before DL announced the merger.
The two network airlines whose pilots are not represented by ALPA in the US are AA and ___, the airline whose pilots recently walked away from ALPA.
Food for thought.
