kelleher sais nice things about parker.

etops1

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Dec 6, 2003
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Kelleher says US Airways, AmWest merger not impossible
By Ed Taylor, Tribune
December 9, 2005



Southwest Airlines executive chairman Herb Kelleher believes managers of US Airways will have a tough time bringing the separate US Airways and America West Airlines organizations together as one company, but he added the task is not impossible for US Airways chief executive Doug Parker.




"I have a great deal of liking and respect for Doug Parker. If anybody can manage it successfully, I think Doug is the one," Kelleher said in an interview Thursday after receiving a customer service award from Arizona State University.

He added that the task will be easier because US Airways had been able to reduce its costs prior to the merger, the result of a Chapter 11 reorganization by US Airways.

As part of the restructuring, US Airways was acquired by Tempe-based America West, but the new carrier assumed the US Airways name.

Kelleher, one of the most respected executives in the airline industry, said the new US Airways appears to be making progress in amalgamating the two work forces, always a difficult task in an airline merger.

He also believe that most of the older legacy carriers such as United and Delta Airlines, which are in dire straits financially, will survive with the help of the Chapter 11 process, although some may emerge in different form from the bankruptcy proceedings.

"I think you’ll have legacy carriers with lower costs. I think you’ll still have legacy carriers operating with huband-spoke systems. They perform a very valuable service, and I expect them to continue," he said.

In addition to reducing their costs via Chapter 11, they have made their hub-andspoke operations more efficient by spreading out their flight schedules rather than having large numbers of flights arrive at the hub airport all at the same time, he said.

Southwest uses a point-topoint business model, flying directly between destinations rather than requiring passenger to make connections at a hub airport.

US Airways is a more typical hub-and-spoke carrier with hubs at Las Vegas and Phoenix Sky Harbor International Airport.

Kelleher said Southwest, which has been around since 1971, has avoided some of the cost problems affecting the legacy carriers by staying away from defined-benefit pension plans for employees that create long-term financial burdens for the company.

Instead Southwest offers profit sharing and 401 (k) investment programs to help employees prepare for retirement, he said.

The lack of a definedbenefits plan has been an issue during Southwest’s labor negotiations, but Kelleher believes the company’s position has been vindicated.
 
Funny that when the merger was announced one of the major CEOs (I think is was Mr. Kelleher) stated that DP must of had to much to drink. DP has not publicly put other airlines down no matter how the question was posed or the situation. IMO he is a master communicator and understands burning bridges lead no where. When we went to our friendly business fares back in 2002 we pissed CO off enough from them to cancel our codeshare agreement. That was a pretty big deal. You'd expect that AWA would have retaliated somehow, but it never happened. Just went about our business believing the new fares would offset any codeshare agreement we had with CO. It worked. Now the CEO of an airline that most envy recognizes our accomplishements of our new merged airline. Nice. Thanks Mr. Kelleher.
 
This is confusing to me. I am hearing/reading this more and more.

"As part of the restructuring, US Airways was acquired by Tempe-based America West, but the new carrier assumed the US Airways name."

So, no matter who bought whom a merger is the next step after an acquisition/purchase?

I know this has been "beat to death" on this board but there is still no "real" answer. HELP!!

The CEO of Southwest Airlines is a very good businessman. The comments made by him are a very good compliment to Mr. Parker. Those comments alone should give everyone a big boost in confidence about the success of the merger.
 
"As part of the restructuring, US Airways was acquired by Tempe-based America West, but the new carrier assumed the US Airways name."

I know this has been "beat to death" on this board but there is still no "real" answer. HELP!!

You are very right about this topic being "beat to death". It is a very sensitive subject, so be careful. :)
 
Well, however it happened, we are close to being one company now.

I don't understand why we have so much discussion about it at this point. Soon, we will be wearing the same the uniforms (new ones, I hope) so why worry about it?

We need to focus on getting this airline known for its outstanding service and great, professional employees.

All airlines are facing more turbulance in the next few years. I want to see US Airways survive and hopefully, I'll be able to retire in a few years.

Dea
 
All airlines are facing more turbulence in the next few years. I want to see US Airways survive and hopefully, I'll be able to retire in a few years.

You seem to have a good attitude Dea. It sounds like you want to "just get on with it".

I hope you get your new uniforms soon.
 
I thought that we were one company as of the closing of the merger on Sept 27? I think it is good that the new US has shown SWA and their CEO that US is around for the long haul and the good fight!
 
So, no matter who bought whom a merger is the next step after an acquisition/purchase?

I know this has been "beat to death" on this board but there is still no "real" answer. HELP!!
Beat to death is a huge understatement. But after reading countless post here and from media this is what I got out of it.

Several investors put up hundreds of millions of dollars to basically buy and merge these two companies. They went with the USAirways name because it was more recognized internationally. They for the most part kept AWA management because it was obvious to a headless earthworm that US was managed by a bunch of boobs with the backward Robin Hood theory, take from the poor and give to the rich and to hell with the operation, employees and customers.

Sorry, didn't mean to rant. But I think that's the beef of it. Hope it helps.
 
You seem to have a good attitude Dea. It sounds like you want to "just get on with it".

I hope you get your new uniforms soon.
Most of us are at the point where we just want to get on with it! It'll be nice when we are on the same operating certificate wearing the same uniforms and all that. Mainly I hope it fixes our Res system where we can LOOK at INTL flights for our passengers. (And ourselves. Does West Res have that same problem of not being able to pull up all the INTL routes for US East???)
In any case, it'll be nice when passengers have to stop asking about exactly which ticket counter they check in at and "Oh, are you guys codesharing with US Airways now or something?" lol.
 
Several investors put up hundreds of millions of dollars to basically buy and merge these two companies. They went with the US Airways name because it was more recognized internationally. They for the most part kept AWA management because it was obvious to a headless earthworm that US was managed by a bunch of boobs with the backward Robin Hood theory, take from the poor and give to the rich and to hell with the operation, employees and customers.

Sorry, didn't mean to rant. But I think that's the beef of it. Hope it helps.

Thanks seedbird86 that was very helpful. The "rant" is not a problem. Considering all the turmoil that the merger has caused (pre and post), both groups seem to be doing very well. Only time will tell what the future holds for everyone. I have a feeling that it will be a good future. Of course that's just MyOpinion.
 
So far, I've been impressed by DP. He's brought back the pretzels, returned the power ports and is working towards bringing RES back inhouse. Or at least in the U.S.

Doing away with the Mainline/Express designations is good, too.

I hope he realizes how important our US1's are to our bottom line and can work out a FF plan that makes them happy and is cost-effective as well.

Dea
 
PQA,

I believe you're right about Gary Kelly. Herb will probably always be known as the CEO of SWA.

Dea
 
Funny that when the merger was announced one of the major CEOs (I think is was Mr. Kelleher) stated that DP must of had to much to drink.

EricLv2Fish,
It was Colleen Barrett, here's the article from the Post-Gazette
http://www.post-gazette.com/pg/05132/502929.stm

'Aw-shucks' president embodies Southwest style
Thursday, May 12, 2005

By Dan Fitzpatrick, Pittsburgh Post-Gazette

...
Like her mentor, Kelleher, Barrett rarely holds back a strong opinion when asked for one:

About the prospects of a merger between US Airways and America West Airlines, Barrett said America West Chief Executive Officer Doug Parker and US Airways Chief Executive Officer Bruce Lakefield "must be on drugs. I think they're crazy. I don't know why anybody in today's environment would want to add more woes to what they got. ... I don't know [if] the deal will come to pass."

Would Southwest be in Pittsburgh if US Airways had not pulled so many flights here? "Probably not," she conceded. While she argued Southwest did not cause the problems now faced by US Airways and other older carriers: "We would be foolish not to take advantage. Because if we don't, someone else will."

....

**Moderators Note: Please do not post full article if you have already supplied a working link**
 
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