Kirby Discusses US Airways Future without American

[FM2436]

Interest (short) article summarizing comments made by Mr. Kirby addressing US Airways' options if a merger with American were not to occur.

http://www.aviationw...&printView=true

 

[FWAAA]

Parker and Kirby (and the other US fanbois) constantly drone on and on about how AA has no future if it does not combine with US because AA is so much smaller than UA or DL. Yet here's Kirby pontificating about US' rosy future with new flights to Europe and South America with its new A350s if it does not combine with AA. Nothing in this article about the inevitable doom and gloom that will befall US because it is substantially smaller than the too-small AA that is doomed because it's not larger. And still no presence in Asia? "Rely on its Star Alliance partners?" Without ATI, US doesn't share revenue with its Star partners across the Atlantic or the Pacific and it must compete on price on its codeshares on UA or NH. AA's immunized joint venture with JAL assures it of a sizable transpacific presence despite currently flying only five daily flights to Japan and three daily flights to China on its own metal.

Which is it, Kirby? If US can thrive at approximately half the size of AA, then how is it that AA cannot thrive at 2/3 the size of UA and DL? Kirby, your lies are showing.

 

[wings396]

Both AA and US can survive independently, they just won't be on the same level as UA & DL. While its tough for smaller retailers to compete with Walmart, it can be done. Smaller companies, less marketshare, less revenue, less for the employees....
At least these guys have somewhat of a plan B, unlike the previous regime of W&G after the United deal fell thru. It would be foolish of any management team to take any merger as a given right up until a deal is closed.

 

[dash8roa]

Airways has wasted time for a few years hoping for a DL,UA and now AA merger. I do not think the AA merger will happen. DL is increasing its fleet with used aircraft, MD-90 and 717's. Airways needs more wide bodies to add more cities in Europe. Acquire some used 767-300ER's just as airways did with the used 757's several years ago. The 767 is a dependable workhorse in use by many other carriers and the pilot rating should be the same as the 767-200ER's in the fleet.
Still many cities left such as Vienna, Prague, Warsaw, Budapest and a return to some of the Nordic countries that airways threw in the towel on.
Airways can survive even if being the small legacy, but it needs to stop hoping for a merger deal and get on with international expansion.

 

[ContUNITEus]

Parker and Kirby (and the other US fanbois) constantly drone on and on about how AA has no future if it does not combine with US because AA is so much smaller than UA or DL. Yet here's Kirby pontificating about US' rosy future with new flights to Europe and South America with its new A350s if it does not combine with AA. Nothing in this article about the inevitable doom and gloom that will befall US because it is substantially smaller than the too-small AA that is doomed because it's not larger. And still no presence in Asia? "Rely on its Star Alliance partners?" Without ATI, US doesn't share revenue with its Star partners across the Atlantic or the Pacific and it must compete on price on its codeshares on UA or NH. AA's immunized joint venture with JAL assures it of a sizable transpacific presence despite currently flying only five daily flights to Japan and three daily flights to China on its own metal.

Which is it, Kirby? If US can thrive at approximately half the size of AA, then how is it that AA cannot thrive at 2/3 the size of UA and DL? Kirby, your lies are showing.

That's very Kirby. He will just put out the most obvious lie in front of all the employees in the crew news sessions, with the employees just going, "Ohhh, that's why!!" I'm not kidding; Kirby, Parker and Co., when without an answer, will just make up the most absurd answer that exists. To my surprise, nobody would challenge the constant contradictory BS.

I once did put them in the hot seat, and the whole situation was extremely embarrassing for them. Needless to say, the executives over at US (AKA America West) were not very fond of me, and made sure that they did something about it.

So, I suppose, a way needs to be figured out about exposing these CROOKS without letting them know who you are. If I could go back and do it differently, I probably would capture the whole video of their statements (like the crew news session when it is posted online) and re-post it on youtube (anonymously) with an analysis of their lies and supporting facts about their unethical and deceptive nature.

 

[zethya]

Actually if there is no "merger", US is potentially as likely to be acquired in parts (East and West) by AA and others, as staying standalone. You never know what Parker's back of the curtain plans with AA are in the event a full merger is not in the cards. Horton appears to be on his way out, with his big payday. Who knows what Parker and the AA Board/Creditors have up their sleeves? It wouldn't surprise me at all if the final solution was AA buys parts of US with Parker as CEO and non-complimentary parts of AA are sold to others to ease regulatory concerns. After all, who knows better what the best performing US assets are in a combined airline? If Kirby actually said what was published in AW, he needs to be admonished for presenting the airline in an essentially "no growth" standalone position (compared to the other Legacies) for the next 5 years. No non-stop flights and identity to Asia until 2017 - even at minimum profitability is IMO a recipe for financial stagnation. Properly configured 332s could do it from PHL or PHX (at appropriate departure/arrival times). Look how successful TLV has become for US - even with substantial U.S. and Foreign airline competition. Me thinks that if Parker supported Kirby's remarks (if he actually said them), they should both be fired.

 

[MUTATIS MUTANDIS]

Actually if there is no "merger", US is potentially as likely to be acquired in parts (East and West) by AA and others, as staying standalone. You never know what Parker's back of the curtain plans with AA are in the event a full merger is not in the cards. Horton appears to be on his way out, with his big payday. Who knows what Parker and the AA Board/Creditors have up their sleeves? It wouldn't surprise me at all if the final solution was AA buys parts of US with Parker as CEO and non-complimentary parts of AA are sold to others to ease regulatory concerns. After all, who knows better what the best performing US assets are in a combined airline? If Kirby actually said what was published in AW, he needs to be admonished for presenting the airline in an essentially "no growth" standalone position (compared to the other Legacies) for the next 5 years. No non-stop flights and identity to Asia until 2017 - even at minimum profitability is IMO a recipe for financial stagnation. Properly configured 332s could do it from PHL or PHX (at appropriate departure/arrival times). Look how successful TLV has become for US - even with substantial U.S. and Foreign airline competition. Me thinks that if Parker supported Kirby's remarks (if he actually said them), they should both be fired.

I think your right on, except I Disagree with your HORTON STATEMENT, He is truly in the DRIVER SEAT, he has every contract needed except the pilots, easy solution, he has the backing of BA, IBERIA, and as for APPALLOOSA, they are positioned on both sides, PARKER has said BYE, BYE, to PHX, it is a dead revenue source and hub, American will trim the fat, before buying the "STEAK"!, American will emerge standalone and make a run on USAIRWAYS real assets!

 

[notquiteUS]

Parker and Kirby (and the other US fanbois) constantly drone on and on about how AA has no future if it does not combine with US because AA is so much smaller than UA or DL. Yet here's Kirby pontificating about US' rosy future with new flights to Europe and South America with its new A350s if it does not combine with AA. Nothing in this article about the inevitable doom and gloom that will befall US because it is substantially smaller than the too-small AA that is doomed because it's not larger. And still no presence in Asia? "Rely on its Star Alliance partners?" Without ATI, US doesn't share revenue with its Star partners across the Atlantic or the Pacific and it must compete on price on its codeshares on UA or NH. AA's immunized joint venture with JAL assures it of a sizable transpacific presence despite currently flying only five daily flights to Japan and three daily flights to China on its own metal.

Which is it, Kirby? If US can thrive at approximately half the size of AA, then how is it that AA cannot thrive at 2/3 the size of UA and DL? Kirby, your lies are showing.

The answer is quite simple. AA has higher operating costs then US. A smaller US with less costs then a larger AA can thrive. The profit US has made so far this year is proof.

 

[firedougparker]

The answer is quite simple. AA has higher operating costs then US. A smaller US with less costs then a larger AA can thrive. The profit US has made so far this year is proof.

Kirby got caught trying to spin it both ways. He can't have his cake and eat it too.

Our costs might be lower for now, but with AA imposing a term sheet on its pilots I don't think we will have that advantage for long. By the time AA emerges from bankruptcy it will probably have averge or lower than average costs for the industry.

 

[FWAAA]

Kirby got caught trying to spin it both ways. He can't have his cake and eat it too.

Our costs might be lower for now, but with AA imposing a term sheet on its pilots I don't think we will have that advantage for long. By the time AA emerges from bankruptcy it will probably have averge or lower than average costs for the industry.

I disagree that AA's labor costs will be anywhere near those of US. Even with the imposed terms, it would take payraises of between 25% and 40% to bring US pilots up to AA pilot pay. Currently, AA FAs average about $50k compared to US FAs which average about $40k. Even the failed TA didn't bring US FAs up to AA's FA payscale. US mechanics and AA mechanics are much closer in pay. Dunno about fleet service. AA's agents are nonunion and AA is imposing whatever terms AA wants on them.

Bottom line: Even after the bankruptcy cuts at AA, AA's labor costs are still much higher than US labor costs. AA has managed to bring its costs down to DL and UA levels, which are much higher than US levels.

The still-unexplained magic that Parker and Kirby keep trying to sell is that somehow, Parker will be able to raise the pay of the AA employees (he promised smaller concessions than AA is getting) AND that somehow, Parker will be able to raise the pay of US employees to the same high AA levels. With US producing smaller revenue at its less-valuable hubs, you'd have to believe in alchemy to think that combining AA and US magically produces lots and lots of extra revenue - enough to give payraises to all. And still be profitable.

 

[firedougparker]

FWAAA, if your numbers are right then it's even more damning of the merger than anything I've seen yet. There's just no way that Doug can afford the promises he has made. He'll never get away with a two-tier system where AA'ers get to have higher pay.

 

[AAviator]

The still-unexplained magic that Parker and Kirby keep trying to sell is that somehow, Parker will be able to raise the pay of the AA employees (he promised smaller concessions than AA is getting) AND that somehow, Parker will be able to raise the pay of US employees to the same high AA levels. With US producing smaller revenue at its less-valuable hubs, you'd have to believe in alchemy to think that combining AA and US magically produces lots and lots of extra revenue - enough to give payraises to all. And still be profitable.

FWAAA, please call wings395.9 and ETOPS1 or USA320Pilot, they've got some pallets of rose colored glasses they're handing out..

You, clearly, were skipped.

 

[zethya]

FWAAA, if your numbers are right then it's even more damning of the merger than anything I've seen yet. There's just no way that Doug can afford the promises he has made. He'll never get away with a two-tier system where AA'ers get to have higher pay.

Well I think the real point to ponder is, how will the US employees end up if Parker cannot acquire and manage the combined units and instead the reverse occurs - AA is the acquirer and Parker is not selected as CEO?. E.G. - US=TWA. It seems a general consensus is that AA and US will merge - eventually, purely on the basis of airline industry economics. At least with Parker, his history is well known and any predicted empty promises can be factored into one's future considerations.

 

[firedougparker]

Well I think the real point to ponder is, how will the US employees end up if Parker cannot acquire and manage the combined units and instead the reverse occurs - AA is the acquirer and Parker is not selected as CEO?. E.G. - US=TWA. It seems a general consensus is that AA and US will merge - eventually, purely on the basis of airline industry economics. At least with Parker, his history is well known and any predicted empty promises can be factored into one's future considerations.

Funny! But I'd still rather do without Parker, even if he is a "known evil."

What I don't agree with is the idea that AA and US will end up together eventually. I see no reason for this as we are making profits just fine on our own and American is sinking into a hole that is entirely their own problem. Why drown with them?