Lanes Merge Ahead

[AOG-N-IT]

AOG:

Why do you think US Airways' management reached an agreement with the ACAA to close all Pittsburgh maintenance operations in one-year, if the company desires?

With all due respect, the IAM situation will not effect me one way or another, but the mechaincs could get creamed in their dispute and guess what...I understand your current contract permits it. That's not FUD, it's fact.

By the way, I understand there have been some proposals where pilot gross pay could go up with the proposed work rule changes.

Respectfully,

USA320Pilot

The PIT ACAA agreements are meaningless to me on a personal basis...but I do pull for my multitudes of friends serving there.

PIT as a whole is living in a "day to day" vacuum. Two Hubs within 40 minutes flying time of one another is far from cost effective by any stretch of the imagination...and Two Maintenace Bases with the size that U has been reduced too , is almost as equally pointless and profit hindering. The deisres for PIT to mirror DL's operation in CVG is clear as glass...so what PIT does or doesn't do within the next 12 to 36 months is not a grave concern to the entire business....My only worry in this issue is moving all Maint. to IND....and that from a logical standpoint should concern everyone

Getting Creamed?....What part of our contract leads you to assume such? I do believe the Judge in the Western District of Pa. would be willing to differ with your mis-guided assumptions , yet again. The final victory in the PHL appeals process will only compound just how far off you are , Yet again !!!

You understand where your gross pay might go up? What a joke Skippy , Your arse will be flying more for less , if anything takes place. The issue is productivity linked to lowering labor costs...and you are still the biggest burden in both respects to this company !!

 

[ClueByFour]

I will not breach the confidence of those who speak to me on the condition of anonymity. If I did, I would never, ever, obtain credible information.

You might as well hang your "sources" out to dry, as they've been feeding you bunk forever. Or, based upon the batting average with your predictions (and the speed with which they tend to "morph,") you need to actually obtain a credible sources. Further, since you have told others without any citation that they are "wrong" when in fact you are "wrong," it destroys your credibility.

Furthermore, in the case of your labor group, you are looking down the barrel of a loaded gun and I believe it would be in the IAM's best interest to reach a settlement on the A320 heavy maintenance issue and work rule changes.

Because you know something the IAM and their lawyers don't, right? Management thought so too, and they are 0-fer right now, and likely to strike out again in short order. I'd ask you for the exact loophole you think will be used, but I'm sure your sources did not pass that insignificant part of the story on...

It's horrible form to lean on other labor groups to cave so that you can continue to earn 6 figures flying the 'bus. Further, the last time something like this happened, ALPA itself seemed to disagree with the tactic in a rather large fashion (http://cf.alpa.org/aaapilots/MEC-Updates/2002-MEC-Updates/Jul_26_2002_code-a phone.htm).

 

[funguy2]

AOG:

I will not breach the confidence of those who speak to me on the condition of anonymity. If I did, I would never, ever, obtain credible information.

Your sources are not credible. Your sources (and therefore you) are wrong about 90% of the time. There is a list of things you and your sources have been wrong about.

The UCT/ICT/merger is not fact. UAIR is actively discussing transactions with a number of carriers other than UAL. That is fact. It can be confirmed rather easily. No such confirmation exists for your UAL UCT/ICT/merger.

Now here is a FACT. You have made at least SIX posts without answering any questions about how UAL would acquire UAIR. Sounds to me like you don't have the answers.

 

[SpinDoc]

AOG:

I will not breach the confidence of those who speak to me on the condition of anonymity. If I did, I would never, ever, obtain credible information.

Regardless, there must be new accords with all of US Airways' unions before any corporate combination will proceed or we will see major core asset sales.

Furthermore, in the case of your labor group, you are looking down the barrel of a loaded gun and I believe it would be in the IAM's best interest to reach a settlement on the A320 heavy maintenance issue and work rule changes.

Respectfully,

USA320Pilot

USA320:

Even if your sources appeared on national TV to announce a formal merger or UCT, there are many on this board who would fail to believe it. The signs are there and the stars are beginning to align themselves.

1. UA has decided to keep the IAD hub and BUILD a new UAX hub there. They will be losing their feed when the ACA contract ends. The most obvious option to replace the feed is with MDA Embraer aircraft, or with Mesa RJ's and turbos. When the UA/US meger occurs, PIT hub will cease to exist and feed from cities such as ERI, CAK, HTS, CRW, SCE, MDT, etc. will be routed through IAD which will become a very good omnidirectional hub for the merger entity.

2. CLT will take over the southeastern feed for the closed UA hub in MIA. Caribbean and South American feed will all be through CLT.

3. PHL will continue to be the International Gateway for the merged entities.

4. IND will return to prominence as a nice MTC hub centrally located between ORD and IAD/PHL/CLT.

With UA's coverage of everything West of the Mississippi and US's coverage on the Eastern Seaboard and midwest, the merged entity will be hard to beat as far as schedule and connectivity to almost all states in the U.S.

Believe it.

 

[SpinDoc]

AOG:

I will not breach the confidence of those who speak to me on the condition of anonymity. If I did, I would never, ever, obtain credible information.

Your sources are not credible. Your sources (and therefore you) are wrong about 90% of the time. There is a list of things you and your sources have been wrong about.

The UCT/ICT/merger is not fact. UAIR is actively discussing transactions with a number of carriers other than UAL. That is fact. It can be confirmed rather easily. No such confirmation exists for your UAL UCT/ICT/merger.

Now here is a FACT. You have made at least SIX posts without answering any questions about how UAL would acquire UAIR. Sounds to me like you don't have the answers.

AOG:

One word. RSA. They own a significant amount of paper for UA equipment leases and they will be expecting a fair amount of control over the restructured entity. As US employees painfully know, RSA is not interested in losing their investments and will find a way to finance or direct a merger that provides them with a positive return on their investments. I would expect RSA to obtain a 20% ownership stake in a restructured UA and then convince the UA BOD to allow them to provide merger financing to close the UA/US deal. RSA has more cash and assets than many of the large investment banks that have underwritten previous airline mergers, and I think they could pull it off without too much difficulty. If I am wrong, then so be it, but I think USA320 really does have an inside line to much of what he speaks.

 

[PITbull]

So Spin,

Where does that leave the employees of U, if this alledged transaction should go through...care to gaze into your crystal-ball and tell us our futures as employees of USAirways?

 

[ClueByFour]

One word. RSA. They own a significant amount of paper for UA equipment leases and they will be expecting a fair amount of control over the restructured entity. As US employees painfully know, RSA is not interested in losing their investments and will find a way to finance or direct a merger that provides them with a positive return on their investments. I would expect RSA to obtain a 20% ownership stake in a restructured UA and then convince the UA BOD to allow them to provide merger financing to close the UA/US deal. RSA has more cash and assets than many of the large investment banks that have underwritten previous airline mergers, and I think they could pull it off without too much difficulty. If I am wrong, then so be it, but I think USA320 really does have an inside line to much of what he speaks.

Funny. Last I heard, Bronner was ready to sell chunks of U to save his investment. Now, he's going to throw money at a losing investment to merge it with another airline--an activity (airline merger) that is traditionally a loser for many, many years post merger, and in most cases, never really amounts to anything good?

I've got a bridge. Maybe I can slap wings on it and convince Bronner to merge it with US.

 

[AOG-N-IT]

So Spin,

Where does that leave the employees of U, if this alledged transaction should go through...care to gaze into your Chip-crystal-ball and tell us our futures as employees of USAirways?

SpinDoc,

20% of UA is far larger than the RSA's 50% stake in UAIR itself.

Linking together two functioning companies have proved time and again as more than difficult under the best of economic times...muchless times like that in which we are living through now.

The best anyone can hope for , is for U and UA to resolve their individual troubles at present , continue to work together under the banner of the Star Alliance...and prepare to emerge to the forefront of this industry when better days present themselves.

Linking up two current negatives will not make a defined positive in either the short or long term. The fall-out of what this would cause the average employee's of both companies would only lead to further negative mis-givings.

Labor has about reached it's breaking point with the Management Types whom have no operational skills or inclinations. The idea of Merge , Merge , Merge only over-shadows the true issues at hand for a brief period , it gives profits to un-worthy individuals at the expense of thousands of loyal and dedicated people ..and still does not solve whats wrong with either party. Basically the core problems are not solved , but placed on the slow-cooking backburner for a brief period of time. The issues however continue to fester and boil.

 

[USA320Pilot]

Spin:

Your analysis is correct. RSA is reportedly willing to be United's equity investor and combine the companies, provided US Airways can stablize its finances and United can cut its costs enough to obtain the loan guarantee.

Personally, I would prefer to not merge, but that's the long-term end game for the business partners. Again, a deal is not imminent and is evolving, but it's the end game for both companies and their restructurings.

Respectfully,

USA320Pilot

 

[SpinDoc]

AOG:

I agree that there are many aspects of merging the two entities that do not appear logical, but as everynoe knows, we are not dealing with logical people in the upper management of US Airways.
We are dealing with people who care only about the bottom line. It is their objective to scheme every waking hour to squeeze the nickel in hopes of getting 6 cents in return. Employee morale is far from their main concern. If the employee does not like their wages or working conditions, no problem. They will encourage the employee to quit so that they can hire someone off the street for a lower wage and less cost to provide benefits. Ethics and concern for the customer are also not important because CCY is still delusional and believes the customer will come back because they have no alternative. They continue to rape the businessman with fares that are unrealistic. The problem is, the customer is beginning to understand that there IS an alternative, and it is in the form of the LCC which offers lower cost travel and actually treats the customer well. Why do youthink B6 ordered EMB regional jets? It's not because they wanted to create two classes of employees as US is trying to do, it's because they are getting ready to assault US in their bread and butter markets without much risk. WN is even studying the possibility of purchasing RJ's. When that happens, no matter how good our service is, we will be hosed because the LCC's have the momentum right now and it is because of the attitude and poor response of CCY and other legacy carriers that they have this momentum. It's too little, too late for US unless they fundamentally change the business model, and as long as legacy management continues to run the operation, it will be business as usual. Sorry for the rant, I had a lot of things to clarify.

 

[AOG-N-IT]

SpinDoc,

You summed up the entire problem in the first paragraph....and Mergers cannot off-set the effects of the facts that lie within that paragraph.

Should the Labor Groups not be willing to expose and combat this way of thinking?..and apply the right kind of pressure to correct it ? Then WE as labor have earned what we have coming to us in stones

Negative Further....Over and Out !!

 

[Light Years]

Isnt it just as silly to have IAD, DCA, CLT, and PHL as it was to have PIT, BWI, DCA, CLT, and PHL? The only way the merged entity would make sense would be closing IAD and PIT and keeping PHL as northeast/transatlantic gateway, CLT as Southeast/South America gateway, and DCA (plus BOS and LGA) focus cities.

If it were ever to happen.

 

[jack mama]

The best anyone can hope for , is for U and UA to resolve their individual troubles at present , continue to work together under the banner of the Star Alliance...and prepare to emerge to the forefront of this industry when better days present themselves.

AOG:
I wish this was a possibility, but I think your thinking is seriously flawed. Waiting for better days is not an option. The industry is changed forever. The way I see it is that there are going to be 3 types of carriers...one flying point to point to large cities, one flying rjs and props to small/medium cities, and one flying internationally. It has yet to be seen if one company can do it all. So far, the only ones that are making money are those that are only doing one of those things. Everyone else is losing millions per day, waiting for the better days, or the way it was.

We will all just have to see what Dave and Dave have up their sleeve, it we can make it that long. I think Siegel has shown some semblence of forward thinking, it is just having a rough time bringing it all together, and is stepping on a lot of toes in the process.

 

[jack mama]

Spin,
What type of business model do you see being successfull for US?

1. Point to point with RJs?
2. Mainline/Intl/Carribean only, contract all express flying out
3. Rolling hubs

 

[Winglet]

The integration costs alone would be staggering and money that neither UAL nor U have. Besides, how is U going to become competitive on the east coast even with a UAL merger? What's going to be the synergy between these two companies that's going to keep the wolf from the front door for the next couple of years? Isn't this like tying two boat anchors together and trying to make them float? Carty bought (in retrospec) a very expensive boat anchor and look how that turned out.

If I were a UAL person, I'd fight this tooth and nail. Just take a look at the TWA deal. That was a fire sale aquisition (as opposed to a merger) and it still has HUGE integration costs both in terms of money and employee competition/animosity in a market downturn . . . plus A LOT of capacity that was dumped after 11 Sept.

I don't get it. Someone's going to have to explain the financial feasibility of this one. Could these rumors just be manipulating the market in preparation for the coup de gra?