Let the Airline Mergers Begin

Abe & Magsau:

Abe said: "Why do you want this deal so bad when you apparently already have it so good??"

USA320Pilot comments: Who said I wanted the deal to proceed? However, at today's Calyon Securities Airlien Confernece US Airways president Scott Kirby indicated he is "highly confident" the proposed corporate transaction could create greater cost and revenue synergies than $1.65 billion and it "would create the most profitable airline in world".

If that's true then I am all for working for the "would create the most profitable airline in world," regardless of how that happens.

Best regards,

USA320Pilot

Fair enough. You've been in this industry a long time. Let's get real for a minute:

1. Forget the smoke and mirrors powerpoint, tell me how these synergies will be realized with 900+ airplanes, over 20 different aircraft and engine types, massive hubs that are less than 300 miles away, etc. without some serious pain for labor at both carriers?

2. Delta has completed most of the renegotiations on it's a/c leases, has all of it's labor contracts in order, already dumped the pilot pension, with a freeze on the others. $710 million is what Parker says will come from "cost" synergies...basically canceling leases on aircraft and terminating operating contracts. How will all of this be possible without trimming more jobs?

The network "synergies" ($935 million) that Parker talks about in the Power point are laughable! (By the way, Delta by itself, is already #1 across the Atlantic and #3, soon to be #2 to Latin/South America and the Caribbean).

I think most Delta employees are like me....they would rather stay independent, but could be open to some sort of merger That Makes Sense!

Moreover (just for you USA320Pilot), we would hope that our partner brings something more to the table than USAirways would bring (Asia routes, for example).

USAirways has seen a great turnaround in the last 12 months and there are merger partners out there that would make sense....preserving jobs for your company. Maybe even creating jobs for the thousands of USAirways employees who are still on the street!

Despite what Parker tells the crowd, this merger combination will accomplish none of this. It would be a disaster for all of us!


Abe
 
A little truth for all.
1. America West and US were given loans/guarantees.
2. The loans were paid back and have made a profit for taxpayers.
3. United was turned down for an ATSB loan.
4. Numerous others were denied: Gemini, Medjet, Vanguard, Frontier Flying (not F9), Spirit, National, Great Plains.
5. Approved airlines were America West, ATA Holdings, Aloha Airlines, Frontier Airlines, US Airways, and World Airways.

I will say this about the ATSB. At first I was very worried that it would be a free for all. However for the most part the airlines they gave money to are still around and are much better. The ones denied had to fend fro themselves some are already gone, except UA, NK, and GR. The ATSB is one of the far too few examples of a program that made money for taxpayers.

You make it sound as if US has paid off the ATSB debt. That has not happened. What they have done in VERY simple terms is rob peter to pay paul. The loans to the ATSB have been restructured. The government may have been paid back but the remainder of the loan, $551 Million for the old US and $250 Million for AWA was sold to 13 fixed income investors.

Source is here http://www.secinfo.com/dsvR3.v15v.htm#_121

US is still very much a company being run by "money men" and not operational people like Kelly at WN or Kellner at CO.

This is not a dig at ANY of the fine employees at US so no attacks please. Just posting some facts about the ATSB loan and my opinion of the BOD and DP.
 
Let the Airline Mergers Begin

Without tax-payer protection, Delta Air Lines would be no more. In October, Delta reported that its net loss narrowed to $88 million from $301 million in the same month of last year. Delta is in serious trouble and a US Airways consolidation would bring increased pressure to instate a sustainable business operation


See Story

Regards,

USA320Pilot


"We were the poster child for the ATSB program. We literally were an airline that could raise money before 9/11 but with the capital markets closed couldn't raise it," he recalled. "Without a loan guarantee we were going to find ourselves liquidating." - Quote from Doug Parker himself

Regards
WNr :p :p :p :p