USA320Pilot
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- Joined
- May 18, 2003
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Bear96:
You forgot some key points like two separate sources, both who are very reliable, both told me United is shopping TED's assets around and they're "'for sale". Moreover, the new US airways is apparently an interested buyer.
There are four other key points:
-- If United has to sell assets and Tilton has fought this in the past, during "Project Minnow" (UCT) discussions for example, US Airways would be a logical suitor because on Tuesday the carrier will have more cash relative to its size than just about every airline but Southwest, according to Doug Parker.
See Story
-- By selling assets to US Airways this flying would remain within the domestic alliance, which would permit United to keep some of the revenue.
-- The ALPA fragmentation clause would eliminate a messy employee transfer. With that said, the UAL ALPA Negotiating Committee did not do very well when they negotiated a contract with a 25% fragmentation clause.
-- Meanwhile, let's not forget AWA ALPA MEC chairman J.R. Baker recently wrote in a letter to all pilots, "Last week (at the joint US Airways-America West MEC meeting), we received two very enlightening presentations from our hired industry experts. Our investment bankers and ALPA financial analysts talked about the strengths and weaknesses of the merger with AAA and the status of the industry overall. This was followed by a presentation from our merger attorney and his industry analyst who reviewed the industry from a merger perspective. Needless to say, things remain chaotic for the domestic airlines financially, and we should expect more consolidation as a result of the expected bankruptcy filings from other U.S. carriers."
"In other words, there is a real likelihood that as America West (soon to be US Airways) pilots, must be prepared and ready to fight a second merger or fragmentation on the heels of this pending merger," he said.
Did you note that Baker said the word "likelihood"?
Will something happen? I do not know, just like I did not know whether or not “Project Minnow†-- the ICT -- would close, especially since Glenn Tilton did not want that potential or fragmentation to proceed. However, the parties are talking about a deal again and it will be interesting to see if something unfolds this time.
Regards,
USA320Pilot
You forgot some key points like two separate sources, both who are very reliable, both told me United is shopping TED's assets around and they're "'for sale". Moreover, the new US airways is apparently an interested buyer.
There are four other key points:
-- If United has to sell assets and Tilton has fought this in the past, during "Project Minnow" (UCT) discussions for example, US Airways would be a logical suitor because on Tuesday the carrier will have more cash relative to its size than just about every airline but Southwest, according to Doug Parker.
See Story
-- By selling assets to US Airways this flying would remain within the domestic alliance, which would permit United to keep some of the revenue.
-- The ALPA fragmentation clause would eliminate a messy employee transfer. With that said, the UAL ALPA Negotiating Committee did not do very well when they negotiated a contract with a 25% fragmentation clause.
-- Meanwhile, let's not forget AWA ALPA MEC chairman J.R. Baker recently wrote in a letter to all pilots, "Last week (at the joint US Airways-America West MEC meeting), we received two very enlightening presentations from our hired industry experts. Our investment bankers and ALPA financial analysts talked about the strengths and weaknesses of the merger with AAA and the status of the industry overall. This was followed by a presentation from our merger attorney and his industry analyst who reviewed the industry from a merger perspective. Needless to say, things remain chaotic for the domestic airlines financially, and we should expect more consolidation as a result of the expected bankruptcy filings from other U.S. carriers."
"In other words, there is a real likelihood that as America West (soon to be US Airways) pilots, must be prepared and ready to fight a second merger or fragmentation on the heels of this pending merger," he said.
Did you note that Baker said the word "likelihood"?
Will something happen? I do not know, just like I did not know whether or not “Project Minnow†-- the ICT -- would close, especially since Glenn Tilton did not want that potential or fragmentation to proceed. However, the parties are talking about a deal again and it will be interesting to see if something unfolds this time.
Regards,
USA320Pilot
