Partners In Merger Have Much To Prove

[BoeingBoy]

Article from the Arizona Republic. Not a lot new except for additional details on where the $600 million in savings/increased revenue is supposed to come from.

One intriqueing place - reduced transcons:

"Scott Kirby, America West's executive vice president of sales and marketing, said US Airways non-stop flights between its Philadelphia and Charlotte, N.C., hubs and the West Coast would be cut in half from where it was last summer as it focuses on local instead of connecting traffic. America West would dump the last of its transcontinental routes."

Partners in merger have much to prove

Jim

 

[USA320Pilot]

The Arizona Republic wrote, "(America West CEO Doug) Parker has an answer for each of the concerns. The underlying message: We have the facts, you don't. He said the investors and suppliers who have committed $1.5 billion in new capital to the combined company have voted with their wallets. And more want in, he said.

"Clearly, these people would not have been willing to do this unless they thought we had a business model that would be able to pay them back and give them a return on their equity investment," he said on a conference call with Wall Street analysts Friday.

Analysts and consultants who follow the industry were almost universally impressed with the size of the financing package.

The airlines plan to cut about 60 planes from the combined fleet (10 of them from America West).

Regards,

USA320Pilot

 

[Light Years]

"Scott Kirby, America West's executive vice president of sales and marketing, said US Airways non-stop flights between its Philadelphia and Charlotte, N.C., hubs and the West Coast would be cut in half from where it was last summer as it focuses on local instead of connecting traffic. America West would dump the last of its transcontinental routes."

Partners in merger have much to prove

Jim

[post="271918"][/post]​

How does that make sense? Wouldn't they want MORE transcons? I'm confused.

 

[hharotz]

How does that make sense? Wouldn't they want MORE transcons? I'm confused.

[post="271926"][/post]​

According to the HP May 20th webcast transcon flying of the two entities will be basically reduced by 50%. :down:

HP will retreat from the LAX-BOS/JFK non-hub transcon routes. All west coast flying from the US Airways hubs will be adjusted to solely meet local O and D demand. Parker says us has been taking a beating on filling planes from PHL-LAX with connecting traffic on record-low fares. He wants to adjust on the PHL/PIT/CLT-west coast routes so that the capacity exists for the local as opposed to connecting markets. He said US has been keeping these lossleaders for years simply to maintain market share and presence. 🙄

 

[usair_begins_with_u]

"Clearly, these people would not have been willing to do this unless they thought we had a business model that would be able to pay them back and give them a return on their equity investment," he said on a conference call with Wall Street analysts Friday.

Yeah, funny GE CAP was brokering this deal, and in the mean time, significantly reduced their exposure to the combined entity... If it was such a good move, and will be sooooo profitable, why did GE CAP want out?

 

[the turtle]

Industry wide over-exposure, my guess.

 

[nycbusdriver]

How does that make sense? Wouldn't they want MORE transcons? I'm confused.

[post="271926"][/post]​

"Scott Kirby, America West's executive vice president of sales and marketing, said US Airways non-stop flights between its Philadelphia and Charlotte, N.C., hubs and the West Coast would be cut in half from where it was last summer as it focuses on local instead of connecting traffic. America West would dump the last of its transcontinental routes."


I had the same thought, but if you read the quote carefully it could be saying something very positive. It will focus on LOCAL traffic. Maybe he means LOCAL traffic headed to the west coast. Maybe we'll see USAirways doing BOS-LAX, BOS-SFO, TPA-LAX (which Piedmont did successfully years ago), MCO-LAX, etc. Focusing on the LOCAL traffic may mean customers get the opportunity to avoid being CONNECTING traffic, which will be de-emphasized in west coast markets.

(I hope that's what it means.)

 

[StraaightTaalk]

There are many US crewmembers commuting to the East Coast, as they have no choice after the closure of the West Coast bases.

There is no doubt that the pull-down of transcon flying will increase the pressure on the various unions' negotiating teams to NOT put up fences during integration, and to allow the free-flow of transfers.

If I were a US pilot or flight attendant commuting to the East Coast, AND the flying between my home and my base was substantially reduced, I would want a transfer in to PHX or LAS right away.

The HP people need to be very concerned about this development.

 

[StewGuy86]

To the America West Pilots and FAs--

Try not to let AAll this negAAtive tAAlk from other AAirlines' employees get to you. They never seem to hAAve AAnything positive to sAAy AAnywAAy AAnd only wAAnt to stir the pot.

 

[StraaightTaalk]

To the America West Pilots and FAs--

Try not to let AAL this negAAtive tAALk from other AAirlines' employees get to you. They never seem to hAAve AAnything positive to sAAy AAnywAAy AAnd only wAAnt to stir the pot.

[post="272019"][/post]​

Very original, Stewguy. Never seen THAAT before. 🙄

 

[StewGuy86]

Well thAAAAAAAAnks! 😛

 

[StraaightTaalk]

Unfortunately, it is a fact. Fewer options will increase the pressure on commuting crewmembers. And since HP has frequent flights between most West Coast cities and PHX/LAS, there will be alot of pressure to open up HP bases to US crew.

If it meant a choice between leaving a long-term residence, and moving to the East Coast, or pushing to get into PHX or LAS, you know which option most people are going to take.

 

[firstamendment]

Unfortunately, it is a fact. Fewer options will increase the pressure on commuting crewmembers. And since HP has frequent flights between most West Coast cities and PHX/LAS, there will be alot of pressure to open up HP bases to US crew.

If it meant a choice between leaving a long-term residence, and moving to the East Coast, or pushing to get into PHX or LAS, you know which option most people are going to take.

[post="272024"][/post]​

All though you can be a bit obnoxious at times, I do agree with you here...but there are a few things to consider. We have a lot of PSA'ers retiring or taking the early out. It's funny...I was hired in 1987. Who's to say that a AWA f/a based in PHX wouldn't desire a change and want to transfer into a US base to fly transatlantic? The senority thing cuts both ways.

We at US Airways...unlike SOME AAirlines...have ALWAYS given date of hire as per the AFA. That's the way it has been and that's the way it will be....period. You and others can argue over and over and build fence after fence, but with AFA, it IS and WILL be DOH. I'm NOT saying that to be nasty. That's the way it is.

It's funny, everybody LOVES that bylaw until their senority comes into play. Well, get over it.

 

[StewGuy86]

Well, for one thing, I think most of the FAs at US have little or no problem with the idea of putting fences in place for the first few years. While it's true I've not spoken to each of our FAs individually, I think it's a safe bet that the general consensus is that fences are fair, and I seriously doubt there'd be any great pressure NOT to have them. Of course, I can't speak for the pilots.

For another thing, tons of the former PSA and/or West Coast folks are either retired, retiring, have taken the buyout or have just plain quit. It's not as if there would be a mass exodus of them into PHX or LAS, even without a fence. Would there be some? Of course. But hardly a flood, as there simply aren't all that many of them left....or won't be by the time any sort of integration takes place. As far as the non-West Coast types wanting to pull up stakes and head west, as has been mentioned by others on these boards, the vast majority of us are pretty settled where we are and have no desire to move to the desert.

There are still a lot of big "IF'S" at the moment and nothing is certain. Let's not get a big tornado of negativity and fear started. It doesn't serve any useful purpose.

 

[UseYourHead]

I thought these qoutes were interesting with regard to how much both airlines need each other and the wisdom of getting involved with US Airways at this time.

Quotes from the Arizona Republic artical:
"Analysts have said the Tempe carrier could be critically low on cash by the end of the year. Parker repeatedly said the two airlines are much stronger combined than alone."

"Parker said the synergies of this deal are greater than normal because US Airways is in bankruptcy. That allows the combined carrier to do things two airlines out of bankruptcy couldn't do without penalty, like shed aircraft and close facilities.

"The fact that US Airways is in bankruptcy is a large asset in regards to this merger," Parker said.

Indeed, it's one of a long list of factors that attracted Boston-based investment firm PAR Capital to the table with $100 million in equity. Every airline would like to shrink their operations in this lousy environment but they have long-term leases on their planes, said Ed Shapiro, a partner in PAR.

"Merging with a bankrupt carrier is kind of the best of all worlds for shareholders," he said, although few set that as their driving goal."

Article from the Arizona Republic.  Not a lot new except for additional details on where the $600 million in savings/increased revenue is supposed to come from.

One intriqueing place - reduced transcons:

"Scott Kirby, America West's executive vice president of sales and marketing, said US Airways non-stop flights between its Philadelphia and Charlotte, N.C., hubs and the West Coast would be cut in half from where it was last summer as it focuses on local instead of connecting traffic. America West would dump the last of its transcontinental routes."

Partners in merger have much to prove

Jim

[post="271918"][/post]​