Proposed Airline Merger Poses Pros, Cons For Triad

[whlinder]

Proposed airline merger poses pros, cons for Triad
Erik Holmes
The Business Journal Serving the Greater Triad Area
The proposed merger of US Airways Group Inc. and American West Holdings Corp. announced last week could be a double-edged sword for the Triad, possibly bringing lower airfares for travelers while threatening local jobs.

Fares could drop at Piedmont Triad International, but call center jobs in Winston-Salem -- rescued with incentives paid to US Airways earlier this year -- could be ripe for elimination.

Industry observers warn that as the carriers integrate operations and seek to reduce operating costs during the next two years, the 1,300-employee US Airways call center in Winston-Salem could be on the block.

http://www.bizjournals.com/triad/stories/2...ry6.html?page=1
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Apologize if posted elsewhere, I didn't see it though.

CP desk is in INT, right?

 

[RowUnderDCA]

You'll note, in this article, evidence of one reason why the merged airline will not have the 'America West' brand.

 

[diogenes]

Consider all the hoop-la surrounding the 'saving' of INT res.

Consider HP and US have been in talks for a year.

Consider res HAD TO BE a topic of discussions.

Consider 'salvation' to be fleeting, not everlasting.

You can not go wrong assuming the worst, if you are a U employee.

 

[EightySix]

Over 300 INT res agents took the EO option and are moving on to hopefully greener pastures. Says alot about their hopes for the future of INT res. America West agents aren't any where near the pay scale US agents are. Interesting it was their payscale that was presented to CWA when the paycut discussion started. When the union didn't go for it, they went to the next alternative- just shut down the U offices- outsource what you can and keep the two America West offices for specialty. That's the way it is probably going to go.

 

[FWAAA]

You'll note, in this article, evidence of one reason why the merged airline will not have the 'America West' brand.

[post="274310"][/post]​

I read the article a couple of times but I couldn't find it; I'm not real good at seeing subtle points. Could you (or anyone) point out the evidence? Thanks.

 

[RowUnderDCA]

I read the article a couple of times but I couldn't find it; I'm not real good at seeing subtle points. Could you (or anyone) point out the evidence? Thanks.

[post="274380"][/post]​

The proposed merger of US Airways Group Inc. and American West Holdings Corp. announced last week could be a double-edged sword for the Triad, possibly bringing lower airfares for travelers while threatening local jobs.

 

[funguy2]

I would have to think that the res center is "relatively" safe. According to the fact sheet in the merger area of HP's website... HP has 1269 Reservations agents and US has 1578.

HP/Express offers 942 daily flights
US/Express offers 3432 daily flights

So HP has 1.34 res agents/daily flight.
US has 0.45 res agents/daily flight.

This indicates that US res function may be much more efficient that HP's (although perhaps US wait times are longer... we've heard those comments on these boards before... about long-wait times). And of course, the res center is not the only place to sell tickets... Maybe US sells a higher percentage of its tickets through travel agents, for example.

Given that the combined company will shrink a bit, but still be much larger than America West is, it would seem that they will need more than HP's current res center headcount.

Of course, I really have no idea, but it seems to me that the combined company will need a similar amount of front-line people after the merger as today. The exception to this would be airport folks at underutilized airports (ie. HP in the east and US in the west).

Thats how I see it anyways.

 

[EightySix]

I would have to think that the res center is "relatively" safe. According to the fact sheet in the merger area of HP's website... HP has 1269 Reservations agents and US has 1578.


Does this include the agents at Atento and PRC? Or is it including the soon to be closed PIT call center. The company is unwilling to divulge how many reps have been hired offshore. In addition, they could close the call center and offer the same buy-out a second time around allowing the calls to go offshore. I really don't think INT will survive the merger. The costs for reservations at top of scale (17hr) are still to high to support. Most call center jobs don't pay that well. Believe me, I'm looking for a job and it isn't going to be at a call center for 10hr ( about what AWA pays I think).

 

[funguy2]

I have no idea what is included in the number... just looked at the fact sheet on AWA's website. Perhaps US's number is so low due partially to the outsourcing. Possible. Even probable.

 

[EightySix]

I have no idea what is included in the number... just looked at the fact sheet on AWA's website. Perhaps US's number is so low due partially to the outsourcing. Possible. Even probable.

[post="274445"][/post]​

Well my point is, after the EO there will probably be around 600 or so res agents left in INT. So the majority of US res agents are outsourced.
With the focus on the website bookings and probably another EO offering I think INT is doomed.

 

[livingontheedge]

Let me throw this into the mix....

Last week all NON-contract employees(this includes Consumer Affairs and management in INT res center) received letters from the company stating that IF the merger was approved they would probably have to relocate.

We all know that when we receive "letters" from the company, it is usually after the fact. These letters are coming out because this is imminent.

If the management(managers, supervisors, etc) received this at INT res, what does that tell you?

 

[noname]

CP desk is in INT, right?

[post="274304"][/post]​

Yes the Cp desk is int INT

 

[N628AU]

If the economic development people in the Triad think that $1.4 million in incentives is enough to keep the INT center open, they need to do some math. That represents less than .1% of the capital already pledged to the merger. How much did IND pay UA to open that maintenance center there? INT is cooked.