US Air's Parker says it's Delta or nothing

[delta777]

This story still has more to go and do not be surprised if US Airways has other options, but as of yet, it has failed to show all of its cards.

Regards,

USA320Pilot

Not sure i agree with ya there. As far as LCC having more cards to show, well, thats the problem, its not about what LCC can do, its what DAL management/DALPA won't do, which is cooperate. See WSJ statement below for further details,

"In his testimony tomorrow, Mr. Grinstein is expected to reprise his criticisms of the US Airways deal, which he says would cost thousands of Delta employees their jobs, severely diminish competition in many U.S. markets, and fail to pass antitrust scrutiny due to both airlines' concentrated operations on the East Coast. Some people involved in the Delta case believe the creditors are cooling on the US Airways offer, not for those reasons but because they think Delta management wouldn't cooperate to see the transaction through the antitrust process and other necessary steps."

Bethune told Parker to play his best hand to the creditors and they brushed it aside, Parker has been caught.

 

[AstroLounge]

Is it me? Or does anyone else out there think it wasn't such a good fit anyway. I mean what would happen to CLT or ATL...? Why would they need 2 huge bases so close to each other...would one have to go? What about routes? They fly up and down the East coast, so do we. Ya, ya, I know...Europe...
Someone out there...please explain why Delta, not Northwest. I just want to know! Thanks

Merging with Delta would be MORE STUPID than removing the closets OFF the A320 Parker talks about synergy......if that merger were to take place he would be dealing with anarchy/mutiny and a real fight! (I swear he must have been smoking crack!) 😛

 

[sfb]

Doogie, How about taking your connections with the money men and buy some big airplanes and expand our airline?

He can't, because LCC doesn't really have any assets to hock. Nearly the entire fleet is leased, and pretty much everything else is mortgaged. Most of the DCA and LGA slots were sold to Republic for exit financing.

The cash that he'd be putting up to pay off Delta's creditors would essentially be secured by Delta's assets -- which they'd own as the shareholders in a reorganized Delta. He's essentially proposing to use their own property to pay them off.

Not sure i agree with ya there. As far as LCC having more cards to show, well, thats the problem, its not about what LCC can do, its what DAL management/DALPA won't do, which is cooperate.

If I were a large creditor looking at over half of my payout being in "new Delta" shares -- but only if the merger is OK'd -- this would be a serious concern. You can bet money that the creditors' committee has retained antitrust counsel, and if you're prudent, you base your evaluation on the worst-case scenario of the divestitures which the government would require.

 

[PITbull]

Not sure i agree with ya there. As far as LCC having more cards to show, well, thats the problem, its not about what LCC can do, its what DAL management/DALPA won't do, which is cooperate. See WSJ statement below for further details,

"In his testimony tomorrow, Mr. Grinstein is expected to reprise his criticisms of the US Airways deal, which he says would cost thousands of Delta employees their jobs, severely diminish competition in many U.S. markets, and fail to pass antitrust scrutiny due to both airlines' concentrated operations on the East Coast. Some people involved in the Delta case believe the creditors are cooling on the US Airways offer, not for those reasons but because they think Delta management wouldn't cooperate to see the transaction through the antitrust process and other necessary steps."

Bethune told Parker to play his best hand to the creditors and they brushed it aside, Parker has been caught.

If Delta management and their employees are confident they can be successful as a stand alone, then that is the essential first step to becoming a great airline.

I don't recall U employees feeling very confident or supportive of this new management when we were emerging from BK. If U management would have been fair and balanced with labor this past year, giving increases in the wages for labor, being that senior level management received bonuses and increases... or at least setting a time-line target for increases for labor to snap-back, I don't think DL employees would have been so admently anti U. As they say, "one's character is not defined by what one says, but rather, by what one does".

I think they pretty well know veiwing the hx of U management and their anti-labor stance, it wouldn't have faired very well for DL employees.

Doug couldn't get support from DL management, creditors, DL employees or U labor. Not even the most loyal customers on either side saw this as a win-win.

Too much bad blood here.

 

[EricLv2Fish]

If U managment would have been fair and balanced with labor this past year, giving increases in the wages for labor, being that senior level management received bonuses and increases

Great point. Worse move AWA management made after the merger. Stiffle labor negotiations while increasing their pay. Yes they took on increased responsibility, but many employees, certainely the ones in tech ops, are working their buns off trying to make the merger work. Whatta they get; a freeze in pay....deductions from their paychecks for union dues and they aren't even union yet! Hope those bonus checks ease the pain.

 

[delldude]

Kind of sounds like Stevie Wolfe and little Rakeesh's game winning strategy of a few years back,eh?

 

[usair_begins_with_u]

Lollerz @ Doogie "my final offer" Parker.

 

[LCC_#1]

wow, what if he is wrong and US is left without a dance partner...what will he do then?

uuuuuhhhhhh.......... :unsure: ................. :unsure: ....................... :unsure: ..........................run the airline you.......have? 😛h34r:

 

[US1YFARE]

uuuuuhhhhhh.......... :unsure: ................. :unsure: ....................... :unsure: ..........................run the airline you.......have? 😛h34r:

that sounds like hard work! Maybe Plan B is to win back the customers they've lost. 😉

 

[LCC_#1]

(I swear he must have been smoking crack!) 😛

Does anybody have the phone # to the show INTERVENTION?

 

[US1YFARE]

where is etops1? what does he have to say about all of this? maybe he's looking for that 800 number 😉

 

[WorldTraveler]

well said, PitBull.

The issues that have been continually brought forward follow along with the people who make the decisions regarding the validity of the claim:

1. Anticompetitive - DOJ, influenced by the DOT and Congress who are most in touch with the American people.
2. Too much debt - ultimately the industry creditors (which includes labor) who are not interested in seeing a combined US/DL end up in BK again - which it most certainly will do with the kinds of debt levels it will carry relative to the size of the airline.
3. Labor turmoil - that is ultimately DL employees to decide. and there is no indication they are giving up.

DL management opposition exists BECAUSE they recognize every one of the three things above and more.


US' proposal is wrong for everyone except for US - and in an industry that STILL exists to serve the public (every US airline has a certificate of public convenience), there is no room for screwing every other stakeholder so that a handful of industry financial interests and executives can benefit.

The reality is that US made the bid because its plan is failing and US wanted to eliminate a competitor and gain all that DL has. US' traffic over the winter is the lowest among the network carriers and is especially weak when compared with its east coast heavy peers. US still has way too much capacity in the wrong places and continues to face growing incursion of true low fare and low cost carriers in its markets.

Senate testimony today will convincingly put the US deal out to pasture. The US people (that's the American public) and Congress have no interest in seeing consolidation in an industry that is as stable and profitalbe as it usually gets when it comes at the cost of everything that the American people have fought for - reasonable fares, competitive offerings, improving service (DL's customer service is improving and better products are being rolled out regularly). The fact that US is not positioned to compete long-term is not relevant to the discussion about consolidation in the airline industry. It just means that US will probably file for BK again and will likely fail - after Parker walks away with millions of dollars.

Congratulations to the Delta people (employees, mgmt, government supporters, and customers) that have stood tall in opposing US Airways' proposal to unilaterally improve its own failing fortunes. And my condolescences to those of you at US that continued to be played as pawns in your management's game to enrich themselves and their investors with little regard for the people that actually generate that wealth.

 

[LCC_#1]

The reality is that US made the bid because its plan is failing and US wanted to eliminate a competitor and gain all that DL has.

Kind of like the FAILED ATTEMPT from DAL to put the old US Airways out of business? Do your homework, WT!! You're blowing smoke out of your asss.

US Airways will be one of few airlines to make a profit for full years 2006. Where is your proof of a failing US? Nice to see another anti-US Airways KDMD #### trying to be an airline expert.