USAirways/America West Merger Talks -WSJ

[700UW]

It looks like US is going to be the buyer and survivor, and more then likely it will be dovetailing as US employees have LPPs in thier contracts.

AWA's pilots are ALPA, FA's are AFA? Ramp is TWU, agents just got the Teamsters and Mechanic and Related are Teamsters.

 

[PRINCESS KIDAGAKASH]

DOVETAILING? Yeah right! Watch the feathers fly when US and AWA try to staple each other to the bottom of the seniority list.

 

[RICflyer]

Bankrupt US Airways has approached several rival carriers about a merger, but discussions with America West have progressed the farthest, Chairman David Bronner said in an interview with The Associated Press.

"A lot of things will happen in the U.S. airline industry in the next 12 to 18 months," Bronner said. "We'll do whatever we need to survive."

See the full article: http://www.aberdeennews.com/mld/aberdeenne...ss/11437042.htm

I bet RSA shows up with some money to make this happen

 

[skyflyr69]

With Bronners money and GECAS i could see U/AWA going places in the industry and UAL Delta withering on the vine!

 

[Cosmo]

In addition to the airlines directly involved, another likely victim of a US/HP merger would be United - UA would lose much of its West Coast pricing power and face an unprecedented squeeze on transcon routes (which the new airline will add like crazy to connect the route networks).

That's nonsense. US may bring some good things to HP in a merger, but a significant West Coast presence and pricing power aren't among them. United's main West Coast competitors are WN and AS, with HP a distant 4th. The addition of US' relatively modest number of flights from LAX, SFO, SEA, SAN, LAS and PHX won't change that ranking.

As for the transcon market, it is already highly competitive among most of the larger legacy carriers (AA, CO, DL and UA) plus B6 and increasingly DH and WN among the LCCs. So while a merged HP/US would undoubtedly add some transcon flights (such as PHL-PDX, perhaps), it simply would not appreciably change the competitive dynamic of that market. And let's not forget that HP recorded less than stellar results in its most recent attempt over the past year or so to carve out a niche in the major transcon markets.

So while a HP/US merger probably won't be considered good news for United, neither will it be an unmitigated disaster. JMHO.

 

[EyeInTheSky]

And let's not forget that HP recorded less than stellar results in its most recent attempt over the past year or so to carve out a niche in the major transcon markets.

[post="263161"][/post]​

Cosmo, give credit where credit is due -- America West isn't bankrupt like US and UAL. SO, what does that mean for you kids at United? Well, look at the payscales at US and AWA...look long and hard because sorry to say that's what your managment is aiming for. Especially if there's a "hook up".

 

[ClueByFour]

In addition to the airlines directly involved, another likely victim of a US/HP merger would be United - UA would lose much of its West Coast pricing power and face an unprecedented squeeze on transcon routes (which the new airline will add like crazy to connect the route networks).

[post="263138"][/post]​

What pricing power does United currently enjoy on either the West Coast or transcons?

The PS service supposedly has decent loads, but that's a niche. Other than that, UA has not enjoyed pricing power out west for years. See LUV and HP. Your hatred of United is driving foolish statements. Relax.

As for "adding transcons to connect the route networks," this has been tried already: PSA. It failed. (why, given equal fares, do I go JAX-CLT-PHX-SMF when I can go JAX-DFW-SMF?)

US won't be the acquiring entity here, folks. HP has enjoyed some profitable time since 9/11, and has a management team with much more acumen. Plus, they are not the bankrupt entity.

I hate to say it, but look for dropping more aircraft and general leases in Chapter 11, and another round of 1113 motions (where the theme will be give up change of control protection, or we liquidate). Failing that, look for a Chapter 7 auction a-la TWA.

Finally, forget all of that, and take a look at the route map again, think back to PSA, and prey it does not happen.

 

[FlyUs]

Where is ITRADE?

 

[skyflyr69]

KCflyer, Piedmont is a commuter airline. i would like to see U mgt. run it but with the AWA paint scheme work rules etc. U mgt. is putting something together that most of you thought could not happen. this will be a POWERFUL airline if they can pull it off. With all the backing behind them i give them a better than 60-40 chance of doing it. Just don't let the U employees run it or they will tank it.
hopefully , the AWA employee groups will have their work rules be implemented and perhaps labor peace will prevail.
If U labor groups are in charge, it will be the SOS. Same Old -hit!.
this is VERY interesting........

 

[xoxo]

Would the combined entity still offer xoxo bars?

[post="263148"][/post]​

Bars? What does that mean? Are you implying that I am a drunk? Explain?

 

[700UW]

DOVETAILING? Yeah right! Watch the feathers fly when US and AWA try to staple each other to the bottom of the seniority list.

[post="263156"][/post]​

Sorry, most of US' employees were all ready through two mergers, PSA and Piedmont, and dovetailed was used in both.

Unlike your carrier and your union, (TWU), a union is about fairness, not about making one group suffer as the TWU did with the former TWA employees.

 

[MarkMyWords]

Man oh man.....this is interesting......scary, but interesting.

A while back it was everyones prize pick of a merger, but everyone poo-poo'd it because of the difference in labor costs. Well CCY has succeeded in bringing those costs in line.

Could this be part of the reason we got the two week extension in filing our POR?

And US has such a great public image we would keep the US Airways name! What next......Mirror image part 2?

And good grief....Doc Bronner is opening his mouth again......that can't be good.

Hang on to the bar......it is going to be an interesting ride!

 

[Cosmo]

Cosmo, give credit where credit is due -- America West isn't bankrupt like US and UAL. SO, what does that mean for you kids at United? Well, look at the payscales at US and AWA...look long and hard because sorry to say that's what your managment is aiming for. Especially if there's a "hook up".

I don't have a problem giving credit where it is due -- HP has done a fine job over the past couple of years (with the ATSB's assistance) of turning itself around and becoming modestly profitable. Which, before you say it, is much more than UA has done during that time. It's just that I don't see the addition of US to HP being very helpful, at least with US in its current condition, to HP's competitive strength against UA or anyone else. But as I said, that's JMHO.

BTW, it's not my "management" since I don't work for UA (or any other airline, for that matter). I'm just expressing my opinion of airline industry events.

 

[Busdrvr]

if they can pull this off, this will be one great huge airline with some great international destinations....a great money making machine...

good luck to all

[post="263132"][/post]​

the 6th largest U.S. airline (the same as U pre-BK?) with pretty much the same international destinations as before.

 

[700UW]

America West spokesman Phil Gee, reached by Reuters, called the merger report a "market rumor" and declined to comment further. America West is the eighth-largest U.S. carrier.

US Airways could not immediately be reached for comment but has said previously it would not confirm any talks it might have with other airlines or potential investors about acquiring a stake.

Very Interesting.