US1YFARE
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So what does he say when you tell him the airline is run by a bunch of idiots and the service level is in the toilet?
USUA/HPNW
- Thread starter EMBFA
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So what does he say when you tell him the airline is run by a bunch of idiots and the service level is in the toilet?
as the prop turns
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Jeez, you nailed that one perfectly!
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bryan240sx
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US Airways management are going to do exactly what their financiers tell them to do. America West was virtually broke when they executed this merger. The purchase of US Airways by America West Holdings was entirely done with borrowed money.
The merger was financed by an array of outsiders who brought about $1.5 billion to the table — hedge funds, credit card issuers, Airbus and ACE Holdings, and many others. And, no, those loans haven't been paid back. AWA was near bankruptcy themselves when the merger took place.
The purchase was conducted like a real estate deal....it was bought entirely using other people's money and this was not a long-haul deal. That money was never intended to be paid back. It was intended to ride along until they found a buyer. Just read their financial statements. It's public record. Anyone who can add, subtract, multiply, or divide can see what's going on.
What happens after a real estate investor buys a big piece of property out of receivership?...they put a fresh coat of paint on it and theySELL IT AT A PROFIT AND EVERYONE MAKES MONEY.
There's a reason this merger's been dragging along for two years folks. This is one tough condo to sell, indeed. And, I think we'd all agree that two airlines are worth more than one as well, particularly when the entire workforces are separate, with separate contracts, operating certificates, etc.
The merger was financed by an array of outsiders who brought about $1.5 billion to the table — hedge funds, credit card issuers, Airbus and ACE Holdings, and many others. And, no, those loans haven't been paid back. AWA was near bankruptcy themselves when the merger took place.
The purchase was conducted like a real estate deal....it was bought entirely using other people's money and this was not a long-haul deal. That money was never intended to be paid back. It was intended to ride along until they found a buyer. Just read their financial statements. It's public record. Anyone who can add, subtract, multiply, or divide can see what's going on.
What happens after a real estate investor buys a big piece of property out of receivership?...they put a fresh coat of paint on it and theySELL IT AT A PROFIT AND EVERYONE MAKES MONEY.
There's a reason this merger's been dragging along for two years folks. This is one tough condo to sell, indeed. And, I think we'd all agree that two airlines are worth more than one as well, particularly when the entire workforces are separate, with separate contracts, operating certificates, etc.
Interesting take. Do you mean that two airlines are easier to sell individually, or that the combined two is more sellable? I think the two carriers are a mis-match and each would be better a part of another.
It is inevitable that there will be another merger or merger attempt in the near future. Management affirms this every time they are asked, while everyone focuses on this one. I think alot of folks are in thier little box and not looking at the big picture- that they will be part of another round of consolidation that will change everything soon. Am I just crazy or what?
Be Careful What You Wish For.
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That may be another case of be careful what you wish for. Things would change. In another round of consolidation more jobs will become redundant and right sized. Hubs would change status. Some who have survived this long may be looking at a carrier that has more control over US than what is going on now.
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bryan240sx
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Absolutely. The chances for US Airways surviving as a standalone carrier over the long-term are about as good as a snowstorm blowing through Tempe.
The new US Airways was created to be sold, by design, and will become a part of a larger carrier. I don't think Doug Parker or Scott Kirby have any fantasies at this point about climbing any higher in the industry after their performance over the past couple of years.
I am quite certain the goal at this point is to find a buyer to offload the carriers to, either combined or separate. My educated guess is that dragging the merger along affords them the opportunity to market the carrier to potential buyers as both a separate carrier as an as combined one...which is a good sales tactic on their part.
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bryan240sx
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Before someone chimes in with "What about Delta?!?!" I'll address that.
The Delta merger was axed for a variety of reasons, not the least of which was the fact that Doug Parker was proposing a "new Delta" completely built on borrowed money, just like the "new US Airways," but on a scale the airline industry and the world had never seen. It was reckless.
That's not an easy sell to a massive airline coming out of bankruptcy..."hey folks...Doug here...I'm going to save the day by taking you over with $10 billion worth of borrowed money." Not an easy sell, considering debt is what got the airline into trouble...
Considering the level that the employee and customer morale was at when he proposed that farce, I'd say Doug Parker's chances for leading an airline merger again are nil
The Delta merger was axed for a variety of reasons, not the least of which was the fact that Doug Parker was proposing a "new Delta" completely built on borrowed money, just like the "new US Airways," but on a scale the airline industry and the world had never seen. It was reckless.
That's not an easy sell to a massive airline coming out of bankruptcy..."hey folks...Doug here...I'm going to save the day by taking you over with $10 billion worth of borrowed money." Not an easy sell, considering debt is what got the airline into trouble...
Considering the level that the employee and customer morale was at when he proposed that farce, I'd say Doug Parker's chances for leading an airline merger again are nil
allstrike
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Hey thanks for your perspective,really and welcome to the board.Some times we just have to agree to disagree here.
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bryan240sx
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Absolutely. The ability to do that, which you apparently possess, is alien to many people around here and I commend you for that.
As someone who leads a full life off of internet forums, I can tell you that, without a doubt, anything you see on an internet forum must be taken with a grain of salt and, for some, a sedative.
I don't believe the NWA F/A's are "tough" anyone who walked past a NWA Mechanic on strike is a whimp! I don't care if it is a F/A, Pilot or ramper...You gotta give those NWA F/As some credit- they are pretty tough.
Of course they are going to deny it at the State of the airline meeting.... Q: Are we merging with so and so? A: Oh yeah, didn't we mention that? Not that I'm saying it's true.
What benefit would splitting it be to US mgmt? Big payoff but where would it leave them? Would the Sandcastle management take over one of them?
Just imagine a 747 with no galleys or closets, catered with 800 granola bars and two sleeves of party cups.
Here I am at headquarters in search of Sherri Shamblin to discuss widebody service flows.
I am sorry...Am I missing something? Hard core unionist? They are all scabs with the exception of the "fired" techs!!! They all went to work and did there jobs while the techs were on strike...I don't think you can bring up the "union" word association with NWA. Scab is a more appropriate wording
Crazy, no.
Naive, perhaps.
You call it a merger. A few of us call it a "flip", as in "flipping" a piece of real estate. I see a primary home, US east, and a granny flat, US west, sitting on a parcel zoned for multiple dwellings as well as subdivision.
The band playing the music is called "open skies", the EU simply one of the players. When the band quits playing, corporate airline entities hope to find a chair, merging if need be. Those not finding a welcoming chair go home, tout de suite.
Parkers financial "giants" hope to sell out by then.
You may wish to spend a little time pondering whether the "merger" was intended to become a "giant" airline or simply to slightly cripple DAL with debt as they exited bankruptcy. Like you I think the "giant" would have been well outside Parkers perview, however, he could have sold off parts (Shuttle/Europe routes) and paid off the debtors had it gone through. I wonder if it more likely that Parker want to inflict a "flesh wound" before DAL exited bankruptcy as without debt, DAL could have figuratively raped and pillaged the airline landscape.
