What's Wrong With This Merger?

[BoeingBoy]

Back on the merger topic....

Feb 7 has been set as the date for the hearing on DL's POR, within the period of exclusivity.

Feb 1 is the voting record date, so impaired creditors holding claims in the appropriate classes as of that date will be entitled to vote on the POR.

In the motion to hire Bethune, the creditor's committee indicated that his work should be done by mid-Jan (barring a need to testify at at hearing).

So things seem to be moving along.

Jim

 

[Gilding the Lily]

In the motion to hire Bethune, the creditor's committee indicated that his work should be done by mid-Jan (barring a need to testify at at hearing).

So things seem to be moving along.

Jim

Jim,

Thanks for the update.

It does appear as if things may be moving along. I have a question though. I have read the application to the Court to employ Bethune; but I did not find in the application (or letter of agreement) the indication that Bethune's work should be completed by mid-January.

I saw the obvious statements: Bethune will be paid $250k for 10 days work, then $250k for every 10 days beyond the original 10 days, and then get approval if his fees should exceed $1m.

I must have overlooked the mid-January indication. Can you point me in the right direction (Page #)? It is of no consequence, but I would like to know for my own personal gain.

 

[BoeingBoy]

I must have overlooked the mid-January indication.

No, you are entirely correct - it is not in the filing. I was remiss and should have pointed out that the mid-Jan completion timeframe for Gordo's work came from media reports.

"The two sides have traded gigabytes of competing Powerpoint presentations this week, and Mr Bethune is expected to assist an assessment which sources close to the committee do not expect to be concluded until mid-January."

One of the media reports

Jim

 

[USA320Pilot]

Labor negotiations are moving ahead and progress is being made. I believe it si important to note that union public correspondence often times is designed to posture people, both management and rank-and-file members.

On December 14, the ALPA Joint Negotiating Committee said, "At this point, every section of your future Collective Bargaining Agreement is now in play. As the new year looms, your JNC has now put in place the building blocks upon which to consummate our agreement."

What is interesting, is that certain recently retired pilots can gain access to private emails, twist infomration to try to discredit a person they do not like, and not answer questions about how he obtained this information, but he cannot provide updated information from the ALPA JNC. How can that be?

Finally, experienced union members recognize when every section of a contract is opened you’re at the point of mathematics and simply filling in numbers to complete the equation. During this period rhetoric increases to try to apply leverage to complete an agreement. It’s interesting that some people leave important information such as a recent JNC update or third party comment posturing and post code-a-phone’s written earlier than the JNC update.

In a presentation to analysts last week, US Airways said:

- All representation issues have been resolved.
- Single agreement (new contract in place with passenger service and dispatch (unions).
- Transition agreements in place with ALPA, AFA, IAM Fleet, and IAM Mechanics. On going single agreement negotiations underway with these groups.
- Planning to move to a single operating certificate by the end of 1H 2007, separate from negotiations.

http://library.corporate-ir.net/library/19...bservations.pdf]See Story://http://library.corporate-ir.net/lib...s.pdf]See Story://http://library.corporate-ir.net/lib...s.pdf]See Story://http://library.corporate-ir.net/lib...s.pdf]See Story

Even though this information was made public last week certain people do not provide this information during the debate. How can that be?

Regards,

USA320Pilot

 

[BoeingBoy]

Hmmmm, engaging in a little "shooting the messenger"?

I merely posted a couple of code-a-phone messages (editing out the non-negotiation portions of the first. The first of which you posted in one of your "Update" threads. Funny that it apparently wasn't "just public posturing" then, but it is now.....

Jim

 

[700UW]

Keep ignoring the IAM there 320,

I spoke to members of the M&R Committee, there is no progress to report, company is stonewalling, but hey you know it all, since you are the guru of US Airways.

Dont let the facts get in your way.

It took solidarity amongst the ramp in PHX to get the company back to the table.

The company has not responded to either IAM's group full and comprehensive proposals.

Stick to things you know.

 

[700UW]

The only thing they are allowed to outsource now with the transition agreement are the widebodies and only some 757s but have to maintain the staffing levels and levels of work.

The rest of the 737s and 757s are coming back in-house as are the HP Fleet this spring.

 

[Awa Contract]

Still don't see the airbus fleet coming back as the IAM promised, welcome to our world, Parker doesn't care what contracts say. They showed that with thier "notes" that they based thier response on. I hope the IAM can pull it off but I have dealt with this group to many years to see it happening.

 

[700UW]

They are coming back in when the east metal is done. I have been told they are all ready on the planning schedule.

The work is going to be done at CLT and PIT.

 

[delldude]

IAM District 142 Negotations Update

IAM District 141 Fleet Service Negotiations Update

As you can see, there no progress going on.

How could you be so wrong again mr know it all pilot?

Because he hasn't been going into the closet and coming out as Ralphcramden lately.....

Whats it all about....Ralphie?

 

[PA18]

MMB:

In my opinion, the best merger's are the ones that provide a quality product to its customers and provides the best job security, pay, and benfits to its employees.

From what I have seen at the new US Airways, this could happen between Delta and US Airways.

You're kidding, right?

The combined "quality product" of HP/US absolutely stinks.

Cramming more seats into aircraft; gouging First Class passengers (the few that actually pay for it) and then providing a terrible FC product, which includes not providing a place to hang a coat or any overhead space in FC; not even providing a free newspaper to your best and highest-yield customers on the Shuttle; using the DCA Shuttle as a means of connecting the $39 Wal-Mart fares to Walley World because you provide no non-stop service to Florida from the northeast; and subjecting practically every single passenger flying north to south to the nightmare of connecting in PHL (while JetBlue, Southwest, AirTran and Delta passengers fly serenely overhead PHL on their non-stop flights).

As for pay and benefits, Jerry Glass is using the same tried-and-true technique that has worked on you time and time again.

Foot-dragging and stonewalling until the 11th hour, when they'll come out and say 'We need a "cost neutral" (read: concessionary) contract right now, or the merger(s) won't take place.' And once again, the pants-wetters among you will come out of the woodwork, screaming "Hurry up and let me vote 'Yes' on whatever it is Glass wants!"

(BTW, the Delta pilots had the guts to stand up to their company's threats and take their negotiations to the brink. They now make more money than you, they are recalling pilots [and not to some C-Scale Replacement Jet like the E-190], they are buying airplanes, and they have a retirement escrow account that is for real, and not made up of "Davey Dollars" fairy dust.)

 

[ussnark]

Nevermind 320 but if memory serves me isn't/wasn't there a sort of "Pecking" order during negotiations/

Yes and no.

320 is so cute. He should stick to his forte; excessive and meaningless verbiage.

There is no formal "pecking order" on negotiations.

Also isn't the reason mechs go towards the end is once they have all of the customer facing and in flight stuff done rhey feel that given the IAM's reputation for being difficult that they can outsource MTC if they need to should "something" happen?

There is not excessive outsourcing maintenance available, normally. I would think "punishing" the IAM by outsourcing would be somewhat self-defeating.

The only reason it became an issue lately was because Dr. Bronner outbid Texas Air Group by $50m, with the expectation that his "available" maintenance facilities would be used for certain maintenance.

After a one year honeymoon, their facilities worked most of the bugs out and while a few aircraft still go by the term "Christine" that appellation is no longer applied willy-nilly to the latest aircraft to return from Dr. Bronners facilities, normally.

It would be far cheaper, IMO, to do maintenance "in-house", but then, I have yet to see much effort devoted to reducing costs other than those associated with labor. I guess if one does not count lost opportunity costs then we might be doing the "right" thing but that ignores the elephant in the room as the fertilizer piles up. Eventually, the loss of control of the process will bite USAirways.

 

[Rico]

I think it is funny to see you all argue about which carrier sucks the least.

*News Flash* In the competitive marketplace that both carriers operate in, neither DAL nor US have had the ability to offer a great product to your customers.

You have instead both offered a watered-down version of former service levels, and relied heavily upon your loyalty programs and alliance partnerships to retain your key passenger base.

All reamining open seats are sold at a loss to scratch out what little revenue remains. The only real difference in the last few years, is that capacity has dropped (meaning plane size), decreasing the need to wholesale ticket prices on the reamining seats.

And as a result, the joke is on you, because more than half the time, your passengers are not even flying on your airline...,

They are flying on someone like Mesa or Republic under your colors.

*News Flash* Your passengers get the same treatment from Mesa no matter whose paint job is on the outside.

I'm sick of this discussion, you are all too focused on your own little myopic viewpoint, and cannot realize that ALL US Airlines are going to suck until there is enough consolidation in the industry to produce pricing power.

If you still think that merging with say, NWA, and then fighting the competition head to head in new markets (with little to no increase in market share) makes better economic sense than acquiring your competition (and thus controlling market share), then you are too far gone into your own world to see reality.

 

[FrugalFlyerv2.0]

If you still think that merging with say, NWA, and then fighting the competition head to head in new markets (with little to no increase in market share) makes better economic sense than acquiring your competition (and thus controlling market share), then you are too far gone into your own world to see reality.

If the goal is to acquire & eliminate a competitor, shouldn't US be making a bid for Jetblue, or Airtran, or Spirit, or even SW? These competitors pose more of a threat to US than DL. Isn't DL a weaker competitor than most of the aforementioned carriers? Sure none of those are for sale or in bankruptcy, but money does talk... ... ...

 

[USCREW]

If the goal is to acquire & eliminate a competitor, shouldn't US be making a bid for Jetblue, or Airtran, or Spirit, or even SW? These competitors pose more of a threat to US than DL. Isn't DL a weaker competitor than most of the aforementioned carriers? Sure none of those are for sale or in bankruptcy, but money does talk... ... ...

We can only handle THREE airlines at a time for heaven sakes!!!!!