Who wants a merger with US?

[wings396]

So, even though I'm really just a Joe Nobody, I am Richard Anderson by arguing against AA-US but all of these AA people don't represent their execs who also can see thru US' plan?
Whatever.
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Given the fact that US is not generating revenue on par with DL and UA, the two megacarriers whose club that US wants to join with an AA takeover, then it is absolutely obvious that AA employees will have to endure cuts in order to make the US network work - unless of course Parker is willing to sacrifice his own people in order to allow AA people to not have to take cuts.
One way or the other, the cuts will be made in a merger... he can't promise a billion dollars plus in cost savings and not expect some employees to be impacted.
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The simple reality is that US is in the weakest position to make a viable offer financially so the only argument they have is "we are the smallest and create the least antitrust issues"... as if that will win over the creditors.
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AMR and its creditors (whom AA mgmt has first responsibility to right now) will do what returns the highest amount to the creditors....
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And it doesn't change the fact that AA-US still doesn't solve major strategic issues noted above, including by others.
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Bottom line is the same as it was when US started talk of going after AA - and thus it is highly doubtful that US will be able to demonstrate that it can bring anything superior to the table compared to what AA can bring on its own.... or more succintly, US' interest in acquiring AA is alot more about saving US than AA.
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Creditors along with most everyone else can see through that.
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Did you miss the article that says AA execs are not terribly excited about a US deal or the overtures by US' leadership team?... perhaps you should focus your attention on convincing them.

Oh heck Richard, you go against anything that's not good for Delta. So your airline and UA get to be megacarriers, and the hell with anyone else that tries to get on the same level. Should Parker and US just sit idle and do nothing?
I know you and Delta woukd love that. Is it nit true that Delta counted heavily on US going away a few years back as their own survival plan? Get real, your objectives are crystal clear here.
And if you or any of the AA folks think that they are going to get on level with the big 2 alone, they are kidding themselves.
You are the biggest Delta Spinmaster that these boards have ever seen.
Were you by any chance Delta777 in a last life? He cane an went a whole back. Did you steal his Delta Koolaide?

 

[AAviator]

And if you or any of the AA folks think that they are going to get on level with the big 2 alone, they are kidding themselves.

Meh.. A merger with B6, and the purchase of LCC DCA/NYC assets from your coming BK if Dougie doesn't pull this attempt off....

We'll make it.

Plenty of metal on the way....

 

[USA320Pilot]

Bob, at LCC, the A330 Captains make less than our MD80 Captains. Our 777 F/O's make more per hour than every other LCC pilot. This is even true considering the 1113c.

A Republic airlines EMB 145 Captain makes more per hour than an a LCC E190 Captain

Our EAGLE Crj700 Captains make more than LCC E190 Captains.

Somehow, they believe that Parker will pay us more, even up to Delta rates, (and bringing theirs up there too) will generate support for such a merger...




🙄

After the S.1113 process without a merger AA pilots will have many cuts deeper than US Airways' pilots if AMR is successful at imposing its term sheet.

 

[AAviator]

After the S.1113 process without a merger AA pilots will have many cuts deeper than US Airways' pilots if AMR is successful at imposing its term sheet.

Pretty big IF..

You seem to be history challenged.

Here's the DAL sec. 1113c vs. settlement:
http://project7alpha.com/wp1/wp-content/uploads/2012/01/Delta1113_opener_vs._loa_51.pdf

Here's the NWA version:

http://project7alpha.com/wp1/wp-content/uploads/2012/01/20060413-NWA-ALPA-Across-the-Table-1113c_TA-comparison.pdf

There has never, not been a negotiated settlement.

BTW how have your past mergers worked out? What are you 0 for 5? 😛

Hmmmm?

 

[eolesen]

After the S.1113 process without a merger AA pilots will have many cuts deeper than US Airways' pilots if AMR is successful at imposing its term sheet.

Chip, the fact is that hourly rates weren't materially cut.

And there's no way you can convince me that a merger by which US's employees are brought up to AA's current pay rates would be sustainable.

The only way any AA-US scenario works in my mind is to take AA's term sheet workrules with US's pay scales *AND* to cut some 20-30% of the combined entities.

And you know full well that dog ain't gonna hunt with the unions on either side. AA's employees don't want to be pushed to the bottom of the pay scales, and the more junior pm-HP employees don't want to be pushed out the door.

As a pm-US employee, it might sound good, though.

Frankly, if you're going to merge just to cut out almost as much as you've gained, AA might as well continue to fix things and grow organically.

 

[FWAAA]

After the S.1113 process without a merger AA pilots will have many cuts deeper than US Airways' pilots if AMR is successful at imposing its term sheet.

I don't know why you persist in posting this falsehood, especially since others have pointed out its untruthfulness.

You fly A320s for US East for a meager $125/hr. AA's narrowbody (737 and MD-80) captains average about $40/hr more than you with substantially better benefits and much more restrictive workrules that result in the average AA captain making tens of thousands of dollars more than you or any of your colleagues.

As has been pointed out to you previously, AA is not seeking to cut pilot payrates. AA is seeking to work the pilots much more extensively for the pay they've already been getting and will continue to get. AA is seeking to gut scope so that AA can fly large RJs (up to 88 seats) at commuter airlines for cheap rates.

You really should read the AA term sheet it seeks to impose on its pilots. Even if it is successful, AA pilots, on average, will still earn tens of thousands of dollars more than the average US pilot.

It's one thing to post outlandish opinions - this site does not prohibit or discourage that practice. But the rules of this site prohibit posting non-true information. As you frequently cite this site's rules, perhaps you should review them and perhaps fact-check the material you post.

 

[AAviator]

This guy lives in a world of contorted realty and supposition.

There isn't a pilot group in the US that has done more to hurt this industry and the profession than his.

 

[Bob Owens]

I don't know why you persist in posting this falsehood, especially since others have pointed out its untruthfulness.

You fly A320s for US East for a meager $125/hr. AA's narrowbody (737 and MD-80) captains average about $40/hr more than you with substantially better benefits and much more restrictive workrules that result in the average AA captain making tens of thousands of dollars more than you or any of your colleagues.

As has been pointed out to you previously, AA is not seeking to cut pilot payrates. AA is seeking to work the pilots much more extensively for the pay they've already been getting and will continue to get. AA is seeking to gut scope so that AA can fly large RJs (up to 88 seats) at commuter airlines for cheap rates.

You really should read the AA term sheet it seeks to impose on its pilots. Even if it is successful, AA pilots, on average, will still earn tens of thousands of dollars more than the average US pilot.

It's one thing to post outlandish opinions - this site does not prohibit or discourage that practice. But the rules of this site prohibit posting non-true information. As you frequently cite this site's rules, perhaps you should review them and perhaps fact-check the material you post.

 

[Bob Owens]

The mechanics would get a pay raise, more vacation, more holidays, more sick time, better it rules etc

 

[wings396]

Then quit spending your waking hours cheerleading for a merger.

I'm not cheerleading for a merger, just saying that anything can happen in this business. I've been thru 3 mergers already, and keep ticking away. As many former PI employees can tell you, they didn't want to merge with the old US either, but that didn't matter much. I just like to get a rise out of those of you that actually think your opinion makes any difference to those in power. This airline will hold up long enough for me to get away regardless of what takes place with AA.

 

[wings396]

Then quit spending your waking hours cheerleading for a merger.

I am willing to bet that you have posted more than I have in regard to this US AA thing. Kicking and screaming that it can't happen, it won't happen, I don't want it to happen, and so on. If they come and ask you, please let me know. Your company is in bk, and in bad shape. That 4 billion is dwidling by the day, and all that shiney new metal in the future does nothing for you now. It's like me counting on winning the lottery for my retirement. Nothing in the future is guarenteed. Pitting all of your hopes in what AA says its going to do is wishful thinking. I'm willing to bet that AA will be just about the same size as US when the cuts are all in place. You will then find yourselves looking up at the DL & UA giants, and wondering what to do. AA will never get to that level on their own, like it or not.
Good luck to all.

 

[FWAAA]

I am willing to bet that you have posted more than I have in regard to this US AA thing. Kicking and screaming that it can't happen, it won't happen, I don't want it to happen, and so on. If they come and ask you, please let me know. Your company is in bk, and in bad shape. That 4 billion is dwidling by the day, and all that shiney new metal in the future does nothing for you now. It's like me counting on winning the lottery for my retirement. Nothing in the future is guarenteed. Pitting all of your hopes in what AA says its going to do is wishful thinking. I'm willing to bet that AA will be just about the same size as US when the cuts are all in place. You will then find yourselves looking up at the DL & UA giants, and wondering what to do. AA will never get to that level on their own, like it or not.
Good luck to all.

You're flat wrong about the bolded part. It's not been dwindling, it's been growing. AA's cash balance has grown since it filed on Nov 29. It grew substantially in February (as it often does) as AA sold lots of advance purchase tickets. Additionally, there are some bills not being paid while in Ch 11 which helps preserve cash.

 

[damajagua]

After the S.1113 process without a merger AA pilots will have many cuts deeper than US Airways' pilots if AMR is successful at imposing its term sheet.

Lies lies and more lies. Get your fact right before you make erroneous comments.

 

[robbedagain]

question how can that cash be growing yet just the other day AA reported they spent 2 plus/minus millions just alone on the legal fees?

 

[FWAAA]

question how can that cash be growing yet just the other day AA reported they spent 2 plus/minus millions just alone on the legal fees?

AA is going to sell about $21 or $22 billion worth of tickets this year (plus about three billion of cargo and other revenue). As you know, not everyone shows up at the airport and buys a ticket for the next flight. Billions of dollars of AA's ticket sales are for advance purchase fares. In the early part of the year, vacationers buy tickets for spring and summer travel. That cash shows up in AA's bank account even though AA hasn't provided any service to them yet. Their flights don't depart for weeks or months in the future.

A couple million for legal fees? Compared to a billion or more for advance purchase tickets? AA is spending nearly $2 billion per month on all its expenses, including the attorneys' fees and other parasitic advisors. But if passengers have bought a billion or two worth of advance purchase fares, that adds to AA's cash balance.

Another thing: AA will pay some of the parasites as their bills are turned in but a lot of those bills won't be paid right away.

Bottom line: Cash balance can grow even though AA is losing money - just like before bankruptcy when cash would sometimes grow even though AA was losing money. Accounting losses for accrual basis taxpayers don't always equate to cash out the door. Individuals are usually cash-basis taxpayers and expenses generally match the cash out the door. Not always the case under the Generally Accepted Accounting Principles (GAAP).