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Washington Post: Merger Last Shot For US Survival  
User currently offlineCBERFlyer From United States of America, joined Mar 2005, 134 posts, RR: 0
Posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2929 times:

From today's Washington Post:

http://www.washingtonpost.com/wp-dyn...le/2005/05/17/AR2005051701566.html

11 replies: All unread, jump to last
 
User currently offlineKC135TopBoom From United States of America, joined Jan 2005, 12171 posts, RR: 51
Reply 1, posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2904 times:

I agree, this is US's last chance. But, remember, America West isn't very healthy, either. They only had the las quarter where they posted a small profit, about $30M, IIRC.

User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 2, posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2890 times:

The first decent analysis from a newspaper this year. They hit it right on the head with this one regarding the proposed merger with UAL:

"They put the entire future of the airline into this merger," said Roy Freundlich, who served as chief spokesman for US Airways' pilots union from 1997 through 2003. "They spent an entire year on getting that merger through. It was the greatest neglect of the airline."

They neglected little things like the growth of Airtran, SW, Jetblue; the advent of regional jets; they neglected cost containment. Bad planning, too costly an operation and the lack of will to implement change quickly has all but killed them off.

Now if this HP thing fails, they are history.



One Nation Under God
User currently offlineUsAirways16bwi From United States of America, joined May 2004, 1004 posts, RR: 4
Reply 3, posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2847 times:

Quoting KC135TopBoom (Reply 1):
this is US's last chance



Quoting DAYflyer (Reply 2):
Now if this HP thing fails, they are history.

yea, sad but true. but if this goes as planned, i can see the airline becoming very huge. lets hope they play their cards right and make it happen.  crossfingers 


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 4, posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2798 times:

I hope it works for both companies. We sure don't need anymore jobless people out there.


One Nation Under God
User currently offlineLTBEWR From United States of America, joined Jan 2004, 13169 posts, RR: 15
Reply 5, posted (9 years 6 months 1 week 3 days 10 hours ago) and read 2768 times:

While I still see this as a 'shotgun' wedding overseen by GE Credit, Airbus and others, I do agree that this HP-US merger may be the only hope for US now and maybe even HP in the long run. Still, there will be people booted on the line, but glad to see some 'managers' and executives booted. The HQ will be in PXH, which is probably has a (slightly) cheaper cost of living than DC/northern VA area, as well as certain tax advantages. I just hope that this merger works out and keeps the majority of employees.

User currently offlineCommavia From United States of America, joined Apr 2005, 11819 posts, RR: 62
Reply 6, posted (9 years 6 months 1 week 3 days 9 hours ago) and read 2643 times:

This article was well written and offered very strong, objective analysis of the situation (who would have thought that "well written" and "strong" would every be used to describe a journalistic account of the airline industry?).

I agree with just about every point it makes. As the article points out, the writing has been on the wall for everybody in or around US since the late 1990s when labor issues began to bubble up. The proposed (but doomed from the start) UA merger not only exacerbated labor unrest but totally took the US management's eye of the ball by taking their attention away from lowering costs and fighting back the low cost carriers that now rule the eastern seabord. Then 9/11 hit, and the you-know-what hit the fan. Now, nearly four years after September 11, and nearly a decade since US' troubes began to surface, the game is up. US has not other option but this HP merger. US is boxed into a corner, but HP is not, which is why I am surprised that HP's otherwise very smart management team would want to take this merger on. Nonetheless, I wish the best to all the people and families involved with both airlines, but have very serious doubts and reservations about the potential and success of the about-to-be-announced US-HP tie up.


User currently offlineCubsrule From United States of America, joined May 2004, 23203 posts, RR: 20
Reply 7, posted (9 years 6 months 1 week 3 days 9 hours ago) and read 2572 times:

Anyone else find the two tails in that picture a little ironic?


I can't decide whether I miss the tulip or the bowling shoe more
User currently offlineByrdluvs747 From United States of America, joined Jul 2004, 2421 posts, RR: 1
Reply 8, posted (9 years 6 months 1 week 3 days 8 hours ago) and read 2502 times:

Quoting Commavia (Reply 6):
US is boxed into a corner, but HP is not,

Which makes me wonder if HP is demanding some strong terms in its favor like work rule changes, employee protections, etc..



The 747: The hands who designed it were guided by god.
User currently offlinePope From , joined Dec 1969, posts, RR:
Reply 9, posted (9 years 6 months 1 week 3 days 8 hours ago) and read 2462 times:

Quoting DAYflyer (Reply 4):
We sure don't need anymore jobless people out there.

If the companies merge there will still be lay-offs. One of the basic assumption of any merger is that synergies are created that allow duplicate functions to be eliminated and responsibilities to be consolidated.

However, line workers (at least in locations were there is no overlap of service) are probably in a much better position than middle management whose jobs can be consolidated in one location with relative ease.


User currently offlineCommavia From United States of America, joined Apr 2005, 11819 posts, RR: 62
Reply 10, posted (9 years 6 months 1 week 3 days 7 hours ago) and read 2380 times:

Quoting Cubsrule (Reply 7):
Anyone else find the two tails in that picture a little ironic?

The text of the article was good. I guess getting the right picture with the right article is too much to ask for ... ahh, journalists!  Wink

Quoting Byrdluvs747 (Reply 8):
Which makes me wonder if HP is demanding some strong terms in its favor like work rule changes, employee protections, etc..

I think that is quite possible, and it sets up what I feel confident will be the single biggest integration issue between the two carriers -- more than fleets, routes, facilities, equipment -- and that is, of course, labor. Labor is always the most prickly integration issue when two airlines combine, but the overwhelming (and justifiable) bitterness of the US folks is not going to help the situation much, especially since I doubt that even more concessions and work rule changes is going to go over real big with US workers.


User currently offlineORDagent From United States of America, joined Dec 2003, 823 posts, RR: 1
Reply 11, posted (9 years 6 months 1 week 3 days 7 hours ago) and read 2271 times:

I hope this works! HP is a great airline that has rebuilt itself several times to survive. The only good point as far as jobs go is that there is relatively little overlap in hubs etc. I hope this keeps the front line jobs a little more secure. HP has done a fantastic job of competing and even thriving in WN's backyard! I hope they can bring that skill to BWI,PHL etc. My biggest fear is that this may kill both carriers. I wish that the HP brand would take over but oh well.

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