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Will USAirways 5th Trip Down Merger Runway Work?  
User currently offlineKarlB737 From United States of America, joined Mar 2004, 3048 posts, RR: 10
Posted (8 years 10 months 2 weeks 4 days 6 hours ago) and read 2992 times:

Courtesy: Pittsburgh Post-Gazette

http://www.post-gazette.com/pg/05163/519945.stm

16 replies: All unread, jump to last
 
User currently offlineKC135TopBoom From United States of America, joined Jan 2005, 12071 posts, RR: 52
Reply 1, posted (8 years 10 months 2 weeks 4 days 3 hours ago) and read 2905 times:

While the story is right, US will not survive without a merger, a merger with another carrier will spell doom for both carriers. I only hope HP realizes this before the joke of a merger with US gets to far.

The artical correctly points out why to prior offer to merge with UA failed. The UA labor force, being junior to the labor force at US, would take the bulk of the lay-offs, first. This is the same problem with the HP labor force. The HP employees will be junior to the US employees.

US needs to liquidate, and not take a more viable carrier with them.


User currently offlineUALGSO From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 10 months 2 weeks 3 days 14 hours ago) and read 2724 times:

Quoting KC135TopBoom (Reply 1):
The artical correctly points out why to prior offer to merge with UA failed. The UA labor force, being junior to the labor force at US, would take the bulk of the lay-offs, first.

Not to sure about this one, I don't know many US employees prior to 9-11 who had 45-50 years seniority.


User currently offlineCloudy From , joined Dec 1969, posts, RR:
Reply 3, posted (8 years 10 months 2 weeks 2 days 3 hours ago) and read 2603 times:

What will the name of the merged entity be? ATSB Air?

User currently offlineCaptoveur From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 10 months 2 weeks 2 days 2 hours ago) and read 2558 times:

No...

The other 4 mergers were only prolonging the inevitable.. why would the next one be any different?

Was US ever very successful? I know some years they made miniscule amounts of money but were they ever anywhere near the profitability of a healthy United, American, Continental, Etc.


User currently offlineGigneil From United States of America, joined Nov 2002, 16345 posts, RR: 86
Reply 5, posted (8 years 10 months 2 weeks 2 days 2 hours ago) and read 2540 times:

Yep. In the mid to late 90s US was one of the more profitable.

N


User currently offline727LOVER From United States of America, joined Oct 2001, 5963 posts, RR: 17
Reply 6, posted (8 years 10 months 2 weeks 1 day 23 hours ago) and read 2468 times:

Mistake #1
Fearing a strike, Colodny, known as "Uncle Ed" to his employees, did not push for labor costs to come down as a result of the new acquisition. Instead, Colodny raised wages at Piedmont and PSA in an attempt to maintain labor peace.

Mistake #2
Next Schofield tried to get labor costs down, but he could not get unions to approve a five-year, $2.5 billion package of concessions.

Mistake #3
But company costs were rising, the result of awarding pilots a lucrative contract giving them pay parity with other major carriers, plus 1 percent.
"That is when things started going wrong," the former executive said



BUT THE UNIONS ALWAYS WANT TO BLAME MANAGEMENT?????????









As far as seniority issues, isn't this an estate sale? Why is it an issue?



Listen Betty, don't start up with your 'White Zone' s*** again.
User currently offlineSupa7E7 From , joined Dec 1969, posts, RR:
Reply 7, posted (8 years 10 months 2 weeks 1 day 23 hours ago) and read 2427 times:

ALPA from US and HP has been reportedly at the negotiating table settling this issue for a couple weeks.

I think US and HP might integrate their seniority lists on a relative basis -- basically making the top HP guy even with the top US guy and the bottoms equal too. US pilots are probably happy their airline will survive at all, thus they may be inclined to offer something favorable to their HP "brothers" in the cockpit. Wait, that sounded funny for some reason.


User currently offlinePhoenixX2 From United States of America, joined Apr 2005, 100 posts, RR: 0
Reply 8, posted (8 years 10 months 2 weeks 1 day 21 hours ago) and read 2367 times:

Could they not have two seniority rosters, one for an east coast crew base (US) and a west coast base (HP). They can only transfer and bump if there is an opening at the other crew base? I would think before all this happens that US, having parked 35 more A/C, would have a lot less crews and if early retirement is offered, who knows. Your thoughts.

User currently offlineN867BX From United States of America, joined Nov 2004, 339 posts, RR: 0
Reply 9, posted (8 years 10 months 2 weeks 1 day 18 hours ago) and read 2295 times:

In the long term this marriage could work. The short term issues may kill them first.

User currently offlineCslusarc From Canada, joined May 2005, 829 posts, RR: 0
Reply 10, posted (8 years 10 months 2 weeks 1 day 17 hours ago) and read 2266 times:

We all don't know IF this merger will work. Most of us look to the past to see if the merger will be successful. However most US air carriers haven't had big success stories with mergers generally. Let's go back to the 1980s. There you had US Airways trying successfully integrate PSA and Piedmont with their system. Unfortunately US Airways was plagues by a variety of INTERNAL challenges. Its choice to finance both expensive deals with more expensive debt. The combined entity was saddled with higher costs and greater inefficiency in addition culture clashes between the labour groups.


The success of the merger between US Airways and America West is increasingly dependent upon external factors rather than internal factors. The combined airline will have low costs, high productivity and efficiency, a moderate level of debt and little or no culture clashes between labour groups.
The new US Airways will continue to be challenged by an environment plagued with an over abundance of industry capacity, resulting in a lower than should be RASM environment, and near record high petroleum prices as expressed in real $$$ but record high when expressed in absolute $$$.



--cslusarc from YWG
User currently offlineKarlB737 From United States of America, joined Mar 2004, 3048 posts, RR: 10
Reply 11, posted (8 years 10 months 2 weeks 2 hours ago) and read 2164 times:

Courtesy: MarketWatch

America West's High-Stakes Bet Is Paying Off So Far

http://www.marketwatch.com/news/yhoo...F2%2D4EAD%2D9843%2D6479E7B78E00%7D


User currently offlineDCAflyboy From United States of America, joined Apr 2005, 143 posts, RR: 0
Reply 12, posted (8 years 10 months 1 week 6 days 22 hours ago) and read 2090 times:

Quoting KC135TopBoom (Reply 1):
US needs to liquidate, and not take a more viable carrier with them.

Hmm...let's see: viable because they had a successful bankruptcy, got their costs in-line and changed their fare structure. Sounds exactly like what US is on track with completing. If HP can do it why can't US? Then both can be a viable competitor -- together.


User currently offlineDCAflyboy From United States of America, joined Apr 2005, 143 posts, RR: 0
Reply 13, posted (8 years 10 months 1 week 6 days 22 hours ago) and read 2089 times:

Quoting KC135TopBoom (Reply 1):
The UA labor force, being junior to the labor force at US, would take the bulk of the lay-offs, first.

This is totally incorrect.


User currently offlineElagabal From United Kingdom, joined Mar 2005, 197 posts, RR: 0
Reply 14, posted (8 years 10 months 1 week 6 days 14 hours ago) and read 2007 times:

Quoting Cslusarc (Reply 10):
The new US Airways will continue to be challenged by an environment plagued with an over abundance of industry capacity, resulting in a lower than should be RASM environment, and near record high petroleum prices as expressed in real $$$ but record high when expressed in absolute $$$.

Yes, yes and - no. At least it's pretty doubtful. I'm not sure what you mean by "absolute $$$," but if you adjust for inflation, you'll see that oil in 1981? '83? sold for the then-current equivalent of $80+ per barrel. (If by "real" you mean historically adjusted and "absolute," current face value, my mistake.)

Times're bad, but not that bad. Or rather the problems that struggling carriers have from oil alone, should not be slighted but can still be exaggerated. As for the merger, I'm impressed that US have survived this far... Who knows what?


User currently offlineCornish From United Kingdom, joined Feb 2005, 8187 posts, RR: 54
Reply 15, posted (8 years 10 months 1 week 6 days 13 hours ago) and read 1998 times:

Quoting Elagabal (Reply 14):
Yes, yes and - no. At least it's pretty doubtful. I'm not sure what you mean by "absolute $$$," but if you adjust for inflation, you'll see that oil in 1981? '83? sold for the then-current equivalent of $80+ per barrel. (If by "real" you mean historically adjusted and "absolute," current face value, my mistake.)

Times're bad, but not that bad. Or rather the problems that struggling carriers have from oil alone, should not be slighted but can still be exaggerated. As for the merger, I'm impressed that US have survived this far... Who knows what?

Exactly - yes oil prices are high, but that is not what is hurting the airlines at the moment - whatever they might say publicly.

It's the chronic overcapacity in the market that is the problem, and it is not easing in the slightest as the LCCs continue to expand. With US and HP having very little overlapping of their route networks, this merger is going to do absolutely nothing to cut this capacity. It really needed two airlines with very similar networks to merge and then they could have cut a large number of duplicated routes. Until this happens, or somebody major goes out of business, this situation isn't going to change - regardless of what the price of oil does.

Oil prices are affecting everybody, and if they have to raise their prices with a fuel surcharge they will - and people are still going to fly. Increased prices because of oil may stop a few of the low yield bargain seeking travellers from flying, but it won't stop the higher yield ones.

Staff costs are still far more of an issue than oil costs, but the real burden on the airlines at the moment is that there are far too many seats offered for the number of passengers out there.



Just when I thought I could see light at the end of the tunnel, it was some B*****d with a torch bringing me more work
User currently offlineTheGreatChecko From United States of America, joined Mar 2004, 1128 posts, RR: 2
Reply 16, posted (8 years 10 months 1 week 6 days 4 hours ago) and read 1908 times:

Quoting Cornish (Reply 15):
the real burden on the airlines at the moment is that there are far too many seats offered for the number of passengers out there

BINGO! There is little to no pricing power left to absorb the additional costs. Everybody is creeping prices up ever so slowly, but its still not enough.

IMHO, This merger won't work. HP = little loss + US = BIG Loss, doesn't that equal HUGE loss?

Just my $.2

GreatChecko



"A pilot's plane she is. She will love you if you deserve it, and try to kill you if you don't...She is the Mighty Q400"
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