KarlB737
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Will USAirways 5th Trip Down Merger Runway Work?

Mon Jun 13, 2005 2:00 am

Courtesy: Pittsburgh Post-Gazette

http://www.post-gazette.com/pg/05163/519945.stm
 
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kc135topboom
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Mon Jun 13, 2005 4:57 am

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.
 
UALGSO
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Mon Jun 13, 2005 6:03 pm

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.
 
cloudy
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 5:43 am

What will the name of the merged entity be? ATSB Air?
 
CaptOveur
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 6:23 am

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.
Things were better when it was two guys in a dorm room.
 
gigneil
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 6:29 am

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

N
 
727LOVER
Posts: 6603
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 8:57 am

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?
I feel woozy....what did you put in that Pudding Pop?
 
supa7E7
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 9:26 am

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.
"Who's to say spaceships aren't fine art?" - Phil Lesh
 
phoenixX2
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 11:25 am

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.
 
N867BX
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 2:21 pm

In the long term this marriage could work. The short term issues may kill them first.
 
cslusarc
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Wed Jun 15, 2005 3:49 pm

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
 
KarlB737
Topic Author
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Fri Jun 17, 2005 6:52 am

Courtesy: MarketWatch

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

http://www.marketwatch.com/news/yhoo...F2%2D4EAD%2D9843%2D6479E7B78E00%7D
 
DCAflyboy
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Fri Jun 17, 2005 10:06 am

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.
 
DCAflyboy
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Fri Jun 17, 2005 10:08 am

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.
 
Elagabal
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Fri Jun 17, 2005 6:54 pm

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?
 
cornish
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Fri Jun 17, 2005 7:29 pm

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
 
thegreatchecko
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RE: Will USAirways 5th Trip Down Merger Runway Work?

Sat Jun 18, 2005 4:13 am

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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