Quoting DeltaGuy (Reply 49): The truth is that their "synergies" are based on deeply flawed economic assumptions and are overstated. The merger would result in increased costs and creditor claims that would offset any savings, mismatched fleets, 10% network reduction, the loss of at least 10,000 jobs and a huge, $23 billion debt load. |
Are the assumptions overstated? Perhaps, but certainly no more so than DL's predictions of their own recovery. Fleet type mismatch has been debunked many times, especially at the scale of the new company. 10% capacity reduction, not network reduction. No loss of line jobs, only those in management. I can't believe that number is in the 10k range, that's 20% of all employees (using 2005 numbers, unable to find 2006).
Quoting DeltaGuy (Reply 49): The truth is that US' proposal has overwhelming labor issues that would scuttle the proposed transaction. Even US employees are saying, "We are very skeptical of the company's ability to put together a three way merger when they haven't even been successful with a two-way merger," said Tania Bziukiewicz, US Airways pilot/Spokesman for America West pilots. |
They just got the dispatchers on the same contract and they're working on the other groups. Labor leaders always complain and posture publicly, the merger is mostly complete and is on track to be completed in the first half of 2007.
Quoting DeltaGuy (Reply 49): The truth is that, as Senator Saxby Chambliss points out, "This proposed deal is good for US Airways, but a bad deal for Delta." Delta is already the largest carrier across the Atlantic to Europe and is already the fastest growing carrier in the Caribbean. |
He may well be correct but I'm also thinking a senator from GA is angling for voter support.
Quoting DeltaGuy (Reply 49): The truth is that US Airways ranks low on ALL customer service dimensions in the most recent JD Powers survey. Meanwhile, Delta ranked No. 1 or No. 2 in all categories and No. 2 overall. So naturally they would want to take advantage of the hard-earned success of DL employees. |
I don't believe that this is even a minor factor in the proposal from US.
Quoting DeltaGuy (Reply 49): The truth is that they fail to mention that they've also increased average fares nearly twice that of other legacy carriers. And pricing has gone up, not down, on 6,600 US Airways routes following its merger. |
If that's the case it should be easy for other airlines to take advantage of US's pricing mistakes.