Announcement

Collapse
No announcement yet.

AA/US merger looks to be moving fast

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • AA/US merger looks to be moving fast

    The unions of AA now publicly support the idea of a merger and have even negotiated new collective agreement with the to-be entity that doesn't even exist yet!

    Looks like the merger is inevitable, and my guess is the new merged entity will stay in OW.

    Workers for three American Airlines unions have agreed to support a potential merger with US Airways Group, according to a US Air document filed with the Securities and Exchange Commission on Friday.
    Next:
    None Planned


  • #2
    Though technically they still have a couple of months to go before anything can happen, it sure looks to be more inevitable than before of the potential merger of AA and US. The unions of AA seem to want nothing of AA management right now. As per what potential alliance, its a no brainer, OW. The real interesting question I think should be, which airline brand would remain?


    what ever happens......happens

    Comment


    • #3
      Originally posted by Eric Diffoot View Post
      The real interesting question I think should be, which airline brand would remain?
      Personally, I think it's going to be AA. AA is a more recognized name internationally, especially in South America where the market is going to be important for the new merged entity. US's management has no emotional or psychological attachment to their own name as they have proven so when HP took over US and used the US Airways name for the new entity instead.

      The combined fleet is going to be interesting as US is entirely an Airbus shop (except for the small number of 767-200ER inherited from Piedmont) and AA is entirely a Boeing shop (except for the A320 order, but it hasn't received any of the type yet). The combined operation will have a mixed fleet of MD80/A320/737 for short-haul, 757/767 for trans-con and 767/A330/777/77W for international.
      Next:
      None Planned

      Comment


      • #4
        Gotta agree with ya, AA is the stronger brand, and I don't think a mix like United/Continental would work between AA and US, although US i think has the cooler scheme.

        The potential combined fleet would be interesting, would look similar to that of DL. With Horton in charge, it seems AA is more open now to choose from Airbus and Boeing.

        One fact I found interesting is that all these articles dont seem to mention American West, as it seems still both American West unions and US Airways unions have not yet agreed on combined contracts. Im thinking this will become an issue if the merger goes through.

        what ever happens......happens

        Comment


        • #5
          Anyone have any ideas on the hub situation?

          Would US stick with CLT and what about PHL etc. Should be interesting.
          the 747 will always be superior.

          Comment


          • #6
            Originally posted by Eric Diffoot View Post
            The potential combined fleet would be interesting, would look similar to that of DL.
            My sympathy to AA & US passengers if that merger goes like DL/NW did. On the PDX-NRT (Portland to Tokyo) flights the nice Northwest A330-200s were replaced by old 767s with no entertainment centers. Great for an 11-hour flight.

            Dick
            http://dickh.zenfolio.com

            Comment


            • #7
              Originally posted by James Bruno View Post
              Anyone have any ideas on the hub situation?

              Would US stick with CLT and what about PHL etc. Should be interesting.
              Again, my guess:
              The merged entity will has its hubs at DFW, CLT, ORD, PHX, MIA, LGA/JFK and focus city operation at DCA and BOS.

              Reasons:
              DFW/CLT: AA and US are dominant at DFW and CLT respectively. DFW is nicely situated for east-west (for southern US) and north-south traffic. Charlotte is actually the second largest banking hub in the country, after NY, so there are a lot of business traffic. CLT is also nicely located for north-south traffic on east coast.

              ORD: The only mid-west hub of the merged entity. Mid-west is too important a region/market to give up on. It has to have a hub there.

              PHX: The only western US hub of the merged entity.

              MIA: Dominant position and key to South America market

              LGA/JFK: Dominant position and key to international market with large business traffic

              DCA/BOS: Dominant position

              In my view, PHL will be let go. The combined AA/US entity is dominant in the northeast and PHL is the weakest link. There is too much overlap if you have PHL there as a hub as well. If you have JFK for international, you don't need PHL. East coast connection traffic can be concentrated into CLT.

              The presence of the combined entity is still quite weak west of the ORD-DFW-PHX line. It will probably continue to leverage AA's relationship with AS to plug that hole.
              Next:
              None Planned

              Comment


              • #8
                I'm up here in DFW right now, and so far all of the news reports say that it is USAirways pushing the merger, and AA has no interest whatsoever and will actively oppose a takeover attempt.

                Now, who knows what will happen, but it doesn't sound like this is a done deal as of yet.

                Comment


                • #9
                  So now America West which turned into US Airways will become American Airlines? or will US Airways retain its identity? what cheapskates the America West people seem to be.

                  Comment


                  • #10
                    US Airways To Keep American's Name, Texas HQ


                    US Airways will assume American Airlines’ name and relocate to the Fort Worth-based carrier’s headquarters, Aviation Week has confirmed.
                    Most of the details of US Airways’ proposal to buy AMR are still unknown, and in its announcement earlier today the Tempe, Ariz.-based airline was hesitant to provide any concrete information apart from assertions that it would reduce AMR’s proposed job cuts from 13,000 to 6,800 and that there will be unspecified “enhancements to the compensation and benefits currently” provided AMR workers.

                    Sources, however, are starting to provide snippets of information. Two insiders with detailed knowledge of US Airways lobbying effort this week on Capitol Hill say delegations from Texas have been assured the takeover will in essence be a reverse merger, something US Airways Chairman and CEO Doug Parker conducted in 2005 when his America West Airlines assumed US Airways’ operations and identity during the Arlington, Va.-based airline’s second Chapter 11 reorganization.

                    But in contrast to the 2005 deal, Parker is prepared to break ties with Arizona in favor of the larger carrier’s Texas base. A similar package was proposed by Parker when he approached United Airlines with a merger accord in 2010. Under that deal, US Airways’ would have assumed the role of CEO at a United headquarters in Chicago.

                    US Airways believes moving to Fort Worth and retaining the American brand will remove some potential opposition to its takeover, even though it may come at the cost of some goodwill in Arizona, says one source. It should also soften the blow that American’s widebody maintenance base at Fort Worth Alliance Airport still will be dramatically affected even if the US Airways takeover succeeds.

                    American’s Transport Workers Union (TWU)-represented staff still will be reduced under US Airways’ plan, confirm two sources, although guarantees have apparently been made to politicians from Oklahoma that American’s base in Tulsa will be saved from any reductions.

                    It is unclear how many of the 6,800 jobs cuts still intended in US Airways plan will affect TWU workers, especially as sources confirm US Airways will provide buy outs for American’s flight attendants. But using AMR’s own demands as a guide, should the Association of Professional Flight Attendants ranks decline by 2,300, as required under AMR’s reorganization plan, that still leaves some 4,500 positions still to be accounted for.

                    Duplication at management and support levels can account for some of this, but several thousand of American’s mechanics still may lose their jobs. Currently, about 2,100 staff are employed at American’s Fort Worth Alliance base.

                    Still, this number is significantly below the near 9,000 TWU jobs AMR intends to cut from its ranks, with about 8,500 coming from mechanics and flight services divisions.

                    And then there are US Airways’ current workers to contend with. Sources differ on the seniority deal, but at the very least it seems American’s pilots and flight attendants will be combined with US Airways’ current work force based on their date of hire, which benefits the higher-tenured staff at American and the old US Airways, but not the America West employees, who are already embittered by the 2005 consolidation pact.
                    Indeed, US Airways’ pilots and flight attendants still have to combine and negotiate joint labor agreements, and with different representatives than American’s organized labor groups there will be challenges convincing US Airways’ current staff of the benefits a takeover will provide.

                    This concern is already evident in statements from the US Airways’ Association of Flight Attendants-CWA chapters. “A contract for flight attendants at US Airways must be completed prior to any new merger deal … any new deal must first acknowledge the contributions of US Airways flight attendants through a single contract with job security and improvements promised to flight attendants involved in the last merger initiated by US Airways management,” say the presidents of US Airways’ two AFA groups

                    “Seven years later, that deal still isn’t done. There is a small window of opportunity for US Airways management to get this right,” add Deborah Volpe (AFA pre-merger America West) and Mark Gentile (AFA pre-merger US Airways).

                    And there are stronger words from the International Association of Machinists and Aerospace Workers (IAM), which represents US Airways’ mechanics. “The IAM’s first responsibility is to protect the seniority, job-security, wages, benefits and pensions of our members at US Airways,” says IAM Transportation General VP Sito Pantoja. “We have a long history at US Airways, with substantial experience defending members during mergers and uncertain economic times. We are fully prepared to protect our members as this process unfolds.”

                    “Too often we have seen airline consolidation advance at the expense of airline workers, except for the corporate executives who cut jobs, raise fares, reduce service, and shower themselves with cash and bonuses,” adds Pantoja. “The IAM will oppose any merger that would take place at the expense of workers, the flying public, and the communities served by these two airlines.”
                    what ever happens......happens

                    Comment


                    • #11
                      but.....

                      Comment


                      • #12
                        Not surprised . We got two sides saying two different stories, love it.
                        what ever happens......happens

                        Comment


                        • #13
                          typical of "labor" and "management"

                          Comment


                          • #14
                            As a psgr, not looking forward to this merger.

                            Comment


                            • #15
                              Originally posted by UncleFire View Post
                              As a psgr, not looking forward to this merger.
                              I doubt that most passengers do as well.
                              Whatever is necessary, is never unwise.

                              Comment

                              Working...
                              X