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Old 05-09-2012 | 11:29 AM
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Flyby1206
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From: 320 CA
Default This is why a US/AA merger wont work

US Airways spokeswoman sums it up perfectly:

"It's well-known that we have a revenue disadvantage of about 16% against our peer network carriers largely due to the location of our hubs and nature of our routes, (but) it is also well-known that we maintain a 19% cost structure advantage against the network carriers to help offset this revenue disadvantage."
US cant make as much money as the other legacies because of their hub locations and routes they fly, but they stay profitable because their costs are lower than other legacies(read: labor costs).

So if Parker raises everyone's pay according to the term sheets given to AA labor, then how will PHL/DCA/CLT/PHX remain viable? They wont. And that is why UAL and DAL have both declined any attempts at a merger with US in the past.

The 1113 term sheet, and bankruptcy process in general, is a horror show. I am sure it looks tempting to have someone show you the rates/rules that Parker has given, but there isnt any way to financially support those promises he is making.

Yes, Horton is an a** and his sidekick Lorenzo lawyer is trash, but they wont be around when the bankruptcy process is over. There will be someone new, and it wont be Parker or Horton. Getting in bed with US only assures another trip through this hellish BK process in 5-7yrs.
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