Originally Posted by
McAyr
"East" labor problems will make this deal so unprofitable. So, look for a sell off of the least desirable assets and the "East" pilot's tactics will put them out of a job. The most desirable remaining routes and infrastructure will merge with United before springbreak 2009. That is my hunch.
Personally, I think pilots (or labor) take too much credit (or blame) for their influence over the meanderings of the this industry. Even if everybody cooperated in a merger, which isn't likely even in a non-union situation, the putting together of two airlines is a monumental task. Just re-training everybody under one operating certificate is a huge expense.
The only people that benefit from mergers are investment bankers, and a hand full of stock holders (management). Most reputable analysts will advise against them. As far as liquidation, I'm not so sure after two trips through BK. There are a lot of creditors out there holding USAir paper, and in most BK proceedings, the creditors usually prevail.