Originally Posted by
fireman0174
Consolidation in the US airlines industry may eventually achieve everything its proponents say, from slashing expenses to helping domestic carriers compete with their global rivals, but it could take several years of operational glitches and tough negotiations with organised labour before any merger can be called a success.
Yes, mergers can be a good thing for the industry.
Despite trailing its five fellow network carriers in market capitalisation, US Airways is poised to report a 2007 profit of about $418m, according to analysts. That is more than United is expected to earn and within $10m of Delta's estimated total, analysts predict.
A merger between a company that was about to be liquidated, had gone through bankruptcy twice, and was losing billions of dollars, combined with an airline that was only making a few million dollars a quarter leads to a company that made $418 million, more than other legacy carriers, with record high fuel prices. A merger can create a much stronger company between the two combined carriers. And when airlines are making money, that is good for the pilots (just ask guys at FedEx, UPS, and Southwest).
Mr Parker said he remains optimistic the America West and US Airways pilots will merge their members into one union. Besides, say the advocates of consolidation, what has made this dispute unusually trying has been the differences in average tenures of the US Airways pilots and the smaller America West.
Delta, United, Continental and Northwest pilots may not confront the same challenges.
Exactly! The US Air/America West merger was really tough on some pilots because the pilot seniority lists were on two completely opposite ends of the spectrum. But for everyone who got screwed, someone made out well.
The pilot seniority lists at Delta, United, Continental, and Northwest are all fairly similar. That could lead to a fair and equitable merger (plus these airlines are all ALPA, so no staple, and DOH may work out great).
I have said it before... I am hoping mergers happen. I am rooting for it. The title of this article is correct. US airline consolidation may not be a quick fix, it is a long term fix!! If you are only going to be in this industry for the next 2-3 years, a merger will probably not help you. But if you plan on being in this industry for the next 10, 20, 30, or 40 years, having fewer airlines with less cutthroat competition, and less chance of any single airline closing its doors, our careers as pilots can be improved greatly.
I am rooting for mergers. I hope they happen. Otherwise we have to look forward to cutthroat competition, wage concessions, and a struggling industry for years to come. Lets fix many problems with our industry NOW. Lets have mergers.