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Old 04-19-2012 | 03:17 PM
  #271  
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Unfortunately, we pilots always get played by our own emotional state (And I thought the FA's were bad). The US pilots have a snap-back provision in place. On top of that, rumors are of offering the APA leadership raises and signing bonuses to help push through a possible deal. I know, there's a pea under one of those cups, just have to pick the right one!

But, one the bright side, I'm still fairly senior, and will still be so in the new cAActUSland! Let the games begin !
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Old 04-19-2012 | 03:22 PM
  #272  
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Originally Posted by Tomahawk58
My prediction is that within a decade if not sooner, a combined AA/US will be back in BK after trying to get cost containment from the three different pilot groups!

You're right though, we'll all ride Doug and the US leadership team coattails to airline victory! I can't wait.
I knew you'd come around sooner or later.

It would be exiting to be part of an airline that might actually have some competitive ideas going forward, instead of warmed-over failures of the past. Most importantly, is the possibility of being part of an airline where management and labor actually may be brought together, instead of the terminal sentence of one pounding the other with a bat.

No guarantee's, but at least possibilities. The other path is a certain dead end (and sore skull).
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Old 04-19-2012 | 03:27 PM
  #273  
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Originally Posted by full of luv
Announcement of what????? Isn't it all up to the creditors committee and the judge at this point?
Yes, and if Parker and the labor unions convince the creditors(or already have) that a merger makes the most money it'll likely be done.
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Old 04-19-2012 | 03:31 PM
  #274  
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Originally Posted by Tomahawk58
Unfortunately, we pilots always get played by our own emotional state (And I thought the FA's were bad). The US pilots have a snap-back provision in place. On top of that, rumors are of offering the APA leadership raises and signing bonuses to help push through a possible deal. I know, there's a pea under one of those cups, just have to pick the right one!

But, one the bright side, I'm still fairly senior, and will still be so in the new cAActUSland! Let the games begin !
I've heard the snapback issue can or will be dealt with. Yes, as I stated before emotion is in play and when it is things go in unanticipated directions. We all know painful changes are necessary, but if Horton brought labor closer by building trust instead of destroying it further, we probably wouldn't be talking about U with any significance.

I think he was toast when he took the symbol for everything that was wrong at AA and moved him from his spot of hanging on the rearview mirror and made him the hood ornament and then running over the all the employees. Tough to recover from that if you ask me.
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Old 04-19-2012 | 03:36 PM
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Originally Posted by johnso29
Yes, and if Parker and the labor unions convince the creditors(or already have) that a merger makes the most money it'll likely be done.
AA has the exclusive right to a POR through 9/28/2012. As such, Judge Lane would have to overturn his own ruling which I don't think has ever happened in a recent airline BK process. AA could then appeal or even sue US.

Of course, this "possibility plan" is pure speculation at this point. US has already been down this road with DAL. But with the APA by their side, I'm sure this will make all the difference this time around.

And of course the APA is only looking out for the East and West US guys through this attempted leverage ploy!
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Old 04-19-2012 | 03:53 PM
  #276  
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Originally Posted by Tomahawk58
AA has the exclusive right to a POR through 9/28/2012. As such, Judge Lane would have to overturn his own ruling which I don't think has ever happened in a recent airline BK process. AA could then appeal or even sue US.

Of course, this "possibility plan" is pure speculation at this point. US has already been down this road with DAL. But with the APA by their side, I'm sure this will make all the difference this time around.

And of course the APA is only looking out for the East and West US guys through this attempted leverage ploy!
The exclusivity extension can be petitioned for early termination by the majority of the creditors as far as I know, but yes, this is far from a done deal. But Horton and Brundage have made enemies of virtually their entire labor force and that's unprecedented at least to this degree since Eastern.

I think ALL of AA labor is simply fed up and perhaps the creditors are too nervous about a future with this much damage. This impending disaster is FAR more then just some disgruntled pilots. It's systemic and has been cultivated for at least a decade.
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Old 04-19-2012 | 03:54 PM
  #277  
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The irony in this engaging discussion is that both Mr Horton and Mr Parker cut their teeth early on the the finance department of AA.

There appears to be some misconception that Mr Parker won't go after cost containment and/or attempt to put a sustained profit model in place. If he's such a great leader, why is there still a split within his own house and an overwhelming rejection of a TA by his own FA's!

I'm truly open to the possibility of an equal merger that plays strength against strength. Doug isn't interested in that and the fact that he wants in all during the course of a BK process is proof positive. He's looking for all the cost cutting he can get.

He's had all the time in the world to pursue a merger with AA over the past decade, where's the beef!

But we pilots are emotional creatures and "we know we're entitled to the very best". A salesman's comes along and says, boys, have I got a deal for you! To chase that marginal dollar, we're willing to chuck it all, while attempting to convince ourselves that this new marriage is just the ticket to nirvana!

I'm just not buying the hype!
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Old 04-19-2012 | 04:09 PM
  #278  
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Originally Posted by Tomahawk58
The irony in this engaging discussion is that both Mr Horton and Mr Parker cut their teeth early on the the finance department of AA.

There appears to be some misconception that Mr Parker won't go after cost containment and/or attempt to put a sustained profit model in place. If he's such a great leader, why is there still a split within his own house and an overwhelming rejection of a TA by his own FA's!

I'm truly open to the possibility of an equal merger that plays strength against strength. Doug isn't interested in that and the fact that he wants in all during the course of a BK process is proof positive. He's looking for all the cost cutting he can get.

He's had all the time in the world to pursue a merger with AA over the past decade, where's the beef!

But we pilots are emotional creatures and "we know we're entitled to the very best". A salesman's comes along and says, boys, have I got a deal for you! To chase that marginal dollar, we're willing to chuck it all, while attempting to convince ourselves that this new marriage is just the ticket to nirvana!

I'm just not buying the hype!
I think most are under no illusions that a compensation model for every employee group must be in place that is competitive. AMR is asking the employees (and especially the pilots) to finance Horton's plan, but so far there IS no real plan. Hopefully, Parker may offer something in both business plan and competitive compensation that is successful.

Apparently, AMR believes it CANNOT be competitive with DAL or UAL labor costs and must go drastically below those. Yet (oddly), BOTH those carriers are turning sustained profits with those compensation packages (at least for pilots).

Therefore, as far as I'm concerned either AMR management is an opportunistic, manipulative liar or they are admitting their own inability to manage this carrier. If they cannot do what competing management can do with equal costs, what does that say ?

It says to me, long-term, this management team is just as likely, if not more to put this carrier back in BK. I mean really, if you look at the last 10 years, it's tough to find anything substantive.

Last edited by eaglefly; 04-19-2012 at 04:20 PM.
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Old 04-19-2012 | 04:22 PM
  #279  
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Originally Posted by eaglefly
I think most are under no illusions that a compensation model for every employee group must be in place that is competitive. AMR is asking the employees (and especially the pilots) to finance Horton's plan, but so far there IS no real plan. Hopefully, Parker may offer something in both business plan and competitive compensation that is successful.

Apparently, AMR believes it CANNOT be competitive with DAL or UAL labor costs and must go drastically below those. Yet (oddly), BOTH those carriers are turning sustained profits with those compensation packages (at least for pilots).

Therefore, as far as I'm concerned either AMR management is either an opportunistic, manipulative liar or they are admitting their own inability to manage this carrier. If they cannot do what competing management can do with equal costs, what does that say ?

It says to me, long-term, this management team is just as likely, if not more to put this carrier back in BK. I mean really, if you look at the last 10 years, it's tough to find anything substantive.
So, you'd give no credit to US, DAL and UAL's trek through the BK courts as the reason for their current success models(though that arguable in some cases), while at the same time you appear to suggest that AA suck it up and maintain the cost disadvantage relative to our peers.

That's an interesting argument. I guess after going through BK twice in the past decade, you're figuring that Doug and the team have worked out all the kinks in the system by now and things should be fine from here forward!

Maybe so, time will tell!

I do appreciate the discourse and your willingness to engage on the issues.

Best,

Tomahawk58

Last edited by Tomahawk58; 04-19-2012 at 04:34 PM.
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Old 04-19-2012 | 04:32 PM
  #280  
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Originally Posted by eaglefly
AMR keeps losing money, yet it's cash has significantly increased. Now, they need to look good to defend their performance, so just before they go for massive employee gutting and the new possibility they'll be dispatched back to the Wharton handball courts because of lack of revenue performance, they produce this.

Anything can be claimed with creative accounting and performance.
Well said, agree 100%. How is it that they endure loss after loss every quarter, yet cash on hand increases? Google Frank Lorenzo's House of Mirrors for the answer.

I still maintain that AA is doomed as a stand-alone carrier. They have lost way too much market share and momentum.
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