Both parties signed NDAs that will expire Oct 31st. AA/US and UCC are meeting next week to have a final discussion and I presume we will hear results on Nov 1.

 

usa today had an article about a meeting today with the 'investors' and bankers to look at potential income/saving of a merge.

disclaimer. it came from usa today. so who knows

 

This merger is on boys.

 

Thats how it appears. The only question is who will run the merger? Parker or Horton?

 

I have an old coat hanger, maybe it could run the "new" airline?

 

It would probably do a better job than those doorknobs Parker and Horton.

 

I have a few of those too. I'm sure I could find a frisbee in the garage, just incase.

 

I've had a pet theory that hiring 2 or 3 freshly-minted MBA's with common sense, along with a few experts as an advisory board, could run an airline better, far better, than Horton, at 1/10th of the salary.

Or... go with the old coat hanger. One of the cheap ones from the cleaners with a cardboard tube on it. Preferably one at the back of the closet that had fallen to the floor.

 

Just wanted to comment on Horton's announcement of 2500 new pilot hires in the next 5 years. According to the current numbers 2500 seems “very” enthusiastic and unprobable at best, unless they know something the public doesn't know (huge additional short term narrow body order, a large buy out of pilots,...)

The first problem lies with their multiple announcements. The first announcement, expressed a buyout of 2200 flight attendants while hiring 1500 in the next year or two. A net reduction of 700 flight attendant positions over the next year. We need to know where those additional efficiency's are coming from or is the company expecting shrinkage?

If the company is expecting shrinkage by reducing a net total of 700 flight attendants, where is the growth coming from to support 2500 new pilots(smaller airplanes?). Current projections show a demand for 1224 pilots due to growth through 2017 not including a 20% recall rate from current furloughs. With the recall rate it drops down to 887 pilots needed over the next 5 years.

If the demand for 2500 pilots is not all coming from growth then the rest should be coming from retirements. According to current mandatory retirement projections the company should see 771 retirements up through 2017. It is possible they could see more due to early retirements. Would it be enough to make up the difference of 887 pilots from growth, 771 from retirements (1658) and bring it to 2500 pilots.

What this means is in order to see Horton’s predictions come to fruition we need to see an additional 842 pilots come on the property due to growth (in an environment where we are seeing a net reduction of 700 flight attendant positions?) or 842 pilots (10% of the current pilot group) give up their premium seniority positions and pay in a form of early retirements. These current projections take into account a robust airline market over the next 5 years. The management team has built in enough flexibility at AA to further delay fleet growth in the event we see current economic stagnation continue which would further reduce pilot demand over the shortrun at AA.

 

+1
Also, run the numbers? 42 people a month from a company that has no active HR department. Sounds like all fluff........