Ati / abx merger?
04-21-2018, 09:18 AM
#21
Gets Weekends Off
Joined APC: Apr 2007
Posts: 1,809
Originally Posted by wjcandee
ATSG just bought labor peace at one of its two carriers, apparently in large part because labor peace was a major concern of a major customer. The carrier at which it bought labor peace flies 70 percent of the aircraft that have been dry-leased by that customer
Merging the two carriers would instantly create renewed labor drama at the carrier at which ATSG had just bought labor peace. Not to mention a long list of operational matters to deal with, given the very different procedures and operational cultures at the two carriers. It would have been one thing to have had a single-transportation-system finding by the NMB, where (in this case) two different carriers would be required to have one bargaining representative (union). It is quite another thing to merge two employee groups, manuals, operational procedures, etc. Particularly-so given the relationship between the two groups here.
It doesn't strike me that, long-term, there is that much operational inefficiency from having two separate carriers, given that many of the similar/duplicative functions are already contracted out to ATSG units that serve both carriers. The major extra expense is having two groups of executives. Meanwhile, short-term, trying to merge these two particular carriers would be a complete goatrope and very-expensive at the end of the day.
Having just accomplished labor peace, do they really want a representation fight at a merged ABX/ATI, as well as a prolonged, new, contract fight? If there is some contractual provision that they think would require a simple resolution of the representation and contract issues, do they really think that 1224's very-creative attorneys wouldn't tie them up in litigation for years?
It seems insane to me that ATSG would want to do this. There are quite a few other options for structural change that would leave the contract and labor peace intact at the one carrier.
As we used to say when I lived in Texas: "Why borrow the trouble?"
(Of course, the fact that it seems insane to me doesn't mean that out in Hooterville they don't see it as pure genius...)
Merging the two carriers would instantly create renewed labor drama at the carrier at which ATSG had just bought labor peace. Not to mention a long list of operational matters to deal with, given the very different procedures and operational cultures at the two carriers. It would have been one thing to have had a single-transportation-system finding by the NMB, where (in this case) two different carriers would be required to have one bargaining representative (union). It is quite another thing to merge two employee groups, manuals, operational procedures, etc. Particularly-so given the relationship between the two groups here.
It doesn't strike me that, long-term, there is that much operational inefficiency from having two separate carriers, given that many of the similar/duplicative functions are already contracted out to ATSG units that serve both carriers. The major extra expense is having two groups of executives. Meanwhile, short-term, trying to merge these two particular carriers would be a complete goatrope and very-expensive at the end of the day.
Having just accomplished labor peace, do they really want a representation fight at a merged ABX/ATI, as well as a prolonged, new, contract fight? If there is some contractual provision that they think would require a simple resolution of the representation and contract issues, do they really think that 1224's very-creative attorneys wouldn't tie them up in litigation for years?
It seems insane to me that ATSG would want to do this. There are quite a few other options for structural change that would leave the contract and labor peace intact at the one carrier.
As we used to say when I lived in Texas: "Why borrow the trouble?"
(Of course, the fact that it seems insane to me doesn't mean that out in Hooterville they don't see it as pure genius...)
04-21-2018, 09:49 AM
#23
Gets Weekends Off
Joined APC: Dec 2017
Position: B767 Capt.
Posts: 171
Originally Posted by wjcandee
It seems insane to me that ATSG would want to do this. There are quite a few other options for structural change that would leave the contract and labor peace intact at the one carrier.
04-23-2018, 09:47 PM
#25
Gets Weekends Off
Joined APC: Nov 2016
Position: Old and Unemployed
Posts: 107
Not my fight. No dog in the hunt. But...
Something for you all to consider. A while back, UPS decided to axe the contract carriers and start their own airline. They severed their agreements with the largest ACMI folk and, instead, bought the certificate of the smallest ACMI carrier that serviced their network. The better to mold the new airline in their own image.
Flash forward. Amazon is rounding up the posse of ACMI carriers willing to sell their soul to Bezos. Amazon is notorious for awarding their services to the lowest bidder.
Be it GB, 5Y, or ATI, I predict that Amazon will never absorb any of the larger carriers. Too easy to pit one against the other (DHL has been doing it for years). Instead, they will choose the smallest airline and mold it to fit the Amazon image.
Anybody want to start an airline...
Something for you all to consider. A while back, UPS decided to axe the contract carriers and start their own airline. They severed their agreements with the largest ACMI folk and, instead, bought the certificate of the smallest ACMI carrier that serviced their network. The better to mold the new airline in their own image.
Flash forward. Amazon is rounding up the posse of ACMI carriers willing to sell their soul to Bezos. Amazon is notorious for awarding their services to the lowest bidder.
Be it GB, 5Y, or ATI, I predict that Amazon will never absorb any of the larger carriers. Too easy to pit one against the other (DHL has been doing it for years). Instead, they will choose the smallest airline and mold it to fit the Amazon image.
Anybody want to start an airline...
04-25-2018, 07:28 AM
#28
Gets Weekends Off
Joined APC: Feb 2018
Posts: 168
If this does happen I'd say it will be tied up in the court system for years. Union sues company, company sues union, pilot law suits against unions. Everyone will sue everyone over how to do it or How it was done because management won't have learned from the rest of the industry that you just have to give the pilots an offer they can't refuse.
Thread
Thread Starter
Forum
Replies
Last Post
