Value of USAir merger?
12-02-2011, 10:22 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Mar 2011
Position: Left seat on a kite
Posts: 1,884
Value of USAir merger?
Alright,
With all this speculation and problem solving. Yes they will merge....NO, they will not...yes...no...yes!!!
Let's discuss why it would or would not be a good business deal.
IMHO....PHX, PHL and CLT do no good for AA. I'm sure USAir would love to access the hubs that AA has. I see no gain for AA from Us Air route structure.
Thoughts and lets keep it on track please.
With all this speculation and problem solving. Yes they will merge....NO, they will not...yes...no...yes!!!
Let's discuss why it would or would not be a good business deal.
IMHO....PHX, PHL and CLT do no good for AA. I'm sure USAir would love to access the hubs that AA has. I see no gain for AA from Us Air route structure.
Thoughts and lets keep it on track please.
12-02-2011, 10:39 AM
#4
Gets Weekends Off
Joined APC: Jan 2008
Posts: 533
You get CLT and PHL for more East Coast ops, but the really important gain is you gain market share and pricing power by combining ops and you get to eliminate the combined unprofitable capacity on the market, which results in higher yields. Unfortunately for pilots overall capacity may be reduced. And of course let's not forget those lovely pilot wages at USAir to start the bidding with on the mutual contract.
12-02-2011, 10:52 AM
#5
On Reserve
Joined APC: Jan 2010
Position: Left seat hauling trash
Posts: 17
Overall, I would so no to a merger. I would imagine that there would be a lot of fighting between the unions (i.e. US East vs West). Throwing a third pilot union into the mix would surely add to the turmoil. Then add the F/A's, mechanics, ground workers and whatever other represented work groups there are and there be even more fighting. That is if the similar work groups are all represented by different unions.
12-02-2011, 11:14 AM
#6
Gets Weekends Off
Joined APC: Jan 2008
Position: 737A
Posts: 1,890
My opinion...USAir has nothing that AA needs. This bankruptcy is about AAs debt and the pensions. I don't think they will merge with anyone. They will emerge in a year or so leaner and with no pensions, and will be a tougher competitor. I wish their pilots the best. Nothing they could have done would have prevented ch 11.
12-02-2011, 11:18 AM
#7
Da Hudge
Joined APC: Oct 2006
Position: Poodle Whisperer
Posts: 17,473
My opinion...USAir has nothing that AA needs. This bankruptcy is about AAs debt and the pensions. I don't think they will merge with anyone. They will emerge in a year or so leaner and with no pensions, and will be a tougher competitor. I wish their pilots the best. Nothing they could have done would have prevented ch 11.
They have second tier hubs and a horribly done merger on their hands. Why not add some first tier cities and an even more angry employee group to their ranks?
12-02-2011, 12:18 PM
#10
Banned
Joined APC: Apr 2008
Posts: 3,240
I'm sure the AA employees would be mortified at the thought of being thrown in with usair, and they should be. AA can easily go at it alone, usair is the real wild card as we need to bulk up desperately. Have no doubt that usair is going after AA hostile or not will be up to AA, but Doug parker and tpg are coming.
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