DOJ sues to prevent LCC/AMR link up

I'm starting to think Horton and Parker aren't as unified as it seems. The merger is on, so Horton is out- but hey he's getting paid. Right? Nope. Maybe. But hey the merger is goin- wait a minute. The DOJ objects! So does a park of other 11th hour naysayers. Then suddenly, AMR posts a profit- not just any- but a *record* monthly profit.

These executive types have been talking out of both sides of their mouths forever. Why would they do each other different?

This isn't really about business. It's about two egomaniacs trying to win a game of 'Airline Tycoon v.2.7'.
 
Mergers blow.

I can understand the glee of potentially better job security but you're about to have a bunch of multi-million dollar bonuses managers 'early retire' and drop a big quagmire in your lap when it comes to combining corporate cultures.

And 6+4 = 8.
 
Derg said:
Mergers blow.

I can understand the glee of potentially better job security but you're about to have a bunch of multi-million dollar bonuses managers 'early retire' and drop a big quagmire in your lap when it comes to combining corporate cultures.

And 6+4 = 8.
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Have you seen the airways pay rates? I'm sure they don't care about the middle managers or corporate cultures. The pilots want to get paid finally.
 
Derg said:
Mergers blow.

I can understand the glee of potentially better job security but you're about to have a bunch of multi-million dollar bonuses managers 'early retire' and drop a big quagmire in your lap when it comes to combining corporate cultures.

And 6+4 = 8.
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I understand that merging of corporate cultures is tough. However, as some mid-level managers were announced earlier, it was mostly Airways people. Besides, I'm too new to know any corporate culture. It'll be easy for me to adapt. I've already been practicing the one and only PA an AA FO gets to make and the pronunciation of "'Murkin". :)

Right now, this is our only way to a new contract.

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I'm cautiously optimistic, this was a big deal. At least we know there is a chance of a trial. But I'm going to be cautious because they can still lose the trial.
 
I'm selfish. I want it to go through since it takes the list of airlines our pay rates are based on, reduces it and significantly increases what we should be getting paid.

That and I really don't want the merger bullseye swinging this direction.
 
kellwolf said:
I'm selfish. I want it to go through since it takes the list of airlines our pay rates are based on, reduces it and significantly increases what we should be getting paid.

That and I really don't want the merger bullseye swinging this direction.
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Why? They work out so well for the employees.
 
kellwolf said:
I'm selfish. I want it to go through since it takes the list of airlines our pay rates are based on, reduces it and significantly increases what we should be getting paid.

That and I really don't want the merger bullseye swinging this direction.
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It could work out as a positive if we get merged... Who knows? I'd love to have a Charlotte base. :)

If it goes through and they have to divest in DCA, that will be huge for us though.
 
PhilosopherPilot said:
It could work out as a positive if we get merged... Who knows? I'd love to have a Charlotte base. :)
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The problem we run into is not having a legal leg to stand on in a merger. Sure, the PEAs kind lay it out, but it's untested. I don't feel like being the guinea pig on that. Plus, we'd have management negotiating for us, which they could just negotiate everything away right down to minimums. I'd rather stick with the "organic" growth than the crap shoot of a merger.

If it goes through and they have to divest in DCA, that will be huge for us though.
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COULD be huge for us. Could also be huge for SWA. They seem to prefer IAD to DCA, but AirTran flies into there quite a bit. I DO think DCA is going to wind up being the sticking point. Those senators have to answer to the taxpayers when their ticket prices start going up, ya know. If it's give up slots in DC vs not merging, I'm sure American Airways will give up the slots.
 
kellwolf said:
The problem we run into is not having a legal leg to stand on in a merger. Sure, the PEAs kind lay it out, but it's untested. I don't feel like being the guinea pig on that. Plus, we'd have management negotiating for us, which they could just negotiate everything away right down to minimums. I'd rather stick with the "organic" growth than the crap shoot of a merger.



COULD be huge for us. Could also be huge for SWA. They seem to prefer IAD to DCA, but AirTran flies into there quite a bit. I DO think DCA is going to wind up being the sticking point. Those senators have to answer to the taxpayers when their ticket prices start going up, ya know. If it's give up slots in DC vs not merging, I'm sure American Airways will give up the slots.
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No question, we would be in uncharted waters with our PEAs. I agree organic is best, but I just don't think we would get completely screwed since whoever buys us will have significant retirements coming up.

We shall see what happens with DCA. If we grow much more the Banjo won't be big enough for us. :)
 
How dumb will doug look if he has to give up all the slots he got from delta and all the slots he lost in lga to delta.
 
I always believed the DL/US slot swap was posturing for the AA/US merger. I think they thought with the strong US presence at LGA and AA at LGA/JFK, they would have to divest a lot. So why not trade some slots you'd likely have to divest in exchange for some cash and slots at an airport where AA didn't have a strong presence.

My opinion only.
 
Called it:

http://www.bizjournals.com/jacksonv...4/will-american-airlines-ditch-usairways.html

Or ... bankrupt American Airlines can walk away from the merger, first announced in February. The nation's third-largest airline can renounce the deal without incurring break-up fees on December 13 and go back to charting its own course out of Chapter 11 as a stand-alone carrier.

Hadn't thought of that last option? That's okay, most of the chattering classes and talking-head experts haven't, either. They are, as usual, blinded by the conventional wisdom, which is almost always wrong in the airline business.

The logic of an American Airlines opt-out is oh-so-tantalizing now, starting with the timing, something that until lately has favored US Airways chief executive Doug Parker, the driving force behind the merger and head-honcho-in-waiting.
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