US Airways + Delta?

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Delta creditors that are getting $4 bln from the deal may push for it. Obviously, Delta's CEO does not want to loose his job. Current US Air CEO used to be the CEO of America West before AWA and USAir merged. Now this guy wants to be in charge of the largest U.S. airline.
 
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Старожил
Actually it would be a pity to loose Delta brand - I like the way they manage the aircraft maintenance (one of the best organization in US).
 
Patriot

Patriot

ALPA Member
Obviously, Delta's CEO does not want to loose his job.
He is planning to resign after the planned emerging from bankruptcy - early 07 (for now).
Very sad, but Delta doesn't even have the restriction plan in place yet. The judge extended the deadline until Feb 15, 2007.

Anyway the bottom line is usual - if someone (who paid our bills for the past 6 years) decides to make money now instead of waiting until DAL is profitable again it will happen.

On a personal note, unfortunately, for me it'll probably mean furlough.
Again :(
 
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Patriot:
US Air says that they can optimize combined network and will fly the same number of passengers with 10% less capacity. That includes pilots, I guess.
Also, I cannot imagine the mess with seniority – they are still arguing between former AWA and USAir pilots. How are they going to deal with seniority?
 
Patriot

Patriot

ALPA Member
Patriot:
US Air says that they can optimize combined network and will fly the same number of passengers with 10% less capacity. That includes pilots, I guess.
Also, I cannot imagine the mess with seniority – they are still arguing between former AWA and USAir pilots. How are they going to deal with seniority?
Yeah, in order to return to profitability they want to cut less yielding flights, but reducing the capacity by 10% will be a nice break - everyone is working too hard now. The average line is up 12 hours from 2004. Since the concessionary contracts besides just the pay rates our work rules suffered a tremendous hit. Days are long with short overnights. So the 10% reduction of capacity by itself probably will not trigger furloughs.


USAir is still operates as two separate companies until 2007. I don't know what they agreed on, but they seem to be OK with it.
Really, there are only 2 ways to integrate the seniority lists - by the date of hire or (most likely) through negotiation of a certain, deal specific pattern ie "we are buying you therefore..." So it all depends on the strengths of MECs and thank goodness we have the same union. American + TWA for example went 13 American pilots for 1 TWA.

USAir has 1715 pilots on furlough and we still have 176. Once the list is integrated I might fall off the cliff even assuming only 30-40% will return to work.
Also there might be early retirement packages offered by the company to the senior guys so will see what happens.
 
Patriot

Patriot

ALPA Member
Now UAL and CAL:


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By ANDREW ROSS SORKIN and JEFF BAILEY
Published: December 12, 2006

United Airlines is holding preliminary talks to merge with Continental Airlines in a huge deal that would further reshape the struggling airline industry, people involved in the negotiations said tonight.

The discussions, though far from complete, recently picked up pace following US Airways’ bid last month to buy Delta Air Lines for about $8 billion, these people said.

US Airways’ proposal, promising $1.65 billion a year in savings by combining with Delta, has helped add urgency to carriers’ interests in merging.

A United spokeswoman, Jean Medina, and a Continental spokesman, David Messing, each declined to comment.

Any deal between the two airlines is far from imminent. Continental and United executives are watching the US Airways and Delta situation to see how it might play with antitrust regulators. Delta is expected to file its plan to exit bankruptcy proceedings next week, following a flurry of meetings scheduled for later this week among Delta creditors and others.

Analysts have long favored a combination of United’s Asian routes and heavy coverage of the Western United States with Continental’s Latin American and European routes and its large and highly profitable hub in Newark.

At today’s close of the stock market, Continental’s market capitalization was about $4 billion and United’s was about $5 billion.

United’s chief executive, Glenn Tilton, and Continental’s chief executive, Larry Kellner, have met in person to discuss a combination, a person with knowledge of the talks said. Today, however, Mr. Kellner was in Tel Aviv on business, Continental had informed its employees earlier this week.

Any effort by the two to merge would be complicated by an agreement Continental has with Northwest Airlines. The agreement could allow Northwest to block certain merger transactions involving Continental, but could allow Continental more freedom to enter into a combination if it was the acquiring party and approval of its shareholders was not required.

Also, if Northwest entered into a merger, it would lose its blocking power over Continental.
 
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Patriot

Patriot

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We started accepting applications! Check out my signature :)
 
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