B6 and AA may get cozier

[B6Busdriver]

Wake up and smell the coffee boys and girls.......

http://www.bloomberg.com/news/2011-...tblue-airways-to-widen-booking-agreement.html

 

[Headfake14]

I got queazy reading that...

but then again...a lot of that was all an analyst's outlook on things. I've read stuff from these guys in the past that never came to fruition.

 

[$$$4nothin]

So I understand the immense cultural differences between B6 and American. That part I understand why a lot of B6 guys would not want to see this happen. I also understand the huge losses that AMR is seeing right now. However based on the fact that American has about 7000 guys retireing in the next 15 years, and B6 has very few retireing in the next 15 years wouldn't it mean a merger between the two companies could potentially be a pretty good deal for the B6 pilot over the long run. Especially the junior ones. Not to mention there would potentially be a much larger option of bases to commute or move to, especially for the west coast guys. Larger equipment and longer routes, which will equate to larger pay checks and more time off. Any descent amalagation of the two pilot list, even a staple (god forbid) of B6 would mean the most junior guy on there list (soon to be me I hope) would be a captain of almost any equipment within 5 years due to retirements. Also a merger of the two contracts would fix several of the issues most B6 guys have regarding medical and retirements plans, and some of the issues the AMR guys have like DH, and cancellation pay. I would love a B6 guy to let me know if I am way off base here, and tell me what I am missing.

 

[Headfake14]

All of that is discussed from time to time in the flightdeck while we solve the world's problems. But...AA still has about 2000 guys on the street. WE have about 2000 pilots. I see your point...but in the short term...it would be very bad for a JB pilot.

 

[OurMoney1]

So I understand the immense cultural differences between B6 and American. That part I understand why a lot of B6 guys would not want to see this happen. I also understand the huge losses that AMR is seeing right now. However based on the fact that American has about 7000 guys retireing in the next 15 years, and B6 has very few retireing in the next 15 years wouldn't it mean a merger between the two companies could potentially be a pretty good deal for the B6 pilot over the long run. Especially the junior ones. Not to mention there would potentially be a much larger option of bases to commute or move to, especially for the west coast guys. Larger equipment and longer routes, which will equate to larger pay checks and more time off. Any descent amalagation of the two pilot list, even a staple (god forbid) of B6 would mean the most junior guy on there list (soon to be me I hope) would be a captain of almost any equipment within 5 years due to retirements. Also a merger of the two contracts would fix several of the issues most B6 guys have regarding medical and retirements plans, and some of the issues the AMR guys have like DH, and cancellation pay. I would love a B6 guy to let me know if I am way off base here, and tell me what I am missing.

It doesnt take a B6 pilot to answer that question.

Merging with AA would be like standing infront of a Kansas tornado. Under the current state of affairs the B6 pilots have zero guarantees. The merger could happen as you suggest but the B6 pilot group could be left on the curb; ie not asked to dance. You have alot to learn about the state of industry affairs. APA does not have a stellar track record of taking care of merger crowds. Without steel tight language you can pretty much expect a rape job for all those in Blue shirts.

 

[n757st]

With a union we will get a fair shot at the seniority integration because of the new legislation. Without a union the legistlation might not apply, in which case we are left to the good graces of the apa. The apa in their defense has a stellar track record of treating other pilot groups well, ie Reno Air, TWA. I'm not a rabid union guy, but the idea of merging with American without protections scares the crap out of me.

 

[B6Busdriver]

JetBlue has its issues with debt but I am beginning to question the long term viability of AA. It's not a knock on their employees but rather a story of mismanagement. If AA buys JetBlue, right now that means even bigger losses for AMR. If AMR enters bankruptcy be very afraid, they would buy JetBlue in a heartbeat.

 

[Flyby1206]

I think everyone cuts AMR management to pieces, but I think they have done a solid job of developing their role in the oneworld alliance. Anti trust immunity with BA/IB, JAL, and Qantas will pay dividends. Focusing on their cornerstone strategy makes sense to me (largest O&D and premium markets in the country), and a flexible fleet renewal plan will prime them for the best or worst case scenarios. Not to mention impending 77W and 787 deliveries for int'l expansion.

AMR mgmt is between a rock and a hard place. They did the right thing by not going BK post 9/11, but that also means they didnt slash their costs like DAL/UAL etc. Simultaneous contract negotiations with all three labor groups doesnt help either. The BK rules have changed, so I really doubt there will be a BK filing in the near term (not to mention ~6 bil cash on the balance sheet). Their biggest problem right now is labor, and I have no idea how they will solve that one.

Could AA+B6 get real cozy? Not right now because of the super high costs of AMR and drastically lower costs of B6, but in the next few years I bet AMR will lower their costs and we will raise ours at B6. Meet in the middle and then there could be some action. In the mean time I could see oneworld membership and/or codeshare with AA.

 

[Beechnut]

With a union we will get a fair shot at the seniority integration because of the new legislation. Without a union the legistlation might not apply, in which case we are left to the good graces of the apa. The apa in their defense has a stellar track record of treating other pilot groups well, ie Reno Air, TWA. I'm not a rabid union guy, but the idea of merging with American without protections scares the crap out of me.

Yep...

 

[$$$4nothin]

...AA still has about 2000 guys on the street. WE have about 2000 pilots. I see your point...but in the short term...it would be very bad for a JB pilot.

I see your point here, however every AMR guy I have had in my JS of the last year said they would be surprised if 10% of the 1900 furloughs come back.

Regarding the point that without union protection AMR will rape B6. Based on previous AMR mergers I understand your concerns as far as B6 pilots being left on the street but with the amount of retirements about to happen at AMR all the B6 pilots will be needed to fill seats.

Having union protection for b6 would help immensly though I think.