Lining-Up the Pricey Investment Banker Teams for AMR - USAirways Press Release

[densoo]

US Airways is in trouble. With United/Continental merging, there's a good chance that they'll get squeezed out of the Star Alliance, just as Continental got squeezed out of the Sky Team Alliance when Delta and Northwest merged.

US Airways also has the problem of significant route overlap with Delta, United, and AMR which would make any merger 'troublesome'. While Northwest/Delta and Continental/United had some route overlap, it was less than what US Airways will be facing. And route overlap means that the combined airline will have to shrink.

US Airways is in the very difficult position where they're not big enough to survive standalone in a worldwide alliance and they're not small enough to be a geographical niche player (Alaska, Hawaiian, Spirit).

I think that their best bet is to eventually get merged into AMR. The big problem is that Parker still hasn't integrated US Airways and America West. Parker needs to get US Airways' house in order before anyone will want to merge with US Airways. The only CEO dumb/greedy enough to have courted US Airways was Tilton.

As far as US Airways taking over AMR, I just don't see it.

Too much logic. As long as some MBAs and lawyers can drain some money out, it's possible.

 

[JetMonkey]

Andy,

The "house is in order" or as much as its gonna be. The company is profitable now and has been for the past year and a half. The operation is running very smooth actually and Parker and bros have done enough to get the place "cleaned up" for a merger. I give the whole AMR thing 50/50 myself. And really more leaning towards the 50% of it NOT happening.

 

[Hpilot]

US Airways is in trouble. With United/Continental merging, there's a good chance that they'll get squeezed out of the Star Alliance, just as Continental got squeezed out of the Sky Team Alliance when Delta and Northwest merged.

US Airways also has the problem of significant route overlap with Delta, United, and AMR which would make any merger 'troublesome'. While Northwest/Delta and Continental/United had some route overlap, it was less than what US Airways will be facing. And route overlap means that the combined airline will have to shrink.

US Airways is in the very difficult position where they're not big enough to survive standalone in a worldwide alliance and they're not small enough to be a geographical niche player (Alaska, Hawaiian, Spirit).

I think that their best bet is to eventually get merged into AMR. The big problem is that Parker still hasn't integrated US Airways and America West. Parker needs to get US Airways' house in order before anyone will want to merge with US Airways. The only CEO dumb/greedy enough to have courted US Airways was Tilton.

As far as US Airways taking over AMR, I just don't see it.

Because of where our presence is on the east coast, I don't think we'll be asked to leave the Star Alliance. I agree with the rest though.

The problem is, where do I(we) go? I've got thousands of 121 PIC time, check airman, 4-year, clean record, etc...., but no one worth going to is hiring. Other than a handful of silver bullet types at Alaska, I think we're the only major hiring. Shoot, there are military guys and high time commuter pilots interviewing here. I took this path, because I wanted to be an airline pilot. I don't want to haul boxes and I don't want to be based in China, India, Outer Bunghoolia, etc. Hopefully things will change when age 65 hits. If it does you're probably going to see a lot of 10-15yr US guys flushing their seniority down the toilet and leaving, because of course you know how valuable seniority is at this place

 

[Dornier 335]

US Airways is in trouble. With United/Continental merging, there's a good chance that they'll get squeezed out of the Star Alliance, just as Continental got squeezed out of the Sky Team Alliance when Delta and Northwest merged.

US Airways also has the problem of significant route overlap with Delta, United, and AMR which would make any merger 'troublesome'. While Northwest/Delta and Continental/United had some route overlap, it was less than what US Airways will be facing. And route overlap means that the combined airline will have to shrink.

US Airways is in the very difficult position where they're not big enough to survive standalone in a worldwide alliance and they're not small enough to be a geographical niche player (Alaska, Hawaiian, Spirit).

I think that their best bet is to eventually get merged into AMR. The big problem is that Parker still hasn't integrated US Airways and America West. Parker needs to get US Airways' house in order before anyone will want to merge with US Airways. The only CEO dumb/greedy enough to have courted US Airways was Tilton.

As far as US Airways taking over AMR, I just don't see it.

Is there more route overlap than with UAL/CAL (IAD and EWR)? I don't see a smaller fleet size being a problem even with Star Alliance. Looking at Europe, LH and LX's integration seem to work so far.

 

[ultrarunner]

Would APA even talk to USAPA?

 

[rudder]

If there were to be a merger, it would be 100% conditional on a list in advance of DOCC.

Think you guys could deliver one?

 

[ironspud]

Any guesses as to which of the first 4 posts came from a US Airways pilot? :laugh:

Yours. #2.

 

[Ex737Driver]

If there were to be a merger, it would be 100% conditional on a list in advance of DOCC.

Think you guys could deliver one?

Time to chime in the DOH = Golden shower guy.

 

[Bringupthebird]

On a more positive note, congratulations on the huge beat for earnings. The consensus was for a 4 cent loss/share; you guys showed a 17 cent profit/share. http://finance.yahoo.com/news/US-Airways-Reports-Fourth-prnews-3006651438.html?x=0

Yeah, Yippee.

I made more from the cashback on my AMEX card than I will in profit sharing.

 

[johnnyb]

I agree with Andy....the industry is booming and Airways pays bankruptcy-era wages yet they are barely eeking out a profit. They need a merger more than American.

You actually post, for the whole world to see, the airline making money needs a merger more than one who lost a billion dollars and went bankrupt?