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United or American?

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AA,

Have you ever worked for Dougie? Ask any AWA pilot how they feel about DP. He certainly will be much more concerned with cost control than expansion. Doug likes to do deals, synergize, trim costs, find efficiencies, and make himself a truck load of money in the process. All he ever talks about is reducing capacity across the industry to re-introduce pricing power. He's about as far away from the traditional growth minded airline CEO as you can get. I hope he makes a big departure from his past and tries to grow the new AA but I'm guessing he will do some pruning.

AA claims they want to hire 1,500 pilots over the next five years. Adding the AA and LCC retirement numbers together it looks like there are about 1,900 mandatory retirements. Factor in another 10% for early outs due to medical or whatever and you are looking at 1,500 newhires to replace 2,100 pilots leaving. Looks about right to me. I'm guessing Doug will use new work rules to increase productivity about 15% and will cut capacity about 10-15%.
 
Green,

No, I have never worked for him. I'm just posting what I think will happen in order to realize the full benefits of the merger.

My personal opinion about Parker is pretty much in line with what you said. However, I think he was limited in what he could do with USAirways: they were basically a niche airline, stuck between a legacy and a LCC, pretty much squeezed out by UAL/DL above them and SWA/JB amongst them. There was only so much growth he could accomplish, and when that capped out, he went down the concessions route.

The new AA will be a whole different animal. Parker will no longer be limited as he was with US. He will have tremendous growth potential and not be limited in what he can do. He will have the opportunity to do what Delta did. In order to do that, however, he will have to put his employees first (as delta did.)

Basically, We're counting on the fact that we haven't really seen the "true" Doug Parker, who was limited in what he could do at US, but won't be at the new AA. As always I'm somewhat skeptical given his past, but cautiously optimistic that maybe, just maybe, he will capitalize on his opportunities here and put his employees first.

A note regarding hiring. AA has ALWAYS deliberately understated hiring numbers for their own reasons. If they announce 1500 over five years, you can pretty much double that number. I'm counting on 2500-300 at least. So any increased work rules/productivity will be more than offset by the hiring. I don't foresee very much capacity cutting, if at all.
 
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Green,

No, I have never worked for him. I'm just posting what I think will happen in order to realize the full benefits of the merger.

My personal opinion about Parker is pretty much in line with what you said. However, I think he was limited in what he could do with USAirways: they were basically a niche airline, stuck between a legacy and a LCC, pretty much squeezed out by UAL/DL above them and SWA/JB amongst them. There was only so much growth he could accomplish, and when that capped out, he went down the concessions route.

The new AA will be a whole different animal. Parker will no longer be limited as he was with US. He will have tremendous growth potential and not be limited in what he can do. He will have the opportunity to do what Delta did. In order to do that, however, he will have to put his employees first (as delta did.)

Basically, We're counting on the fact that we haven't really seen the "true" Doug Parker, who was limited in what he could do at US, but won't be at the new AA. As always I'm somewhat skeptical given his past, but cautiously optimistic that maybe, just maybe, he will capitalize on his opportunities here and put his employees first.

A note regarding hiring. AA has ALWAYS deliberately understated hiring numbers for their own reasons. If they announce 1500 over five years, you can pretty much double that number. I'm counting on 2500-300 at least. So any increased work rules/productivity will be more than offset by the hiring. I don't foresee very much capacity cutting, if at all.[/QUOTE

Exactly. Delta even stated hiring 300 pilots this year but everyone knows it's well north of that.
 
Basically, We're counting on the fact that we haven't really seen the "true" Doug Parker, who was limited in what he could do at US, but won't be at the new AA. As always I'm somewhat skeptical given his past, but cautiously optimistic that maybe, just maybe, he will capitalize on his opportunities here and put his employees first.
.


Employees first? lol Doug Parker is Lorenzo in Khakis with a Dr Pepper in hand.
 
No way PHX stays the same size
 
If you were lucky enough to have a choice between United or American(now that the merger is official) as a new hire (unfortunately I'm not so lucky) which would you choose under the following conditions:
-commuting to either
-could afford first year pay at either place





I say Delta but whoever hires you first go with them
 
Capacity discipline has been popular for the last few years with all the legacies and southwest... Current Load factors alone practically negate any attempt to shrink
 
They have said over and over again they will need to grow. They are still going to be number three in the middle-east, Africa and the Pacific. They have been very open about that and the fact that they will grow. Imo this merger has the most growth potential of any of the last few mergers.
 

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