Saabslime
Dysfunctional family
- Joined
- Dec 3, 2001
- Posts
- 509
NEW YORK - High hopes, diminishing returns?
US Airways Group (nyse: LCC - news - people ) warned that its merger with America West will confront "significant challenges"--and that the hybrid firm may fall short of expectations.
Sure, every business venture involves risk, but this particular carrier combination has a lot riding on it: The merger was a key component in Chief Executive Douglas Parker's plans to pull US Airways out of bankruptcy.
In a regulatory filing Tuesday, Parker's firm said that while the airlines' synthesis will still create synergies and growth opportunities, US Airways' operating losses have not subsided and will likely grind on into 2006.
The carrier had augured some $600 million in operating cost savings and revenue synergies for the new entity. However, in a U.S. Securities and Exchange Commission filing, US Airways now says it "cannot assure" the synergies will be realized.
"We may not perform as well financially as we expect following the merger," Parker's company cautioned.
Well duh Parker. How many people tried to tell you and your crack management team this prior to signing on the dotted line!? I guess it doesn't matter anymore though since you got yours. Will there ever be anymore good news in this godforsaken industry again?
US Airways Group (nyse: LCC - news - people ) warned that its merger with America West will confront "significant challenges"--and that the hybrid firm may fall short of expectations.
Sure, every business venture involves risk, but this particular carrier combination has a lot riding on it: The merger was a key component in Chief Executive Douglas Parker's plans to pull US Airways out of bankruptcy.
In a regulatory filing Tuesday, Parker's firm said that while the airlines' synthesis will still create synergies and growth opportunities, US Airways' operating losses have not subsided and will likely grind on into 2006.
The carrier had augured some $600 million in operating cost savings and revenue synergies for the new entity. However, in a U.S. Securities and Exchange Commission filing, US Airways now says it "cannot assure" the synergies will be realized.
"We may not perform as well financially as we expect following the merger," Parker's company cautioned.
Well duh Parker. How many people tried to tell you and your crack management team this prior to signing on the dotted line!? I guess it doesn't matter anymore though since you got yours. Will there ever be anymore good news in this godforsaken industry again?