US Airways, America West in advanced merger talks - WSJ

[ThisistheDream]

Imagine that merger with trying to merge the seniority lists? if you went to by DOH, there would be alot of AWA furloughs and alot of USairways recalls, since there are 15 year pilots at US Airways furloughed. I think this is a scare tactitic to get other airlines to do something dumb, like when AA bought TWA all becuase it thought UAL was going to buy US Air.

 

[Crossky]

At least all those Air Whiskey types now know that they'll get a seniority number at America West.

uuuuuuu, Beavis? You're kidding right.

Sorry, but what about the furloughed US Air types back to 1986? Prince and Madonna ruled then, not privately held conservative AWAC. That'll be a long line for a seniority number. All sorts of issues are in the way, besides just negotiating something like that. AWAC's three board seats on US don't happen until after US exits BK, for one.

Besides, it looks like the evil JO is positioning himself to aid AWA in the capital needed to seal the deal. Mesa, not coincidentally, does most of their flying for US and AWA. If this goes further, it could be a big wrench in our works to keep our CRJ's flying, because you know Mesa will get guarantees to keep the US and AWA as conditions of the deal. If this happens, I think even darker days are ahead for whiskey, I feel like taking a shot myself.

 

[TheDonger]

No lie there. Those nit noids are still fighting the Battle of the Goobers and the Rustheads.. (Piedmont/USAir).... Man, what a horror that will be if it ever comes to pass!


PHXFLYR

Yes, the nit noids are the Goobers.

 

[Dizel8]

I think US is desperate and sadly, it appears HP is thinking it may work!

 

[FDJ2]

Sure it is..........between ALPA carriers....

No it's not. Not even between two ALPA carriers.

 

[FurloughedAgain]

He's right. The ALPA merger policy is based upon career expectations and no-windfalls. It basically allows for a negotiated merger with slotting and fences.

Date-of-hire is one of the many variables included in the negotiations -- but it is not ALPA policy.

 

[B6Driver]

If I were at AWA, I would say no way. USAir is in big trouble so why get in bed with something like that unless you planned on selling off the peices and leaving the bones on the roadside?
If AWA is now making money, why mess with it?

 

[FDJ2]

Here are the ALPA list integration goals from the ALPA Administrative Manual​

​

​

SECTION 45 – MERGER AND FRAGMENTATION POLICY 10/31/02​

5. The merger representatives shall carefully weigh all the equities inherent in their merger situation. In joint session, the merger representatives should attempt to match equities to various methods of integration until a fair and equitable agreement is reached, keeping in mind the following goals, in no particular order:

a. Preserve jobs.

b. Avoid windfalls to either group at the expense of the other.

c. Maintain or improve pre-merger pay and standard of living.

d. Maintain or improve pre-merger pilot status.

e. Minimize detrimental changes to career expectations.





​

 

[aa73]

STL pilots and F/As flew active DFW-HNL trips??? If that ever happened, I would be the first to retract the statement. But you know it only happened in reverse to screw the TW guys and girls. Fact.

Retract your statement, dude. The STL (SLT) 767 Int'l status is alive and well, with the company deadheading TWA CAs and FOs - at great cost to the company - down to DFW and up to ORD to fly DFW-HNL, DFW-SJU, and ORD-HNL. Been going on now for at least a year.

Fact is, everyone got screwed in this asset acquisition. Fact.

73

 

[crashpad]

Hey, here's another fact. Three LCC's will enter talks to merge later this year and beat the legacies to the punch. This will spell disaster for 2 majors.
Can you guess which? (AWA is not one of them)

 

[80drvr]

STL pilots and F/As flew active DFW-HNL trips??? If that ever happened, I would be the first to retract the statement. But you know it only happened in reverse to screw the TW guys and girls. Fact.

Fact!

[size=-2]SEQ 00566
EQ FLT DEP TIME M ARR TIME NITE TOTL P&C DUTY ODL GND
00 379 STL 1628 DFW 1822 DEADHEAD
/LAYOVER AT DFW/ 1.54 3.00E 2.54 14.13
B7 5 DFW 1005 L HNL 1318 8.13
/LAYOVER AT HNL/ 8.13 0.00 9.43 26.07
B7 8 HNL 1655 D DFW 0516 6.16 7.21 1.51
00 500 DFW 0707 STL 0847 DEADHEAD
9.01 1.40D 12.22 TAFB 65.19
EXPENSES 130.63 15.34 4.40 20.14
[/size][size=-2]SEQ 00568
EQ FLT DEP TIME M ARR TIME NITE TOTL P&C DUTY ODL GND
49 599 STL 0935 L CUN 1232 2.57 1.08
49 1850 CUN 1340 STL 1647 3.07
6.04 0.00 8.42 TAFB 8.42
EXPENSES 17.39 6.04 0.00 6.04
[/size][size=-2]SEQ 00570
EQ FLT DEP TIME M ARR TIME NITE TOTL P&C DUTY ODL GND
00 379 STL 1628 DFW 1822 DEADHEAD
/LAYOVER AT DFW/ 1.54 3.00E 2.54 14.13
B7 5 DFW 1005 L HNL 1318 8.13
/LAYOVER AT HNL/ 8.13 0.00 9.43 26.07
B7 8 HNL 1655 D DFW 0516 6.16 7.21 1.51
00 500 DFW 0707 STL 0847 DEADHEAD
9.01 1.40D 12.22 TAFB 65.19
EXPENSES 130.63 15.34 4.40 20.14
[/size][size=-2]SEQ 00571
EQ FLT DEP TIME M ARR TIME NITE TOTL P&C DUTY ODL GND
00 379 STL 1628 DFW 1822 DEADHEAD
/LAYOVER AT DFW/ 1.54 3.00E 2.54 14.13
B7 5 DFW 1005 L HNL 1318 8.13
/LAYOVER AT HNL/ 8.13 0.00 9.43 26.07
B7 8 HNL 1655 D DFW 0516 6.16 7.21 1.51
00 500 DFW 0707 STL 0847 DEADHEAD
9.01 1.40D 12.22 TAFB 65.19
EXPENSES 130.63 15.34 4.40 20.14
[/size]

 

[habubuaza]

America West Shares Down On Talk Of US Air Merger
By CHRISTOPHER SCINTA
April 20, 2005 10:45 a.m.

Of DOW JONES NEWSWIRESNEW YORK -- Despite reporting a profit for the first quarter, America West Holdings Corp. (AWA) shares slid 11% Wednesday morning after reports the company's America West Airlines Inc. was in talks to merge with rival US Airways Group (UAIRQ).

Phoenix-based America West reported net income of $33.6 million, or 62 cents a share, for the quarter ended March 31, which was the result of a $60 million gain on hedges against its fuel costs. For the first quarter of 2004, the airline saw a net loss of $1.6 million, or 4 cents a share. However, Wall Street focused on news of the merger talks.

Merrill Lynch Global Securities analyst Michael Linenberg lowered his rating on America West to neutral from buy, citing an uncertain outlook.

"Our longstanding view toward airline mergers is that, while they may be inevitable, and arguably necessary, they are nonetheless fraught with risk given the challenge of intregrating employees, systems and aircraft," he wrote in a research note.

Shares of America West recently traded at $4.25, down 55 cents. Shares of US Airways jumped 22 cents, or 34%, to 87 cents in morning trading.

=-"Even in the absence of a concrete deal, it is our opinion that (America West's) share price will be 'capped' as long as the possibility of a transaction is kept alive in the press," Merrill said.

America West representatives weren't immediately available for comment.

UBS analyst Robert Ashcroft said that "up to a point, we believe the idea (of a merger) has merit," citing both airlines' substantial ties to General Electric Co. (GE) and their debt to the federal Air Transportation Stabilization Board.

However, Ashcroft wrote airline mergers are difficult and "a merger would be very unwise without a substantial equity injection from investors yet unknown."

Any merger between the companies would have to be signed off on by the U.S. Bankruptcy Court in Alexandria, Va., which is overseeing US Airways' Chapter 11 restructuring. The Bankruptcy Code generally requires that any offer to purchase a company in Chapter 11 or its assets is subject to higher and better offers at a court-supervised auction.

Also, the ATSB has veto power over any deal because of the terms of the loan it guaranteed on behalf of America West.

An ATSB spokeswoman declined to comment on the merger talks. The agency, formed after the Sept. 11 terrorist attacks to help the struggling airline industry, currently guarantees about $645 million in loans to Arlington, Va.-based US Airways and is owed about $300 million by America West.

-By Christopher Scinta, Dow Jones Newswires; 212-938-5218; [email protected]

 

[rice]

Might want to check these people out.

WSJ article was released in SFO.
Texas Pacific Group is located in SFO.
Guess who owns (or owned) controlling interest in AWA and at various times made attempts to control US?
Who was behind the CAL resurrection from BK and who inserted Bethune to run CAL?
Just some food for thought, these guys are very low profile but very serious players.

 

[N905TW]

Retract your statement, dude.

Fact is, everyone got screwed in this asset acquisition. Fact.

73

I will be the first to admit I was incorrect. Hadn't kept up on what has been going on in the past year and a half. I do apologize for the mis-information, it wasn't happening last time I saw a pilot bid sheet. Of course, the TW F/A's never even got that option.

Either way, the main point of my post was that IF this merger happens... Management needs to make sure that the employees are all on board and working together to make it succeed. Its going to be tough enough. I wonder what the chances are of coming up with a blended seniority list/fences/etc that both sides can be happy with?? How does one account for all the Airways guys on Furlough?

The next few weeks sure are going to get interesting around this industry......

 

[AnimalTale]

This merger is good for ALPO, oops, I mean ALPA and Duane Worthless. They are guaranteed a few more years of membership dues.\and high pay and perks.

I pray this doesnt happen. It would be a very bad joo joo.

Cya

 

[General Lee]

This merger is good for ALPO, oops, I mean ALPA and Duane Worthless. They are guaranteed a few more years of membership dues.\and high pay and perks.

I pray this doesnt happen. It would be a very bad joo joo.

Cya

Can you see Frontier merging with anyone? I guess Jetblue maybe..?


Bye Bye---General Lee

 

[Jeff Helgeson]

I thought this was an open party....

Can you see Frontier merging with anyone? I guess Jetblue maybe..?


Bye Bye---General Lee

...alright, who put the turd in the punch bowl? This thread might get ugly, I think I'll get out before crowd control shows up.

 

[Jeff Helgeson]

Merger formula/recipe

DOH + percentage on seniority list, seat protection, add fences to taste (but that's like cooking with MSG!).

Bring to raging boil, extinguish with halon.

Serves about 2400, best served between stale bread and presented as a "sh!t sandwich".

Best of luck to you all!

 

[General Lee]

...alright, who put the turd in the punch bowl? This thread might get ugly, I think I'll get out before crowd control shows up.

Just a question there Jeff, it is likely to happen to almost all of us. (except SW) If one group merges, then more are to follow I am sure....You guys might get swallowed up by Sun Country?


Bye Bye--General Lee

 

[ironspud]

I noticed that despite being "acquired" by a superior airline (financially), ALL pre-1990 TWA captains got slid into the American seniority list as captains.

No they didn't. Not even close. The first pure staplee was a 3/89 hire captain who has been on the street close to 2 years (at this point).