USAir/AWA pilots express concerns over proposed DL takeover

[General Lee]

US Airways Coast-to-Coast Pilots Express Grave Concerns on Proposed Delta Merger
Friday December 8, 4:41 pm ET
CHARLOTTE, N.C., Dec. 8 /PRNewswire/ -- Following a meeting with US Airways management on December 6, the leadership of the US Airways and America West pilot groups have expressed significant concerns about the proposed merger with Delta Air Lines. The leaders point out that, by failing to integrate two pilot groups under one contract, US Airways (NYSE: LCC - News) management has not yet properly merged US Airways and America West, demonstrating little chance of completing the merger of a third airline.

Equally important, the pilot groups, both of which are represented by the Air Line Pilots Association (ALPA), International, have determined that US Airways' Delta proposal raises serious issues about the job protections contained in the US Airways and America West contracts, and are questioning the company's ability to move forward with this transaction.

"Management cannot successfully merge without labor on board. We have made it clear that our pilots have zero interest in ratifying a contract that provides them with only minimal gains. US Airways, despite its statements to its investors and the financial community, has not completed the business of integrating US Airways and America West. This failure calls into question their ability to successfully merge three airlines, continue to serve their passengers, deliver dividends to their investors, and maintain a motivated employee base," said Captain John McIlvenna, America West Master Executive Council (MEC) Chairman.
The US Airways and America West pilot groups are insisting that management must address their concerns before proceeding with their plans for any future merger.
"Although they have had ample time and opportunity, US Airways hasn't yet merged US Airways and America West, and they have not integrated the pilot groups under one contract. I don't expect that they will be capable of merging a third airline into the fold. ALPA has determined that job protections are available to the pilots in their contract language, and will continue to protect the interest of all ALPA pilots," said Captain Jack Stephan, US Airways MEC Chairman.
Joint negotiations with US Airways management for a single, fair contract have been ongoing for more than one year, and during this time, the pilots have received only concessionary proposals that resemble the bankruptcy-driven contracts made as pilot investments in the airline during the 9/11 era. Both pilot groups remain focused on the issue of achieving a fair single contract, one that is commensurate with US Airways' position in the marketplace. Founded in 1931, ALPA represents 60,000 pilots at 39 airlines in the U.S. and Canada. Visit the ALPA website at http://www.alpa.org.



But hey, Parker and Kirby want it...... Well, atleast Kirby wants it---the USAToday article said Parker wouldn't fight DL......


Bye Bye--General Lee

 

[On Your Six]

Hostile takeovers NEVER work in service businesses where labor is a critical piece of the puzzle. Parker should understand that...

 

[General Lee]

Hostile takeovers NEVER work in service businesses where labor is a critical piece of the puzzle. Parker should understand that...

USAir needed Parker to survive, and DL does NOT.


Bye Bye--General Lee

 

[Doug Parker]

.

thank you, Jeeeeezus !!! We finally got rid of the MEC Chair - POP (Puppet of Pitt) Kent and got someone in charge with some balls !!!

Thanks, Johnny Mc - now how do we get the other 2 a$$hats outta there ??



.

 

[Heavy Set]

That is interesting that none of the pilots involved want to merge. That will probably be brought up at the next creditor committee meeting. Their denouncing Parker must have really been an embarrassing kick in the stomach for Parker and company. He is losing allies.

 

[ironspud]

Lot of "Blah, Blah, Blah" in that article.
No substance what so ever.

 

[linecheck]

A lot of this is posturing to achieve the best contract possible. Money talks.

 

[tomgoodman]

Maneuvering

A lot of this is posturing to achieve the best contract possible. Money talks.

It's possible that the entire proposal is "posturing". Sometimes offers are made for reasons other than a realistic desire to merge. Among them are:

--testing the water
--giving your competitor a headache
--putting your company and/or the other one "in play"
--bidding up the stock price, costing the eventual purchaser big bucks
--flushing out the merger partner you REALLY want
--making the REAL deal look good by comparison
--distracting employees and stockholders from their anger at you
--becoming a big-shot "player" in the corporate world

And sometimes, the "target" of a hostile (but futile) takeover secretly welcomes the offer, for reasons of their own, possibly including some of the above.

 

[FDJ2]

It doesn't look like Parker has a knack for "getting it done."

Good luck to the LCC pilots.

 

[Green]

I think what it comes down to is that Parker is a very good bean counter. He has managed AWA well by dramatically controlling costs and he recognized the value of picking up AAA on the cheap. However his inability to spend a dollar has cost him good labor relations and in all likelihood this Delta merger.

Unfortuantely LCC is already on the path of getting squeezed out again and forced into the status of a regional carrier. Parker has not announced any significant widebody orders and unless he makes some big moves soon we will not pose any significant competition to DAL, CAL, UAL, AA, or NWA in the next 10-15 years on an international level.

 

[ironspud]

http://www.usaviation.com/forums/index.php?showtopic=32336&st=0&#entry436609

From another forum. One of the members there put up an excellent set of links to good articles on this whole conumdrum. Worth reading. Not much "blah, blah". Much better than reading lee's regurgitations.