With a long-sought merger of US Airways and American Airlines seemingly coming closer to reality and the companies in talks over the nitty-gritty details, it's time for a quick round up of the latest news.
More leaks are starting to seep out from the confidential merger talks, and some of them come with concrete dates and data points attached. That could be a sign that the process is getting closer to wrapping up, even as another rumored merger announcement date - Jan. 29 - slips by without a peep.
The Wall Street Journal reports that Tom Horton, the CEO of American Airlines, is in talks to determine his role in a post-merger company. Many analysts think Doug Parker, US Airways CEO, would lead a merged company. That would be the same thing that happened in 2005, when America West combined with US Airways, and Parker, then head of America West, brought his team on board. In a US Airways/AA merger, Horton could wind up as chairman of the combined firm for a few years. That's what Glenn Tilton, the head of United, did when his airline combined with Continental.
The Associated Press says the final sticking points in a deal are how to divide up the combined company's equity, and which management team would lead the airline. And Tuesday, a group of major bondholders was reported to be supporting the proposed merger, with a targeted completion date of before Feb. 15. That's when a confidentiality agreement the bondholders are operating under runs out.
Of course, as all the reports note, a deal could still fall apart. But that seems to be less and less of a possibility as the drumbeat of leaks grows louder.
And any merger of US Airways and American could, of course, have big implications for Charlotte. US Airways operates about 90 percent of the local airport's daily flights, and more than 7,100 US Airways employees are based here.
Wednesday, January 30, 2013
US Airways/AA combination inching closer
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14 comments:
Doug Parker never finished the previous merger. This joke for a CEO asked for employees to save his job, his company from going belly-up. Doug Parker begged and pleaded with employees to cut their pay in half, so that US Airways could survive, as it was drowning in red ink.
Yet, as soon as US Airways started to make money, back in 2010, CEO Doug Parker forgot all about the employees that saved the airline from becoming extinct. Doug Parker has yet to restore the pay of the employees that were promised such, as soon as US Airways was in the black.
Nooooo, instead, Doug Parker goes out and attempts to pull the same monkey business, by acquiring another Airline. Oh, CEO Doug Parker will ball his eyeballs out for employee concessions, in order to get what he wants...at the expense of everyone else.
CEO Doug Parker is the poster child for what is wrong with our business model today, as employers and companies could care less about their employees. Sorry, but the United States of America was NOT built on Doug Parker's business principles or practices. It's a sad day, knowing that States support the mistreatment of employees, by allowing "Right To Work" laws and ethics to erode the very fabric of our economic system.
This is precisely why Unions were created, and those of you who believe this is proper ethical behavior are part of the problem. Oh, people will push back and Unions will get restored, under a different framework. Doug Parker is hurting the economy and the people associated with US Airways, as he is merely allowing people to be seen as useless, replaceable objects, much like a tire on a 747.
Maybe, but keep in mind that the "red ink" you pointed out is now black ink, and those "abused" employees are still employees; that is, still employed and not UN-employed.
lol dougie - you should stick to naming dances after yourself
Unions were created to protect people from being abused and treated like animals. The fact that the market has shifted just means that the old business model no longer works. In order to stay in business, adjustments have to be made, including decreasing expenses (ie, labor). Would you rather not have a job? Because that's where things were headed when CEO Doug Parker (who I don't like either) went through the restructuring of the company. And I'm sorry you feel entitled to an immediate reward when the company finally reached "the black", especially since in this case, the reward is "you are employed, with benefits".
And I hate throw out such a cliche, but in this case it makes sense.
If you don't like it, change it.
Go get a different job...you have that right.
If the pay cuts were so bad, people would have left to find the same job elsewhere for more money, left to find a new job doing something different or chosen to be unemployed. At somepoint you have to believe people went through that decision process. If they didn't, perhaps they should.
I'm saddened to see that a final "sticking" point is American's CEO's position in the merged company. How self-serving!!! Wasn't he running American when it had to file?
I spoke with 2 US Airways' flight attendants this morning on my flight about this. Both said their understanding is an "any day now" announcement and they're looking forward to it. I asked their opinions on management, specifically Parker since I've seen so many comments like dougie serb's at 11:54 this morning. Both agreed that Parker did what was necessary to keep the airline going, but they were split. One felt that it was time to start giving money back to the employees while the other FA said that he could have saved the company without cutting salaries. However, both feel that salaries will increase after the merger.
I think anyone that believes the "Charlotte Douglass will be fine" mantra is fooling themselves. I can't imagine a scenario where Charlotte doesn't lose flights. And if you read papers other than the Charlotte Observer, you will find that this is the majority opinion.
I find it funny how so many "anonymous" people can come out of the woodwork to criticize others. You wimps obviously don't have a backbone, or you're just too used to your redneck ways of talking behind the backs of others. Typical cowards...no wonder your ancestors lost the Civil War.
The first poster was right and hard working people are getting the shaft more and more. Just because you haven't gotten yours just yet doesn't mean it's not coming around to you. Sure, why don't you "anonymous" people go into your boss' office, offer up half of your pay, and if they won't accept that, just quit.
Do you know how assinine you sound when you act as though it's not a big deal that people are getting asked to take pay cuts and work twice as much? Sure, let it be you and see how you feel about it. Those of you who don't object don't have an education, which means you have no choice but to drop your pants,bend over to your boss, and say you'll take whatever he shoves at you.
Doug Parker is a jerk and it's not the way to run a company legitimately. You take care of your workers, or your company can go under...as everyone will eventually abandon you.
Too bad someone does push Doug Parker out of one of his planes. You "anonymous" puppets can follow.
I agree with those who feel that working is a privilege and that for a company to survive sacrifices may have to be made. No one is forcing US Airways employees to work for US Airways, nor has anyone or anything entitled them to any amount of money. Our capitalist country gives everyone the opportunity to be as successful as they wish, but much to the dismay of those who choose not to be successful, it does not guarantee success.
On another note, how "assinine" (It's asinine, Webster) that "Bono" would assume these anonymous commentators are from the south and then somehow justify his rant with reference to the Civil War.
Like Bonno said, another Anonymous post from another sniveling southerner. How do we know you're a southerner? You won't put your name on it. Typical southerner, talk behind your back, stab you in the back, but won't ever come face-to-face with you. Anon 1/31 at 10:15am, prove to us you aren't a redneck by telling us your name and where you are from.
I'm from Detroit and I KNOW this is a bad idea. This merger is going to hurt Charlotte, as well as it's many employees who depend on the company's success for survival. Doug Parker has no ties to the Charlotte community, and he is just another greedy rogue CEO, out to take away US Airways from the people who live in Charlotte, along with those who work for US Airways and call Charlotte their home.
Doug Parker is no saint, no hero, and he doesn't have the best interests of his employees at heart. If the rest of you clowns believe this is the way we should conduct business from here on out, expect the economy to only get worse and for more families to depend on the Government for survival. You ALWAYS look out after your employees, as job hopping is NOT the answer. I loathe the Baby Boomer Generation and how they have changed the way we do business, as well as care about our employees. This was the reason the Unions started up.
Hey, Anon 1/31 10:15 AM, we're still waiting for you to prove to us you're not a redneck. Name and city, please.
Unbelievable that anyone would argue against someone's intelligent comments about the issue at hand by bringing up the completely unrelated issue of where they are from. I live in Charlotte and am from the south, but that doesn't make me a redneck any more than it makes Steven Percy a government/union dependent because he is from Detroit.
Anon 11:01, you are a redneck. Try following the stereotype explained above and put your name on your comments. In other words, own up to your statements. No backbone at all.
US Airways never settled up with the first merger, so why go forward with another merger? That's easy...it gives Doug Parker the chance to downsize employees and get rid of the original US Airways workers. Yeah, those workers who agreed to take the pay cuts.
Lesson to be learned here: unless Corporate agrees to take the same percentage pay cuts as the employees, tell the execs to go fly a kite...or the planes themselves.
Unions are the right way to go and the sooner you rednecks learn this, the better we'll all be treated as employees.
LCC topped Wall Street's expectations in Q4 2012 and reported big profits for 2012, which brought added value to shareholders. Parker is about to create the largest airline in the States, which has the potential to be even more profitable and highly competitive, which is also going to add value to shareholders. Don't criticize the brains of your operation for doing their job, because if they didn't, they likely would not get paid and would be removed. A union cog, on the other hand, is far more certain to be paid and stay employed no matter what happens.
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