Saturday, June 23, 2012

American Airlines, US Airways Merger Speculation

June 22, 2012

Doug Parker, CEO of US Airways, has made a career out of attempting to merge airlines.  The former America West Airlines CEO has not been successful to date.  Eastern Shuttle, ATA, United, Delta.  Bzzzzzt.  What about the US Airways-America West merger you say, Bzzzzt.

US Airways Pilots and America West pilots are not allowed to fly each others routes due to a seniority dispute.  Is this dispute a problem?  Mr. Parker does not mind it at all, he uses it as an excuse not to bargain in good faith with the pilots and is saving more money than the synergies of a completed merger could bring.

American Airlines is Mr. Parkers latest attempt.  He is setting up three pilot groups that will fight each other, synergies be damed.  Paint all the airplanes the same color and use the politically motivated NMB to stall contracts indefinitely.  

But tune in, the pilots are getting wise to his playbook.  This may not be a good strategy this time around.  Invest in gold, not greed.