Posted April 21st, 2012, 12:29 PM
I have been waiting for your opinion greatam and FlyerTalkers also. I myself do not like the idea of a merger but I am also fairly clueless about how these things work. The media is good at spinning things and that is why I never really believe all they say. Two sides to everything and nothing is ever all good.....
I am not the only one who feels that "deceitful Doug" is BS'ing the unions and will take them down as fast as he builds them up.
Here's a direct quote from the very long thread on Flyertalk-"I would laugh my *** off at all the union suckers who ran from Horton only to end up deceived by Doug."
There are many, many others in the thread who feel the same way. There is absolutely NO advantage to the unions to cozy up to US Air. Just think this one through-Doug Parker offered the employees MORE than AA in terms of "hard" costs (meaning salary). But AA needs to get at least 1B in savings to be viable. So how do you offer MORE MONEY and slash costs at the same time with the same aircraft??? Sounds like our government and their never ending printing machine.
Some of AA's equipment (the MD-80's particularly) are HUGE fuel hogs. And in this day and age of high fuel costs, those planes are a drag on the bottom line.
Here is a pretty good explanation about what Doug Parker offered the AA unions and what AA is offering:
"I can assure you that it will not be even close to the $1 billion reduction needed. I just saw the bridge term sheet posted the US forum.
Wage Increases: 2.5% on effective date. 1.5% annually over next 5 years.
Minimum of seventy (70) credit hours and a maximum of ninety (90) credit hours per bid period.
Can someone tell me how they are going to get the productivity out of the 90hour/month increase without furloughs?
I don't think that they will get much savings out of the retirement costs for a while with terms like this:
Current employees will receive automatic 401(k) contributions for 5 years, with no match requirement. Contribution levels as follows:
9.9% age 50 +
6.75% age 40 – 50
5.5% age 39 – below
Considering that the median age of the FA workforce is over 50, a 9.9% contribution rate is right around the cost of the pension contributions.
Maintain all other provisions in our current Contract including:
Vacation accrual and pay
Sick hour use and current sick policy
My favorite part is that a new contract would go to binding arbitration 60 days after single carrier issue if there is no permanent contract. So it isn't going to be some deus ex machina for US to impose a more productive contract after merger.
Just wow... giving away the farm indeed."
Bad business all the way around with this merger. You certainly won't catch me going into Terminal 4 in Phoenix very darn often if the merger happens. I will fly Continental to NYC for my monthly meetings and who ever I need to to get to a US gateway for my international flights. You won't catch me on a Doug Parker merged airline except in last minute emergencies.