Doug Parker, pictured above, is the CEO of US Airways.
Parker has been an outspoken proponent of industry
consolidation in recent years.
More than two years after withdrawing a bid to take over a then-bankrupt Delta Air Lines, US Airways CEO Doug Parker is once again calling for accelerated consolidation in the airline industry, this time with American Airlines, The Deal reports. Parker, who was actually employed by American from 1986-1991 before serving as Vice President of Northwest Airlines between 1991 and 1995, has been an outspoken proponent of consolidation since 2004, when he engineered the takeover of a sickly US Airways by his own America West Airlines.
A merger between the two airlines makes sense, Parker says, due to the relatively small market share of the merged Northwest-Delta entity (25%) and the room it leaves for competition. Additionally, given the speculation Continental's entry into the United-founded Star Alliance has brought about in the wake of merger speculation rumors in 2008, American remains as the only party not yet spoken for, having abstained from consolidation since its 2001 merger with St. Louis-based TWA. US Airways attemped to merge with United in 2000, but the two withdrew their plans when faced with resistance from the Department of Justice.
As far as any American-US Airways union is concerned, a combined carrier would overlap little, offering American expanded presence in the Southeast with US Airways' Charlotte hub, the Southwest with its Phoenix hub, and the opportunity to consolidate operations between its New York-JFK hub and US Airways' Philadelphia hub, which serve as each respective carrier's chief international gateways.
US Airways is currently the weakest domestic legacy carrier in terms of international movements. While American leads to Europe in terms of passengers carried, Delta and Continental best it in terms of destinations served, while both Delta and United are largely superior to Asia and the South Pacific, Delta bolstered by the aforementioned Northwest merger, during which it inherited Northwest's hub at Tokyo Narita International Airport. Neither carrier offers international service from Austin-Bergstrom International Airport. US Airways offers service to Phoenix and Charlotte, while American's second place ranking in terms of flights and passengers carrier was recently dwindled by its decision to ax its daily flight to San Jose, known affectionately as the "nerd bird" route.
American is the only US legacy carrier not to have filed for bankruptcy this decade, while US Airways filed for protection twice prior to its acquisition by America West. The financial health of both carriers is the subject of intense debate, mainly as a result of labor issues with each, which could act to prevent a merger on their own. At this time, it is not known whether Parker's comments were the result of any meeting between the two or simply wishful thinking. Stay tuned to the Austin International Travel Examiner for more information as it becomes available.
Comments
Well- The one good thing is there would be no ALPA. But I see no way for this to happen. Two airlines, three pilot groups. American and USAPA would be happy with date of hire- which because it is a merger of two different unions, this is what the new law says must happen. Then there are the America West pilots who will never agree to date of hire. Don’t see any way even Solomon could fix this.
We have a List. It is called the NIC award. It is a final Injunction Order by the Federal court as of June 26. Now just retain relative seniority and a thirty percent pay raise and I think we could make the deal.
US also fly's to CLT from AUS.
Us Airways employees should do everything they can to make sure this deal doesn't happen, lest we end up like TWA's employees. SCREWED!
Well Mike Date of hire is not even of concern anymore with the new federal law. This law was not in place when we took over USirways but it is now. We would not see what took place with AA and TWA either as the new law trumps contract language. A merger between us and American would look very simular to that of Delta Northwest. In any event it would rid us all of the scab mentality of usapa.
Mike- The definition of insanity-(doing the same thing over and over and expecting different results.) There is that pesky thing in the contract bylaws – it MUST be voted on. Why would the USAirwways pilots agree to this now after working for years for less money? Still underestimating their resolve.
In regards of this alleged merge I could only say that makes a lot of sense in order to survive and make the #1 airline in the world, also AA is in desperate need of a new CEO like Mr. Parker and with fresh ideas!!
Well fellas, I'm not a pilot. Your problems are your own. I'm a Fleet Service Agent in DFW and my guess is any merger with American and my 30 years of seniority won't mean squat.
Its always about the pilots isn't it? cry babies that don't get it, seniority is all we got. The bankruptcy judge throws everything out anyway. It's the others who pay the real price, customer service, ramp, res, maint. Get ready to have your jobs farmed out if your not at a hub, res will be in Singapore. Oh you can stay and work for the new contractor,at half pay and no benis's. Everyone but the top company officers get screwed and the pilots fight for years over their pecking order. Think this is BS? look at Parker's history at USair...ways. I guess everyone's doing it now. This country has forgotten how to treat employees.
Reply to just jack above. Do YOU have any idea what you just typed??? Can you spell TWA? Or are you just jacking yourself?
For the USAirways folks drawing the fallacious comparison to the TWA. Remember, TWA was bought out. It was not a merger. Nevertheless, it would be interesting to watch the pilot unions try to eviscerate the other.
Fortunately BOB, yes I can not only spell TWA but I can read TWA as well. One would think that because the three pilot groups that have two different unions, the McCaskill-Bond seniority Protection law, part of the 2007 Omnibus Bill which returned section 3 and 13 of the Allegheny-Mohawk LPPs, would apply now. The TWA situation was the impetus to this amendment to the 2007 Omnibus bill.
Just jack. If you think APA will settle for DOH, you haven't been paying attention to anything involving cockpit labor since about 1962.
I do not have a guess as to what they will do –only that the McCaskill-Bond seniority Protection law IS in play and if any merger is to happen,this must be addressed-if not, there will be no merger. Again, the definition of insanity -Do these companies have deep enough pockets to make ANY of these pilots satisfied, let alone all three pilot groups? I certainly do not know. Personally, I think this is a great example of actions coming home to roost. Pilots have been treated like dirt by management and it has become acceptable for them to treat each other like prey. They have grown so used to it that they are not easily manipulated nor reasoned with. They have lost everything except their seniority- and now they clutch to it until their last breath. Seniority has become their Waterloo. Ultimately,the adversarial atmosphere that has been created between management and pilots and the civil war between pilots could destroy them all. As an outsider looking in, it is difficult to understand.
divide and conquer, welcome to the game boys
How sad that A320PYLT doesn't kmow what a "Scab" is. In Aviation, it is someone who crosses the picket lines during a strike. And if you do a little research, you will find that America West hired quite a few who did just that. The ignorance is shocking.....I hope my Family never has to fly with a Pilot like that. I bet Sully could give the correct definition of a "Scab"!!
who in the hell cares what the America Worst Pilots think...start your own damn airline in hot phoneix
A long time ago in a place far away. Pilots were rare and hard to replace thus were looked at with admiration and paid well for their daring deeds. This built the mystique and the ego of the pilot. Now it is their Achilles heal, and the corporates will use it against them to destroy their control and drive their wages down. Stick together or be replaced by the ARMY of commuter pilots standing behind you just aching for your jobs. An ARMY built by the corporates just for this purpose. Think it's not possible? Look around at what has happened to every other department. Outsourced.
Get over yourselves, you are not that rare anymore.
While the article implies how AWA purchased US Airways, official SEC 8k & 10k filings portray a vastly different picture. Unresearched (false) publication of information is merely irresponsible journalism.
Further, employees have no decision-making capacity; they can't "buy" or "save" another employee group. They are merely labor and should deal with their own issues internally.
Such discussions in public forums speak to an immaturity and errodes credibilities.
An EGO speaks
Let's all hope it doesn't happen. The only winners are executives with golden parachutes. The regular workers will be laid off in droves, with nothing left of the original company but a few disgruntled employees, and more airplanes in the desert. Ive been through 3 mergers already, and none went smoothly.
Don't worry folks...Southwest will flush every one of you, just give it time. How come the airline with the cheapest fares has the highest wages in EVERY employee class and craft? Do you really think Parker can run an airline? As far as the East pilots are concerned, you're lucky just to have a job. But, at your wages, is it even a job? No deal here...AA isn't that stupid.
No way is there going to be a Merger!! AA is crying they can't pay or give thier F/A's a contract.They are also trying to furlough all those TWA folks that were bought in 91.
If US Airways merges with American Airlines will there be at least a 36 inch TV with a working remote control and Direct TV satellite service in the customer service gate breakroom; if so
count me in !!!
whoever made the comment about southwest getting rid of all of the real airlines, must be an idiot, southwest is on their way down, soon to charge for bags just to keep in the air, no international routes at all, great regional carries, haha..
A buy out or merge with American is always a blood bath, check their history. American is a give a care terrible airline to employees.
And, NONO TWA employees are all history, GONE.
Merger Maniac, you are right, and the biggest idiot of the bunch Doug Parker can't run water down hill even when he is instructed by his employees.
Bottom line, the employees are the ones who have to suffer from friggen idiot CEO's who would kill if it was legal.
JUST JORGE, Did you escape the the mental hospital or did you sneak into the office and use the hospital computer.
Parker is a friggen idiot, was and still is. Check the records and see what he and his cronies have done with US Air and all the money they "HAD" when the French helped put the whole thing together (to sell more of their French Aircraft). They are still working with a obsolete computer system that America West had that is not compatible with US Air's and CODESHARE, yeah they need fresh ideas alright. The sorry thing is when that scum bag (Doug Parker) leaves he will take millions with him. Damn shame.
It'll likely happen if United and Continental merges. United baited Continental by opening up talks with US Airways. Continental didn't want to be left in the cold so they re-opened talks with United.
american airlines is the biggest airline(by it self) and if there were no mergers (cough cough delta, untied) it would still be the biggest......those two airlines just needed someone to save them.....and trust me if AA did merge with U.S Airways, no airline in the world could compete with them uve got to admit, AA has a fleet of 615, and U.S airways has a fleet of 350 that would be a mega fleet of 900 wich would kill delta and united
When they say that delta has a "small" market share of 25%, they make delta sound small DELTA IS HUGE NOW!!!!! Also it could potentially be a disaster for oneworld if us and AA were to merge with us because they would be a better than 50/50 chance that they would choose star alliance, leaving oneworld with no american partners.
American should become the parent company of US Airways. That would cause a mayjor increse in the travel industries. and besides us airways is some cheap, idiotic, bad service,and crappy crew airline. american would be doing them a favor
Tired of all the misinformation. America west not not by UsAirways. Outside money financed the merger of the two. Dougie has taken to playing a dangerous game of playing one group against another. We will not get sidetracked. He needs to understand that you cannot continue to mistreat your employee groups. We are at a point we will not take it anymore.
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