Originally Posted by
ksweeney
Actually the US FA contract rejection probably is not an impediment to Doug Parker. He currently is operating 2 carriers under a single brand and marketing and then coordinating scheduling and partners across the two carriers. Why would he find operating 3 carriers (HP, US, & AA) under the AA brand problematic? To a rational person that might seem like a circus act, but that doesn't mean he isn't crazy enough do it or creditors spooked enough to approve it. Even if AA isn't able to lower its costs, he would get what he wants - the AA network along with the newer aircraft. He would transfer flying to HP and US, while reducing flying by legacy AA crews. He will discard the MD-80s as part of the acquisition, dump current AA management, and gradually downsize the number of AA rank and file. I suspect that the rhetoric between AA management and the rank and file is such that unsecured creditors may assume that labor contracts that both parties can agree to won't happen and without US, the only other option is an Eastern / Braniff style dismantling breakup. Never confuse logic and business
I would second this. No matter which side of the fence you stand on the unions at AA are going to be neutered either by the Court or under pressure to go along with management under threat of much harsher measurers put into place by the Court. Look at all of the huffing and puffing that went on by unions with the other carriers in Chapter 11, all of which mounted to less than a hill of beans.
Most creditors are looking at the situation as to will a much larger airline with a more robust route structure benefit me more than a smaller airline still hobbled by two larger competitors. Its not to say that they will not discuss and consider implications of labor unrest but having a bunch of happy pappy FAs is probably not very high on their list.
USAir needs AA more than AA needs USAir and Parker appears to be dying to do a merger (he has tried to dance with just about everyone else.) If he can make a compelling argument to creditors he has a very good shot at doing something. There will likely be no shortage of parties willing to line his pockets with funding.
The counteraction could be DL to make a run for AA, assuming DL has a somewhat credible strategy of getting around antitrust concerns without gutting itself.