Blocking the US Airways-American Airlines Merger Hurts Workers and Consumers

Aug 20, 2013 | Posted by: roboblogger | Full story: US News & World Report

The Obama administration's lawsuit blocking the proposed merger between US Airways and American Airlines' parent company, AMR Corp., has upended the industry causing job uncertainty for hundreds of thousands of workers, pummeling investors' stock portfolios and jeopardizing AMR's bankruptcy exit.

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1 - 5 of 5 Comments Last updated Aug 25, 2013

Since: May 08

Santee CA

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#1
Aug 21, 2013
 
There will be duplication of some jobs where there are dual operations, mostly managerial. There wil be some job loss. (increased operations will require more people) AA outsourced many jobs on the ramp and in customer service.. In several stations airline employees will be recalled to their jobs. Many consumers see ticket, gate and baggage claim area agents wearing AA uniforms. They are in fact NOT AA employees, they are contract workers. You the consumer, like AA employees have been lied to by the AA executives. In my opinion it is this culture of lying that led the DOJ to their opinion. I hope if the merger is allowed the culture will change with a change in executives. Denying this merger keeps the false face of AA in place. THAT is bad for the consumer.
steve

Radford, VA

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#2
Aug 23, 2013
 
The job loss will be greater with the merger. Two counters at many airports will be one after the merger. Two airlines combining to one will always lead to layoffs. Also some hubs may go by the wayside as Delta has done with Memphis and United with Cleveland. I do not believe that AA does not have a plan B as some have stated. A company that large must have contingency plans in place to deal with any situation that arises.
AA employees want Tom Horton out and Doug Parker in. Be careful what you ask for. CEO's are all cut out of the same cloth, their priorities are first and foremost, the shareholders and share prices. Someplace down the list are customers and employees. Just look at the amount of outsourcing that the airlines are doing, hiring contract employees with little or no benefits.
I don't trust CEO's or politicians.

Since: May 08

Santee CA

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#3
Aug 23, 2013
 
steve wrote:
The job loss will be greater with the merger. Two counters at many airports will be one after the merger. Two airlines combining to one will always lead to layoffs. Also some hubs may go by the wayside as Delta has done with Memphis and United with Cleveland. I do not believe that AA does not have a plan B as some have stated. A company that large must have contingency plans in place to deal with any situation that arises.
AA employees want Tom Horton out and Doug Parker in. Be careful what you ask for. CEO's are all cut out of the same cloth, their priorities are first and foremost, the shareholders and share prices. Someplace down the list are customers and employees. Just look at the amount of outsourcing that the airlines are doing, hiring contract employees with little or no benefits.
I don't trust CEO's or politicians.
While duplication will lead to layoffs, it can also create work... AA does a lot of maintenance work for other firms as an example. AA has a plan B. it's the joke of a stand alone plan Horton advocated. I agree, Horton and Parker are both CEO's and friends even. However AA'ers want the executive culture changed.. They don't care who is in charge as long as it isn't the team that lied to them and ran the company into bankruptcy. Will Parker be better, that bridge will be crossed if needed.
Cordwainer Trout

Elizabethtown, KY

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#4
Aug 23, 2013
 

Judged:

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Fascism. Pure Fascism.

Obama and the Communists in his regime know nothing about business.
steve

Salem, VA

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#5
Aug 25, 2013
 
Prost wrote:
<quoted text>While duplication will lead to layoffs, it can also create work... AA does a lot of maintenance work for other firms as an example. AA has a plan B. it's the joke of a stand alone plan Horton advocated. I agree, Horton and Parker are both CEO's and friends even. However AA'ers want the executive culture changed.. They don't care who is in charge as long as it isn't the team that lied to them and ran the company into bankruptcy. Will Parker be better, that bridge will be crossed if needed.
Why do people always think any change would be better than what they have now? Just look at how long Parker kept wages at US the lowest in the industry. If the merger goes through, I hope the level of customer service will not drop. I have flown both carriers in the past and AA seems to be more interested in keeping the customer happy and keeping them as customers.
As far as AA being a stand alone carrier, they have the hubs, routes, a huge fleet, US has the smallest fleet and no where near the route coverage AA has. I remember reading a comment a short time ago that Airways has a large payment coming due in 2014 or 2015, so this might be the impetus to get the merger done.
Also since AA through chapter 11 has brought wages on par with the other carriers and lowered lease rates on many planes, why would they not be successful? Like you said, we will have to wait for the merger to go ahead and if so, what will the finished product look like.

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