Good observations Doc. Merging is a messy venture that doesn't always turn out right. Okay, so now AA has three midwest hubs that are strategically placed to serve all east-west flow markets, but at what cost? This conversation could quickly go in the toilet (if it hasn't already) if you start pointing fingers. But there are some points that should be addressed. I'm not going to comment on them, but I want you guys to read them and hear what you think:
1) Union seniority: AA wants to protect their union groups and not "demote" them by integrating seniority lists equally. AA could claim the spoils of war go to the victor, and they can also accuse APA of forcing them to preserve AA jobs at the cost of TW.
2) Redundancy: not all positions are necessary following a merger because not all assets are retained. AA already reduced JFK service, will phase out 717s in the coming months, and plans to return other aircraft to their lessors. Therefore, you don't need all the rampers, gate agents, pilots, flight attendants and mechanics that the two companies previously employed. As for the management side, they aren't immune to the downsize bug as well. You don't need two pricing departments or scheduling groups, so some people have to go, be it an analyst or director. I think management cuts might be a bit more objective (they keep the best people), but I could be mistaken.
3) Costs: if you cut only the lowest ranking union labor the airline's unit cost will skyrocket. If AA furloughed the lowest seniorty employees from both companies they'd be left with some serious cost issues because the average pilot or FA or mechanic rate just rose dramatically. AA's treatment of TW labor groups could be an attempt to keep costs in check.
My impression of the TW workers, based upon the ones I've met is quite possitive. Just because the company was doomed (you can't run a hub airline with just one hub) doesn't mean the employees weren't top notch. Why did the company fail? Pillaging by the likes of Icahn, selling off valuable assets to stay afloat (LHR), and paying higher costs for aircraft, fuel, insurance, etc. because of their bad credit rating is what killed them. I think AAMD11 is being a bit harsh, but at the same time I do see his point: he works (presumably) for AA, the acquirer. Why should he lose his job when his company is the dominant one? That's not to say that TW has nothing to offer, but what is the happy medium?
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