Saturday, April 28, 2012

American Airlines: The Saga Continues

We won't know until at least Monday but it appears that American Airlines is going the way of Eastern and Pan Am. US Air has gotten the unions on board for a buyout plan. Let me say right now, I do not like US Air. It is trying to make a right out of two wrongs, the merger of Allegheny and Piedmont. If the buyout takes place, it will have a major economic impact on this region. US Air has promised the moon, that there will be little dislocation, but do we trust them?
American has always had a problem with its unions and it now looks as though that problem will be fatal. When we view the comments and activities of the unions, we can begin to understand managements viewpoint a little better.
There remain some unanswered questions, such as what are the pension benefits that are at stake? Are they in the GM, City of San Diego range? What is the take home pay for a machinist or a pilot or a flight attendant? How do they compare with the competition? 'Just some thoughts...

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