Sunday, May 22, 2005

America West, US Air Merger

So America West (HP) and US Air (US) are set to merge? Doug Parker, CEO of HP, has been an advocate of market consolidation, but what this industry needs is contraction. There are simply so many seats in the air that to keep them filled, airlines cannot charge a high enough price to generate positive cash flow. The merger does not eliminate these seats, it only changes the name of the operator. Unless the new US Air creates a cost structure low enough to compete, the only thing the merger will accomplish will be the death of two airlines instead of one.

Wednesday, May 18, 2005

What an Industry!

Labor costs are a killer in this field, so when a company makes a move like this, it makes a bit of sense. That being said, I hope the AS decision is a mistake. I sympathize with the folks who lost their jobs, especially since I'm a ramper myself. Maybe its just wishful thinking, but I hope that the difference in work performance between the AS rampers and the contract company is great enough that it affects quality.

Monday, May 16, 2005

I Did It!

On Sunday, May 15th I participated in the Spring 2005 Graduation Ceremony. Which means I have a bachelors degree! Cool! ... Now what?

Wednesday, May 11, 2005

I'm Back

This end of the semester has been so hectic that I've neglected posting. So much has happened since I posted last as well, including a promotion at work. It looks as if the commercial industry is finally looking at contraction. I think it's long over due. The UA guys are also upset enough about the pension issue that strike talks are getting serious. I don't think the guy in Chicago dressed in a black robe will allow that, but... If UA goes on strike, it will not survive, so it looks to me like the options are no pension, or no pension and no job. I am sympathetic to those harmed by UA's violation of trust, but the truth is, UA is just catching up to business in the 21st century. Company pensions are an expense that most business' refuse to incur anymore.