State of the Airlines

Monday, September 18, 2006

Merger Success at US Airways Creates Tension

Odd that the unexpected success of the America West-US Airways merger is now creating tension amongst the rank and file. But articles in a couple of Arizona papers are saying just that. Their success, along with posting a $305 million profit in the second quarter, has its unions holding their collective hands out looking for a raise.

Note to the folks at the "new" US Airways: Slow down, get a grip. The airline makes what, in prespective, is a very small profit for an airline of this size and employees think its time for a raise. Do you folks read the paper? What gives you the impression that the airline recovery has taken full and complete hold. This recovery is riding a tenuous bubble for semi-favorable fuel prices and surprising restraint on the part of airlines to continue to constrain capacity. Neither of these factors have lasted for very long in this industry. Yes, you all took pay cuts, big ones, to keep your jobs. My suggestion is that you wait a little longer before trying to extract your pound of flesh from the hand that feeds you.

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