US Airways chief executive Doug Parker warned employees on Wednesday that airlines would have to make “dramatic changes” as oil prices rise and the economy sours, though he wouldn’t comment about speculation that his airline is in merger talks with other carriers.
In a letter to employees, Parker mentioned a news report that US Airways was in talks with United Airlines and another that said it would be good partner for American Airlines.
We can’t ignore what’s happening in the world around us. Oil has risen to over US$113 per barrel and Wall Street is anticipating a recession that, if it happens, will lower all airline revenues,” he wrote.
And if Delta Air Lines Inc and Northwest Airlines Corp combined as planned, it would create “a formidable competitor,” he said.
For years, Parker has been a major booster for airline consolidation. His airline, Tempe, Arizona-based US Airways Group Inc was formed in 2005 from America West Airlines and the former, Virginia-based US Airways.
Parker also tried to combine with Delta Air Lines last year, but the carrier’s US$9.8 billion hostile bid failed.
Investors also have pushed consolidation as a way to keep airlines aloft in a volatile economy.
By joining forces, airlines would be in a better position to cut redundant flights, put fewer planes in the sky, and have better control over fares.
“If done properly, [consolidation] could result in a much healthier industry which would be good for our employees, our customers and the communities we serve,” Parker said.
“Rest assured if US Airways chooses to participate in any industry consolidation, we will do so because we believe it is the best interests of our employees and our airline.”
News reports have said that US Airways could be in talks with United and American Airlines. But industry observers disagree about whether those pairings would work.
Michael Boyd, an airline consultant in Colorado, said US Airways has been tainted by operational problems and union fights since its previous combination in 2005.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique