US Airways/ American Airlines Merger continues…
[My apologies, as I may have missed a few tweets.]
Monday May 14, 2012:
10:41 am: Direct-examination of Neil Roghair just completed. Court is in a ten minute recess.
10:44 am: ROGHAIR: “What’s been driving the decline of AA over the last couple years is the migration of business accts over to Delta and United.”
10:47 am: ROGHAIR ON @USAirways: ““We want to hitch our careers to a thriving and successful business plan.”
10:55 am: Judge Lane has returned. Cross-examination of Neil Roghair is beginning.
11:10 am: In cross-examination, @AmericanAir attorney grilling Neil Roghair on valuations, codesharing specifics.
12:01 pm: Judge taking a 1:15 lunch break. AA attorney has few more questions for Roghair when court resumes at 1:15p Central.
More to come…..
01:16 pm: Just got back up to court from a quick lunch. Awaiting Judge Lane to call court back to order. AA cross-examining Roghair a few more mins.
01:28 pm: Court resumes…
2:04 pm: Judge gave attorneys a brief recess to sort out a procedural issue.
2:25 pm: Both sides are done with Neil Roghair. Yearley and the NY firm he works for aid companies, employee groups in restructuring.
2:49 pm: Yearley on AA’s future profits, while slashing labor costs: “Analysts would be shocked at this level of profitability” in the future.
3:01 pm: Yearley said this isn’t the forum to weigh benefits a merger. But AA has a network problem. It’s never been an if but when AA consolidates.
3:08 pm: Yearley questions how AA decided this was the right time to invest in 460 new aircraft. And did AA consider alternatives to it?
3:10 pm: AA has said the largest aircraft order in history will reduce maintenance costs, be more fuel efficient & attract back high value customers.
3:18 pm: Yearley said no need canceling contracts should be rushed through the court right now especially as AA sits on $5-billion in cash.
3:19 pm: Yearley added AA has bragged recently that the airline’s recent performance [under existing labor contracts] has been the best in years.
3:57 pm: Yearley conceded that AA’s aircraft, products lack when compared to big competitors like Delta and United. Harder to attract biz customers.
3:58 pm: Yearley agreed with American Airlines attorneys that adding new aircraft and new amenities should help attract the high-value customer.
4:08 pm: With an hour left in the court day, AA attorney said he would not finish cross-examination of Andrew Yearley this evening.
4:09 pm: Pilots have four more witnesses to call after Yearley. Doubtful pilots will hand off to flight attendants by tomorrow.
4:11 pm: Judge taking a brief recess.
7:02 pm: Court recessed at 6:15p. Both sides done with Andrew Yearley. APA’s Allison Clark to testify Tues. about the company’s proposals.
7:05 pm: Big development Tues. will be whether the TWU ground wrkrs, mechanics accept or reject AA’s final offer. Results due at 8:30am-ish on Tues.
Will be continued in new post tomorrow 05/15/2012