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AA/CO Alliance & AA/US Merger
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LGA Fleet Service
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Probably about bringing Continental into oneworld,which would be a welcome addition.
As for AA/US, I can't see the company intentionally committing suicide.I don't mean that as a slight to US Air, I mean that as in how the hell can they even consider an acquisition with all of the labor contracts up in the air,posting a honkin' big Q1 loss with an even bigger loss for Q2 on deck.
Never mind the fact that crude spiked three dollars today on the news that a navy contracted cargo ship fired on two small boats in the gulf.
They've been lead sadly astray by their consultants if they think acquisitions in this environment are a good idea.
Edit- Think the TWU won't sell us out with an extension for the chance to harvest dues from US Air?
As for AA/US, I can't see the company intentionally committing suicide.I don't mean that as a slight to US Air, I mean that as in how the hell can they even consider an acquisition with all of the labor contracts up in the air,posting a honkin' big Q1 loss with an even bigger loss for Q2 on deck.
Never mind the fact that crude spiked three dollars today on the news that a navy contracted cargo ship fired on two small boats in the gulf.
They've been lead sadly astray by their consultants if they think acquisitions in this environment are a good idea.
Edit- Think the TWU won't sell us out with an extension for the chance to harvest dues from US Air?
AA won't touch US with a ten foot poll. Operationally that company is a disaster. Does AA really want hubs in PHX and LAS which would be a duke out with Southwest? Does AA really want to deal with three different pilots unions (USAPA, APA, ALPA)? Does AA really want to try to merge three different labor contracts and integrate some of the most experienced employees flying today onto the AA seniority lists (think TWA but about 30,000 people bigger)? Does AA really want to deal with fixing US's cluster%^&* fleet configurations (8 F in a 757?) or deal with the A321's?
AA might want a Philly hub (an actually northeast hub would be nice since LGA and JFK are primarily large O&D operations) and Charlotte would finally give them the SE hub that RDU failed at. But its not worth a USAir merger.
I'm still trying to figure out what exactly CO would bring to OneWorld...? If anyone knows, let me in on it. I see DFW&MIA/IAH, JFK&LGA/EWR, ORD&STL/CLE and don't even get started on the overlap on international routes between the aforementioned airports. I doubt anti-trust would let it fly. This alliance would control about 70% of the air traffic in Texas and slightly less than that in NYC.
The only reason I might see for this would be if CO/AA are going to team up to carve up UAL.
Updated article: American Airlines in talks with Continental, US Air
B
BigBangTheory
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Can you imagine if this goes down? This would be the mega deal!
AA will end up merging with US, not such a mega deal. The title of the article was misleading.
CLT-Douglas
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What's everyones take on the term "alliance"? Do you think they mean a marketing alliance...some sort of code-share? Anyone else see it as Continental and American are forming an alliance to break up what parts they want of United?
777 fixer
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I was wondering what Co would do if they formed an alliance with AA then mreged with UAL. From wha the article says they will do only one.
This article makes me feel a little less anxious that we are going to be left out in the cold with only the undesirables left to merge with.
I can't see CO taking on UAL. The UAL folks are really excited about the prospect because they think they'll get better management and, most importantly, a raise. I can't see CO being that stupid. Guess only time will tell, once again.
Very interesting the way things are happening.
From the looks of this article, it sounds like the deal is done.
Continental and United Said to Be Closer to a Merger
Read article here
By MICHELINE MAYNARD Published: April 26, 2008
United Airlines and Continental Airlines are getting closer to a merger agreement and would like to wrap up a deal by the end of next week, people with direct knowledge of the discussions said Friday.
The negotiations, which have been under way for months, accelerated after Delta Air Lines and Northwest Airlines announced a $3 billion deal on April 14 that would create the nation's biggest air carrier.
The talks between United and Continental are in an advanced stage but are not yet complete, the people who had been briefed on them said. They requested anonymity because the talks are private.
The two airlines would like to be finished by Thursday, these people added, although the negotiations could easily run into delays.
As with Delta and Northwest, United and Continental would like to win regulatory approval before President Bush leaves office rather than risk delays that could take place under a new president.
Meanwhile, Continental is getting ready to provide details of any possible deal, at least if its Web page is any indication.
The Houston-based airline has posted a link on its home page to a new part of its site that looks like it can be transformed into a merger information page, as soon as a deal occurs.
The page went live on April 15, a Continental spokesman, Dave Messing, said Friday, but only began attracting attention this week.
Mr. Messing declined further comment. A United spokeswoman, Jean Medina, said the company did not comment on "rumors or speculation."
The link, www.co-industryconsolidation.com, sits next to a headline, "Latest News and Offers." It is to the right of a form where passengers can book their flights.
"Welcome to a portion of our Web site designed specifically to provide Continental's perspective on airline industry consolidation," the site's first post reads. "We will add new information to this section as it arises."
Continental's consolidation page features only a few links - one to news releases, another to a "Frequently Asked Questions" page that talks about what the Delta-Northwest merger might mean to Continental, and a third guiding visitors to company Webcasts.
But, as the welcome letter says, "Please check back here regularly for more information."
Delta and Northwest also have their own new Web page, www.newglobalairline.com, which they posted April 15.
On Thursday, executives from both airlines sought to reassure members of Congress that the deal would not hurt consumers or result in significant job losses.
The two airlines blamed high fuel prices for combined losses of $465 million in the first quarter. Delta and Northwest filed for bankruptcy protection on Sept. 14, 2005, after fuel prices spiked in the wake of Hurricane Katrina. Delta emerged from Chapter 11 protection in April 2007, while Northwest completed its restructuring a month later.
Shares of United's parent, the UAL Corporation, fell 19 cents Friday to $15.21, while Continental closed at $17.22, down 46 cents. Delta stock closed at $7.01, down 25 cents, while Northwest fell 32 cents to $7.56.
Continental and United Said to Be Closer to a Merger
Read article here
By MICHELINE MAYNARD Published: April 26, 2008
United Airlines and Continental Airlines are getting closer to a merger agreement and would like to wrap up a deal by the end of next week, people with direct knowledge of the discussions said Friday.
The negotiations, which have been under way for months, accelerated after Delta Air Lines and Northwest Airlines announced a $3 billion deal on April 14 that would create the nation's biggest air carrier.
The talks between United and Continental are in an advanced stage but are not yet complete, the people who had been briefed on them said. They requested anonymity because the talks are private.
The two airlines would like to be finished by Thursday, these people added, although the negotiations could easily run into delays.
As with Delta and Northwest, United and Continental would like to win regulatory approval before President Bush leaves office rather than risk delays that could take place under a new president.
Meanwhile, Continental is getting ready to provide details of any possible deal, at least if its Web page is any indication.
The Houston-based airline has posted a link on its home page to a new part of its site that looks like it can be transformed into a merger information page, as soon as a deal occurs.
The page went live on April 15, a Continental spokesman, Dave Messing, said Friday, but only began attracting attention this week.
Mr. Messing declined further comment. A United spokeswoman, Jean Medina, said the company did not comment on "rumors or speculation."
The link, www.co-industryconsolidation.com, sits next to a headline, "Latest News and Offers." It is to the right of a form where passengers can book their flights.
"Welcome to a portion of our Web site designed specifically to provide Continental's perspective on airline industry consolidation," the site's first post reads. "We will add new information to this section as it arises."
Continental's consolidation page features only a few links - one to news releases, another to a "Frequently Asked Questions" page that talks about what the Delta-Northwest merger might mean to Continental, and a third guiding visitors to company Webcasts.
But, as the welcome letter says, "Please check back here regularly for more information."
Delta and Northwest also have their own new Web page, www.newglobalairline.com, which they posted April 15.
On Thursday, executives from both airlines sought to reassure members of Congress that the deal would not hurt consumers or result in significant job losses.
The two airlines blamed high fuel prices for combined losses of $465 million in the first quarter. Delta and Northwest filed for bankruptcy protection on Sept. 14, 2005, after fuel prices spiked in the wake of Hurricane Katrina. Delta emerged from Chapter 11 protection in April 2007, while Northwest completed its restructuring a month later.
Shares of United's parent, the UAL Corporation, fell 19 cents Friday to $15.21, while Continental closed at $17.22, down 46 cents. Delta stock closed at $7.01, down 25 cents, while Northwest fell 32 cents to $7.56.
NewHampshire Black Bears
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(K),
I've got too much respect for you, to get into a "back and forth" over who merge's/acquires WHO, and I'm NOT saying to you, that UAL won't get CO.
BUT,
What I am saying to you is, That AA WILL NOT touch LLC with a "Hundred foot pole"
I honestly believe that the AA/US thing is a bit of "posturing"
I will admit though, that from Larry Kellner's(CO) situation, he would wind up as TOP DOG w/UAL,...whereas with AA he'd have to play second fiddle to Arpey.
Lest not forget the Eagle and Express Jet side of things with AA and CO. Express Jet turned down an offer from Skywest the other day as insuficient.....with Mesa on the ropes ..Skywest might turn out to be a player in part of this AA/CO thing on the feeder side.
