AA/CO Alliance & AA/US Merger

[chucky]

CO brings nothing strategically to AA since both airlines have big operations in NY and TX. Both are major players in Latin America and now both fly to LHR.
The CO/UA merger will be a major threat to AA, even more so than DL/NW. That is why
AA will do all it can to scuttle the CO/UA deal and hasten a break up of UAL assets. This is
gonna get interesting indeed.

 

[NewHampshire Black Bears]

Did anyone read this ?

B)

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Yes I did.

I especially like the part that shows AMERICAN has...1 Billion $$..MORE than any other carrier.

 

[spanglish]

For all of the US employees, this is a replay of the DL/US merger last year. No matter how anyone speculates this will/ won't happen... it's not in the employee's hands. All it's going to do on the message boards is make each company's employees hate each other. :down:

 

[Fly]

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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.

I think you are exactly right. That is why I believe the merger will happen.

With zero regard to employees, management will be concerned with only themselves. Tilton wants out and Kellner wants to run the world's biggest airline. This is how they can make it happen. Arpey may have more money (for now) but if they decide to move ahead with the merger, there isn't a thing he can do about it.

I guess we will know more soon enough but I wager the merger is going to be announced.

 

[FWAAA]

CO brings nothing strategically to AA since both airlines have big operations in NY and TX. Both are major players in Latin America and now both fly to LHR.
The CO/UA merger will be a major threat to AA, even more so than DL/NW. That is why
AA will do all it can to scuttle the CO/UA deal and hasten a break up of UAL assets. This is
gonna get interesting indeed.

CO would bring two more daily China flights plus the one daily HKG flight - and those are still scarce, valuable commodities. Plus increased NRT access.

Having probably failed to get NW, the other real prize out there for AA would be UA (or significant parts of it). Perhaps it would have to divest some ORD gates and some LHR and NRT slots - but a combined AA/UA would be able to compete in Asia (against DL/NW), would own S America and would be strong in Europe.

 

[777 fixer]

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.

When I watch news and see people talking about mergers and possible mergers all I see is one big mess.

 

[Winglet]

I can't even imagine how anybody that would take on US Airways could remain afloat after acquiring that mess.

 

[Hi-C-Camp]

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Yes I did.

I especially like the part that shows AMERICAN has...1 Billion $$..MORE than any other carrier.

And, with all due respect, it's not that much relative to the size of the other carriers, it's kinda minimal if you are referring to CAL, US, NWA etc...

 

[ual777fan]

http://www.ft.com/cms/s/60f9ff18-1328-11dd...,print=yes.html

More news... about the potential AA/CO alliance.
--CO has entered into negotiations with both AA and UA; singing confidentiality agreements with both
--Any AA/CO deal would include an application between the two US carriers for anti-trust immunity with BA
--There are rumors that BA could inject some cash to help float this deal, not unlike what AF/KL are doing for DL/NW
--UA/CO deal has hit some bumps in the past week because of UA losing more than half of its market capital, meaning that concessions that CO made previously, they no longer feel the need to make.
--UA is also actively looking at a deal with US if CO doesn't make the concessions that were previously agreed to.
--AA is also rumored to be looking at US in some shape or form.

 

[FA Mikey]

--AA is also rumored to be looking at US in some shape or form.

I dont see what that dog with flea's offers? There is employee turmoil, nothing in the caribbean or Europe we just couldn't do on our own. They got one frequency to China, that looks more likely to be taken away for lack of ability to aquire the AC needed to fly the route. They seem hell bent on alienating there best customers on board and through there FF plan. They go head to head with SWA in LAS and PHX, plus SWA is making inroads in PHL. We certainly, dont need another hub operation. So unless the plan is to buy and completely dismantle, I am not seeing the value.

 

[AMFAMAN]

So unless the plan is to buy and completely dismantle, I am not seeing the value.

Why not, we're pretty good at buy and dismantle, this would be number 4 if they did it. :down:

 

[FA Mikey]

story here

Continental Airlines released the following message to its more than 45,000 employees from Larry Kellner, Chairman and Chief Executive Officer, and Jeff Smisek, President.

Dear Co-worker,

We want you to know that our Board of Directors met today and has
unanimously supported management's recommendation that, in the current
industry environment, the best course for Continental is to not merge
with another airline at this time.

Our recommendation, and the Board's careful and considered decision,
followed a comprehensive review of our strategic alternatives, assisted
by our senior officers and advised by Continental's outside financial and
legal advisors. The Board very carefully considered all the risks and
benefits of a merger with another airline, and determined that the risks
of a merger at this time outweigh the potential rewards, as compared to
Continental's prospects on a standalone basis.

story here

 

[FA Mikey]

http://www.chron.com/disp/story.mpl/business/5734352.html


Continental left open the possibility of changing or forming new alliances, "We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths — which we believe would be placed at risk in a merger with another carrier in today's environment," a letter from Continental CEO Larry Kellner and President Jeff Smisek today said.

"We will, however, continue to review potential alliances and our membership in SkyTeam. We are considering alternatives to SkyTeam as we carefully evaluate which major global alliance will be best for Continental over the long term."

SkyTeam is Continental's international alliance that includes Delta and Northwest. The company has strongly hinted it might look to align elsewhere. Possible choices are Star Alliance, which includes United, or perhaps the group led by American Airlines.

 

[BigBangTheory]

From Mikey's post above, it would seem the AA/CO alliance will go through. Now, will UAL be divided up???

 

[mwa]

they are going with LCC