CO backs out of merger, UA/US deal still on?

[767jetz]

It seems to me that the CEO's of these airlines are not necessarily looking to merge because of better routes and hubs, but rather to be able to eliminate a lot of domestic capacity, and essentially "shrink" the combined airline. I thought a driver in an airline merge with todays fuel prices was the elimination of overcapacity in the domestic market place...... No?

In my opinion, if we merge with UA, they are going to park a lot of planes.

I agree. UA has already stated its intention to reduce domestic capacity. Why would it want to merge with a company that brings so much more domestic capacity back in. It doesn't make sense. No doubt planes would be parked, causing a lot of pain to spread around to everyone.

 

[Elevation]

Looks like CO wants in with BA and AA.
Linky here

 

[ClueByFour]

Yes it could. The smart thing for US to do is get hitched w/ either US or AA. US can not make it as stand alone...pure and simple. It's a mess and it can only be fixed by the name disappearing and the current mgmt team to disappear as well. CLT, PHL and NorthEast presence brings a GREAT deal to any company. AA would make CLT a mega hub to compete with ATL. I sure hope it happens soon for the sake of the employees and the travelling public.

Why would AA do with CLT what they did not want at BNA or RDU?

AA wants LGA and DCA assets.

 

[pit1000]

Does anyone think that the China route/no suitable aircraft debacle can be interpreted to mean that a merger has been sought for a while now and the plan is to use the merger airline's aircraft to run the route? The question would still remain though, what airline's aircraft? Either that, or Tempe really IS that incompetent.

 

[NewHampshire Black Bears]

The CO announcement...(NO mergers, plus looking at joining ONE WORLD) definitely means..NO AA/US.

This is also ...Very bad news for UAL.

True, LCC has some problems,............BUT, ..in my opinion, no where near the problems that UAL may have,..............and to hitch LCC's wagon to UAL,...I believe, would be detrimental to US Airways !!

Hopefully, NW will wake up soon, and KNOW that they DO NOT need Delta either.


Good luck to ALL !!

 

[USstew23]

Well I am just wondering here but since Doug likes to get things on the cheap and has a liking for airlines in CH.11, does anyone think that a deal with United is contingent upon United going back into BK to try to lower its costs or shed leases and regional partners? I'm certainly no expert here but since CO has decided to go it alone and Doug is so sure that consolodation needs to happen, I'm actually thinking that something is cooking with US here. I read so much about how United is such a mess (don't know first hand since we have our own drama at US) and that their CEO along with ours is so set on consolodation. Lord what a mess to have Glen Tilton and Doug Parker running a combined UA/US, CO wouldn't have to worry about going it alone.

 

[deltawatch]

I agree. UA has already stated its intention to reduce domestic capacity. Why would it want to merge with a company that brings so much more domestic capacity back in. It doesn't make sense. No doubt planes would be parked, causing a lot of pain to spread around to everyone.

Simple ... they want to reduce capacity at both airlines and combine loads everywhere they can.

 

[deltawatch]

767jetz I guess the raise will have to wait

But the preferences of the powerful pilot unions can't be ignored. Continental, which hasn't been through a recent bankruptcy and pays its pilots much higher wages, is seen as the preferred partner by United pilots. UAL endured a long bankruptcy earlier this decade and cut its pilots' wages deeply and terminated their pensions. (just like usairways)

The United aviators see a Continental deal as a way of raising their pay to come into alignment with Continental pay rates. A deal with US Airways could have the effect of slightly bumping up those pilots' pay, giving United pilots no gains. Leaders of the United and Continental pilots, members of separate branches of the Air Line Pilots Association union, last week vowed to fight against a merger of their employers if their interests weren't taken into account.

http://online.wsj.com/article/SB1209235489...=googlenews_wsj


Maybe the CO pilots anticipated that UA pilots would want a matching pay scale and it would put downward pressure on their present one.

 

[whlinder]

Does UA HAVE to do something?

Tilton seems to think so. UA management doesn't seem to be trying real hard to make their airline profitable and instead wants to merge with anyone who is willing and let UA's problems become someone else's.

 

[767jetz]

Tilton seems to think so. UA management doesn't seem to be trying real hard to make their airline profitable and instead wants to merge with anyone who is willing and let UA's problems become someone else's.

I don't disagree. but let's be clear. UA's problems stem directly from Tilton. He and his team have cut manpower to the point that the airline can not handle it's schedule. Every disruption due to weather or crews timing out at year end causes a system wide melt down with no hope of recovery for days. Pay and work rules are stripped to the point that most would leave if it got any worse. No money is being spent on the product, which leaves pilots and flight attendants working with equipment and supplies that are inadequate and unreliable. And the biggest problem of all is the moral that is a direct result of management's disdain and lack of respect for it's employees and the very people who assured UA's survival during difficult times.

All of these problems are not insurmountable. The right management (like CO's) could have easily repaired these problems by a shift in culture and attention to the details so vital in a service industry. UA employees would have very quickly rolled up their sleeves and went to work with CO's management to pull on the same end of the rope, since CO's management seems to understand the connection between moral and service.

On the other hand, UA still has it's core assets that make it so valuable... LHR, the Pacific operation, the long haul lift capability, and well positioned hubs with dominance on the west coast and our nation's capital.

So when people talk about UA's problems, my response is, give us a CEO and a management team that wants to work with us instead of screw everyone to line their pockets, invest money in the product instead of "shareholder initiatives" and dividends, and you will instantly have a world class airline again that can be proud of the quality product it has to offer.

Perhaps CO decided to go it alone because they wanted Tilton and his whole team out for good, and Tilton would not budge. Maybe his golden parachute was too expensive for CO to buy. Either way, we should be less focused on mergers at this point, and more focused on purging this company of it's incompetent management. If we can do that, then the problem is solved.

 

[bigbusboy]

I don't disagree. but let's be clear. UA's problems stem directly from Tilton. He and his team have cut manpower to the point that the airline can not handle it's schedule. Every disruption due to weather or crews timing out at year end causes a system wide melt down with no hope of recovery for days. Pay and work rules are stripped to the point that most would leave if it got any worse. No money is being spent on the product, which leaves pilots and flight attendants working with equipment and supplies that are inadequate and unreliable. And the biggest problem of all is the moral that is a direct result of management's disdain and lack of respect for it's employees and the very people who assured UA's survival during difficult times.

All of these problems are not insurmountable. The right management (like CO's) could have easily repaired these problems by a shift in culture and attention to the details so vital in a service industry. UA employees would have very quickly rolled up their sleeves and went to work with CO's management to pull on the same end of the rope, since CO's management seems to understand the connection between moral and service.

On the other hand, UA still has it's core assets that make it so valuable... LHR, the Pacific operation, the long haul lift capability, and well positioned hubs with dominance on the west coast and our nation's capital.

So when people talk about UA's problems, my response is, give us a CEO and a management team that wants to work with us instead of screw everyone to line their pockets, invest money in the product instead of "shareholder initiatives" and dividends, and you will instantly have a world class airline again that can be proud of the quality product it has to offer.

Perhaps CO decided to go it alone because they wanted Tilton and his whole team out for good, and Tilton would not budge. Maybe his golden parachute was too expensive for CO to buy. Either way, we should be less focused on mergers at this point, and more focused on purging this company of it's incompetent management. If we can do that, then the problem is solved.

Spot on description for both carriers. Just swap out Parker for Tilton and US for UA. Well written.

 

[Dilligas]

And the biggest problem of all is the moral that is a direct result of management's disdain and lack of respect for it's employees and the very people who assured UA's survival during difficult times.

UA employees would have very quickly rolled up their sleeves and went to work with CO's management to pull on the same end of the rope, since CO's management seems to understand the connection between moral and service.

A brief diversion...

EDITED BY MODERATOR: Unnecessary. Grammar and spelling correction are up to the original poster.

 

[whatkindoffreshhell]

Previously on this board I correctly predicted that CO does not need UA and the associated headaches.

Now UA's BOD should dump Tilton/Brace, forget about merging with US or anyone else AND BUILD THEIR AIRLINE.

Please don't go the way of PanAm, Eastern and TWA.

UA has the franchise, the people and the network to succeed RIGHT NOW without 'consolidation'.

Unfortunately this BOD (like DL's) is controlled by short-term money guys who want to cash out now.

So the UA franchise and its valued employees will again get :mf_boff:

 

[Twicebaked]

I agree. UA has already stated its intention to reduce domestic capacity. Why would it want to merge with a company that brings so much more domestic capacity back in. It doesn't make sense. No doubt planes would be parked, causing a lot of pain to spread around to everyone.

Maybe they are reducing their capacity so they COULD be a good fit with someone like US????

Our planes are full, so we really don't need to cut capacity unless fuel causes a dramatic down turn in people's flying pattern...... UALs are not. Trim off their excess and there you have it. Their's are full our's are full... now it would be a good fit.........

Who the he!! knows anymore!!!!!

 

[Twicebaked]

I don't disagree. but let's be clear. UA's problems stem directly from Tilton. He and his team have cut manpower to the point that the airline can not handle it's schedule. Every disruption due to weather or crews timing out at year end causes a system wide melt down with no hope of recovery for days. Pay and work rules are stripped to the point that most would leave if it got any worse. No money is being spent on the product, which leaves pilots and flight attendants working with equipment and supplies that are inadequate and unreliable. And the biggest problem of all is the moral that is a direct result of management's disdain and lack of respect for it's employees and the very people who assured UA's survival during difficult times.

All of these problems are not insurmountable. The right management (like CO's) could have easily repaired these problems by a shift in culture and attention to the details so vital in a service industry. UA employees would have very quickly rolled up their sleeves and went to work with CO's management to pull on the same end of the rope, since CO's management seems to understand the connection between moral and service.

This IS a mirror image of US!!!!!!!

That settles it.............. We ARE a perfect match!!!!