DL AND UA TALKING

chucky

Senior
Sep 13, 2006
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Official: Delta, United Mull Combination
Wednesday November 14, 2:40 pm ET
By Harry R. Weber, AP Business Writer
Official Says Delta, United Have Discussed Combining the Nation's No. 2 and No. 3 Carriers


ATLANTA (AP) -- UAL Corp.'s United Airlines and Delta Air Lines Inc. have been discussing a combination between the nation's second- and third-largest carriers that would keep the United name and the corporate headquarters in Chicago, The Associated Press has learned.
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There is a sense of urgency in the talks, which have been going on for some time and continued as recently as a week or so ago, an official with knowledge of the talks said Wednesday. The official spoke on condition of anonymity because the person was not authorized to speak publicly.

"They want to get something done before a new administration gets in and so they get the clock ticking on" federal regulatory approval, the official said.


Story
 
I still think they are talking.... behind closed doors potential deals are always being discussed that were never privy to.

Merger wise....

UA has a lot of narrow body airbus and DL doesnt so it would decrese domestic fleet commonality.

Widebody wise UA would add the 747 to the fleet type which wouldn't be too bad. I have no clue about what type of engines either airline uses on either types of aircraft.

For hubs my guess is CVG would be too close to ORD and IAD to make sense to keep it but other wise all the other hubs sound like they would work well.

Combined Domestic hubs in JFK,IAD,ORD,ATL,SLC,LAX,DEN,SFO
Focus cities in MCO, CVG and international in NRT.
 
I still think they are talking.... behind closed doors potential deals are always being discussed that were never privy to.

Merger wise....


For hubs my guess is CVG would be too close to ORD and IAD to make sense to keep it but other wise all the other hubs sound like they would work well.

Combined Domestic hubs in JFK,IAD,ORD,ATL,SLC,LAX,DEN,SFO
Focus cities in MCO, CVG and international in NRT.

Wouldn't SLC and DEN be redundant as well?
 
Yes, they have been in discussions. A friend who currently works at a large airport received a corporate communique which indicated that decisions are coming which will be unpopular with the employees. You be the judge!
 
Anderson just told a Georgia Congressman that "he" has not spoken to anyone at Ual about a transaction. Lawyer speak...it doesn't mean that Delta has not spoken with United. He did not say that Delta and United have not discussed this issue.
 
Some of the hub commonality would most likely be addressed with required "carve outs" that the DOJ anti-trust people would require with any approved merger deal. Having said that, even if merger talks are going on, I don't believe that UA and DL are going to reach agreement. I still see DL/NW as being the most likely scenario. That is the major reason I believe DL selected Richard Anderson to be their CEO, because of his familiarity with NW and its executives. Even as desperate as Tilton is to sell UA to anyone who will listen, I see CO as the merger candidate that makes the most sense for UA. However, up to this point, CO does not seem interested in a merger. But a DL/NW merger would push competitors into action. Desperate schemes always get floated about when times are tough. And with the price of oil inching upwards every week, desperation is sinking in.
 
Some of the hub commonality would most likely be addressed with required "carve outs" that the DOJ anti-trust people would require with any approved merger deal. Having said that, even if merger talks are going on, I don't believe that UA and DL are going to reach agreement. I still see DL/NW as being the most likely scenario. That is the major reason I believe DL selected Richard Anderson to be their CEO, because of his familiarity with NW and its executives. Even as desperate as Tilton is to sell UA to anyone who will listen, I see CO as the merger candidate that makes the most sense for UA. However, up to this point, CO does not seem interested in a merger. But a DL/NW merger would push competitors into action. Desperate schemes always get floated about when times are tough. And with the price of oil inching upwards every week, desperation is sinking in.


United just needs a LEADER, instead of that auto pilot who just can't be bothered or just doesn't have a clue how to run an airline.

It is too bad a great airline with a great route structure is being slowly hacked to death by a pretender in charge.

Of course it will be the employees who will bear the brunt of the wreckage at the end.
 
North,

You are absolutely right. UA has been rudderless for true leadership for years, even before Tilton. But given that Tilton has been at the helm during the most tumultuous time in the company's history, he stands out as being especially weak-kneed and clueless. His greatest claim to fame so far has been successfully moving his executive HQ to downtown Chicago, so as to further isolate himself and his Not Ready For Primetime Players from more of the workforce. Every time he talks, he sounds like a moronic gasbag trying desperately to prove to everyone that he is the smartest kid in the class. I absolutely love it on these earnings calls when someone asks him a question because his responses are absolutely hysterical. I honestly think he does not have the first clue how to successfully run UA for the long-term. So to hide that, he tries to confuse everyone with his $20 vernacular and sentence structure that makes no real sense, other than to impress his 5th grade grammar teacher. He was brought in to orchestrate UA's bankruptcy. Once they emerged, his job was done. Hey, maybe they should have the USS Abraham Lincoln towed to Navy Pier and they can hang a "Mission Accomplished" sign for Glenn and the boys!!!! :up:

Now that his task of bringing UA out of bankruptcy is done, his only desire is to sell off UA, either whole or in pieces, as quickly as he can and cash out as a much more wealthy man than he already is. He has no desire to run the company for the long haul. He might say he does. Of course he's going to say that. But his actions prove otherwise. People like him have no care or concern for the well-being of front-line workers. He is cut from the same elitist cloth that most of the executives in corporate America are cut from. They are used to having the silver spoon in their mouths. They strive to be rich and successful and once they get there, they only want to become richer and more successful, even if it comes at the expense of employees whose entire livelihoods are tied to the success of a company. It's class warfare at its best!
 
Jungle,

That's why we could learn a few things from the FRENCH.

They wouldn't put up with half of what we've allowed to be shoved down our throats. They are concerned with MORE than just MEMEMEMEMEMEMEMEME!

To see people from various industries standing up for one another is sobering. I just wonder...what happened to Americans....
 
So true Casual. I remember when ServisAir took over fueling at United in the hub in Chicago back in November of 05. The old timers(people who have been fueling for years)were so pissed. So everything that happens now doesn't surprise me. Matter fact I believe United tried to merge with another airline. I forgot which one.
 

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