roadtrip
Veteran
I noticed a very curious thing today. Several people I spoke with who previously stated they were probably
voting yes are suddenly re-thinking their vote. The reason they were changing their minds had more to do
with a potential merger than anything else. They had always thought the T/A was a POS but didn't think anything
better was going to come along. Now they are saying that they did not want to be locked in with this T/A for the
next 5 years or so in the event of a merger.
Joe,
Read this article from the WSJ view here
here is a quote from the WSJ
J.P. Morgan airline analyst Jamie Baker, in a research note earlier this week, said he sees more merit in a tie-up between United and US Airways than in a combination of United and Continental. Wages at United and US Airways are closely aligned and relatively low, their fleets mesh well and both already are in the Star Alliance. US Airways is much smaller than Continental, suggesting that regulators might be more likely to approve a United-US Airways combination -- despite the fact that the Justice Department rejected an earlier merger plan between them in 2001. US Airways, after two bankruptcies, merged with America West Airlines in 2005.
Mr. Baker also said because of UAL's slumping share price, it may be reluctant to do a share swap -- the preferred structure these days, and one that Delta and Northwest are proposing -- with Continental because Continental shareholders would end up with a greater proportion of the combined company. A deal with US Airways would give United shareholders more ownership of the merged entity.