Merger Rumor Mill Can Begin Now

[tinpadro]

See Story

http://www.usatoday.com/travel/news/2005-0...ited-usat_x.htm


I said it before and I'll say it again. I believe Tilton will try to get USAir in BK since USAir has the rock bottom wages and the VRU in rez already drops USAir calls unoffically to UA. in UA rez you aren't supposed to say "thank you for calling United" at the beginning anymore since mgt said its redundant. Now I can tell you that in any call center you ALWAYS say the company name at the beginning. Mgt has spared no expense marking down new hires in the past 75 years on it.

I believe Glenn will go to the US govt and say look we have 2 carriers on brink of collapse mathematically but we can save one big one and jobs if you let us merge. By the way with the new wages who can say that there wont be a new job description with a whole new set of wages and requirements for retesting and such. That way it would be a clean start without the alleged burden of having too many people max scale. I cant see UA dropping any cash to let senior peeps go. Its easier to make their life hell and they will either quit or be terminated.

I could be way off base here but I have a strong feeling its coming and The Empire can always ram it down everyones throat if they really want it this time. Once the pension fiasco is solved the game is on ala KMART & SEARS. Scare tactics and a strong roadshow may yeild results this time.

Let the rumor mill begin.

<_<

 

[jimntx]

Not saying it's not possible, and I'm not trying to be tacky, but I would like to see the business plan that would convince the big money boys of the advisability of merging two bankrupt airlines that are facing incredible competitive pressure domestically, highest oil prices in history, and employee groups that are about as demoralized as you can be and still show up to work. (Yes Virginia, that is only one sentence. Windy, isn't he? )

 

[KCFlyer]

Shouldn't UAL look at AMR to see what happens when one carrier decides to "merge" with a bankrupt carrier? What does a merger with US bring to the table except more problems...employee integration issues being a mighty big problem. Maybe I need an economist to explain the concept of one bankrupt company merging with another bankrupt company to produce a single financially healthy company. I asked my fifth grader what you get when you add one negative number to another negative number, and she told me that you get a bigger negative number. Are they teaching our kids the wrong stuff??

 

[funguy2]

jimntx: I agree...

Also, its important to remember that in a merger scenario, the acquirer's labor rates generally get applied. Therefore, if UAL were to acquire USAirways, then USAirways's labor costs would increase, as I believe UAL has higher labor rates than USAirways.

So, somewhere in this merger discussion, you would have to justify increasing US Airways employee wages to UAL levels, even though the company seems adament that in order to be successful they need to have US Airways wages or less. Just something to chew on.

 

[uafa21]

Just what would Us bring to the table? They are a poor run company with poor results. Sounds like Ua.

I think Tilton is looking at ways to keep this thing alive. They talk about a bank loan, but at what cost? Us and Ua ? I can't quit laughing.

 

[savyinvestor]

UAL pilots beware! USA320 is looking forward to flying your 777's! Savy

 

[WorldTraveler]

There was nothing that said that UAL would be the acquiring company. It is far more likely that UAL would be acquired. Note that Mike Palumbo, DL's CFO, said that part of the reason that DL did not and does not want to file bankruptcy is because doing so eliminates the possiblity of DL participating in consolidation.

And, BTW, Tilton is nuts if he thinks any investor is willing to invest in UAL and then have UA consummate an acquisition of another airline. It's been hard enough to find investors to invest in UAL; the prospect of UAL using someone else's money to fund industry consolidation is enough to send all the money running. And don't tell me that there are four banks ready to give UAL $2.5B right now.... except for the boat load of strings they've attached - like more labor cuts. If they were really ready to invest, UAL wouldn't be in its 26th month of bankruptcy.

 

[mrfish3726]

WELL PUT WORLD!!!!!

 

[boeing787]

World you are such a fool. Your posts are so anti UAL...pathetic. You don't sit on the board, you don't know how much exactly UAL will get for the loan and frankly an investor would love to see a stronger meaner UAL. DAL will have a liquidity crisis later this year, FRONTIER( along with stinky fish will furlough guys and lose to TED), FLYi will close it's doors and who knows what else. How bout a merger with CAL?

 

[KCFlyer]

How bout a merger with CAL?

[post="248897"][/post]​

I dunno...could UAL pilots work with their "scab" (y'alls words, not mine) bretheren?

 

[C54Capt]

World you are such a fool. Your posts are so anti UAL...pathetic. You don't sit on the board, you don't know how much exactly UAL will get for the loan and frankly an investor would love to see a stronger meaner UAL. DAL will have a liquidity crisis later this year, FRONTIER( along with stinky fish will furlough guys and lose to TED), FLYi will close it's doors and who knows what else. How bout a merger with CAL?

[post="248897"][/post]​

boeing787,

I am going to save this post and show it to you at the end of the year. It is shameless that you so boldly predict the future, full of hopes that other airlines fail, which would leave your industry peers jobless. Bravo.

My only prediction is that CAL and UAL will not merge, at least not this year. My hopes are for the success of all who have choosen this profession , especially during these difficult times.

 

[MCI transplant]

Shouldn't UAL look at AMR to see what happens when one carrier decides to "merge" with a bankrupt carrier? What does a merger with US bring to the table except more problems...employee integration issues being a mighty big problem. Maybe I need an economist to explain the concept of one bankrupt company merging with another bankrupt company to produce a single financially healthy company. I asked my fifth grader what you get when you add one negative number to another negative number, and she told me that you get a bigger negative number. Are they teaching our kids the wrong stuff??

[post="248854"][/post]​

<_< Hey K.C.----- Nobody said we'de roll over for you either!!!

 

[MCI transplant]

UAL pilots beware! USA320 is looking forward to flying your 777's! Savy

[post="248881"][/post]​

<_< Oh Hell! Here we go again!!!!!!!

 

[mrfish3726]

Boeing787, I won't dispute the fact that TED (End of UniTED) has taken a bit of F9's market share FOR NOW. I beleive that TED is nothing more than the UniTED shuttle in TED clothing. Nothing has changed at UniTED, they have proven to NO ONE that they are any different than they were 3 years ago. They are a bit more destitude than they were 3 years agao, and with each passing day in BK they become even more insolvent.

I won't make predictions for the future either there C54CPT. UniTED has made they're own bed that they have to lay in. I don't think that anyone in the industry wants to share that bed with such a mismanaged entity. Maybe a company like Continental can really show UniTED management how to TRULY run an airline though! I think it would be kind of cynical to see CO take over UniTED.

Boeing787, like C54CAPT, this is filed away for next year. When F9 is STILL here (DENVERS HOMETOWN AIRLINE) regaining thier market share as the leaner and meaner (LOL ) UniTED continues to struggle with the day to day operations, and those multi million dollar loses continue to mount!!!!!

 

[Fly]

It'll be classic to see you lose another airline job Fish!