RUMOR ALERT: US/UA merger "inevitable"...

[flybynite]

I've gone through this entire thread and for the life of me I don't get where all this speculation is coming from.

Wishful thinking??

Just because someone thought they saw the head honchos in and out of ORD doesn't make a merger. Anymore than making the same assumption if someone saw DP going in and out of DFW.

Or just maybe the head honchos are trying to get their heads together for a little price fixing!!

That's it!! Oops....that's illegal isn't it? Hmm.....maybe they are just trying to get away from their wives. Chip a few balls...have a few drinks....laugh at us.....

 

[hp_fa]

Or just maybe the head honchos are trying to get their heads together for a little price fixing!!

That's it!! Oops....that's illegal isn't it?

The illegal kind of price fixing would need two of the top three (American, Delta or United) to get together for a chat. US Airways is honestly too small to really matter.

Now "fare rationalization" could also be considered price fixing and Parker has publicly stated that as his goal and, to him, mergers or other forms of capacity reductions accomplish that goal. He just can't jump off that bridge alone.

 

[N965VJ]

Elites, elites, elites. Elites can take a private jet for all I care.

When you were based in PIT, did you only bid the DC-9 and BAC 1-11 so you didn’t have to serve hot meals to all those needy PAX?

 

[AirbusAVE]

I believe you are overlooking a few things:

I overlooked a "few things" because the whole "all elites will leave United in a combined United/US Airways" is just worth to be overlooked. It's silly.

 

[beachboy]

No he flew B on the F100 and waited on the feet to stop moving under the 1st Class curtain. That was the sign the cart was set up by A&C...time to put the paper down and WORK. Ah the Dutch Oven did my IOE on that ghastly thing.

 

[AirbusAVE]

No he flew B on the F100 and waited on the feet to stop moving under the 1st Class curtain. That was the sign the cart was set up by A&C...time to put the paper down and WORK. Ah the Dutch Oven did my IOE on that ghastly thing.

Cute comments guys.

 

[Travelpro72]

Ok since I fell for it and read my way through all this garbage I have to ask if there is any substance to this? I mean really. I know things are a little quiet around here which to many means something BIG, BIG, BIG is about to happen. I know the talk of mergers gets usaviation bumpin' a little bit and it gets some panties in a twist but this usually turns into armchair CEO'ing. NOBODY and I repeat NOBODY knows a damn thing that is going to happen. Mergers, my airline is better than your airline, elites, kettles, airplane orders, Boeing or Airbus. You'll know there's a merger in the works when you sip your coffee and it pops up on CNN news. PERIOD.

 

[beachboy]

Gee Travel-Nothing like blowing out the birthday candles with a Fire Extinguisher! LOL Whatever they do just don't have another US gobbles Delta moment. My bran new plasma tv had Mocha Latte all over it. Took me hours to clean it all up.

 

[hp_fa]

Ok since I fell for it and read my way through all this garbage I have to ask if there is any substance to this?

The only real thought I have regarding this is that we haven't heard much from Parker or Tilton. Does this mean that they have entered a quiet period before a significant financial event? There is no way to prove or disprove this at this time.

 

[Pacemaker]

Everybody's always talking to everybody else. Doesn't mean a deal's imminent. Labor issues would be overwhelming.

 

[hp_fa]

Everybody's always talking to everybody else. Doesn't mean a deal's imminent. Labor issues would be overwhelming.

I agree.

I was simply noting that it has been quiet and quiet periods are required before significant financial dealings. Whether there is a connection between the two is unknown, but labor issues would be a distinct problem.

 

[Dont call me Shirley]

Like many (but unlike others), I would welcome a UA/US merger. Just please, for the love of all that is holy, without Doug Parker in charge. Somewhere a golf course is calling for him. Full time.

 

[Zarah]

Ok since I fell for it and read my way through all this garbage I have to ask if there is any substance to this? I mean really. I know things are a little quiet around here which to many means something BIG, BIG, BIG is about to happen. I know the talk of mergers gets usaviation bumpin' a little bit and it gets some panties in a twist but this usually turns into armchair CEO'ing. NOBODY and I repeat NOBODY knows a damn thing that is going to happen. Mergers, my airline is better than your airline, elites, kettles, airplane orders, Boeing or Airbus. You'll know there's a merger in the works when you sip your coffee and it pops up on CNN news. PERIOD.

LOL, yah I never know what is going on around here until I read about it in the USA Today.

 

[BoeingBoy]

I have a 199$USD round trip from Charlotte - Newark on an US Airway's A319 tomorrow. I am very satisfied with that price!

At a little over 9 cents/mile, you should be very satisfied - that's less then the fully allocated cost of providing your transportation if you sit in coach. Get that "free" upgrade and US loses even more. If US is ever to return to profitability, someone will have to make up for your "very satisfactory" cheap fares by paying more. Wonder who that will be if you get your wish and all the elites leave?

A general number for the industry - 5% of passengers contribute 14% of the revenue. That's roughly $1.4 billion per year from 5% of the passengers. The other 95% who couldn't care less about those elites? They contribute the other 86% of revenue - every seat full of those folks and US still loses money. There's a reason why Parker/Kirby are taking the elites more seriously these days - Envoy suites, Wi-Fi, improved FC menues, etc. They've see how the loss of elites affects the bottom line.

Jim

 

[AirbusAVE]

I'm not doubting all that Boeingboy. What I'm doubting is that the elites would leave United in droves if United and LCC merged. If people do try to avoid United because they merged with Airways, well then. They're waisting their time and probably money.




And if someone would please answer my question. If Elites are the reason an airline stays afloat, why oh why did US Airways concede it's markets to Southwest airlines? As some like to say.



Southwest supposedly chased US Air out of Baltimore... Why didn't the elites of Baltimore save US in Baltimore? Could it be cheaper fares? But, hey. That'd defy elitist logic.


I'm just saying. Some people place too much emphasis on the elites. The 5% of the elites may contribute 14% of the revenue. But doesn't that mean the non-elites are contributing 86% of the revenue? you can always fill up a plane in standard coach and still be profitable (See Frontier, Southwest, Airtran, JetBlue, etc.), but can you ever fill a first class only plane full? I doubt it.


Elites are important. And if United and LCC merge, I highly highly doubt the majority of elites would leave simply for the reason that Airways would bring United to lower standards. As if United had any...



What is so great at United that US Airways would drag down? Honestly...