Talks get serious between UAL/CO- Where is US in all this?

[ClueByFour]

Here's an example of the wrong mind set folks! merger=me getting rich lol the reality is merger=train wreck! HISTORY SPEAKS Mergers are only good for CEO's. BTW US made almost 1 billion in profit for the last 2 years how rich are you?

Yeah. US wiped out 10 billion or so in equity and wages during the bankruptcies. Call when that's recouped.

 

[whatkindoffreshhell]

That's exactly what they hope to do after consolidation reduces the number of seats for sale. You may have heard how that works? Fewer seats for sale, higher price for each one? Ringing any bells there?

Poppycock! "Consolidation" is just a fashionable term being tossed about the industry as a teaser for a return to the good 'ol days of fat-n-happy.

If near-death bankruptcy dancing didn't do it for you then it ain't gonna happen skippy.

Example: Wilbur Ross cobbled together bankrupt steelmakers, tossed out all the old rules of doing business and voila! Profitable, nimble competitors!

Granted, steel is not as sexy as airlines but profit is absolutely orgasmic. Why do you think the hedge funds (and those lucky employees with stock options i.e. airline execs at struggling carriers EXCEPT WN, AA, CO and those pesky foreign carriers like LH, EK, SQ) are advocating 'consolidation' ??

Profit is the ultimate kool-aid.

 

[insp89]

Perhaps because some people think that working for an airline that makes huge, consistent profits beats working for one that posts smaller profits or consistent losses? Easier to try to capture wage increases if your employer is consistently profitable - see Southwest for proof. Their Captains make more $$$ than any other legacy Captains except for AA's 777 Captains. Their mechanics and ramp make industry-leading pay. Their FAs make more money than most; their agents make more money than most. Did I leave anybody out? Does anyone at US make more money per hour than a WN employee in the same job with the same seniority?

Granted, reasonable people can disagree whether the current potential consolidation will result in higher profits, but it's kinda hard to disagree with my first paragraph above.

Things will surely suck for the redundant employees who are let go as a result of mergers and acquisitions, but it really can't get much worse for those who remain, can it?

FWAAA,
Do you believe Southwest will offer industry leading wages?, when the respective labor contracts come up for re-negotiation ?

 

[USFlyer]

I still think NW and US should pair up, eliminating MEM as a hub in the process.

I don't get DL merging with NW. Fleets, except for the 757s, are totally different. DTW/CVG overlap. MEM/ATL overlap. Still no intra west coast presence.

Only advantage is DL's European markets with NW's Asian markets would form a nice international network ... but at what cost domestically?

 

[Tim Nelson]

The AP reported this saturday, "
There is speculation that US Airways Group Inc. could bid for Continental or United, although it might need a partner who can bring cash to the table.

Let the games begin

regards,
Tim Nelson
IAM Local Chairman, 1487, Chicago

 

[Hi-C-Camp]

US could get TED and UAX and CO could get the good stuff--I mean the rest. Perfect matches

AHHH, lets see, TED is PART OF UNITED, there is NO - NADA - ZILCH difference in TED and a normal MAINLINE UAL FLIGHT - people - come on and lets know the facts before we post...

 

[FWAAA]

AHHH, lets see, TED is PART OF UNITED, there is NO - NADA - ZILCH difference in TED and a normal MAINLINE UAL FLIGHT - people - come on and lets know the facts before we post...

I'm certain that UA1YFARE knows that, as does everyone else here.

 

[AstroLounge]

I still think NW and US should pair up, eliminating MEM as a hub in the process.

I don't get DL merging with NW. Fleets, except for the 757s, are totally different. DTW/CVG overlap. MEM/ATL overlap. Still no intra west coast presence.

Only advantage is DL's European markets with NW's Asian markets would form a nice international network ... but at what cost domestically?

AGREE Completely. Outside of the Executive Team trying to pair DL/NW together, the combination of these two will make the US-HP merger look like like an Ice Cream Social. I have several friends at NW that DO NOT want to see a DL/NW combo and a BIG Issue is the UNION/NonUnion debate. Members of Congress should really be concerned over what will happen to CVG and MEM and possibly even MSP. The execs can SPIN all they want of how they won't cut jobs, reduce service and such, but a word called SYNERGY will be used to emphasize their point of how beneficial a merger like this will be. It's BS. US-HP has had its problems over the last 2years but DL/NW is like mixing oil and water and would be similar to a situation if US/DL even proceeded.....and Thank God it DIDN'T.

 

[whatkindoffreshhell]

The WSJ reported that NW & DL are first negotiating with the pilots for an agreement on seniority before announcing a merger. They want announce by the end of next week.

The pilots (at least the union leadership) has bought into the idea because the offer of increased wages and equity has been put on the table.

They cited the pilot integration woes at US the catalyst for this move.

 

[USstew23]

The WSJ reported that NW & DL are first negotiating with the pilots for an agreement on seniority before announcing a merger. They want announce by the end of next week.

The pilots (at least the union leadership) has bought into the idea because the offer of increased wages and equity has been put on the table.

They cited the pilot integration woes at US the catalyst for this move.

Well it's nice to see at least some concern for the employees. Once again using US as an example of what NOT to do.

 

[deltawatch]

Got to love this one ..... the ununionized Delta employees are NOW willing to join the CWA and pay dues .....



Delta flight attendants look to unionize

NEW YORK, Feb 10 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) flight attendants will file union cards for representation in the Association of Flight Attendants-CWA on Feb. 14, a union spokeswoman said on Sunday.

"They want a seat at the table -- whether it is during regular contract negotiations or mergers -- so they can have a voice in their careers," said Patricia Friend, president of AFA-CWA International.

The union said a "solid" majority of Delta flight attendants have signed cards seeking union representation.

The flight attendants' move comes amid media reports that Delta and Northwest Airlines Corp (NWA.N: Quote, Profile, Research) are close to a merger. Northwest's flight attendants are already represented by the AFA.

 

[deltawatch]

Based on headline news merger announcement appears imminent. And while Delta will most likely be a first mover, it's not obvious to us it will be a final mover, hence our Neutral rating.
Our concern -- a counteroffer from AMR for Northwest could cause Delta to overpay or even lose out to an AMR bid. While we presume Delta has factored this possibility into their outlook and prepared for this scenario, at the end of the day, it's a Northwest board decision, hence our concern.
Lastly, AMR has a history of aggressively participating in industry M&A and believe today should prove no different.
For those wondering why Delta couldn't force AMR to overpay, it could -- potentially. However, we start with the assumption that AMR benefits from a superior network which when potentially combined with Northwest's results in better revenue synergies versus a Delta/Northwest combination. Hence our view that AMR can afford to pay more than Delta in our view.
We don't expect Southwest to buy another airline, but think it's likely Southwest goes shopping for assets that are carved-out. What investors fail to appreciate is that Southwest is arguably the best-positioned to benefit from industry M&A.
On our outlook, Southwest is nicely positioned to reduce a frequency or two in its markets, and then redeploy those planes in new markets. Naturally, we expect the existing markets to become more profitable, and given the high fares in the new markets we anticipated Southwest will be entering, it's logical to assume that Southwest gets back to reporting double-digit operating margins. Hence our belief that shares represent a great value at current levels.

LINK

 

[deltawatch]

Would be funny if Delta gets new unions and AMR gets NW.

 

[oldcrow]

LCC being fragmented due to union strife? The possibilities are many, and the next few months should be interesting to say the least.

 

[deltawatch]

Yahoo's Chairman Is New But No Stranger to Deals
February 8, 2008

Years ago, Roy Bostock played on Duke University's football team. Now the new chairman of Yahoo Inc. is facing a blitz from Microsoft Corp., and some blocking and tackling skills could come in handy.

Mr. Bostock was voted chairman of the Internet company just minutes before Microsoft Chief Executive Steve Ballmer called Yahoo CEO Jerry Yang with an unsolicited $44.6 billion offer for the company, say people familiar with the matter. In addition, the longtime advertising executive is taking an active role as chairman of Northwest Airlines Corp., which is involved in intense merger talks with Delta Air Lines Inc. that could create the largest passenger airline in the world. And he is a director of Microsoft adviser Morgan Stanley.


At Yahoo, the ball is now in Mr. Bostock's hands. The board he leads will need to issue a response to Microsoft's bid, which was made in a letter to Yahoo's directors on Jan. 31.

People who know Mr. Bostock say he is well-suited for the job and has a track record of extracting good prices for companies. "Maximizing shareholder value is what gets him up in the morning," says John Farrell, a top executive at the French ad company Publicis Groupe who worked for Mr. Bostock for 20 years.