UA AND US Merger Talks

[robbedagain]

If UA and CO do get hooked up, I would not be surprised to see AA coming into play possibly with US

 

[USA320Pilot]

Tonight the Wall Street Journal reported that some of the revenue benefits of an existing domestic marketing alliance between United and Continental already have been realized, one person said. The two carriers have said they are banking $100 million a year each in new revenue. More could be had once Continental joins a transatlantic joint venture with United, Air Canada and Deutsche Lufthansa AG, three members along with Continental of the global Star Alliance marketing group.

The United-US Airways talks, which date back "some months," would serve a different purpose if they result in a deal that would bolster United's presence in some parts of the U.S. market and allow the two to cut costs and overhead by combining operations. The combined cost and revenue synergies of a US Airways merger offer more than a Continental-United merger, said another person familiar with the situation, because two-thirds of the revenue benefits already are captured by the United-Continental alliance. And for shareholders of UAL and US Airways, the gains from revenue and cost-savings would be spread over a smaller combined equity base, providing a larger return, knowledgeable people said.

Regards,

USA320Pilot

 

[robbedagain]

Now I could be wrong, but it appears to me at least is that it sound slike UAL wants a merger with USAirways while at the same time, deepen the alliances with CO. If thats the case I wonder who would be the most likely to run the combined airline

 

[goodgirl37]

Now I could be wrong, but it appears to me at least is that it sound slike UAL wants a merger with USAirways while at the same time, deepen the alliances with CO. If thats the case I wonder who would be the most likely to run the combined airline

You basically can't get a "deeper" alliance than they already have.. CAL knows, that if it doesnt hook up with UAL, then UAL and US will, for sure.. This leaves CAL in a position where it will feel the pain in more ways than one. They may try and dance alone, but that would be a tragic mistake, they are losing money just like the rest of us and being the odd man out wont help them. No one will be there to merge with them the next time around, only there to pick up the pieces. If UA and US hookup, it will be the same as when CAL was in SkyTeam, competing against your partner.. CAL once had a horrible horrible reputation folks, think US but even worse. UAL and US could merge and be a much better airline than anyone thinks, it would be VERY difficult no doubt. Smisek is a very different ballgame than Kellner as well. He probably wont let his emotion et in the way too much.

 

[Freebird]

Now I could be wrong, but it appears to me at least is that it sound slike UAL wants a merger with USAirways while at the same time, deepen the alliances with CO. If thats the case I wonder who would be the most likely to run the combined airline

Tilton wants out. Call-in Bethune.

 

[JFK Fleet Service]

Well, Parker has done such a bang up job combining Airways and America West, let's give him United Airlines to play with too and see how soon he's parachuting away with his bankruptcy proof employment contract while the rest of the working class stiffs take it in the shorts...again.

 

[DCaf]

Well, Parker has done such a bang up job combining Airways and America West, let's give him United Airlines to play with too and see how soon he's parachuting away with his bankruptcy proof employment contract while the rest of the working class stiffs take it in the shorts...again.

Parker combined the companies as far as he could, and did it well. But the Nicolau award prevents any further progress.

 

[cactusboy53]

Well, Parker has done such a bang up job combining Airways and America West, let's give him United Airlines to play with too and see how soon he's parachuting away with his bankruptcy proof employment contract while the rest of the working class stiffs take it in the shorts...again.

Well let's see.....LCC opened at $19.XX per share after the merger was done on paper. It ran all the way to $62.95 on Nov. 24, 2006. WOW!!! That was OVER 3x the opening price. Mr. Parker (much to my chagrin) has simply sat back and let the seniority battle rage on. Overall (as evidenced by the stock price from inception through 2006) business had been good. Then EVERYONE got hit with the economy. Nearly all airlines were profit-less during that time. Times are still tough, but loads & bookings are up.

Is Mr. Parker another Herb Kelleher or Gordon Bethune?? Hardly. Mr. Parker is a sharp CEO, and could manage a new combined airline to a profit. He seems the more likely candidate for running a new combined airline.

 

[gar]

Is Mr. Parker another Herb Kelleher or Gordon Bethune?? Hardly. Mr. Parker is a sharp CEO, and could manage a new combined airline to a profit. He seems the more likely candidate for running a new combined airline.
[/quote]

If we don't merge with UA we will have to see how he does with what's left.

 

[HP2USFA]

Parker combined the companies as far as he could, and did it well. But the Nicolau award prevents any further progress.

Actually, that's incorrect. The Nicolau award does not prevent any further progress, the East pilots failing to abide by the terms of binding arbitration prevents any further progress.

 

[etops1]

please lets not start this east pilot west pilot crap again ok guys ??

 

[etops1]

Here is what Jeff Smisek CEO of CO told employees about UA ans US talking about a merger :


Like many of you, I took note of the news on Wednesday that claimed that United and US Airways are in advanced merger discussions. Neither company has confirmed the reports.

We are studying this situation and will make sure that we understand how any such talks may affect us. I always want to make the best decisions for Continental, to keep us headed in the direction we want to go: having a profitable company with strong opportunities that can help us build solid careers and sound retirements. I will continue to keep my co-workers among my highest priorities, and will keep you updated on industry developments. Meanwhile, please continue to focus on the things you do better than anyone – providing award-winning service and focusing every day on providing clean, safe and reliable air transportation.

 

[JFK Fleet Service]

Well let's see.....LCC opened at $19.XX per share after the merger was done on paper. It ran all the way to $62.95 on Nov. 24, 2006. WOW!!! That was OVER 3x the opening price. Mr. Parker (much to my chagrin) has simply sat back and let the seniority battle rage on. Overall (as evidenced by the stock price from inception through 2006) business had been good. Then EVERYONE got hit with the economy. Nearly all airlines were profit-less during that time. Times are still tough, but loads & bookings are up.

Is Mr. Parker another Herb Kelleher or Gordon Bethune?? Hardly. Mr. Parker is a sharp CEO, and could manage a new combined airline to a profit. He seems the more likely candidate for running a new combined airline.

You do of course realize I was being facetious don't you?

As for Parker managing a new combined airline to a profit, has he done it at LCC yet?

Somehow I don't see the frat party cup being a big hit on the PS transcons.Same for the plastic first class cutlery and closet removal...

I'm just going by what I read on this board.

 

[Poug Darker]

You do of course realize I was being facetious don't you?

As for Parker managing a new combined airline to a profit, has he done it at LCC yet?

As a matter of fact, he has. In this economically tumultuous past 5 years, I remember at least 3 consecutive quarters where LCC turned a nice profit, and shared that with the employees, too.
Of course, this was when oil was 60 bbl or below...

 

[88 B.T.D.]

In reply to 320:

The current injunction issued by Wake does not require USAPA to use Nicolau when bargaining with anyone other than US Airways, so it does not cause the USAPA leaders to be worried or looking for a way to wash themselves away from the wrath of the hardliners (> 50% of membership)