UA-CO Merger Rumors Now Surfacing on Wall Street

[Bear96]

No goal posts have moved. I said from the beginning and I say it now... some UA employees covered by all 4 pension plans will lose benefits. You have yet to explain who they are while I contend that they exist.

This discussion is happening because you specifically said, several times, that Fly is in a worse position than a comparable F/A at DL.

 

[Richard]

Folks,

If you want to talk about pensions let's start a new thread.

This one is about a potential merger between UA and CO

Let's keep on topic please.

Thank you.

 

[WorldTraveler]

What you fail to mention in your diatribes about the length of the UAL BK timeline is the two visits to the ATSB. If you want to remove those FACTS and grade each carrier on the curve of time in BK without ATSB efforts then you might find UAL exited prior to DL in LOV (length of visit) to BK. Now for the grand finale. DL has said they will exit in 07. It ain't 07 yet and they have not exited. It is all just talk until the actual exit.

Thank you, Richard. We've obviously reached a point where it is no longer worth discussing pensions because some people won't accept the facts.

The issue of pensions was raised in the context of mergers because I asserted and still do that having no pension liability will be an advantage in acquiring UA.

Of course, putting together a plan of reorganizaton that allows UA to grow and then executing positively against it would be the best thing to ensure UA will not be acquired. UA has done neither. Their choice of pursuing an ATSB loan is just one of many strategies UA used which delayed its POR and kept them from focusing on the industry leading restructuring that UA needed, and still needs. I continue to believe that UA will be one of the first and most dramatically impacted airlines in the next industry downturn, which is as certain to come as winter. UA's creditors will be much less willing to get burned a 2nd time and will entertain options that will protect their investment. CO will not be one of those carriers if only because of their industry-worst leverage. Combining two highly leveraged low profit airlines will never happen.

 

[novaqt]

Moderator:

Could you please cull all the pension discussion from this thread of CO/UA Merger and move to a new topic entitled "Pension Discussion"....thanks.

 

[jbguppy]

Thank you, Richard. We've obviously reached a point where it is no longer worth discussing pensions because some people won't accept the facts.

The issue of pensions was raised in the context of mergers because I asserted and still do that having no pension liability will be an advantage in acquiring UA.

Of course, putting together a plan of reorganizaton that allows UA to grow and then executing positively against it would be the best thing to ensure UA will not be acquired. UA has done neither. Their choice of pursuing an ATSB loan is just one of many strategies UA used which delayed its POR and kept them from focusing on the industry leading restructuring that UA needed, and still needs. I continue to believe that UA will be one of the first and most dramatically impacted airlines in the next industry downturn, which is as certain to come as winter. UA's creditors will be much less willing to get burned a 2nd time and will entertain options that will protect their investment. CO will not be one of those carriers if only because of their industry-worst leverage. Combining two highly leveraged low profit airlines will never happen.

While disregarding most of what you write as pure DAL propaganda, your comments do lead me to ponder an interesting question.

It really matters not who is the acquiring entity. Union policies will govern seniority integration. I am hopeful that the United name would survive as it is the strongest airline brand in the world. The location of the corporate HQ would most assuredly stay in Chicago, as being a Texas based corp is reaching the end of its usefulness as you know who goes back to Crawford. It really doesn't matter what any individual employee thinks anyway as investment banking will make or break whether the deal is done. How smoothly it goes afterward (if it ever occurs) will be largely up to the employees.

The two companies would make a compelling combination, and I am not fearful of the transaction in any way. There are many other airlines that should be very wary of a combined UAL/CAL.


JBG