West Side Story
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UAL Nears Merger Partner Choice
- Thread starter West Side Story
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RowUnderDCA
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This whole UA+ CAL or LCC thing is about two different visions of the future of the industry: breadth of market or capacity reduction. I suggested, in jest, a three-way, but hmmmmmmm?
Of course, as stated, it would mean the eventual, or immediate, abandonment of PHL I'm not sure if any assets can be 'sold' to say AirTran that would then focus its east coast operations at PHL, reducing point to point capacity and BWI. Rationalization of IAD/DCA and reduction of small jets in big markets everywhere: LAX, LGA, BOS, DCA, maybe even CLE.
Of course, as stated, it would mean the eventual, or immediate, abandonment of PHL I'm not sure if any assets can be 'sold' to say AirTran that would then focus its east coast operations at PHL, reducing point to point capacity and BWI. Rationalization of IAD/DCA and reduction of small jets in big markets everywhere: LAX, LGA, BOS, DCA, maybe even CLE.
wings396
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I still think that a UA/LCC combo is a better choice than a deal with CO. US has a decent southeastern hub with CLT, and UA could use that to compete with DL in ATL. CO has nothing of the sort, and they have a lot of overlap out West with UA. Having a Hub in PHL over EWR is pretty much a toss-up, as they both are an ATC nightmare, and they both have a very decent O&D market.
Coffee_Tea_Or_Me
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While I agree that UA/LCC makes more sense, I disagree that CO and UA have overlap in the west. Where would that be? CO has nothing out west -- only hubs are CLE, EWR, and IAH -- the west coast flights they do are only to their mid-west and east coast hubs. US and UA overlap more on the west coast, I think (UA feeds small west coast cities to SFO and DEN; US feeds same cities to PHX). But, if the merger happens, I think it is buh-bye PHX in order to reduce capacity and feed traffic into DEN -- a city with a lot of O&D and a lot more business.
Regarding the overlaps in the NE, I could see PHL losing out. IAD is growing, growing, growing -- and has the land to do it. IAD has made a lot of provisions for UA, but PHL has shafted US on a few things. If UA and US announced a merger, they would be in a powerful place to negotiate with IAD and PHL to get whatever they wanted. Neither city would want to lose the hub status the carriers provide and would likely be very, very nice in negotiations and give-a-ways.
ZMAN777
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Let's get serious for a moment. To suggest that LCC would make a better partner than CAL shows a complete disregard for industry fundamentals such as market presence and size. Let's be honest here, LCC brings pretty much NOTHING in the way of SERIOUS international presence to the dance. For LCC UAL is a dream partner....huge fleet of wide-body aircraft, commanding Pacific presence, superb domestic structure/hubs.
For UAL, LCC would have to be the last gal at the party to ask to dance! The big thing that CAL gives UAL is a huge NYC presence. LCC has nothing comparable to offer. PHL is a joke when it comes to corporate accounts when compared to NYC. But I can understand why those at LCC want and are praying for a UAL hook-up. If I were at LCC I'd be cheering for the same.
I believe any talk between UAL/LCC is more about LCC's position in the Star Alliance and the eventual swapping/moving around of gates, slots, etc. than anything else.
Cheers,
Z B)
ZMAN hits the nail on the head. LCC only increases anyone's domestic presence. That's not what anyone wants. For UAL, merging with CO gives each the strengths they've both been missing. UAL gains East coast and Southern hubs that it can use to gain some domestic corporate stuff and more importantly, they get a big latin presence and better European network. CO gets much better in the Pacific and access to the Star alliance which tey will likely need to move to if DL-NW are allowed to get together.
It's no doubt that UA would prefer to merge with CO. But is CO interested? I think they are hesitant to hook up with an outfit that lost over a half billion in three months. CO is the one calling the shots and their decision will affect what else happens.
story here
Continental Airlines released the following message to its more than 45,000 employees from Larry Kellner, Chairman and Chief Executive Officer, and Jeff Smisek, President.
Dear Co-worker,
We want you to know that our Board of Directors met today and has
unanimously supported management's recommendation that, in the current
industry environment, the best course for Continental is to not merge
with another airline at this time.
Our recommendation, and the Board's careful and considered decision,
followed a comprehensive review of our strategic alternatives, assisted
by our senior officers and advised by Continental's outside financial and
legal advisors. The Board very carefully considered all the risks and
benefits of a merger with another airline, and determined that the risks
of a merger at this time outweigh the potential rewards, as compared to
Continental's prospects on a standalone basis.
story here
Continental Airlines released the following message to its more than 45,000 employees from Larry Kellner, Chairman and Chief Executive Officer, and Jeff Smisek, President.
Dear Co-worker,
We want you to know that our Board of Directors met today and has
unanimously supported management's recommendation that, in the current
industry environment, the best course for Continental is to not merge
with another airline at this time.
Our recommendation, and the Board's careful and considered decision,
followed a comprehensive review of our strategic alternatives, assisted
by our senior officers and advised by Continental's outside financial and
legal advisors. The Board very carefully considered all the risks and
benefits of a merger with another airline, and determined that the risks
of a merger at this time outweigh the potential rewards, as compared to
Continental's prospects on a standalone basis.
story here
767jetz
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Lets hope someone grabs Tilton by the scruff of his neck and slaps some sense into him. After all, friends don't let friends beer-goggle!Well it looks like there aren't too many Girls left at the dance, and it's getting near closing time. After a few more cool ones, that LCC babe is starting to look good.....
Amen to that!!!!!Lets hope someone grabs Tilton by the scruff of his neck and slaps some sense into him. After all, friends don't let friends beer-goggle!
Lets hope someone grabs Tilton by the scruff of his neck and slaps some sense into him. After all, friends don't let friends beer-goggle!
It is apparent that no one at United is man enough to do it!!! Nothing has changed at all, everyone is so afraid of losing their jobs that no one organizes and kicks the bums out of the company. The employees complain a lot, but sit idly by and not do anything. The Unions are just as bad also. Tilton and senior management have the entire Company by the proverbial b----. How about filing a Complaint with the SEC and/or a RICO lawsuit. The Justice Dept. will not do anything, however, take enough action to tie up the merger long enough to get past January 09.
casual rat
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Tilton,Brace,McDonald(s),etc gotta go...PERIOD! I was hoping for a CO merger, just so that I could be managed by someone who has a clue, even a minute inkling about how an airline can run. An LCC/UA marriage would be as dysfunctional as anything Brittany Spears would be involved with--maybe even more so. Stalag 13 had more going for it. Married with Children had a sounder base and morality...They really need to go--or be investigated by someone--Inspector Clouseau could find something I'm Sure! The directors of UA and LCC are crooks, plain and simple--it's all they're good at--stealing.
I'm curious. Just what do you expect the UAL employees to do?
Strike? Unless the workers of any particular union are released by the NMB any strike is illegal and the employees are subject to termination. Risky.
Put an ad in the newspaper "dissing" the company they work for like AA pilots did (again)? Ignorant.
Stage a slow down or a sick out? It just drives your customers away when you need them most. Shortsighted.
Information picketing? We've done it, nobody cares, even the news media won't show up. Waste of time.
Beg OPEC to procuce more barrels of oil per day and lower oil prices?
Show up at the annual share holder's meeting? Done it.
Write our congressman/woman? Done it.
I show up for my airline job for my 23rd year. I don't complain (any more than any other airline employee). I do the best I can with what I'm given. I hope I get a paycheck at the end of the pay period. And find that most other UAL employees do the same. Give us a break. <_<
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