United, Continental resume merger talks

[767jetz]

Why would CO want to hook up with a boat anchor like UA. They (CO) are getting better than 80 % of the synergies and non of the other hassles. On the flip side of that, if UAL is doing so much better, as noted in their first quarter report, why then the urgency to merge? CO took the bait (USAir), but they may have just nibbled on it.

Because most people (including the folks at CO) don't see UA as a boat anchor. Particularly now that UA is doing better. CO is not getting 80% of the synergies. Not even close.

This is not about anyone saving their own butt or saving someone else's. This is about 2 great networks who compete on very few routes, both of whom are improving their balance sheets, realizing that a combination would take them both from "doing better" to sustained profitability and future stability.

Consolidation in this industry is inevitable. This combination makes the most sense and will create a powerhouse. (If managed properly.)

 

[Borescope]

Because most people (including the folks at CO) don't see UA as a boat anchor. Particularly now that UA is doing better. CO is not getting 80% of the synergies. Not even close.

This is not about anyone saving their own butt or saving someone else's. This is about 2 great networks who compete on very few routes, both of whom are improving their balance sheets, realizing that a combination would take them both from "doing better" to sustained profitability and future stability.

Consolidation in this industry is inevitable. This combination makes the most sense and will create a powerhouse. (If managed properly.)

Man, you drank so much of Tilton's cool aid, you actually sound like him.

 

[767jetz]

Man, you drank so much of Tilton's cool aid, you actually sound like him.

Actually, I can't stand the guy. Thanks for playing though.

But I do actively participate in my union and try to look at things from a rational and realistic perspective... not an emotional one as you seem to be doing in this regard.

Here is another link for you...

United, Continental Making Progress on Merger Deal

"A source familiar with the talks says the two sides are closer on bridging their differences on the pricing of a merger stock swap..."

What exactly is your gripe about this merger? (Please don't answer this if it's just a simple hatred of UA in general.) But seriously, on a factual and non-emotional basis, can you please tell us why you are against what most are saying would be a beneficial combination?

 

[Borescope]

Actually, I can't stand the guy. Thanks for playing though.

But I do actively participate in my union and try to look at things from a rational and realistic perspective... not an emotional one as you seem to be doing in this regard.

Here is another link for you...

United, Continental Making Progress on Merger Deal

"A source familiar with the talks says the two sides are closer on bridging their differences on the pricing of a merger stock swap..."

What exactly is your gripe about this merger? (Please don't answer this if it's just a simple hatred of UA in general.) But seriously, on a factual and non-emotional basis, can you please tell us why you are against what most are saying would be a beneficial combination?

Actually, it is probably the fear of the unknown. I apologize if I offended you. I just don't see how this benefits us. Tilton claims that there must be consolidation to become profitable, which he equates with less capacity. That may be true. However in order to work, someone is going to lose flying, maintenance, gate agents, etc. All one has to do is look at the AWA/US merger and see the abomination that has occurred over there. If this does happen, I can only hope that each employee group understands that we all need to stand together as employees and get what is best for us verses UA employees against CO employees. Lets kick Delta's Arse.

See you on the line.

 

[UALbagboy]

Actually, it is probably the fear of the unknown. I apologize if I offended you. I just don't see how this benefits us. Tilton claims that there must be consolidation to become profitable, which he equates with less capacity. That may be true. However in order to work, someone is going to lose flying, maintenance, gate agents, etc. All one has to do is look at the AWA/US merger and see the abomination that has occurred over there. If this does happen, I can only hope that each employee group understands that we all need to stand together as employees and get what is best for us verses UA employees against CO employees. Lets kick Delta's Arse.

See you on the line.

Borescope,

On the ramp where I work (IAD), everybody is nice and respects each other. We all care and most go the extra mile to make sure the customers bag gets on the plane. I don't see why people think UAL employees are mean uncaring people. We will work together with CAL. If we merge, we will work for the same employer. Why would we fight each other.

If this merger does happen, UAL will be unbeatable. Delta will not stand a chance.

 

[Borescope]

Borescope,

On the ramp where I work (IAD), everybody is nice and respects each other. We all care and most go the extra mile to make sure the customers bag gets on the plane. I don't see why people think UAL employees are mean uncaring people. We will work together with CAL. If we merge, we will work for the same employer. Why would we fight each other.

If this merger does happen, UAL will be unbeatable. Delta will not stand a chance.

UALbagboy,

No one said you are "mean and uncaring" . I have work at the airline for 31 years and have seen the good, bad and the ugly. I'm just hoping we can all stand on the same side of the line and not fight amongst ourselves. This appears to be on the fast track, and we (employees) all need to sit on the same side of the table.

 

[767jetz]

This appears to be on the fast track, and we (employees) all need to sit on the same side of the table.

I think you will find that the UA and CO employees will stand together and not fight amongst themselves like they do at US Airways. No one wants to suffer the fate of the employees there.

As for downsizing, I don't think you will see much of that at all. In the few markets where we overlap there may be some rationalization. But overall, the feed our networks provide each other will only fill more seats and provide greater opportunities for expansion in the future. There will be downsizing in some departments. For example you don't need 2 reservation systems, 2 training centers, 2 dispatch centers, 2 sets of management, etc. However you do need enough capacity in all those departments (with the exception of management) to facilitate the enormous airline we would become.

This merger will be more about true synergies and economies of scale, than downsizing and ceding market share to the competition. Any capacity reductions will come from the competition hopefully.

Even the executives at CO have been quoted as saying that UA and CO do not really compete on any major scale. That's what makes us such a good match for one another.

I for one am THRILLED at the thought of having a major presence in the NY area once again. I think it was one of UA's biggest mistakes to run from NY and concede the market to Delta, American, and Jet Blue. JFK is the international gateway to Europe from the East Coast. So now it will be Newark instead. No big deal.

Continental's strength in South America will be a great asset. Not to mention their Micronesia operation adding to the bottom line.

BTW, can anyone provide more info on the whole Micronesia thing?

Anyway, can't wait to see if this really flies or not. I guess we'll know within a week.

 

[ROACLT]

I think you will find that the UA and CO employees will stand together and not fight amongst themselves like they do at US Airways. No one wants to suffer the fate of the employees there.

 

[paul1]

Borescope,

On the ramp where I work (IAD), everybody is nice and respects each other. We all care and most go the extra mile to make sure the customers bag gets on the plane. I don't see why people think UAL employees are mean uncaring people. We will work together with CAL. If we merge, we will work for the same employer. Why would we fight each other.

If this merger does happen, UAL will be unbeatable. Delta will not stand a chance.

SENORITY

 

[767jetz]

We're almost there, folks.

Airlines Approach Final Deal to Merge

United, Continental closer to deal

United, Continental to announce merger Monday

United, Continental to announce merger Monday-WSJ

United-Continental deal could take flight Monday

 

[767jetz]

Just a few more yards...

Continental, UAL agree on exchange ratio

"Continental Airlines Inc (CAL.N) and UAL Corp's (UAUA.O) United Airlines have agreed to an exchange ratio of 1.05 UAL shares for each Continental share..."

 

[Richard]

MOD NOTE: If and when the merger is announced we will close this thread and open a new one concerning the merger itself.

Thank you.

 

[mrman]

My only real concern with this merger is that everyone pretty much can agree they want CO's management. Yet they want to continue the headquarters in Chicago, yet most of CO's management is in Houston. They only need the overhead of one headquarters, ie one accounting, one ops, one pass bureau etc. I suspect there would be quite a few Texans unwilling or unable to move to Chicago. Not to mention the weather, housing costs and income tax disadvantages. My fear is that UA management will continue by default.

 

[eolesen]

My only real concern with this merger is that everyone pretty much can agree they want CO's management. Yet they want to continue the headquarters in Chicago, yet most of CO's management is in Houston. They only need the overhead of one headquarters, ie one accounting, one ops, one pass bureau etc. I suspect there would be quite a few Texans unwilling or unable to move to Chicago. Not to mention the weather, housing costs and income tax disadvantages. My fear is that UA management will continue by default.

Depends on what the nature of "headquarters in Chicago" will mean.

When Boeing "headquartered" in Chicago, it was only corporate functions which moved e.g. tax, treasury, etc... and the rest stayed behind in SEA.

When UAL "headquartered" in Chicago, they only moved a couple hundred people off the larger Elk Grove Township WHQ campus.

The days of requiring all of your employees under one roof are long over, so let's see what really happens, and how many employees are really asked to move. I'd have a problem leaving TX for IL as well, especially considering that housing alone in the suburbs of Chicago is about 2x what it was when I lived in TX.

 

[767jetz]

United-Continental deal is smooth flying for analysts

"Plenty of positives and little risk, which regulators are expected to back."

"I see nothing but positives," said Roger King, a bond analyst with CreditSights. "These guys will have the best global network of any airline."

"Analysts expect U.S. antitrust regulators will give the new airline its approval, and none of the analysts MarketWatch spoke to could think of any gates or landing slots the new airline might be forced to sell."

"Because of the minimal overlap between, layoffs and furloughs will likely be few."