United, Us Airways, and Continental?

[N965VJ]

You're joking here, right? Tongue-in-cheek stuff?

How often I've heard the "big announcement" announcement for "next Monday."

Anybody want to wager that on May 2nd the entire situation will still be pure conjecture?

Since May 1 falls on a Saturday, the only thing happening will be the Frat Boys having a kegger by the pool.

 

[JFK Fleet Service]

Many of these smaller airlines are Non-Union and the people can be dumped & backfilled by recalling former UP and HP employees.

Good luck with that.

 

[UALbagboy]

Many of these smaller airlines are Non-Union and the people can be dumped & backfilled by recalling former UP and HP employees.

Wow, just wow. That is just plain MEAN!

 

[SparrowHawk]

Wow, just wow. That is just plain MEAN!

You're right!

Capitalism is mean! Sadly there are winners and losers in our economic system,

You want to shoot the messenger fine by me but I guarantee what I said it repeated daily when Mergers are discussed from boardroom to bedroom.throughout the world.

Honestly do you think Nike went to Indonesia and set up a factory that pays in the 22 cent an hour range because they were being good corporate citizens trying to boost the world economy?

Wake up folks, Capitalism is Cruel & Uncaring and if you ain't the lead dog the view never changes.

 

[USA320Pilot]

Talks deepen between United and Continental

United and Continental exchanging financial details, raising doubts about deal with US Airways

See Story

Regards,

USA320Pilot

 

[USA320Pilot]

US Airways President Scott Kirby dodges talk of merger

Barclay's Capital airline analyst Gary Chase said in a report Tuesday that a US Airways/United deal would produce annual financial benefits, or synergies, of $501 million, compared with $465 million in a Continental-United deal. He sees a combined US Airways/Continental shrinking their combined seat capacity in the United States by 6 percent, a merged Continental-United by 9 percent.

Regards,

USA320Pilot

 

[Dont call me Shirley]

United Airlines has put merger talks with US Airways Group on hold as it focuses on a tie-up with Continental Airlines, people familiar with the matter said.

United and Continental plan to begin sharing financial information this week, and may reach a decision on whether to merge by next week, said two of the people, who asked not to be identified because details are private.

http://www.nj.com/business/index.ssf/2010/04/united_halts_us_airways_talks.html


This ain't good!

 

[autofixer]

United Airlines has put merger talks with US Airways Group on hold as it focuses on a tie-up with Continental Airlines, people familiar with the matter said.

United and Continental plan to begin sharing financial information this week, and may reach a decision on whether to merge by next week, said two of the people, who asked not to be identified because details are private.

http://www.nj.com/business/index.ssf/2010/04/united_halts_us_airways_talks.html


This ain't good!

Uh, like a merger would be good for the employees.

 

[767jetz]

US Airways President Scott Kirby dodges talk of merger

Barclay's Capital airline analyst Gary Chase said in a report Tuesday that a US Airways/United deal would produce annual financial benefits, or synergies, of $501 million, compared with $465 million in a Continental-United deal. He sees a combined US Airways/Continental shrinking their combined seat capacity in the United States by 6 percent, a merged Continental-United by 9 percent.

Regards,

USA320Pilot

There are some reports by analysts claiming that a CO/UA merger would produce more synergies and revenue than a UA/US merger, and other reports claiming the opposite. It is true that a UA/US merger would create more downsizing in overlapping markets creating more pricing strength. In effect it would be a further shrinking of both operations which would be bad for many employees on both sides. Particularly those in the bottom 25% and those on furlough.

Regardless of which reports you believe with regard to synergies, I think the driving force will be the ease of actually executing a merger in a reasonable amount of time and getting all employees working together toward a common goal, as was the case in the DL/NW merger. An extra $36 million in synergies can easily be negated (and then some) in a service industry by years of labor unrest.

A UA/CO merger would actually create more long term strength due to complimentary route systems, resulting in less downsizing, and more growth opportunities, all of which lead to more job opportunities and job security for employees and furloughees and and more cohesive employee group.

Additionally, since much of the groundwork was already laid by UA & CO in 2008, there is much less "heavy lifting" to do this time around. Even the pilots had a framework agreed to for seniority integration much in line with the gains and security attained by the DL/NW pilots. Notice that CO management has already offered CO pilots the new DL pay rates plus $1, stating that their analysis concluded that the company can attain comfortable profit margins at those rates.

As more information comes out I think you will see things shifting to a favorable UA/CO merger. UA will keep it's options open for a US merger only in the event a CO merger does not consummate. In that case I think UA will move quickly for a US merger this time under their terms. If that occurs, unfortunately for all of us the combined airline would be run into the ground since neither has a management team that can make the airlines work. But IMO, at this point the probability of a UA/US merger is diminishing quickly.

 

[robbedagain]

There are some reports by analysts claiming that a CO/UA merger would produce more synergies and revenue than a UA/US merger, and other reports claiming the opposite. It is true that a UA/US merger would create more downsizing in overlapping markets creating more pricing strength. In effect it would be a further shrinking of both operations which would be bad for many employees on both sides. Particularly those in the bottom 25% and those on furlough.

Regardless of which reports you believe with regard to synergies, I think the driving force will be the ease of actually executing a merger in a reasonable amount of time and getting all employees working together toward a common goal, as was the case in the DL/NW merger. An extra $36 million in synergies can easily be negated (and then some) in a service industry by years of labor unrest.

A UA/CO merger would actually create more long term strength due to complimentary route systems, resulting in less downsizing, and more growth opportunities, all of which lead to more job opportunities and job security for employees and furloughees and and more cohesive employee group.

Additionally, since much of the groundwork was already laid by UA & CO in 2008, there is much less "heavy lifting" to do this time around. Even the pilots had a framework agreed to for seniority integration much in line with the gains and security attained by the DL/NW pilots. Notice that CO management has already offered CO pilots the new DL pay rates plus $1, stating that their analysis concluded that the company can attain comfortable profit margins at those rates.

As more information comes out I think you will see things shifting to a favorable UA/CO merger. UA will keep it's options open for a US merger only in the event a CO merger does not consummate. In that case I think UA will move quickly for a US merger this time under their terms. If that occurs, unfortunately for all of us the combined airline would be run into the ground since neither has a management team that can make the airlines work. But IMO, at this point the probability of a UA/US merger is diminishing quickly.

If this is the case as it appears to be, Id imagine that AA would more than likely make a run for US to keep up with a combined UA/CO and DL/NW I doubt very highly AA would be left out if this type of combo happens

 

[cltrat]

There are some reports by analysts claiming that a CO/UA merger would produce more synergies and revenue than a UA/US merger, and other reports claiming the opposite. It is true that a UA/US merger would create more downsizing in overlapping markets creating more pricing strength. In effect it would be a further shrinking of both operations which would be bad for many employees on both sides. Particularly those in the bottom 25% and those on furlough.

Regardless of which reports you believe with regard to synergies, I think the driving force will be the ease of actually executing a merger in a reasonable amount of time and getting all employees working together toward a common goal, as was the case in the DL/NW merger. An extra $36 million in synergies can easily be negated (and then some) in a service industry by years of labor unrest.

A UA/CO merger would actually create more long term strength due to complimentary route systems, resulting in less downsizing, and more growth opportunities, all of which lead to more job opportunities and job security for employees and furloughees and and more cohesive employee group.

Additionally, since much of the groundwork was already laid by UA & CO in 2008, there is much less "heavy lifting" to do this time around. Even the pilots had a framework agreed to for seniority integration much in line with the gains and security attained by the DL/NW pilots. Notice that CO management has already offered CO pilots the new DL pay rates plus $1, stating that their analysis concluded that the company can attain comfortable profit margins at those rates.

As more information comes out I think you will see things shifting to a favorable UA/CO merger. UA will keep it's options open for a US merger only in the event a CO merger does not consummate. In that case I think UA will move quickly for a US merger this time under their terms. If that occurs, unfortunately for all of us the combined airline would be run into the ground since neither has a management team that can make the airlines work. But IMO, at this point the probability of a UA/US merger is diminishing quickly.

767 I don't disagree with you at all.US has too much infighting to be an attractive merger to anyone.

even if UA/US does merge does anyone really have confidence in Tilton or the frat boys to run it??

 

[767jetz]

Talks deepen between United and Continental

United and Continental exchanging financial details, raising doubts about deal with US Airways

See Story

Regards,

USA320Pilot

Points of interest to me in the above referenced article :

"The exchange of information between United and Continental was confirmed Tuesday by two people who were briefed on the talks."

"A merger then was seen as risky because of soaring prices for jet fuel and weak balance sheets in the airline industry. Oil prices are lower today, U.S. airlines have built up cash reserves, and airlines have cut capacity, which should give them more power to raise fares this summer."

"...bankers for United and Continental are discussing how to value the companies in a stock-for-stock swap."

"Due diligence, as the process of assessing a potential partner is called, is done to value a company that executives already believe is a good strategic fit, he said."

"That person said talks between United and US Airways have stopped for now with no firm date for starting again."


"One holdup to a United-Continental deal could be a provision in the Continental pilots' union contract that bars their company from sharing revenue in a joint venture with another U.S. carrier."

On that last quote, as I have stated here before, the CO pilot must grant relief on this matter if management wants to continue in STAR. This puts them in a position to have quite some leverage. A merger could make that clause moot since there is no revenue sharing with a domestic codeshare if the two were to mege into one company.

 

[767jetz]

Uh, like a merger would be good for the employees.

Not a UA/US merger. But a UA/CO merger could be beneficial to employees if done right. Just reference the DL/NW merger.

 

[JFK Fleet Service]

If this is the case as it appears to be, Id imagine that AA would more than likely make a run for US to keep up with a combined UA/CO and DL/NW I doubt very highly AA would be left out if this type of combo happens

AA can't move on anything until they settle the contracts with all three labor groups.The place would go up like a Roman Candle if they turned around and announced a "Corporate Transaction" while sitting in mediation sessions with all three unions and crying poverty.

 

[LD3]

Any talks intitiated by US are for purely egotistical purposes by DP....He is not willing to be a minnow in a big pond. Any concerns for his employees with the exception of his inner circle of jag offs are out the door. He wants to run a global airline or walk away with a global cashout....