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United, Us Airways, and Continental?

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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....
That desire its what will leave us alone with no other options.
 
With reports of wider than expected losses at CO and a huge first quarter loss by AMR of over $500M, industry consolidation might just finally be upon us. I'm sure UAL's Q1 report will also not be stellar since UAL was effected by the harsh winter and fuel prices just like everyone else.

IMO, since balance sheets have improved with airlines having more cash on hand than in 2008, CO and others are now going to pull the trigger in order to capture the synergies of a large scale merger. It seems like the sentiment is shifting to a "now or never" attitude. In many ways the DL/NW merger set the stage, as others particularly CO have been watching to see if DL is successful in capturing market share or falls on their face. Note that Even with the initial costs of a merger, it is reported that DL's loss is about half that of AMR who is significantly smaller. And that is in Q1 which is historically the weakest quarter for airlines who do not focus on leisure travelers.

Even Airtran is talking about being open to consolidation. I think right now everyone is basically picking their partners behind closed doors, and we are all going along for the ride.
 
Doug Parker just sent a letter to employees that UA and US have decided not to merge. He also says that if UA-CO do end up merging, it will be good for US.
 
Doug Parker just sent a letter to employees that UA and US have decided not to merge. He also says that if UA-CO do end up merging, it will be good for US.
April 22, 2010

Dear Fellow Employees:

As you know, there has been much recent speculation about our airline and a potential merger with United Airlines. Today we publicly issued a statement saying our Board of Directors has decided to discontinue those discussions, and I wanted to let you know where we are at this point.

Most of you know that I view consolidation as a positive for our industry. There are simply too many airlines chasing market share and this fragmentation causes our industry to struggle mightily. We continuously consider strategic options for our airline, and over the past several months, we have studied a transaction with United. However, those talks have not progressed to a merger agreement, and for the foreseeable future we intend to remain a standalone carrier.

Whether we participate in a merger or not, consolidation will create a more efficient domestic industry that can better withstand economic volatility, global competition and the cyclical nature of our industry as a whole. As I have said many times, it is not necessary for us to be direct participants in a merger because the entire industry benefits when consolidation occurs.

I am sure some “industry experts” will suggest that US Airways will be strategically harmed if United now chooses to merge with Continental. They will be wrong. Thanks to all that we have done together over the past two years – capacity rationalization, a la carte revenue programs, cost control and our commitment to operating efficiently and reliably – we have a strong and viable standalone airline that is producing industry-leading results. Should our competitors choose to merge and help create a more stable airline industry, our independent airline will only become stronger.

The busy summer travel months are ahead and we enter them with positive momentum and well-positioned to take advantage of the improving economic environment. Please keep up the great work. We're running one of the best airlines in the country and our customers are noticing. Thank you for your continued commitment to our passengers and to US Airways – I’m looking forward to continuing to see our name in the sky and working with the great people who make it happen.



Doug
 
A take over of Air Tran by AA would put the squeeze on US! :eek: They could easily do what they want to Air Tran employees. Seems like a better choice for AA?

I think Republic will buy US?
 
IMO only one merger candidate left. I won't mention AAny nAAmes, but mAAybe someone can guess. I'll give you a hint. They AAre heAAdquAArtered in DAAlas, TX....
The friendly skies are not in LCC's future (and the * too, probably), but mAAybe thunderbolts and eAAgles will be?
You can't say it isn't entertaining. Stay tuned.
Cheers.
 
Doug Parker just sent a letter to employees that UA and US have decided not to merge. He also says that if UA-CO do end up merging, it will be good for US.
He has to say that! I don't think he can say Oh S***, we're screwed!! :) :(
 
Doug Parker just sent a letter to employees that UA and US have decided not to merge. He also says that if UA-CO do end up merging, it will be good for US.

We were ready to tie the knot but that hussy CO came along caught his eye.

I don't care if they hitch up, even if it was the last fish in the ocean.
 
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