United, Us Airways, and Continental?

[767jetz]

Well, that's that... for now.

But part of me still thinks that this is all one big high stakes poker game.

- Maybe US says it's pulling out of talks because Parker realized that CO came crashing the party because they don't want to be the last man standing. If he calls it quits (for now) maybe he hopes CO will walk away from UA again, opening the door for another UA/US attempt.

- Perhaps egos ruled the day and Tilton and Parker could not agree on who would be left in charge of the whole mess.

- Or then again, maybe Parker does not want to be UA's merger of last resort, so he called it off to pursue consolidation with different partner.

- Not to bring labor relations into the discussion, but certain ongoing lawsuits and union disputes may have made the task of merging insurmountable.

The comment about a UA /CO merger being good for US is interesting, since some here have opined that there would be a UA/US merger with deepened STAR ties with CO. Now it looks like it could be UA and CO who merge and possibly deepen STAR ties with US.

IMO this plays out n 2 ways...

1) UA and CO have already decided to pull the trigger and as a courtesy to Parker allowed him to exit gracefully and stack his cards for his next move before UA and CO announce anything officially. (Much the same way CEO's and politicians are often allowed to "resign" before being pushed out in order to preserve their resume.)

2) CO no longer sees urgency in a merger with UA and walks away again, putting the lid on consolidation for the foreseeable future.

2a) Parker calls the bluff after CO walks away and makes a hostile bid for UA. (This is a long shot, but I thought I'd include it here since I'm sure it's already been thought up by some.)

 

[UALbagboy]

- Maybe US says it's pulling out of talks because Parker realized that CO came crashing the party because they don't want to be the last man standing. If he calls it quits (for now) maybe he hopes CO will walk away from UA again, opening the door for another UA/US attempt.

Don't you think CAL management is thinking the same thing you are. I am certain the execs know if they pull away because of this statement from Parker then LCC will be right back at the doorstep of UAL the next day. Even Parker said they have stopped talks with united FOR NOW. The for now part means, once we get CAL to back off we will restart the talks with United the very next day. I hope and think that CAL management is well aware of what Parker is trying to do.

 

[AirbusA310]

Forget UA already!! Wish US would just get some balls and stand on its own. Stop being a follower and start being a leader..
Wanna merge that bad? Merge with AS that SEA hub be great for that Asian service that we cant run from PHX or PHL.
Expand PHX into a true hub, shamefull that depending on where you flying it involves double connections.... CLT add service to the west and midwest and S America..PHL more Europe, S America and I'm sure NRT PEK and maybe HKG can be done but than again new airplanes being defered...

 

[767jetz]

Don't you think CAL management is thinking the same thing you are. I am certain the execs know if they pull away because of this statement from Parker then LCC will be right back at the doorstep of UAL the next day. Even Parker said they have stopped talks with united FOR NOW. The for now part means, once we get CAL to back off we will restart the talks with United the very next day. I hope and think that CAL management is well aware of what Parker is trying to do.

Absolutely. I agree. I was just throwing out a few ideas that others may be thinking about. Playing "devil's advocate" so to speak. IMO the UA/CO merger is very close to being announced this time around.

 

[gar]

If CO/UA do merge, I hope for the best for all involved. Go kick Delta's butt!!

 

[UALbagboy]

Sounds like Parker is pissed at Glenn.

http://www.usatoday.com/travel/flights/2010-04-22-us-airways-ends-merger-talks-united-airlines_N.htm

"A source close to the situation at US Airways said executives at the company's headquarters near Phoenix in Tempe, Ariz., were upset with their counterparts at United"

"There's a lot of burned tail feathers in Phoenix today," the source said. "They feel like they were played by the folks at United, who they just learned were even farther along toward to doing a deal with Continental."

 

[USA320Pilot]

US Airways did not need to make its public announcement regarding a potential United meger and the Company did not need to issue its press release today. Thus, there is a motive or motives behind the announcement.

Another possible issue with merging with United is the pending DOT decision on the Slot Swap, which is due to be released by the government shortly. There is the possibility that US Airways is getting backlash from the DOT about the current deal with Delta. If approved and then US Airways and United announce a merger the DCA/IAD concentration will be that much greater.

US Airways and United; as well as Continental, maybe waiting for the Slot Swap decision and then they may announce their decision.

Today, Ted Reed of TheStreet.com made an interesting observation. Reed wrote, "Nobody thinks US Airways has given up on participating in a merger. Since the late 1990s, when CEO Stephen Wolf talked to every carrier who would listen before eventually moving ahead on a deal with United, US Airways has sought a partner because its directors and executives realize that it has neither a hub big enough to support vast international flying nor costs low enough to compete indefinitely with low-cost carriers."

And, James Ray, spokesman for USAPA said, "(US Airways' pilots) believe our management team is still focused on a merger. The executives "truly believe consolidation is good for the industry, and it particularly would be good for our airline. I don't think they are any less focused on consolidation today than they were yesterday."

See Story

There are a lot of open issues here including the Slot Swap, US Airways pilot labor integration problem, anti-trust issues, management social issues such as who will run the combined company, the Continental ALPA Scope Clause problem, etc. I agree with James Ray when he said, "I don't think they are any less focused on consolidation today than they were yesterday."

Regards,

USA320Pilot

 

[FWAAA]

I don't understand AMRs CEO comments today about mergers. He said nothing about the UAL/CAL talks but DID SAY that if someone started talking to Airtran they would become a player.

The AMR CEO said nothing about Airtran. Perhaps some other airline CEO has the hots for FL.

 

[mrman]

Does anyone think US could merge with AirTran?

I don't think so. Baltimore, Atlanta, and Orlando doesn't bring any value to the US system. To other airlines yes, but US no. Not when US has got DCA, PHL, BOS, LGA, and CLT.


The only other airline I coud see US merging with is B6.

Your making the assumption that US goes after AirTran. In reality it would most likely be Airtran going after US. Airtran is trying very hard to get NY and National expansion. Note this does not have to be done with a merger. If cash gets tight a sale of slots would work.

 

[gar]

Sounds like Parker is pissed at Glenn.

http://www.usatoday.com/travel/flights/2010-04-22-us-airways-ends-merger-talks-united-airlines_N.htm

"A source close to the situation at US Airways said executives at the company's headquarters near Phoenix in Tempe, Ariz., were upset with their counterparts at United"

"There's a lot of burned tail feathers in Phoenix today," the source said. "They feel like they were played by the folks at United, who they just learned were even farther along toward to doing a deal with Continental."

How many times are they gonna fall for it? Doing the same thing over and over and expecting a different result is the definition of insanity.

 

[767jetz]

"There's a lot of burned tail feathers in Phoenix today," the source said. "They feel like they were played by the folks at United, who they just learned were even farther along toward to doing a deal with Continental."

Ouchy!

 

[SparrowHawk]

Sounds like Parker is pissed at Glenn.

http://www.usatoday.com/travel/flights/2010-04-22-us-airways-ends-merger-talks-united-airlines_N.htm

"A source close to the situation at US Airways said executives at the company's headquarters near Phoenix in Tempe, Ariz., were upset with their counterparts at United"

"There's a lot of burned tail feathers in Phoenix today," the source said. "They feel like they were played by the folks at United, who they just learned were even farther along toward to doing a deal with Continental."

This is what happens when Double AA Management attempts success in the Big Leagues.

 

[signals]

Again...even if ANY merger becomes a reality in the Airline World, wouldn't it have to get the Feds' approval?

Since I can't mention it on this thread, look at the pilots' threads to see why US isn't a good partner to merge with. At one time all followed the great US Air god, but after that $2 coke thingy, many asked, "What the heck were they thinking???" That attempted hostile take-over of Delta didn't help your cause either.

Good thing I don't know anything about your industry because it sounds like somebody is trying to sell a used car. Unbeknown to the great minds of the Sandcastle, everybody and their mother knows that they would be buying someone else's problems. But let's continue to act like Leslie Nielson in Airplane and think that nobody sees our lies even though our nose grows.

When the news of this abortion between US and UAL came out people posted comments. Most said that the two worse airlines were merging to become THE WORST airline. Some of those comments were hilarious. It seems that I speak for the common man, the Kettle, if you will.

Poor Doug was probably eying that Chicago hub and got burnt by Glenn, a bigger screw-up than him. It would have been interesting to see who would run the show!

 

[UALbagboy]

http://www.businessweek.com/news/2010-04-22/ual-continental-said-to-weigh-no-premium-stock-deal-update1-.html

Merger could be a week away. Tilton to be a chairman. Cal CEO to be new CEO.

 

[signals]

http://www.businessweek.com/news/2010-04-22/ual-continental-said-to-weigh-no-premium-stock-deal-update1-.html

Merger could be a week away. Tilton to be a chairman. Cal CEO to be new CEO.

Fantastic! Now maybe Cal pilots can learn how to fly in the winter, since most of their flights are delayed or canceled during snowy weather.