United-US Airways marriage faces better chance this time

[EastUS]

United-US Airways marriage faces better chance this time

Self moved from the pass travel thread:

Preach on my brother cause I don't they hear and understand you!! UAL plus AWA means east minority. No peace no harmony between east and west. This will be ugly until merger date then it will be fun watching UAL do to them what the east so hatefully did to us!!!

I'd caution against any excess of jubulation for a large number of reasons overall, the major one being the current state of UA's balance sheet and projectable operational losses to come. As per any east vs west BS?..There's plenty of reasons to remain reasonably cautious as well. Any two or more analysts will have as many differing opinions. Note the following as being among them:

"US Airways doesn't give United significant international service, Hamlin said, and the only real benefit is US Airways' hub in Charlotte. "Does United want US Airways simply to get a presence in the Southeast?" he said." Other "experts" hold that CLT would be greatly reduced, or even eliminated entirely, but it's noteworthy that most all expect some continuance in the east, and NONE are loudly touting the financial virtues of the PHX/southwest area.

"Industry consolidation" is historically, often little more than a "play nice" term for sizeable-towards-massive reductions in disposable assets, operations, and employees.

By Kyle Peterson
CHICAGO, May 2 (Reuters) - If United Airlines parent UAL Corp and US Airways Group Inc merged, the pairing could result in massive cost savings for the new carrier as well as higher fares for the troubled industry.
But, in order for a merged airline to win those benefits through consolidation, the two carriers -- reported to be deep in merger talks -- would have to take on the painful tasks of closing hubs, grounding planes and slashing jobs where United and US Airway overlap."

We'll all just have to see what actaully happens as it develops.

 

[USA320Pilot]

US Airways pilots group sees benefits in merger

See Story

UAL/US Air merger could mean major capacity cuts

See Story

US Airways: We're not leaving Las Vegas

See Story

US Airways, Union Reach Contract

See Story

Regards,

USA320Pilot

 

[sharktooth]

US Airways pilots group sees benefits in merger

See Story

UAL/US Air merger could mean major capacity cuts

See Story

US Airways: We're not leaving Las Vegas

See Story

US Airways, Union Reach Contract

See Story

Regards,

USA320Pilot

Sir, if you saw the absolute criminal journalistic BS I research and debunk about our adventure in the ME, you might be a little more circumspect in the way you toss links. While the guardian occasionally blows their lede, usatoday and the azcentral are completely out there and suitable basically for TP, at least for a rational person.

Most anyone can do a "google search". Let the readers delve as they see fit.

 

[ChrisUS]

Self moved from the pass travel thread:



"US Airways doesn't give United significant international service, Hamlin said, and the only real benefit is US Airways' hub in Charlotte. "Does United want US Airways simply to get a presence in the Southeast?" he said." Other "experts" hold that CLT would be greatly reduced, or even eliminated entirely, but it's noteworthy that most all expect some continuance in the east, and NONE are loudly touting the financial virtues of the PHX/southwest area.

"By Kyle Peterson
CHICAGO, May 2 (Reuters) - If United Airlines parent UAL Corp and US Airways Group Inc merged, the pairing could result in massive cost savings for the new carrier as well as higher fares for the troubled industry.

Why does everyone think a merger will cause fares to go up? AA and TW merged and created the world's largest airline. Did fares all go up across the board?
Why is it oil companies gouge the hell out of everyone with HUGE record profits and everyone just clicks their tongue in government? God forbid a money loosing industry raise fares though to cover the cost of providing the product. THAT has to be STOPPED! Why arent other industries as regulated as the "deregulated" airline industry? I know these are rhetorical questions but it just torgues me off how hypocritcal government is.

 

[Be Careful What You Wish For.]

God forbid a money losing industry raise fares through to cover the cost of providing the product. THAT has to be STOPPED!

Hopefully this consolidation of an essential industry will give back some pricing power and be relatively fare to the consumer.

 

[deltawatch]

Sir, if you saw the absolute criminal journalistic BS I research and debunk about our adventure in the ME, you might be a little more circumspect in the way you toss links. While the guardian occasionally blows their lede, usatoday and the azcentral are completely out there and suitable basically for TP, at least for a rational person.

Most anyone can do a "google search". Let the readers delve as they see fit.

I enjoy hearing what others on this board have to say about the articles that get printed, even in the USA Today ..... IM sure that's why the links get posted.

You don't have to read them, you don't have to commit on them and if you have a problem with a member the board has an ignore feature, use it.

 

[deltawatch]

Wall Street Journal

UAL Merger Discussions With US Airways Intensify

United Airlines parent UAL Corp., spurned last month by Continental Airlines Inc., is intensifying merger talks with US Airways Group Inc. and a deal could emerge in as soon as 10 days, according to people familiar with the matter.

The companies have identified more than $1.5 billion in potential cost savings and revenue enhancements from joining forces, these people say. Discussions have been going on for about six weeks; representatives of the two airlines met on Friday and had talks that were described as detailed and fruitful, according to people familiar with the matter.

 

[dariencc]

I enjoy hearing what others on this board have to say about the articles that get printed, even in the USA Today ..... IM sure that's why the links get posted.

Fair enough. So are other posters also entitled to comment on a certain cut-and-paster's notorious tendency to seize on the media's "flavor of the day" and present it as some groundbreaking new revelation, or not? Or is this too much of an imposition on your "enjoyment" of said posts?

You don't have to read them, you don't have to commit on them and if you have a problem with a member the board has an ignore feature, use it.

Great idea! Please feel free to follow your own advice and "ignore" Sharktooth's posts. This will be so much more helpful than expecting the rest of us to wet our pants over the brilliance of USA320Pilot's industry "analysis."

 

[hp_fa]

The companies have identified more than $1.5 billion in potential cost savings and revenue enhancements from joining forces[/b.

Two thoughts (and this isn't directed at Deltawatch)...

The first is that most of the savings is via employees being fired and/or furloughed.

The second is that when these rosy projections come out they are usually multiplied by a factor of three. So, in real life it may save $500 mil.

 

[dariencc]

Two thoughts (and this isn't directed at Deltawatch)...

The first is that most of the savings is via employees being fired and/or furloughed.

The second is that when these rosy projections come out they are usually multiplied by a factor of three. So, in real life it may save $500 mil.

Hp,

You are dead on. The employees should remember these insights as we prepare for years of buzzwords and double talk to justify why the predicted outcomes never materialize. I wish every employee would have your post as a screen saver as we enter this process.

Also, get ready for certain employees to shill for the managers, blaming the failure to attain the predicted benchmarks on our greed and lack of cooperation. It will all be coming to a website near you!

 

[gaucho99]

Two thoughts (and this isn't directed at Deltawatch)...

The first is that most of the savings is via employees being fired and/or furloughed.

The second is that when these rosy projections come out they are usually multiplied by a factor of three. So, in real life it may save $500 mil.

I didn't realize you were involved in the negotiation process. While I don't doubt there will be fewer employees in the combined airline and that this will in fact contribute to the savings, I doubt if you are qualified to make the statements above.

 

[hp_fa]

I'm sorry, what are the qualifications to advance a theory on this message board? What qualifications do you have that give you the right to question mine?

 

[gaucho99]

I'm sorry, what are the qualifications to advance a theory on this message board? What qualifications do you have that give you the right to question mine?

Anyone can advance a theory....sorry if I misunderstood but your statement that the savings would be due to employees being fired or furloughed sounded as if you were staing a fact. I was just commenting that nobody can know that yet. The way you worded it didn't sound like you were advancing a theory. It sounded as if you were sharing some information that had already come out. Had you said, In my opinion, most of the savings will come from employees being fired, then I can see your point. In my opinion, I beleive there will be substantial savings due to employee furloughs but I think it will be small compared to the entire savings.

 

[Itestwell]

I'm sorry, what are the qualifications to advance a theory on this message board?

Alcohol, and a dream. h34r:

 

[deltawatch]

Two thoughts (and this isn't directed at Deltawatch)...

The first is that most of the savings is via employees being fired and/or furloughed.

The second is that when these rosy projections come out they are usually multiplied by a factor of three. So, in real life it may save $500 mil.

I agree with you 100% ... I think the only way this works is if at least 15% of the current combined (UA/US) workforce goes.

From a passenger stand point the east and west systems at US/AWA have never been convenietly connected. Its hard to get from a mid-sized east city to a mid-sized west city without making two connections. UA's east-west system would tie this mess together.

A lot of the downsizing will probably come from getting rid of a great deal of express flying. If they will reduce frequency a little and replace RJ's with extra mainline AC in and out of cities like LGA ... that would help save some mainline jobs.