United-US Airways marriage faces better chance this time

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UAL Corp.

The parent company of United Airlines, UAL Corp. (UAUA 15.38, -0.51), is stepping up merger-related discussions with US Airways (LCC 8.58, -0.14), according to this morning's edition of The Wall Street Journal. The article indicated a deal could be announced in little more than one week.

United turned its focus toward US Airways in recent weeks. United was initially targeting Continental Airlines (CAL 18.29, -0.50), but Continental declined the offer to merge, holding out for better alternatives.

Combining operations allows airlines to scale their businesses and achieve efficiencies to counter record fuel prices. Merging also eliminates competition and increases pricing power.

A merger between United Airlines and US Airways would rival the newly paired Delta Air Lines (DAL 8.29, -0.21) and Northwest Airlines (NWA 9.57, -0.26).


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At $120 barrel oil no airline will last. Its just a matter of who will be next to cease operations.
 
Well I think it's safe to say that NO airline will last under these conditions without higher fares and really working on cost. With that being said, as wacko as US is and the tactics they use in daily business I'd say that UA is STILL in a worse cash situation. Regardless, both are bound to be in bigger trouble. Never fear, when Doug becomes CEO of the "New" United and makes the 2nd floor of the 747 all coach with 31" pitch and party cups with no snacks we'll all soar into the future as the leanest, meanest and biggest LCC in the world. :lol:
 
I think this is all premature at the moment. The fun will not even begin until (if) the merger is announced. The unions at UA might be in a position to block it from what I have read, particularly the FA union, which I found interesting. Also I don't think the unions at US are going to accept this without a fight.

That said, stranger things have happened. God help employees and customers if Doug Parker remains in charge though......let's hope that is NOT the case. Maybe NOW Gordon Bethune will be interested.....
 
Art at ISP said:
I think this is all premature at the moment. The fun will not even begin until (if) the merger is announced. The unions at UA might be in a position to block it from what I have read, particularly the FA union, which I found interesting. Also I don't think the unions at US are going to accept this without a fight.

That said, stranger things have happened. God help employees and customers if Doug Parker remains in charge though......let's hope that is NOT the case. Maybe NOW Gordon Bethune will be interested.....
Click to expand...
I agree. The WSJ article today is interesting. Seems like UA is still hoping CO will agree to some sort of alliance and US is the fat chick at last call.
 
Be Careful What You Wish For. said:
I hadn't heard of this could you elaborate?

Hasn't it been the pilots who are negative on the idea of a merger?
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Lord, for the sake of passengers AND employees (from both companies) I hope someone stops this silliness. The ONLY folks that make out in these things is MANAGEMENT, that will surely get HUGE bonusses for staying or leaving.

If they can only come up with 1.5 billion in cost synergies, you can bet MOST, if not ALL, of it is to come from closing hubs and laying off employees.
 
oldiebutgoody said:
Lord, for the sake of passengers AND employees (from both companies) I hope someone stops this silliness. The ONLY folks that make out in these things is MANAGEMENT, that will surely get HUGE bonusses for staying or leaving.

If they can only come up with 1.5 billion in cost synergies, you can bet MOST, if not ALL, of it is to come from closing hubs and laying off employees.
Click to expand...

Amen sir....we've "seen this movie" a few times before...and there's yet to be any DVD issued with "alternate endings".....

Sigh..there's always the tiny hope..held against ALL reason, of someday obtaining a management team staffed with people capable, and desireous of actually operating an airline...But; How many times have we dreamt that?..and, ended up with nothing more than another bunch of narcicisstic, visionless, and thieving little bean counters instead?..
 
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Regards,

USA320Pilot
 
I think Doug is so hell bent on this merger, he'll promise anything. Not good for anyone.

We are a much leaner airline than United. They haven't taken the severe cuts that we have and they will if they merge with us.

And yes, they will have a fight on their hands with the United F/A's. Which is fine by me. They want the same things I do.

Contract improvements.

Their contracts are very similar to ours. In fact, a lot of our contract language is the same because of the last merger attempt.

They have been a code share partner for years and a lot of things could fall into place nicely. Yet at the same time...it could be ugly.
 
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