US/UA Merger Master Thread

[BuffaloJoe]

HQ isn't in Phoenix now Einstein, it's in Tempe.

HQ is in Tempe, but in Phoenix Metro area. OK, when you fly Philadelphia-London or Paris, why not call it Tinicum. A-West is in Tinicum Twp. Still Philadelphia no matter which way you look at it. San Francisco international is where? Millbrae. Washington-Dulles is Herndon, Va. Washington-Reagan is Arlington, Va.

 

[Fly]

How about letting NW/DL fail and UAL and US stay single then just pick up the pieces?

 

[Elevation]

Wow, did it just get even lamer in here?

you mean more lameasser?

 

[hp_fa]

Unless the folks at the Sand Castle are willing to cut their wages to what the front line folks are being paid I don't think that anything the folks in the Phoenix Metro area are going to have much, if any, input into the decision as to where HQ will be located, barring another BK by one company to shed leases and other legal obligations. The lawyers and finance folks are likely quite busy figuring out contracts and their ramifications going forward.

My opinion is that Chicago is considered more worldly, whatever that means, than Phoenix and that the mere perception of that is likely to drive HQ to being located in Chicago. The only caveat is unless locating HQ in PHX (or Tempe) is so extremely cost-effective that the dollars outweigh the perception. Like the Corleone's said, "it's business, it's not personal."

 

[N965VJ]

So it's come to, "my town's better than your town" nah nah na nah nah......come on now third graders grow the hell up.

I’m just busting the guy’s chops. One of my favorite overnights was the Valley Ho in Scottsdale.

 

[Borescope]

HQ to stay in Chicago, Dougie to run airline.

http://www.marketwatch.com/News/Story/Stor...p;siteid=yhoof2

 

[phasersonstun2]

How about letting NW/DL fail and UAL and US stay single then just pick up the pieces?

Pieces? No such thing anymore... nobody owns anything.

 

[N965VJ]

according to a Sunday report in the Chicago Tribune, citing a person familiar with the negotiations.

At least at the Sea Shell there’s karaoke...

 

[sharonstoneseat]

Since I do not personally know Parker's and Kirby's professional and social preferences or their ambitions, I cannot comment on whether they would not find it dfficult to move to and live in Chicago.

The expressed purpose of the merger is "Consolidation" and it's intended result of long term profitability. It would be an exercise in futlilty if the planned outcome was to retain (as you appear to suggest) the huge existing (expensive), real estate base of United and not consider the far more conservative facilities of US - otherwise, why merge? If the HQ remains in Chicago, based on the proven MO of Parker/Kirby, it will not be at anywhere near it's current levels. I am very well aware of the absolute size and financial details of UA and speculate that the combined carrier will eventually need to shed 15-25% of their pre-merger expenses to sustain profitability in the current environment. It would appear to be naive to assume most of this reduction will be from US resources with Parker/Kirby at the helm. Having lived in Chicago for 3 years, I agree it it a vibrant city and IMO an interesting place to live - Apr through June and Sep through Nov.

Somethings make you just want to chain smoke......

In your previous post you did indeed speculate that Parker/Kirby would find it difficult to relocate to Chicago after living in the SouthWest and reluctant to trade the golf club for a snow shovel. I speculated that they will not find it difficult at all. For the kind of prestige and earnings potential that running United will bring to them I imagine they would trade all of their clubs for shovels and play golf like Roy "Tin Cup" McAvoy if need be Their ambitions, which are not a bad thing, are obvious.

This is not meant as a my town/your town debate but try it from this perspective. AWA/US cannot even get payroll and benefits running smoothly for the size that the organization is now. To this day there are myriad problems because of high turnover and a limited pool of experienced people to pull from. Chicago has the 2nd largest labor pool in the United States. Tempe cannot take on United's volume. They don't have and can't procure the resources. The 15-20% expense reduction may come from doing things quickly, effciently and only once, using United's people and systems because they are already there with no learning curve required. Conservative facilites ala' Tempe don't do you much good if they are full of inept or overwhelmed employees.

I like Phoenix and if the 2nd largest airline had grown up here then it would be HQ. United is Chicago's hometown airline (75 years?) and the economic and community roots run longer, deeper and fiercer than we have experienced at either US or AWA.

Oh, and it would appear to be purely narcissistic to think that the word consolidation means that the rest of the world's assets and resources pale in comparison to Tempe, which becomes the center of the universe again. I suspect not this time.

 

[JAMAKE1]

Not for nothing, but Parker and Kirby have NOT proven they are capable of running an airline the size of the new US, let alone take on UA. They are over their heads now. I can only imagine what would happen if this deal goes through.

I am amazed that anyone would allow this merger to happen, especially since they have not even completed the merger between US and HP, almost three years later. I can just imagine how the high cost of cheap will wreak havoc for UA--who has MANY more high yield customers than US ever did, and how the bottom line will be affected when Doug and Scot start treating them with the same contempt they have treated their current high yield customers....

And if you think US/HP has labor problems, just wait to see how the unions react to this deal...

I am sorry, but it's a trainwreck waiting to happen.....

The merger COULD work if there were a more qualified and trustworthy leadership team.....gee I wonder what Gordon Bethune is up to these days........

Excellent post Art.

I agree wholeheartedly. I can just see it now: Cheezy advertisements plastered all over our lie-flat suites; Economy Plus removed; First Class closets removed; linens and glassware removed from our First and Business services; poker machines added to Red Carpet Clubs; our ice cream carts replaced with Four Points Pies; Hemispheres Magazine profiling 3 Perfect Days...In Las Vegas; and Sherri Shamblin becoming our V.P. of Onboard.

Where is the air sick bag? I need to throw up now...

 

[US1YFARE]

Oh you aint seen nothin yet. If travis christ comes over, UA FF's are in for a BIG shock. If SS comes over, get ready for business casual a/k/a CRAP. Don't believe a word they say...I don't think they've said anything since the merger that doesn't have spin or is just a flat out lie. People will tell you how great DP is...well, he lied since day 1 of the merger. They won't tell you the truth about anything...they will tell you what you want to hear. I'm not sure how ghetto UA will become, but you will see big changes and disorganization beyond belief. Remember, these are the people that thought being an international airline was flying to Canada, Mexico, and Hawaii.

 

[nycbusdriver]

So it's come to, "my town's better than your town" nah nah na nah nah......come on now third graders grow the hell up. A HQ has to go someplace, people will or will not move, will still have a job or not. The ones that won't move will be replaced by someone already in place. Either way, it's again, not the employees that make that decision, it's Corporate. You were hired to do a job, that's it. It's not your family as cute as it seems. When you or your office starts costing the company money you are expendable. Corporate will move to wherever makes the most sense, wherever costs less. The only ones hurt will be the employees you have to understand that. It's business.

What is amazing is that the 'burghers aren't on here letting us all know that PIT is the perfect place for the new HQ. After all, I think Moon Township has a few empty schools that they are willing to lease out on really great terms. So what if Doogie has to get on his knees to use the water fountains.

 

[Pi brat]

What is amazing is that the 'burghers aren't on here letting us all know that PIT is the perfect place for the new HQ. After all, I think Moon Township has a few empty schools that they are willing to lease out on really great terms. So what if Doogie has to get on his knees to use the water fountains.

That's pretty funny to those of us that lived it.

 

[PA18]

What is amazing is that the 'burghers aren't on here letting us all know that PIT is the perfect place for the new HQ.

Speaking of that, how committed is the company, lease-wise, and how far along is the construction of the new OCC in PIT?

One wonders if that would survive a UAL merger, and how much it would cost to get out of that commitment.

The multiple location training centers in PHX, DEN, and CLT would most likely be retained, out of sheer volume necessity. (Even the two US Airways facilities aren't adequate right now. They're renting sim time from JetBlue in MCO, and Airbus in MIA.)

 

[Travelpro72]

The OCC in PIT is moving along very well. I was amazed at how quick it's going up. As for if it stays is anyones guess. I DO know that the county made for damn sure that their hoonies were covered this time. No way US is walking away from the commitment unless US or UA even....pays it's way out. For the PIT HQ comment even most of US know that the city would and SHOULD be Chicago. A fantastic and HUGE city that many others simply can't compare. The shear size of UA and all that their HQ embodies coupled with their Elk Grove facility speaks for itself. I'd bet the house on HQ staying in Chicago and I have no attachment to the city.