US/UA Official Merger Thread II

[700UW]

United Air, Continental in Alliance Talks, People Say

Also another article says UA and US merger might not happen or happen as fast.

Ball is in United's Court

 

[prechilill]

Parker is a professional airline flipper. He cannot make money developing and running an airline so he just flips them like Wolfe did with Tigers, UAL, Republic and tried to do with US. If you read between the lines with the tremendous amount of "literature reviews" from all the "sources close to talks" we hear about in the press I think it is apparent Parker may not have the status or confidence from Wall Street to run a big operation. Of course, all you have to do is take a look at HP US to figure out there is nothing special in Kirby or Parker. Purchasing USAir may end up being a career mistake. Although Parker has some borrowed cash in the bank it is obvious long term US is not going to make it as a stand alone carrier. Schofield and Wolfe couldn't make USAir profitable and Parker certainly isn't any different. The clock is ticking for US...
This is a sad ending for all of the HP employees.

 

[AIRBORN1]

Well, it's good of you to tune it down 76...you've been one of the more caustic posters.

If the bean counters see the $$$...they'll do the deal, they don't give two hoots about what you or I think...just as they did with HP/US.

I think DP's big decision is whether to wait for a possible BK from UAL...it certainly sweetens and greases the deal...it's the preferred way according to him.

And I doubt he'll take a back seat to Tilton...count on that.

Its funny how you think UAL is going to go under! I am not a big Tilton Fan here at all. I am a UAL Flight Attendant based in DC. If you look at this big picture
here instead of wishing UAL will go under so Parker can pick us up in pieces which i highly doubt it. What keeps United going is the the Asian Routes.
You better becareful what you wish for? My beliefs is that it will be USAirways going under. Busniess Law 101 predicts one major carrier going under and who do you really think it will be with all the employees problems over at HP and US.... Usairways used to be a good carrier. Frontier will be also gone under along with USairways. Southwest is going to eat both USAir and Frontier up on the auction block. United will pull out of this ok without Usairways. Usairways just doesn't have the International routes that UAL has. If we end up with CAL in alliance it will make us stronger.
The employees of UAL doesn't want anything to do with USAirways and as you see it already The pilots at USAIR don't either. Reason.
COMMENT EDITED BY MODERATOR: Inflammatory remark

Just think about it.
So it's best you just let the crude oil slowly put you out of business by fall. AA and SW and even United can pick up your shuttle routes. What does USairways have too offer in this deal? No prize winining routes for us. The slots who needs them we already fly NY and DCA.

 

[RowUnderDCA]

Yes, it will surely be determined by the opinions of a few idiots on an internet forum.

No.... just Jetz and USA320...... they control the world through their internet manipulations.

But to be fair, to some degree this is a psych game... just not one that we posters are playing directly.

Expectations about the unknown future are playing a role.

I still don't believe that US/US is a 'visionary' choice... it's a 'preservation' choice.

If, rightly or wrongly, folks think that UA is doing poorly that effects the decision. Again, I think that US prospects for survival are less meaningful to the industry, because the effect of US's disappearance or contraction is less meaningful to the market.

For example:

if UA has poor prospects, UA might pursue CO for a merger.

if UA is seen as doing worse, CO walks away.

if UA is thought to be doing even worse, UA pursues US.

if UA is seen as having even poorer prospects, US balks.

if UA is seen as doing even worse, they call CO and concede everything.


But if UA's prospects look up, they move off the US strategy and go back up the chain.

So, data matters, of course MONEY and finances matter, but I suppose the psychology of all the stake holders matters as well.

But in this environment, I wonder how much these folks a focusing on labor issues.

 

[elixir]

First, I didn't anywhere say I hoped UAL went under...read more carefully. What I did say was perhaps he'll wait for a POSSIBLE BK...and unless you live under a mushroom somewhere there in DC, there is wide speculation that UAL may have to go through it again. What I also said was the Parker would prefer to do this deal with a BK UAL rather than outside of BK (his words, not mine)

As to UAL in general, it's certainly a big behemoth of a company that is exceedingly disorganized and inefficient...I know, I flew out of ORD for their express ops while furloughed for a few years...I've seen and dealt with the gates, the policies, the turmoil, and talked to hundreds of UAL employees over the years. Will UAL go away, I doubt it...can it "fix" itself, I doubt it. Something more than just time passing is required to fix UAL.

We agree that UAL has a fabulous route system, one of the best as far as International ops go, but it has multitudes of operational issues that need fixing going forward.

 

[RowUnderDCA]

elix-

But if UA decides to go Ch. 11, then why would they merge with US. If they're going to go that far, give CO another call.

 

[WhatBag?]

elix-

But if UA decides to go Ch. 11, then why would they merge with US. If they're going to go that far, give CO another call.

Why on EARTH would CAL want to be pulled down by that mess with a big ugly tulip on it's tail?

 

[LGA Fleet Service]

Why on EARTH would CAL want to be pulled down by that mess with a big ugly tulip on it's tail?

'Let he amongst you who is without a tuna burrito and wine in a plastic frathouse party cup cast the first stone'.

 

[Pi brat]

This is a sad ending for all of the HP employees.

Probably not as sad or early as if HP stayed HP.

 

[elixir]

elix-

But if UA decides to go Ch. 11, then why would they merge with US. If they're going to go that far, give CO another call.

Agreed...I see no upside for UAL except US's bank account.

 

[Richard]

Let's watch the use of words like "idiots"--that one came VERY close to getting someone time off.....

Keep on topic.

 

[AIRBORN1]

elix-

But if UA decides to go Ch. 11, then why would they merge with US. If they're going to go that far, give CO another call.

now that is good one... Do like HP did with USAIRSCARE.. Go into BK and HP buy them. I could see CAL coming back at UAL.
The general public knows that CAL has a grea reputaion so either way ALLIANCE with UNI and CAL would be the best fit.
Looking back in 2000 USAIRWAYS would have been a great fit with UNI.... Not anymore.


It will all come out. I don't see any merge now as the carriers have waited too long for any merge now with 2009 around the Corner
and either Hillary or O taken the white house.

These CEO'S are just spending cash on a stupid merge with Attorney fees for no reason. The Airlines are like a CASH COW for Tilton and Parker.

 

[767jetz]

Why on EARTH would CAL want to be pulled down by that mess with a big ugly tulip on it's tail?

Because in THAT hypothetical situation of a UA CH11, CAL would ditch tons of debt and get the whole ball of wax for pennies on the dollar. It would change the entire essence of the deal. CO would out bid US in a heartbeat. You should try to look at things more objectively. Understand that US is a "last choice" scenario for United. ANYTHING that changes the current dynamics opens up new prospects for CO to step in again. Just look at current reports of US/UA talks cooling off. (probably the result of something changing behind the scenes.)

But let's not get ahead of ourselves.

 

[Bear96]

Why on EARTH would CAL want to be pulled down by that mess with a big ugly tulip on it's tail?

Why would USAirways?

 

[767jetz]

Also another article says UA and US merger might not happen or happen as fast.

Ball is in United's Court

Interesting article. Some of the particulars I found most striking are...

"uncertainty surrounding a potential US Airways-United Airlines merger is on United's side of the negotiating table"
"While both sides agree on which is the stronger brand name (United), among the many issues "not decided" yet are who would run the airline and where it would be based..."
"nor have the two carriers worked out "exchange ratios" -- in essence, the terms of a stock conversion."
"While US Airways appears ready to work out the details, United could still decide to remain independent..."
"There are concerns that the longer talks drag out, the higher the risk is that the US Airways-United hookup will not meet antitrust approval"
"There are also concerns about labor integration issues."