Tilton...and...Consolidation..."AGAIN"

[donttouchthebeauty]

I believe that a CO/UA combination would run full hubs at IAH, DEN, and ORD. EWR would be downsized slightly to relieve the congestion, shifting some of the traffic to IAD. IAD, SFO, and NRT would continue to be smaller hub operations with GUM and LAX as focus cities.

Are you out of yur mind - EWR is CAL strongest point in their system and one of UALs weakest ... It would run full scale i tell you right now- they wouldnt shift crap to ord b/c it is a mess already. you have to have O&D traffic. and newark has that. I dont think that CAL would be the first choice in a mariiage partner though.

 

[USA320Pilot]

Want to marry Continental? Ask Northwest first

"But any consolidation involving Continental would be complicated by the relationship between it and Northwest. Northwest holds a so-called 'golden share' in Continental, which gives it the right to block mergers involving the Houston-based carrier, according to Continental filings with the Securities and Exchange Commission."

Click here to read the article.

Best regards,

USA320Pilot

 

[ThirdSeatHero]

Want to marry Continental? Ask Northwest first

"But any consolidation involving Continental would be complicated by the relationship between it and Northwest. Northwest holds a so-called 'golden share' in Continental, which gives it the right to block mergers involving the Houston-based carrier, according to Continental filings with the Securities and Exchange Commission."

Click here to read the article.

Best regards,

USA320Pilot

Well at the big "U" we don't do anything easy, however, "complicated", now thats just our game.

 

[TechBoy]

Want to marry Continental? Ask Northwest first

"But any consolidation involving Continental would be complicated by the relationship between it and Northwest. Northwest holds a so-called 'golden share' in Continental, which gives it the right to block mergers involving the Houston-based carrier, according to Continental filings with the Securities and Exchange Commission."

Click here to read the article.

Best regards,

USA320Pilot

That problem is easily solved by having CO buy UA.

 

[JungleClone]

The truly scary part of all of this is the fact that UA Mgmt would like to remain in control after UA acquires or is acquired.

 

[Fly]

I've been under the impression that Tilton never intended to stay long term. He was brought in strictly to guide UA through bk. If there is a merger, of any kind, Tilton will collect his millions and hurry out the door.

 

[ohcaptainron]

DL looks to be the easiest and best deal to do.

DL in Bk offers many advantages, maybe the most compelling is the fact DL meets the DOJ criteria for failing carrier status.
Decreasing substantially the anti- trust concerns. If carve outs are to be made it is much easier to sell assets in the BK process. DL will likely be easier to finance as a result. All redundant aircraft (non compatible) are easier to deal with as well.
Remember that in the late 90s both companies worked very hard at a possible merger or code share.

CAL would work but more expensive, problems with the NWA golden chair issue, and no Southeast hub. Plus Tilton dislikes the CAL management, in particular trailer trash Gordo.

DL fills in nicely with UA,DL: BOS,JFK,ATL and the shuttle, DLs Europe point to point out of JFK and UAs Heathrow access seems pretty compelling. Possible carve out's yea but not much.

Jamie Sprayehagen(SP) the lead BK lawyer in UAs restructuring has left Kirkland and Ellis and now with Goldman and is involved with the DL restructuring.

Could be CAL, I would put my money on DAL.

 

[Bulscu]

DL looks to be the easiest and best deal to do.

DL in Bk offers many advantages, maybe the most compelling is the fact DL meets the DOJ criteria for failing carrier status.
Decreasing substantially the anti- trust concerns. If carve outs are to be made it is much easier to sell assets in the BK process. DL will likely be easier to finance as a result. All redundant aircraft (non compatible) are easier to deal with as well.
Remember that in the late 90s both companies worked very hard at a possible merger or code share.

CAL would work but more expensive, problems with the NWA golden chair issue, and no Southeast hub. Plus Tilton dislikes the CAL management, in particular trailer trash Gordo.

DL fills in nicely with UA,DL: BOS,JFK,ATL and the shuttle, DLs Europe point to point out of JFK and UAs Heathrow access seems pretty compelling. Possible carve out's yea but not much.

Jamie Sprayehagen(SP) the lead BK lawyer in UAs restructuring has left Kirkland and Ellis and now with Goldman and is involved with the DL restructuring.

Could be CAL, I would put my money on DAL.

Both, only part of DAL though,

sorry,

the dal name is not going to make it.

 

[NewHampshire Black Bears]

Both, only part of DAL though,

sorry,

the dal name is not going to make it.

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bulscu,
Interesting scenario.

I wonder if AA/NW and CO would "stand pat", if UAL and DL "co-habitate" ???

NH/BB's

 

[jbguppy]

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bulscu,
Interesting scenario.

I wonder if AA/NW and CO would "stand pat", if UAL and DL "co-habitate" ???

NH/BB's

AA has no options but to watch.

 

[luv2fly]

the dal name is not going to make it.

Funny, all the information I have read says United is the one prostituting themselves. United is the one with the "for sale" sign.

 

[Bulscu]

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bulscu,
Interesting scenario.

I wonder if AA/NW and CO would "stand pat", if UAL and DL "co-habitate" ???

NH/BB's

First off, let me say what you know, "I don't know ####". There, that being said:

No, what you're looking at here, unbelievable as it may sound, is EXTREME consolidation. I'm saying, CAL/UAL or UAL/CAL and then a large part of DAL coalescing into one industry altering brute. Don't know the sequence or what triggers this, then LCC getting a large piece and then there's Southwest...UAL will compel AMR/NWA.

It'll end up being, imho:

UAL - CAL management

AMR - AMR management

LCC - LCC management

LUV - LUV management

These managements/businesses have or are being entrusted with the keys to the 21st century industry.

Of course this is just another opinion, but we're talking about changes that will absolutely and fundamentally change this industry forever, for predictable robust health,

...or at least in the long run, with some pain ramping up to the potential...

Fund your future, Invest! ( I M H O )

Paradigm Shift

 

[767jetz]

"People close to United expect Goldman to help the airline assess the value of its domestic and international holdings, advise it on sales or purchases of domestic or international routes and scout for mergers."

The thought of UA selling assets is someone's wet dream, so he conveniently posts the one article that incorrectly uses the word "sales" and then highlights it in bold.

Here is another, more accurate, journalistic piece:

Read the full article here.

" Crain's Chicago Business reported Monday that unidentified sources said they expect Goldman to help United look for potential mergers or at least help United assess its holdings and consider the purchases of domestic or international routes. Neither Goldman Sachs nor United would confirm the report Monday."

"We did all this work so that when that event were to present itself, we'd have perfect discretion to make the right decision on behalf of our shareholders," Tilton told reporters after a speech to the Executives' Club of Chicago. "And that's where we're sitting, right in that position."

"one airline analyst said he assumes United would want to be the acquiring airline. Ray Neidl of Calyon Securities said in a note to investors Monday that top-level United management has given indications that it would want to remain in control if United participated in a merger."

Gives kind of a different spin on the same subject, don't ya think? Just shows how one can selectively cut and paste to support their biased view, or at least strongly imply a message.

Nice try though.

 

[Borescope]

Plus Tilton dislikes the CAL management, in particular trailer trash Gordo.

Last time I check Gordo was on the board of Aloha Airlines. Tilton must have some skeletons in his closet that we don't know about if he's still worrying about Gordo.

IMO CAL wants to just stand at the ready. They will continue to grow their network with a watchful eye and if someone makes a move they will be ready to play their cards.

Tilton, althhough I wouldn't call him trailer trash, is white trash. Look what he did to the UAL employees since he came. Kind of reminds me of a guy name Lay. Best thing he could do in any merger is leave, and take his lackies with him. Let someone else make the airline great like it use to be.

 

[magsau]

The truly scary part of all of this is the fact that UA Mgmt would like to remain in control after UA acquires or is acquired.

Personally I don't believe that would be the case. It would most likely be CAL management, UAL name. Similar to the US/HP situation.

Also, I understand a fairly big announcement for new Euro service is to be announced in the next couple of months.