UA AND US Merger Talks

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Here is my take on the news USAPA filed an Emergency 9th Circuit Court of Appeals ruling because of "intensive (merger)negotiations with United Airlines.

A Stay is a court order halting a judicial proceeding. USAPA is asking the 9th Circuit on an emergency basis to halt all District Court Proceedings and the Permanent Injunction issued by Judge Wake.

Why? As USAPA indicated, "A present emergency results from the fact that the pending injunction will prevent a corporate merger that would create an airline capable of competing with the recent Delta/Northwest combination and thus thwart economic benefits and preservation of jobs that might accrue to the corporations and employees, including Appellees."

USAPA said, "A corporate merger between US Airways, Inc., employer of the pilots Appellant represents, and United Airlines, Inc., whose pilots are represented by another union, is suddenly and currently the subject of intensive negotiations between these two major airlines and their unions, and has reached a critical stage.

Furthermore, USAPA indicated, "Appellant is subject to a non-disclosure agreement but news media reports (attached hereto as exhibits A, B and C) substantiate the same, specifically that labor issues are the obstacle.

I believe USAPA has backed itself into a corner. With today's news that Continental has resumed negotiations with United -- US Airways is at risk of being a distant fourth largest size legacy carrier, unless there is some sort of a 3-way corporate transaction with United, Continental, and US Airways.

USAPA's conundrum is that politically it cannot voluntarily accept the Nicolau Award or the Hardliners would have to take responsibility for their action, which they have never done before and is why ALPA did not freeze the DB Pension Plan and LOA 93 concessions were worse than the company's "ask". Instead, USAPA wants the 9th Circuit to make an immediate ruling on the Addington Appeal and I believe if it goes against USAPA then the union can wash their hands of the proceeding.

For US Airways' pilots and other employees, at least USAPA's Emergency Order should cause the 9th Circuit to issue their ruling on the Addington Appeal in short order, which might be USAPA's way of agreeing to Doug Parker's demands. And, of course the pilot seniority integration litigation will take one more step towards closure for all parties interested in the success of US Airways.

Finally, if the 9th Circuit Court of Appeals rules against USAPA I believe this action could increase the odds that United and US Airways will merge. Then the Nicolau Award will be the basis for a seniority integration with United's pilots with the new Federal Law Merger Policy governing the future United-US Airways pilot integration.

Regards,

USA320Pilot
 
http://www.marketwatch.com/story/statement-by-captain-wendy-morse-chairman-united-master-executive-council-air-line-pilots-association-international-regarding-reports-of-reopening-of-merger-discussions-between-united-airlines-and-2010-04-15?reflink=MW_news_stmp

ALPA likes the CAL pairing and will work with UA, on the other hand LCC, not so much.

This is a huge sign for UA management.
 
Wow, I just heard that we (US) are in negotiations to merge with any airline that will have us. ;0
 
USAPA files emergency Order with the Ninth Circuit Court of Appeals REMAINING LONG ARTICLE DELETED. PLEASE DO NOT QUOTE A LONG POST TO ADD A COUPLE OF LINES. THANKS-MODS
Doesn't this just prove the point that it could be an absolute disaster to merge with US instead of CO? After reading statement from UA's pilot union, it almost seems like it's a no brainer for CO. Perhaps it's not that simple, but it sure seems so.
 
http://www.reuters.com/article/idCNN1510455520100415?rpc=44

UNITED/CONTINENTAL

Analysts and other industry experts agree a Continental/United pairing makes the most strategic sense and would have the best chance of clearing labor and antitrust hurdles.

The two have a common pilot unions and less route overlap than United/US Airways. They are also partners in the Star alliance, which has been lucrative.


IMHO, US will simply be too small to survive in its present form should UA/CO hook up.
 
UNITED/CONTINENTAL

Analysts and other industry experts agree a Continental/United pairing makes the most strategic sense and would have the best chance of clearing labor and antitrust hurdles.

The two have a common pilot unions and less route overlap than United/US Airways. They are also partners in the Star alliance, which has been lucrative.


IMHO, US will simply be too small to survive in its present form should UA/CO hook up.
I agree with you. I just read a Reuters article that claims that UA and CO pilots have been meeting 2 or 3 times a week since 2008? That seems a bit far fetched, but if so, sure makes less of a headache for CO and UA when they merge. How many times have they met with our pilots? Hmmmmmm.....
 
..... is suddenly and currently the subject of intensive negotiations between these two major airlines and their unions, and has reached a critical stage.

Err.....not exactly. I highly doubt that the UAL MEC Chairman has taken any phone calls from anyone at USAPA. Now, I do believe that Capt Pierce (CAL) and Capt Morse (UAL) have been talking quite a bit lately.

What was it that Harry Callahan said in Dirty Harry....." Well punk, you feeling lucky today? Well are you?" Me thinks the USAPA MEC boys are quietly cleaning their drawers about now.

Cheers,
Z B)
 
..... is suddenly and currently the subject of intensive negotiations between these two major airlines and their unions, and has reached a critical stage.

Err.....not exactly. I highly doubt that the UAL MEC Chairman has taken any phone calls from anyone at USAPA. Now, I do believe that Capt Pierce (CAL) and Capt Morse (UAL) have been talking quite a bit lately. Cheers,
Z B)
Just as an aside, in the future all you have to do is see who the author of the article is and then you wouldn't have to actually read what you did to come to your conclusion.
 
UAL, Continental Renew Talks

CHICAGO (WSJ.com) - UAL Corp. appears to be angling to have it all in renewed airline merger discussions: It wants to cut a deal to combine with US Airways Group Inc. while retaining its lucrative marketing alliances with rival Continental Airlines Inc.

People familiar with the matter said Thursday that UAL is talking with Continental about a potential combination, but the two remain far apart. These people said the talks don't necessarily mean UAL aims to dump US Airways in favor of Continental, but may be seeking to sustain deals that fall short of a merger while producing substantial revenue.

See Story

Regards,

USA320Pilot
 
Here is my take on the news USAPA filed an Emergency 9th Circuit Court of Appeals ruling because of "intensive (merger)negotiations with United Airlines.

...
"A present emergency results from the fact that the pending injunction will prevent a corporate merger that would create an airline capable of competing with the recent Delta/Northwest combination and thus thwart economic benefits and preservation of jobs that might accrue to the corporations and employees, including Appellees."


I think the company said to usapa that the appeal would place the merger in peril. I do not see how the injunction presents a problem in merging with UAL. Unless the appeal is awarded and a complete reversal issued, all that will happen is the case will be remanded back to district court with an indeterminate delay, unless Addington is upheld of course.

To alleviate this problem usapa could drop the appeal. Problem solved.
 
I agree with you. I just read a Reuters article that claims that UA and CO pilots have been meeting 2 or 3 times a week since 2008? That seems a bit far fetched, but if so, sure makes less of a headache for CO and UA when they merge. How many times have they met with our pilots? Hmmmmmm.....
Not for fetched at all. I can say for a fact that the statement is true. I don't know about the frequency, but do know about the regularity of those meetings.
 
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