UAL/CO merger approved

eolesen

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Jul 23, 2003
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DOJ just approved the merger.

http://us.mobile.reuters.com/article/idUSTRE67Q5YO20100827?ca=rdt
 
This is good news. The DOJ was really the only major hurdle. It goes against all the critics who speculated UA would be required to shed routes and slots and down size in major markets to win approval. The last missing piece is labor integration, which management needs to take seriously and do the right thing with.
 
Great news, now lets see how the hubs will be used. Here is to hoping IAD gets lots of new MAINLINE flights

I'm not sure about "lots" of new mainline flight out of IAD but I'd be willing to bet that you'll see some "right-sizing" of equipment to markets, especially from EWR and IAD. For instance, I'd be surprised if the "new" United didn't put some 747-400's into a couple of the markets out of EWR instead of the 777. Those 777 in turn can and would be used to upgrade or start new service to other markets. Remember, UAL still has several (the exact number escapes me but I believe 4-5) 747-400's parked at VCV. One was recently returned to service.

Just my thoughts. The upside potential is huge and the new UAL will be a very, very potent player!!

Cheers,
Z B)
 
Agreed. I also started to think today that the slots to SW are a brilliant move. While it only represents 18 round trips in and out of EWR, it could potentially tie up SW and JB for some time to come, distracting them from other markets while they slug it out and redirect assets for a some short haul flying in the northeast corridor.
 
Be interesting to see how the good ALPA employees at UAL are slotted behind the DELETED BY MODERATOR CAL pilots ! MM! Underestimating the potential of firepower of your competition(SWA) is always a recipe for disaster, but a strong balance sheet will lead UAL and CAL to ultimate finacial success! GOOD LUCK!
 
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Be interesting to see how the good ALPA employees at UAL are slotted behind the DELETED BY MODERATOR CAL pilots ! MM! Underestimating the potential of firepower of your competition(SWA) is always a recipe for disaster, but a strong balance sheet will lead UAL and CAL to ultimate finacial success! GOOD LUCK!

US Airways has been underestimating the potential firepower of SWA for years. I think UA/CO management will do ok against SWA. They are a tough competitor, but I think the new UA is up to the challenge.
 
I'm sure most everyone has seen this already, but today UA and CO shareholders approved the merge by a margin of 98%. The deal should now close on October 1st.
 
Folks, I just edited a post and deleted two. STOP the personal jabs and references to another disagreement.

The next post which tries to revive that argument gets a two week vacation for the author.
 
I'm sure most everyone has seen this already, but today UA and CO shareholders approved the merge by a margin of 98%. The deal should now close on October 1st.

Not necessarily, There is a small group of people in SF that have sued, citing antitrust issues. The judge said he would "try" to rule before October 1. It's amazing that they (UA/CO) were cleared by the gov't and yet a group of 49 people may hold it up, citing rising fares. I guess we've become an entitlement country, everyone wants something for free. I say go find a cheaper fare somewhere else, you can even go to the library and get free internet to search for it.
 
I'm not sure about "lots" of new mainline flight out of IAD but I'd be willing to bet that you'll see some "right-sizing" of equipment to markets, especially from EWR and IAD. For instance, I'd be surprised if the "new" United didn't put some 747-400's into a couple of the markets out of EWR instead of the 777. Those 777 in turn can and would be used to upgrade or start new service to other markets. Remember, UAL still has several (the exact number escapes me but I believe 4-5) 747-400's parked at VCV. One was recently returned to service.

Just my thoughts. The upside potential is huge and the new UAL will be a very, very potent player!!

Cheers,
Z B)


I'm looking forward to how the battle between WN & B6 turns out. Now B6 has some real competition, since they are pretty much the only LCC competition at EWR. (I don't count WestJet and Porter in that mix). I think that WN will be getting a couple of UA gates in Terminal A (Since UA/CO is leasing WN the 36 slots) they will be in direct head-to-head competition with B6.

Also, I'm expecting that we will be getting more UA heavies at Terminal C once things tie up. If UA is going to reposition aircraft, more than likely it will be domestic 777's or 767's, until the merger is more tied up. If they are going to fly Int'l 744's (which I haven't seen in eon's) they will come to either Terminal B, or our facilities at Terminal C, since Terminal A has no FIS. But I guess Fleet planning is working on that. We were told (by Jeff at his CEO visit at EWR) that we will be getting more widebody flights), so I expect to see more UA birds here.

Anyway, all I can do is root for this merger and work with all my new UA co-workers to make this the world's leading airline. I don't see any major roadblocks in this merger, (except the CO Pilots 50 seat scope issue) and once all of the contacts are ironed out and we can come together as one team.
 
[/quote] Also, I'm expecting that we will be getting more UA heavies at Terminal C once things tie up. If UA is going to reposition aircraft, more than likely it will be domestic 777's or 767's, until the merger is more tied up. [/quote]

Could be. I do know that widebodies are in short supply, especially domesticly. Gone are the days when you'd see a 777 between DEN-IAD or SFO-ORD. I'm sure it happens occasionally but not with the regularity it used to. However, it does make sense that some additional flying will be done from UAL hubs to EWR/IAH simply to feed the connections there.

[/quote]If they are going to fly Int'l 744's (which I haven't seen in eon's) they will come to either Terminal B, or our facilities at Terminal C, since Terminal A has no FIS. But I guess Fleet planning is working on that. We were told (by Jeff at his CEO visit at EWR) that we will be getting more widebody flights), so I expect to see more UA birds here.[/quote]

Most of the 747-400's you'll see at ORD/SFO/LAX. However, as I alluded to in an earlier post, I'd be very surprised that you don't see one or two flying out of EWR to PEK/NRT/HKG in the not too distant future. Given the largest O&D market in the world in NYC it stands to reason that EWR could support such a move, thus freeing up those 777's for other lucrative markets.

Should be interesting to say the least. Looking forward to working with all of you at CAL to make this one blockbuster airline.

Cheers,
Z B)
 
Should be interesting to say the least. Looking forward to working with all of you at CAL to make this one blockbuster airline.

Cheers,
Z B)
I second that.

Not to mention that the Southwest/AirTran merger will add an interesting dynamic to the way our industry evolves. The competition with Jet Blue could help the legacies, as the LCC's compete more with each other.

It also raises the question of what will become of American Airlines and USAirways. American will be too small to compete effectively with UA and DL. (Especially for the premium passengers, to whom network size and reach is ultiimately important). USAirways seems too big to compete with SW and B6. Throw Alaska into the mix and it can be quite hard to read the tea leaves.

Alaska would be the obvious choice for American, given the minimal overlap. But it doesn't give them access to Asia. Perhaps B6, since they've already carved a code share agreement. But then again, USAirways could combine with JetBlue, shed their minimal Atlantic flying and the hub and spoke system, and transform into a larger, true LCC to compete more directly with SW.

Anything is possible. But there certainly seems to be another piece or two of the puzzle to unfold before we really know what the final Airline landscape will look like. Until then, we have much work to do with our Continental brothers and sisters to make this airline into the powerhouse it has the potential to be!
 
Congratulations to all the employees of our new airline! As this is the closing day that makes the merger official, I'd like to say to the Continental employees that that your identity, your history, and your culture are not, and will not be, forgotten. Neither will ours. We are at a turning point with great opportunities ahead for all of us. Our two airlines start a new chapter building one great airline together.

While management celebrates around our combined system, and is saying all the right things, I also offer a word of caution that has been voiced by ALPA today. ACTIONS speak louder than words. I for one will withhold the celebrating until all the employee contracts have been resolved and ratified, and everyone is working under one contract that recognizes our significant contribution and importance to the future success of our new United Airlines.