UAL/CO merger approved

[767jetz]

UAL posted some impressive numbers today for Q3 2010. When you break down the UA and CO numbers separately, looks like UAL posted a net profit of $387 Million, and CO a net profit of $354 Million. That makes a total of $741 Million for Q3 for the combined holding company. We pre paid some debt, and ended the quarter with $9.1 Billion in unrestricted cash.

Not bad! B)

 

[goodgirl37]

UAL posted some impressive numbers today for Q3 2010. When you break down the UA and CO numbers separately, looks like UAL posted a net profit of $387 Million, and CO a net profit of $354 Million. That makes a total of $741 Million for Q3 for the combined holding company. We pre paid some debt, and ended the quarter with $9.1 Billion in unrestricted cash.

Not bad! B)

I am sure the UAL profit made some of the posters on here cringe, considering they were forecasting UALs demise not too long ago. The UAL 3rd quarter profits are impressive. UAL DAL and US did very well...

 

[767jetz]

I am sure the UAL profit made some of the posters on here cringe, considering they were forecasting UALs demise not too long ago.

Absolutely! I say, the best revenge is success.

 

[ebwgs]

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.

Just fly your airplanes at UAL and leave the Executive Suite duties to the executives in suits.

 

[767jetz]

Just fly your airplanes at UAL and leave the Executive Suite duties to the executives in suits.

???

As this is an aviation forum, I think that speculating on industry developments is the whole point of being here. Don't worry, I did not submit any suggestions to the executives. They will come to their decisions all on their own.

It will be interesting to see how other airlines evolve and adapt to the the new DL and new UA going forward. I think it's safe to say that others will not remain static, and all possibilities, to include growing or transforming as I suggested in the post you quoted, are being considered.

 

[BoeingBoy]

or transforming as I suggested in the post you quoted, are being considered.

The problem with your transformation of US by buying B6 is that it would be another HP merger - US merges with a smaller low-cost airline and the product is just a bigger high cost US. US would have to merge with a much larger low-cost carrier (with WN being the only candidate so it's unlikely) to average the cost structure down enough for the merged airline to be a low-cost carrier. Alternately, US could get rid of everything but the Airbuses, drop a lot of leases/employees/facilities/Express contracts/etc, and try to remake itself as a low cost carrier - which would require BK3 to do (that was the original plan in BK2 until they decided that they didn't have the cash to last long enough to accomplish it).

Jim

 

[gatemech]

Wasn't there some BK law put in place during the Lorenzo days stating if an airline went
into BK for a third time the only option was liquidation?

Just wondering.

 

[767jetz]

US could get rid of everything but the Airbuses, drop a lot of leases/employees/facilities/Express contracts/etc, and try to remake itself as a low cost carrier

This is more along the lines of what I was speculating. Only you stated it better than I did.

 

[BoeingBoy]

Wasn't there some BK law put in place during the Lorenzo days stating if an airline went
into BK for a third time the only option was liquidation?

Just wondering.

Don't know. All I know for sure that came from the Lorenzo era at CO was that union contracts couldn't be dumped like any other contract in BK, which is what he did at CO. Some say the whole purpose of that BK was to dump the employee contracts. The entire 1113 process came from that.

Jim