AIRLINE MERGERS WOULD DWARF SOLO-FLYER CONTINENTAL

[MERV]

Would CO survive being smaller than the others? If UA and US merge that would mean that the top three majors would be huge.

"Size and scale is important in the airline industry, particularly if your competitors are getting significantly larger," -- Jim Corridore, S&P.
http://news.airwise.com/story/view/1271025216.html

 

[LUVJAMESC4EVER]

Would CO survive being smaller than the others? If UA and US merge that would mean that the top three majors would be huge.

MayBE CO will go OUT of Business****I really THINK CO Management is Arrogant. I dont LIKE CO at ALL

 

[mweiss]

While CO could merge, I'm hardly certain that it would benefit CO to do so. The defensive notion behind merging is a belief that the status quo would result in reduced margins. Will the new DL be able to reduce CO's RASM? Would a merged UA/US do so? I fail to see how, but I'd love for someone to be able to prove me wrong.

 

[wings396]

MayBE CO will go OUT of Business****I really THINK CO Management is Arrogant. I dont LIKE CO at ALL

What????
A newbie with an Ax to grind I suppose...

 

[gtd]

MayBE CO will go OUT of Business****I really THINK CO Management is Arrogant. I dont LIKE CO at ALL

I'm a United mechanic and trust me, you guys don't know how good you got it. Were hoping if the merger happens that we get your management and not ours. GT

 

[IberiaMAL]

I'm a United mechanic and trust me, you guys don't know how good you got it. Were hoping if the merger happens that we get your management and not ours. GT

NO merger will ever help the employees. United is really on the low-cost bandwagon these days, if I'm not mistaken. How would they become low cost? At the expense of the product or at the expense of... :unsure: employees?

 

[adiruwho]

I'm a United mechanic and trust me, you guys don't know how good you got it. Were hoping if the merger happens that we get your management and not ours. GT

As A CAL mechanic I can say that we do appreciate what we have here. Keep in mind there are quite a few here who were there in the Dark Ages when Lorenzo reigned supreme.However should CAL and UAUA merge I imagine that you at United would be happy to adopt our contract, hands down.

 

[IberiaMAL]

As A CAL mechanic I can say that we do appreciate what we have here. Keep in mind there are quite a few here who were there in the Dark Ages when Lorenzo reigned supreme.However should CAL and UAUA merge I imagine that you at United would be happy to adopt our contract, hands down.

🙄 And how would you at Continental feel adopting their contract?

 

[adiruwho]

🙄 And how would you at Continental feel adopting their contract?

Having read the poorly negotiated amfa contract that the ual mechs are currently under, not a snowballs chance in !@#%. Its a good thing for them that they are currently in negotiations with th IBT

 

[boxer]

The IBT has represented UAL mechanics for the last ~two years.

 

[adiruwho]

The IBT has represented UAL mechanics for the last ~two years.

True however I believe they are still in negotiations for an IBT contract.

 

[OldGuyinPA]

At USAirways we wanted AWA management...to get rid of Crystal City.

What a mistake. The Sand Palace in Phoenix is lost...sinking in quick sand

 

[texasreb]

It does not matter which management you get. One thing is a constant as an airline mechanic these days. You will get screwed.

 

[Mr Eagle]

It does not matter which management you get. One thing is a constant as an airline mechanic these days. You will get screwed.

April 22, 2010

Dear Fellow Employees:

As you know, there has been much recent speculation about our airline and a potential merger with United Airlines. Today we publicly issued a statement saying our Board of Directors has decided to discontinue those discussions, and I wanted to let you know where we are at this point.

Most of you know that I view consolidation as a positive for our industry. There are simply too many airlines chasing market share and this fragmentation causes our industry to struggle mightily. We continuously consider strategic options for our airline, and over the past several months, we have studied a transaction with United. However, those talks have not progressed to a merger agreement, and for the foreseeable future we intend to remain a standalone carrier.

Whether we participate in a merger or not, consolidation will create a more efficient domestic industry that can better withstand economic volatility, global competition and the cyclical nature of our industry as a whole. As I have said many times, it is not necessary for us to be direct participants in a merger because the entire industry benefits when consolidation occurs.

I am sure some “industry experts” will suggest that US Airways will be strategically harmed if United now chooses to merge with Continental. They will be wrong. Thanks to all that we have done together over the past two years – capacity rationalization, a la carte revenue programs, cost control and our commitment to operating efficiently and reliably – we have a strong and viable standalone airline that is producing industry-leading results. Should our competitors choose to merge and help create a more stable airline industry, our independent airline will only become stronger.

The busy summer travel months are ahead and we enter them with positive momentum and well-positioned to take advantage of the improving economic environment. Please keep up the great work. We're running one of the best airlines in the country and our customers are noticing. Thank you for your continued commitment to our passengers and to US Airways – I’m looking forward to continuing to see our name in the sky and working with the great people who make it happen.



Doug

 

[OldGuyinPA]

Must be 5:00 somewhere...

Thanks Doug.

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