On 9/4/2002 11:15:16 AM
You're correct. The first ERP proposal for UA ALPA contained restrictions on merging with/acquiring US Airways. However, that ERP is now dead. Who knows what will happen now? But I just think that an attempt to use Ch. 11 to force a merger of UA/US would be a big mistake.
On 9/5/2002 1:18:39 AM
"1. Aligned their fleets to be identical by type, except for nine A-330s, which can easily be returned to the owners per the bankruptcy code. Each company operates B-737s, A-320 family, B-757, and B-767 aircraft. No other major airlines have virtually identical fleet types."
737s have differant cockpits, A320s diff engines, 757s diff engs Us are also very old, 767s UAL is considering canning old 767-200s. Same fleet types in name only.
"3. Signed a code share agreement, which was ratified by both ALPA MEC's.
4. Reached an agreement where US have received a formal invitation to join the Star Alliance."
Why bring you into star a couple years from now if we're planning on "merging" soon?
"5. Both have filed for the ATSB loan guarantee, where specific language states the funds can be used for M&amp;A activity. The OMB rules state, &quot;If loan funds are to be used to purchase an existing firm (or the substantial assets of an existing firm), the business plan of the combined entity shall contain a discussion of the way in which any required regulatory or judicial approvals will be obtained, including antitrust approval for any proposed acquisition.&quot; (By the way, I understand the combined airline loan guarantee funds can be used for M&amp;A activity)."
The ATSB isn't paying any attention to the law, why should you?
"7. Greg Taylor, former US senior vice president of planning, who held the same position with UA in the 90s, recently left US and went back to UA in the same capacity. If the two airlines were going to see some type of corporate combination, who would be better than Taylor, with his in-depth knowledge of both airlines, to advise the parties on how to proceed?"
Wow, that's a couple really good bullets on a resume...I led UAL and Us demise.
"9. On Wednesday, August 27, US changed its ticketing policies, domestic consolidators, corporate discount programs, paper ticket charge, and pricing changes. Less than 24 hours later, UA announced similar plans. Could UA have known about the changes, to be the first airline to match the US program, or was it coincidental the partners implemented their changes within 24 hours of one another?"
It's funny how that works. I still havent figured out how we all come up with essentially the same fares in the same markets within minutes of each other. I think it's voodoo.
"Again, I understand the parties have held discussions on a deeper relationship, but with each airline having multiple problems, it's unclear whether or not any further integration could occur. However, dependent on individual restructurings, if the carriers try to integrate, I'm not sure UA would be the survivor. It could be US under Siegel's leadership."
Now THATS a good one. AMR should have stuck with the TWA name and put that pilot guy in charge too...
"In bankruptcy, all bets are off, not to mention there is ATSB language to force consolidation, or the Board could decide to withohold funds to any opposition."
Not real confident in the board anyway. UAL may fix a few problems and procede without the board. Airbus might be willing to finance a few of the "unencombered" jets we have in exchange for a nice new order, with appropriate cost savings to bring our cost below AMR by about 10%.
"Will the Board elect this option? I do not know, but they have the power to force a merger or withold loan guarantees until their demands are met."
Screw the board.
"By the way, if the UA pilot group did not believe a corporate combination was possible, why would ALPA have included pre-nuptial seniority language in the ERP?"
It is a possibility. So before you get giddy again about your 570 seniority number, re-read the prenup.