Like Jetz, I too am very disappointed, however I think that the Continental BOD acted responsibly in making its decision. Furthermore, I believe that Glenn Tilton served a purpose in restructuring United Airlines, but he should've been paid off and sent on his way after the company emerged from Chapter 11. Sadly, United has been floundering for some time. As tonight's WSJ pointed out, United's product differentiation is complex and its labor relations are poor. Those factors as well as UA's poor Q1 performance were issues that the CO BOD could not overlook.
Additionally, I am troubled by the fact that United, which historically has been a launch customer for so many aircraft types, has no aircraft orders going forward. United used to be an industry leader in maintenance as well. A vast amount of its maintenance operations have been outsourced, reservations have been outsourced, and basically, the current fleet is a holdover from the Stephen Wolf era. Meanwhile, Delta has made inroads in Latin America, Africa, and The Middle East; Continental and NWA have 787's on order; Delta has positioned itself to become THE global powerhouse; and even US Airways has a significant number of Airbus A350's on the order books.
I haven't seen the work of a visionary in Glenn Tilton. The new International Premium Product, while impressive, is going painfully slow, with about 3 aircraft out of 97 completed. Furthermore, Southwest has penetrated UA's SFO, DEN, and IAD hubs; Virgin America is competing fiercely in SFO with $300 million in capital behind it; the credit markets have dried up; the economy is continuing to tank; and oil prices are at $120 a barrel and climbing.
I don't see a UA-US combination being the catalyst for a reversal in United's fortunes. Rather I see it as two very dysfunctional enterprises, with two very flawed corporate cultures, and two operationally challenged carriers, coming together to create even a bigger mess than its individual parts. Additionally, US does not bring to the table, United's most crucial missing pieces, notably the NYC market and Latin America.
So tonight, I am indeed disappointed. I was hopeful that the management team at CO could help foster a badly needed cultural change at United and together, we would become a thriving, competitive, and powerful global airline network...