- Aug 30, 2002
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Contiental wants United to buy them
- Thread starter luvthe9
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You have to be a member of the Chicago Tribune to read this topic. Can you please post the entire topic so we can rad it?
AirDude
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Continental chief touts United combo
No talks in works; United sees industry `benefit' in mergers
Bloomberg News
Published December 9, 2005
NEW YORK -- The flight networks of Continental Airlines and United Airlines would make a "knock-em-dead combination" if the carriers were to merge, Continental Chief Financial Officer Jeff Misner said.
Continental prefers to stay independent, Misner said, and a United spokeswoman said it hasn't made any offer for Continental.
If United were to offer a "bucket of dough," Continental would consider it, Misner told an investors conference Thursday. "We're not going to sit by and have the world rush by."
The combined companies would better cover the world by putting together Continental's strongest markets--in Latin America, Europe, the East Coast and the South--with United's network in Asia, Europe and the Midwest and West. Houston-based Continental is the nation's fifth-largest airline, and United is the second biggest.
Competition and too much capacity in the U.S. airline industry have held down air fares and helped push Elk Grove Township-based United and other carriers into bankruptcy. Industry executives and analysts have said consolidation, such as the September merger of US Airways and America West, is likely to continue.
"Prospects for industry consolidation appear somewhat better moving into 2006 given the surprisingly strong availability of equity capital" and the easing of scrutiny by antitrust regulators, Fitch Ratings' Bill Warlick said in a report Wednesday.
Delta Air Lines and Northwest Airlines, the nation's third- and fourth-largest carriers, sought Chapter 11 bankruptcy protection in September.
The biggest U.S. airlines have had $40 billion in losses from 2001 through the third quarter of 2005, partly because of more competition from discount airlines and an increase in fuel costs.
"We believe the industry would benefit from thoughtful consolidation," said Jean Medina, a United spokeswoman. "We're focused on completing our bankruptcy and exiting in February."
While merging airlines would be good for the industry, it's a "terribly disruptive, complicated process," Misner said.
No talks in works; United sees industry `benefit' in mergers
Bloomberg News
Published December 9, 2005
NEW YORK -- The flight networks of Continental Airlines and United Airlines would make a "knock-em-dead combination" if the carriers were to merge, Continental Chief Financial Officer Jeff Misner said.
Continental prefers to stay independent, Misner said, and a United spokeswoman said it hasn't made any offer for Continental.
If United were to offer a "bucket of dough," Continental would consider it, Misner told an investors conference Thursday. "We're not going to sit by and have the world rush by."
The combined companies would better cover the world by putting together Continental's strongest markets--in Latin America, Europe, the East Coast and the South--with United's network in Asia, Europe and the Midwest and West. Houston-based Continental is the nation's fifth-largest airline, and United is the second biggest.
Competition and too much capacity in the U.S. airline industry have held down air fares and helped push Elk Grove Township-based United and other carriers into bankruptcy. Industry executives and analysts have said consolidation, such as the September merger of US Airways and America West, is likely to continue.
"Prospects for industry consolidation appear somewhat better moving into 2006 given the surprisingly strong availability of equity capital" and the easing of scrutiny by antitrust regulators, Fitch Ratings' Bill Warlick said in a report Wednesday.
Delta Air Lines and Northwest Airlines, the nation's third- and fourth-largest carriers, sought Chapter 11 bankruptcy protection in September.
The biggest U.S. airlines have had $40 billion in losses from 2001 through the third quarter of 2005, partly because of more competition from discount airlines and an increase in fuel costs.
"We believe the industry would benefit from thoughtful consolidation," said Jean Medina, a United spokeswoman. "We're focused on completing our bankruptcy and exiting in February."
While merging airlines would be good for the industry, it's a "terribly disruptive, complicated process," Misner said.
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Personally, Im not taking Misner's remarks with anything more than a grain of salt for now. I Don't think there is much argument that COA and UAL's networks match up well. However, Don't count on anyone making a move until United exits bankruptcy. I would also guess the both Tilton and Kellner are watching the HP/UA merger very closely, to see how well those two workforces/cultures merge. If it gets rocky, I would bet it would give them pause. Bottom line is, I don't think either company is is any rush to jump into bed together anytime soon. CO seems to quite happy to go it alone for now and I get the feeling a Leaner, meaner United would like to flex its muscles a little as well.
Now if CO were to jump from Skyteam to Star..I things could start moving a lot faster.
Now if CO were to jump from Skyteam to Star..I things could start moving a lot faster.
I, personally, cannot see UA going through all this BK stuff and then turning around and buying another carrier and going through that headache. just my thoughts........
Hi Meatball,
2 years ago I would have agreed with you 100%. However since that time the UAL seniority list has really gotten very junior. I think that the CO employees will fit in rather nicely with all of the junior UAL kids and anybody that gets dropped off of the bottom will be new-hire types. This is NOT the situation currently going on at HP/US....US has lots of old timers and that's real hard on the HP people with 6-10 years etc. As far as UA management goes, Tilton and his gang have done their work and I really don't think that they have much taste for running a REAL airline. They should just take their millions and turn the operation over to the CO managers who have proven that they can run an airline in good times and bad. Mark my words....Bethune and his hand-picked team will be back running the NEW United Airlines out of his Houston offices@
If a UAL/CAL merger were to happen, I would hope that the CAL management runs the show.
Otherwise, UAL will just turn into a bigger mess!
Otherwise, UAL will just turn into a bigger mess!
Really don't want a scab airline like CAL, would prefer DAL. DAL will be rightsized in BK. A perfect fit with UAL.
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