continental may join in the merger club

[FA Mikey]

Continental Airlines, concerned about being dwarfed by larger competitors, would consider a merger if necessary to maintain its competitiveness, its chief executive said.

"If the landscape of the U.S. airline industry does indeed change, we'll do what we need to do to act in the best interests of you (employees), our customers, our shareholders and the communities we serve," Chief Executive Larry Kellner said in a recorded message to employees on Friday.

But unlike UAL, which has long been a proponent of consolidation, Continental would be a reluctant participant, concerned about the implications of staying on the sidelines.

"The creation of a competitor even larger than American Airlines would not be good for us in the long run," Kellner said. "Our preference is to remain independent and continue our growth plan."

story here

 

[Borescope]

Continental Airlines, concerned about being dwarfed by larger competitors, would consider a merger if necessary to maintain its competitiveness, its chief executive said.

"If the landscape of the U.S. airline industry does indeed change, we'll do what we need to do to act in the best interests of you (employees), our customers, our shareholders and the communities we serve," Chief Executive Larry Kellner said in a recorded message to employees on Friday.

But unlike UAL, which has long been a proponent of consolidation, Continental would be a reluctant participant, concerned about the implications of staying on the sidelines.

"The creation of a competitor even larger than American Airlines would not be good for us in the long run," Kellner said. "Our preference is to remain independent and continue our growth plan."

story here

Old news

 

[NewHampshire Black Bears]

I'm sure, as the closer we get to a (possible) US/DL, CO would be VERY wise to have a PLAN.

Do they want to be an "acquirer", or an "acquiree" ??

If the answer is the Latter, Then just "stand around", and don't act.

In THAT scenario, United will be on CO's doorstep in a NY minute !

If they want to be an acquirer, then they need to make a move on NW, BEFORE NW emerges from BK-11.
(Except for too many different A/C, CO/NW is THE best fit in the Industry )

So, unless UA makes a counter offer for DL, it's VERY easy(IMHO) to see how it will shake out. Either UA/co, or CO/nw.

One thing is ABSOLUTE, AA and UA WON'T be walking down the Aisle"

A combined CO/nw might look like this

Hubs,

EWR-DTW-IAH-NRT

Focus cities,

MSP-CLE-MEM

plus, I believe CO is in the same allience with KLM, as NW.

Someone please correct me, if I'm wrong.

NH/BB's

 

[traderjake]

AA wants to merge with BA which is why they won't oppose US/DL.

 

[DCT JVL]

AA wants to merge with BA which is why they won't oppose US/DL.

And, if it were legal, UA would have merged with LH long ago.

Former CEO: 'Continental needs to acquire United'

Noting that "merger speculation is in the air" following US Airways' hostile bid for Delta, the Houston Chronicle takes a look at where Houston-based Continental could wind up in the fallout. Not surprisingly, some of the paper's most intriguing tidbits come from Gordon Bethune, the outspoken former Continental CEO. As industry observers speculate about a possible round of competing bids for Delta and the subsequent consolidation that could follow, some suggest Continental may be the legacy carrier left out in the cold. Bethune tells the Chronicle it could play out as an airline game of musical chairs. "When the music stops, you need a place to sit," he says, adding that current Continental CEO Larry Kellner "needs to think about watching the combinations because it's got to be something you can participate in."

Here's the rest...

 

[StressFreeFBO]

Don't forget that NWA carries the CO "Golden Ticket" merger veto. CO must wait for AA to acquire NWA before it can merge with UA, if they don't merge with NWA. I'm looking for an AA/NWA merger just before the time AA needs to renegotiate it's maintenance contracts (2008, so I'm guessing 3rd/4thQ 2007) and CO/UA following suit immediately after.

I don't think CO would merge with NWA specifically because of fleet diversity and union volitility. CO is at a stable place right now with its unions, and it has taken YEARS to get there.

If UA and CO merged, Houston HQ would move to Chicago, but the IAH/HOU maintenance and North Houston reservation call center would remain (and expand).

The implications for a CO/UA domestic network make me drool: EWR, IAD, IAH, ORD, CLE, DEN, LAX, SFO.

Then if the two merged, they could use their massive capital base to acquire JBLU. That's right, I said it, ACQUIRE JBLU!!!

 

[RowUnderDCA]

AA/UA: sell AA's ORD assets to anybody... or let them go to jetBlue Virgin America, and cut back on some common trans-cons and you might get a AA/UA merger, if the other ultra-mega-mergers have already happened: DL/US and CO/NW or US/NW and DL/CO.

 

[whlinder]

AA/UA: sell AA's ORD assets to anybody... or let them go to jetBlue Virgin America, and cut back on some common trans-cons and you might get a AA/UA merger, if the other ultra-mega-mergers have already happened: DL/US and CO/NW or US/NW and DL/CO.

And LHR.

Have to divest some LHR slots and the duplicate authority.

 

[RowUnderDCA]

oh yes.. I forgot. I've never been to LHR

 

[NewHampshire Black Bears]

RowUnderDCA,

With ALL due RESPECT, you NEED to STOP smoking Illegal substances !!!!!!


NH/BB's

 

[Cosmo]

I have two comments regarding a possible CO/UA combination:

1.) As I understand the CO/NW agreement, NW's "golden share" goes away if there is a change in control at NW. It seems to me that any proposed cancellation of current NW stock in the carrier's upcoming POR would, by definition, constitute a change of control and thus allow a purchase of CO by UA or any other carrier. If my understanding of the agreement is correct (and I'm not a bankruptcy expert so it may not be ), UA might simply be waiting for NW to issue its POR with its presumed cancellation of current NW stock before UA makes a bid for CO.

2.) IMHO, any CO/UA merger would almost certainly be structured so that UAL would be the surviving corporate entity (regardless of where the management team comes from or where the HQ is located) to avoid protracted and potentially unsuccessful governmental negatiations with the U.K. and Japan regarding LHR access and NRT beyond rights, respectively. Both of these issues would be highly contentious with those foreign governments and the carriers based in those countries, especially BA and JAL, so I believe that avoiding such governmental negotiations should be a paramount concern of a merged CO/UA.

 

[NewHampshire Black Bears]

An EXCELLENT point.....Cosmo...(AGAIN)


NH/BB's

 

[Bizman]

2.) IMHO, any CO/UA merger would almost certainly be structured so that UAL would be the surviving corporate entity (regardless of where the management team comes from or where the HQ is located) to avoid protracted and potentially unsuccessful governmental negatiations with the U.K. and Japan regarding LHR access and NRT beyond rights, respectively.

Was this the case when UA took over the rights from PanAm or was PanAm's name replaced by white out and UA written in. Just curious if anyone knows how it was done in that case.

 

[RobertD]

Hate to be a kill joy, but I say NW/CAl merger.

 

[lpbrian]

Hate to be a kill joy, but I say NW/CAl merger.

Thats like Miss America marrying a serial killer.