Jeff Smisek UNITED CEO - US Airways merger would be good for industry

[TWU informer]

UNITED CEO: A US Airways merger would be good for industry

United Continental Holdings president and chief executive Jeff Smisek said Wednesday that it would be bad if US Airways left the Star Alliance, but not necessarily bad if it was the result of a merger.

Here are his comments on a conference call to discuss United Continental's first-quarter financial results after Smisek was asked about the impact of US Airways' leaving the Star Alliance.:

"I'm not going to speculate on whatever should happen there. But US Airways is a good partner of ours. And and if they were to leave the Star Alliance, it would have an impact on us and that would be on that piece negative to us.
"On the other hand if they left as a result of a consolidation, I think that would be very good. It would be very good for the business and very good for the industry. And consolidation as you know has worked well for this business. And I think net to us, if US Airways were leaving for a consolidation that seems to be a lot in the news today, I think net-net, that'd be positive for United Airlines."


He was of course referring to US Airways' efforts to merge with American Airlines. US Airways is a member of the Star Alliance, while American is a principal member of the rival Oneworld global airline alliance.

 

[Buck]

Didn't UAL and US attempt a merger of their own?

 

[Flying low]

Didn't UAL and US attempt a merger of their own?

I'm 99.99% sure UAL flatly turned US down.

 

[eolesen]

UA's pilots were against it, DOJ was against it (even with the carve out of DC Air to be operated by AA), and it died a quiet death, with US pocketing a $50M breakup fee.

I suspect Smisek is in favor of a merger because it will distract AA and US, and give UA more time to figure out how to finish *their* merger.

If AA & US were to merge (which I still think is a bad idea) --- they'd probably have a pilot integration agreement before UA settles with their pilots...

 

[TWU informer]

UA's pilots were against it, DOJ was against it (even with the carve out of DC Air to be operated by AA), and it died a quiet death, with US pocketing a $50M breakup fee.

I suspect Smisek is in favor of a merger because it will distract AA and US, and give UA more time to figure out how to finish *their* merger.

If AA & US were to merge (which I still think is a bad idea) --- they'd probably have a pilot integration agreement before UA settles with their pilots...

Forgive me if I respect a CEO of an Airline's opinion more than some paid stooge that used to work for AA.

It is not like he has a perspective on the issues that you cannot even dream of having.

Is it also not like he has a history in the industry that makes you like a wannbe expert that couldn't wash his jock strap.

 

[eolesen]

Ask yourself why Smisek thinks it is a good idea, Dave.....

Is it because Smisek cares about AA's employees? Or is it because he knows that having AA's unions in turmoil buys him time to deal with his unions?

Is it because Smisek wants AA to have a better revenue mix? Or because he knows it has the potential to be so bad that UA and DL will win even more customers than they already have?

Smisek knows that capacity will have to come out of the combined entity, and that's good for UA and DL, too. Especially if AA is in disarray trying to figure out how to deal with all the integration issues.


Again, when the competition says a merger would be good, it's not because they're looking out for you.

 

[TWU informer]

Ask yourself why Smisek thinks it is a good idea, Dave.....

Is it because Smisek cares about AA's employees? Or is it because he knows that having AA's unions in turmoil buys him time to deal with his unions?

Is it because Smisek wants AA to have a better revenue mix? Or because he knows it has the potential to be so bad that UA and DL will win even more customers than they already have?

Smisek knows that capacity will have to come out of the combined entity, and that's good for UA and DL, too. Especially if AA is in disarray trying to figure out how to deal with all the integration issues.


Again, when the competition says a merger would be good, it's not because they're looking out for you.

I never claimed otherwise Eric, I was simply putting information out, that is much different than what is coming from the AA Public Relations Department. And you were the one attacking others for their views and opinion in the same manner you were attacked.

You assume I agree with him, or support his position. That is what you do, not me. The point was that I respect his opinion more than yours.

I also still respect his opinion much more than I respect yours. He is clear and not denying anything about his agenda.

 

[eolesen]

Oh, Smisek's agenda is quite clear -- as any CEO would do -- he's only going to look out for what's best for him and United's shareholders.

Everyone else involved is collateral damage.

 

[777 fixer]

.

If AA & US were to merge (which I still think is a bad idea) --- they'd probably have a pilot integration agreement before UA settles with their pilots...

Shoud'nt they come up with a better plan for their pilots than the one they currently have? US Air that is.

 

[TWU informer]

Oh, Smisek's agenda is quite clear -- as any CEO would do -- he's only going to look out for what's best for him and United's shareholders.

Everyone else involved is collateral damage.

Same could be said about Boeing Executives and their company.
Most of them though, seem to understand the importance of their employees and their value.
Something AA appears to be missing right now.

 

[diamondcutter]

UNITED CEO: A US Airways merger would be good for industry

United Continental Holdings president and chief executive Jeff Smisek said Wednesday that it would be bad if US Airways left the Star Alliance, but not necessarily bad if it was the result of a merger.

Here are his comments on a conference call to discuss United Continental's first-quarter financial results after Smisek was asked about the impact of US Airways' leaving the Star Alliance.:

"I'm not going to speculate on whatever should happen there. But US Airways is a good partner of ours. And and if they were to leave the Star Alliance, it would have an impact on us and that would be on that piece negative to us.
"On the other hand if they left as a result of a consolidation, I think that would be very good. It would be very good for the business and very good for the industry. And consolidation as you know has worked well for this business. And I think net to us, if US Airways were leaving for a consolidation that seems to be a lot in the news today, I think net-net, that'd be positive for United Airlines."


He was of course referring to US Airways' efforts to merge with American Airlines. US Airways is a member of the Star Alliance, while American is a principal member of the rival Oneworld global airline alliance.

Thanxs for posting. World traveller are you there ? Come on waiting for a long long winded reply. You and most know that consolidation is good for the industry as a whole. Fares will finally be a little higher than in 1978.

 

[787nightmare]

That's where Smisek is coming from.
He wouldnt enjoy seeing a Star Alliance partner leave, but thinks it would enhance industry financial stability.
There's been way too many carriers competing to put butts in the seats-for way too long.

 

[xUT]

UNITED CEO: A US Airways merger would be good for industry

United Continental Holdings president and chief executive Jeff Smisek said Wednesday that it would be bad if US Airways left the Star Alliance, but not necessarily bad if it was the result of a merger.

Here are his comments on a conference call to discuss United Continental's first-quarter financial results after Smisek was asked about the impact of US Airways' leaving the Star Alliance.:

"I'm not going to speculate on whatever should happen there. But US Airways is a good partner of ours. And and if they were to leave the Star Alliance, it would have an impact on us and that would be on that piece negative to us.
"On the other hand if they left as a result of a consolidation, I think that would be very good. It would be very good for the business and very good for the industry. And consolidation as you know has worked well for this business. And I think net to us, if US Airways were leaving for a consolidation that seems to be a lot in the news today, I think net-net, that'd be positive for United Airlines."


He was of course referring to US Airways' efforts to merge with American Airlines. US Airways is a member of the Star Alliance, while American is a principal member of the rival Oneworld global airline alliance.

As a competing airline, I agree. Smisek is brilliant, AA and US Airways merger would be very good for business and the industry.
Why would he say that? Is he your 'friend'?
IMHO, he wants to see his competition burn.
JMHO,
B) xUT

 

[xUT]

That's where Smisek is coming from.
He wouldnt enjoy seeing a Star Alliance partner leave, but thinks it would enhance industry financial stability.
There's been way too many carriers competing to put butts in the seats-for way too long.

Sure, That's the ticket...

 

[787nightmare]

Sure, That's the ticket...

Airline execs have been hollering for decades there's too much capacity in this industry. And they're exactly right.

All one has to do is compare Europe or Middle Eastern carriers to Americas and see what he's talking about.
Less competition=higher fares(stability)

Ok, now that you're finished laughing....where am I wrong?