Leaked: US and UA in merger talks for over a month

[767jetz]

US serves 19 European cities
AA serves 13 European cities

Yeah, and what is the frequency??? How many cities does US serve those destinations FROM?

There's a lot more to statistics than blurting out a few select numbers. To say US serves triple the cities that AA does implies delusions of grandeur. I'm sure the author of the article referred to, was trying to impress upon the reader how small US's operation in general is to Europe. Maybe not by cities served, but passengers flown and number of flights. Take one city for example that both US and AA fly to. US probably has 1 flight from 2 airports in the USA. AA probably serves that same city from 4 or 5 airports in the USA with more frequency and bigger airplanes.

The international (European) operation of US is still eclipsed by AA, DL, CO, and UA.

Now back to reality.

 

[767jetz]

Here is the link to today's WSJ column discussing UA & US merger talks:

See Story

Regards,

USA320Pilot

Hmmm...


And here is the release of a joint statement by the UA and CO MEC Chairmen. Now why would they release a joint statement if there are serious talks going on with US?


FOR IMMEDIATE RELEASE:
In Reaction to the Announced Merger
Between Delta Airlines and Northwest Airlines
April 15, 2008

“For the past several years, mergers and consolidation have been part of the vernacular of the
airline industry. Monday’s announcement of a merger involving Delta and Northwest Airlines
could be just the first of a series of announced marriages between major U.S. carriers.

“Most airline analysts believe an announcement involving United Airlines and Continental will
soon follow Monday’s Delta and Northwest news. The management teams of United and
Continental must understand one hard fact: the pilots of our respective airlines will not allow any
merger unless management meets or exceeds our demands to be treated fairly and equitably. Our
concerns will be addressed before we ever agree to allow our airlines to merge.

“If a merger benefits airline executives, Wall Street financial groups and legal firms at the
expense of pilots and the flying public, we will use all lawful means necessary to ensure the
transaction is unsuccessful. We are not going to stand by and watch as our futures are controlled
by others. Pilots on both sides of a merger must be fully involved and will play a significant role
in the acceptance or rejection of an attempted merger.

“We have real concerns regarding any transaction involving our airlines, and we have repeatedly
asked our respective companies to acknowledge and address those concerns prior to making any
merger or consolidation announcement. We will not stand idly by while the CEOs and their
executives attempt to merge our airlines without regards to the long-term feasibility of the final
entity.

“Let there be no mistake. This is not about pay or benefits. This is about survival. We will fight,
on every possible front, any attempt to merge our airlines at the expense of the pilots.â€￾

 

[Ignacio]

:huh: If US Airways is such a worthless airline, why would United or American want to buy or merge with them. Or want the CLT, PHL, LGA, DCA or Caribbean (which is basically all of US Air US Airways) operations?

 

[roosterfish]

THE STREET - US AIRWAYS, UNITED DISCUSSED MERGER

One thing is certain -- were United to acquire US Airways, the price would be less than the $11.6 billion that United agreed to pay when the deal was proposed in 2000. In fact, some insiders felt that regulators turned down the deal when United backed away after deciding the price was too high.


Are we worth 11.6 billion?
Does United have 11.6B and/or can it acquire the money from investors?

 

[brokenwrench]

Are you telling me that's the average load factor per month or that's the actual amount of passengers we have flown in these months combined...

Number of PAXs.

 

[USA320Pilot]

US Airways chief talks to employees about deal speculation

See Story

Regards,

USA320Pilot

 

[oldiebutgoody]

Boyd and McAdoo failed to mention the tremendous PHX and LAS destinations as a reason to merge with US. Must have been an oversight.

 

[CLT-Douglas]

I think it's pretty clear when they didn't order the A340 for the China route that US had no intentions of doing it under the US Airways brand. All this duck tape and cheap upgrades makes it even more obvious what their intentions are. I just hope keep up with the painting of aircraft and interior refurbishments as cheap as they may seem until anything is final and fully approved. I just can't imagine what some of those aircraft currently in the old paint scheme and old interiors would look like in a few years if they decide to stop all refurbishments once a merger is announced!

 

[Dont call me Shirley]

US serves 19 European cities
AA serves 13 European cities

Of course, many of US's European destinations are only served four or five months of the year.

 

[jimntx]

:huh: If US Airways is such a worthless airline, why would United or American want to buy or merge with them. Or want the CLT, PHL, LGA, DCA or Caribbean (which is basically all of US Air US Airways) operations?

Neither of them wants to merge with LCC. What would make you think that other than the pure speculation posted on this board? At AA we have enough of all of those stations you mentioned, plus frequent and growing MIA-Caribbean. So, tell me again, what does LCC have other than DCA and LGA slots we might want. But, even that is based on the paraphrase of the famous Gloria Guinness line--You can't be too rich or too thin (or have too many slots at DCA and LGA).

 

[FA Mikey]

Next time, you might check facts before you go ranting. US serves 19 cities, AA serves 13. When I said, "tripple," it was a purposeful exaggeration, also known as a hyperbole. The author of the article is wrong to diminish the transatlantic presence, and you were wrong to claim that I was speaking of Star Alliance code shares.

You are right about the fleet, though.

To clarify, US flies more TA than UA, too -- I THINK. So, assuming that is true, one can say that US, DL, and CO eclipse UA and AA in transatlantic travel.

Assuming everyone offers one flight a day from each destination. AA operates 18 flights a day from LHR and another 7 from CDG. UA has a large block of flights from LHR and CDG as well.

 

[USA320Pilot]

Report: US Airways discussing merger with United

"United and US Airways have discussed a tie-up before. In 2000, the U.S. Justice Department nixed a proposed merger on antitrust grounds. Later, when David Siegel was CEO of US Airways, the carrier considered a takeover of United after emerging from its first bankruptcy as a way of remaining competitive. The option was code-named "Project Minnow," with US Airways as the small fish gobbling the bigger one."

See Story

Regards,

USA320Pilot

 

[EyeInTheSky]

Report: US Airways discussing merger with United

"The option was code-named "Project Minnow," with US Airways as the small fish gobbling the bigger one."

See Story

Regards,

USA320Pilot

A three hour tour... Gilligan when are going to get off the United island?

Later,
Eye

 

[Hey.. Chill Out]

Here's Parkers official response:

An Important Message from CEO Doug Parker
April 16, 2008
Dear Fellow Employees,
With the recent news of a potential Delta/Northwest merger, analysts and media are speculating
about the next potential combination. While we had hoped to remain on the sidelines of this
speculation, today’s Wall Street Journal suggests we may be in merger talks with United and
another article in the Dallas Morning News suggests we might make a good merger partner for
American.
While I can’t comment on any specific discussions or transaction I certainly didn’t want you to
hear this speculation without hearing directly from me about what this might mean for US
Airways.
Most of you know my views on consolidation and those have not changed. Our industry is far too
fragmented and consolidation, if done properly, could result in a much healthier industry which
would be good for our employees, our customers and the communities we serve. Rest assured if
US Airways chooses to participate in any industry consolidation, we will do so because we
believe it is the best interests of our employees and our airline.
Despite all of the challenges of merging two airlines, we are a much stronger company today as a
result of the merger of US Airways and America West. We posted the highest pre-tax margin of
the big six airlines in 2006 and even with our operational challenges we posted the second
highest pre-tax margin in 2007.
And we have an improving airline. We’ve made great strides with our operational improvement
plan, including top three performances in on-time arrivals for three consecutive months. As we
continue through 2008, we feel extremely good about our ability to continue to improve our
operational performance relative to the industry.
But we can't ignore what's happening in the world around us. Oil has risen to over $113 per barrel
and Wall Street is anticipating a recession that, if it happens, will lower all airline revenues. And
the DL/NW combination potentially creates a formidable competitor. In that world, all airlines are
going to have to make dramatic changes to their existing business models in order to be viable.
I know airline merger speculation can be distracting so for now, I encourage all of us to remain
focused on running a great airline. Our work on the reliability, convenience and appearance
initiatives continues and we are running an extremely reliable airline as a result. Whatever we do,
we will always take great care to ensure the path we choose returns value to our shareholders
and customers, and also provides long-term stability for our employees.
Thanks for all you do for our customers and keep up the great work.

 

[N965VJ]

A three hour tour... Gilligan when are going to get off the United island?

‘scuse me while I go cop a feel with Ginger.