Leaked: US and UA in merger talks for over a month
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She/he?
Anyway, Etops, what does your sources think that United offers US that is valueable [United did lose 550Mil...]?
Regardless of the 500million ual lost.. Everyone at USAirways thinks that a merge is going to happen with UAL..
This is just a deploy to make the industry such as US/UAL think that a big merge is going to take place..
discreetly now.. UAL and CAL are working out the deal now to merge. The announcement will come the first week of MAY.
So instead of all this blogging about USAIR.... wait and see.... After this announcement with CAL-UAL... Decide who USAIR is really
going to end up with or are they going to be sold in pieces....
This is just a deploy to make the industry such as US/UAL think that a big merge is going to take place..
discreetly now.. UAL and CAL are working out the deal now to merge. The announcement will come the first week of MAY.
So instead of all this blogging about USAIR.... wait and see.... After this announcement with CAL-UAL... Decide who USAIR is really
going to end up with or are they going to be sold in pieces....
sources .. what sources? 😉 no comment .
FlyUs
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You're kidding right?.. I know you're entitled to your own opinion but did u happen to catch UAs financial results for the quarter? Worst in the industry. You act as though you work for SW. The ONLY airline that actually has bragging rights! You keep living in your fantasy and keep wishing UA and CO merge.
Why US Airways May Fly Solo
April 24, 2008, 9:59 am Link to This
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Topics Mergers & AcquisitionsIndustries Airlines/Autos
US Airways on Thursday joined the other large, United States-based network carriers in reporting a major quarterly loss: It said it was $236 million in the red. But while it has been invited to the money-losing party, it seems to be the only major American airline not invited to the merger jamboree.
Why? Bankers close to the company say the airline doesn’t offer much to a merger partner. Its lack of choice international routes, as well as the hangover from its 2005 merger with America West, has made it the odd man out.
Doug Parker, the chief executive of US Airways, kicked off the latest round of airline merger mania last year when his company made an unsolicited offer to buy then-bankrupt Delta Air Lines for $10.2 billion. But Mr. Parker’s dream of creating a mega-airline never got off the ground, as Delta management convinced the creditors committee that an independent Delta was in their best interest.
Fast-forward to last week, when it was Delta that was doing the shopping, announcing a tie-up with its SkyTeam partner, Northwest Airlines.
And what of US Airways? The airline’s stock has plummeted more than 80 percent since the Delta deal failed to go through early last year. It is the only major carrier that is rarely mentioned as a possible merger partner for the other remaining legacy carriers. Continental Airlines and UAL, the parent of United Airlines, are supposedly cozying up together. AMR, which owns American Airlines, has been in discussion with Continental as well.
The reason US Airways remains a wallflower has to do with the way it was formed and where it flies. When US Airways emerged from bankruptcy in 2005, it rebranded itself as a “low-cost carrier.†It even chose “LCC†as its stock symbol to reflect its new mission as a no-frills airline. Its merger with America West offered transcontinental coverage to what was, at the time, an East-Coast-centric airline.
Link
Of course we may all be surprised in the end, but interesting read otherwise.
April 24, 2008, 9:59 am Link to This
E-mail This
Topics Mergers & AcquisitionsIndustries Airlines/Autos
US Airways on Thursday joined the other large, United States-based network carriers in reporting a major quarterly loss: It said it was $236 million in the red. But while it has been invited to the money-losing party, it seems to be the only major American airline not invited to the merger jamboree.
Why? Bankers close to the company say the airline doesn’t offer much to a merger partner. Its lack of choice international routes, as well as the hangover from its 2005 merger with America West, has made it the odd man out.
Doug Parker, the chief executive of US Airways, kicked off the latest round of airline merger mania last year when his company made an unsolicited offer to buy then-bankrupt Delta Air Lines for $10.2 billion. But Mr. Parker’s dream of creating a mega-airline never got off the ground, as Delta management convinced the creditors committee that an independent Delta was in their best interest.
Fast-forward to last week, when it was Delta that was doing the shopping, announcing a tie-up with its SkyTeam partner, Northwest Airlines.
And what of US Airways? The airline’s stock has plummeted more than 80 percent since the Delta deal failed to go through early last year. It is the only major carrier that is rarely mentioned as a possible merger partner for the other remaining legacy carriers. Continental Airlines and UAL, the parent of United Airlines, are supposedly cozying up together. AMR, which owns American Airlines, has been in discussion with Continental as well.
The reason US Airways remains a wallflower has to do with the way it was formed and where it flies. When US Airways emerged from bankruptcy in 2005, it rebranded itself as a “low-cost carrier.†It even chose “LCC†as its stock symbol to reflect its new mission as a no-frills airline. Its merger with America West offered transcontinental coverage to what was, at the time, an East-Coast-centric airline.
Link
Of course we may all be surprised in the end, but interesting read otherwise.
Cosmo
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I've now seen this comment made by a few people on this board over the past few months to support their contention that PHL would be a more valuable international gateway than IAD for a merged UA/US. I didn't think it was true when I saw the comment before, and I KNOW that it's not true now. Not only does IAD handle more international passengers, the comparison is not even close.
I went to each airport's website and discovered the following international passenger information (enplaned + deplaned) for calendar year 2007:
IAD - 5,942,497 (see the IAD statistics here)
PHL - 4,035,065 (see the PHL statistics here)
If you do the math, you will see that IAD's international passengers in 2007 on all carriers were 47% greater than PHL's total. But wait ... there's more!
Let's look at the calendar year 2007 total international O&D data generated by UA at IAD vs. US at PHL (due to DOT confidentiality rules for that data, I cannot show the actual numbers but I can show the percentage relationships). In each case, the UA results at IAD were far ahead of the US results at PHL -- passengers larger by 34%, the average fare higher by 124%, and total revenues greater by a whopping 199%.
The fact of the matter is that IAD has far more international passengers than does PHL, on both an enplaned/deplaned basis and an O&D basis. This is also indicated by the fact that IAD is served by far more foreign carriers -- 21 (including AV which starts in June) vs. 5 at PHL -- offering a much larger number of flights and who understand the strength of IAD's international passenger base (as does United). So IMHO, anyone who thinks that PHL would be the premier east coast international gateway for a merged UA/US, especially if United is the purchaser, will likely be sorely disappointed. The data simply doesn't support any other conclusion.
:huh: Well... Since United has a far superior product, is a "Global" carrier, has billions of international destinations, one would think United would not lose 500 Million...
I, personally, think US Airways would be a strong competitor if all these mergers go through. Switch over to One World, continue to improve operations, stay at a perfect size.
Bigger airline = Bigger debts/losses. Last thing, in my opinion, you want is big debts/losses during a credit crunch, horrible economy, or a trip to Chapter 11.
All my opinion. I am no expert, je je.
Be Careful What You Wish For.
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I like your thinking but what about AA- they are the biggest and apparently have not given up as much as UAL. I'm beginning to rethink the UAL wish.
UA/US is the most likely of the combinations for many reasons. A/C type, fleet size, previous interest in both, alliance, costs, labor, ability to make tough calls..it all adds up...and of course ALPA to top it off.
USA320Pilot
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In today's Q&A:
Q. Per CNN Money United and US Airways are in serious discussions and looks like the two airlines are going to merge, truth to what they are saying?
A. Ah CNN Money, or better known as "the media"...they're not always accurate (ahem) but I know you know that. Doug is talking about this now, so you'll hear that...we can't talk about anything specific, but will look at opportunities for our company's future that make sense for our employees, shareholders and customers. thx for the question.
And, I just went to listen to the State of the Airline Webcast. I just noticed that US Airways has placed a link on theHub.com (East Employee Portal) in the Webcast Upcoming Events section that a Webcast is scheduled titled 'Directors and Above Meeting", which will be available for employees to listen to on Friday, April 25, 2008 (tomorrowy) at 9:00 am Arizona time.
West employees likely have a similar link on Compass.
For East employees who want to view the link sign into thehub and click here.
Why did US Airways place the Webcast link onto the US Airways employee website tonight?
Regards,
USA320Pilot
Q. Per CNN Money United and US Airways are in serious discussions and looks like the two airlines are going to merge, truth to what they are saying?
A. Ah CNN Money, or better known as "the media"...they're not always accurate (ahem) but I know you know that. Doug is talking about this now, so you'll hear that...we can't talk about anything specific, but will look at opportunities for our company's future that make sense for our employees, shareholders and customers. thx for the question.
And, I just went to listen to the State of the Airline Webcast. I just noticed that US Airways has placed a link on theHub.com (East Employee Portal) in the Webcast Upcoming Events section that a Webcast is scheduled titled 'Directors and Above Meeting", which will be available for employees to listen to on Friday, April 25, 2008 (tomorrowy) at 9:00 am Arizona time.
West employees likely have a similar link on Compass.
For East employees who want to view the link sign into thehub and click here.
Why did US Airways place the Webcast link onto the US Airways employee website tonight?
Regards,
USA320Pilot
Harry Callahan
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Well I was over at United this evening & I was told by one of their agents that they were briefed today (Thurs) by the IAM & told the merger was a done deal & would be announced AFTER the fleet service vote.
Two questions, if you do not mind;
1. What type of agent told you.
2. Where exactly is "at United?"
Elevation
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LGA Fleet Service
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USA320Pilot said:
By the gods man! You've discovered the proof everyone has been looking for! Credibility at last! Vindication!
What were they thinking, that no one would see the webcast link and not put two and two together???
The Fools! Never should they underestimate the ability of a single line pilot to spin grand designs and theories out of innocuous statements and acts...
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