Merger Not Imminent.

767jetz

Veteran
Aug 20, 2002
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Some info regarding USAirways and it's business partner

I had an interesting and rather long conversation with several high level people within UA. Here are a few facts I came away with:

1- The article many people have read (I believe in the Washington Post) referring to a merger or other transaction (something to that effect) was not a news article at all. It was a column written by a journalist who has long been in the Washington area and has ties to Crystal City. The column is subject to the writer's opinion and speculation. USAirway's management is well aware that their employees would rather experience a merger than a liquidation, and could be using this misinformation as a tool to advance their agenda of further concessions from the employees.

2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."

3-UA's decision to reduce retiree's benefits is not a signal that ATSB approval is in question. It is simply another stone that will not be left unturned. In many public statements to employees and the court, UA reserved the right to change these benefits through the BK process. In fact, it bolsters UA's application because it shows that UA is continuing to search for was to reduce expenses where possible.

4- UA's ATSB application process is on track. There is a high level of confidence that approval is likely. The application is predicated on keeping pensions intact. There is no desire or intention to seek an equity investor such as RSA.

5- A default by USAirways will not jeopardize UA's application. A liquidation of USAirways could cause some complication due to the loss of codeshare revenue, however it would NOT be a fatal blow to the ATSB application.

It has been speculated by a few that UA's ATSB application will not be approved, therefore forcing UA and US into some type of merger in order for both companies to survive, with funding for said transaction coming from an equity investor like RSA or similar.

I hope this clarifies some of the speculation that has recenty been floating around this board. We are all watching carefully as USAirways' drama unfolds, and I sincerely wish the employees well. These are tough times, and I don't like to see hardship fall on anyone. Keep the faith...

767jetz
 
Well that did it...reading all that must mean that the MERGER is right on track!! Probably by early summer..........history speaks, the exact OPPOSITE always happens.
 
Given all the "warm fuzzies" that AA experienced in their merger with TWA, do you think United would want to take on all that extra baggage? IMHO, if UAL wants anything, they'll wait for US to liquidate, buy what they want in the liquidation sale, and hire any employees they want without the hassle of union integration issues. Tain't pretty, but anybody who holds hope for a "merger" to save them is living in a dream.
 
Flufdriver said:
Well that did it...reading all that must mean that the MERGER is right on track!! Probably by early summer..........history speaks, the exact OPPOSITE always happens.
:D :D :D

That's funny!

Hey, you never know. Just telling you what I know... so please don't shoot the messenger. ;)
 
Correct, there will be no MEGA merger. Unfortunately it will be several airlines getting pieces of USAirways. What carrier, or investor thinks that USAirways as a whole is a good investment? The carrier has assets to sell and some assets will fit with some carriers while the other assets will fit well with others.
 
737nCH11 said:
USA320pilot to the spin room, stat!!!! :lol:
This is my first post. I have read the U board for a long time, though, and laughed out loud when I read this quote about Chip Munn to the spin room...atleast there is occasional humor and laughs on this board.....

I think 767JETZ is probably reporting the truth as to there not being an imminent merger with United. They have their own problems to deal with, and unlike the TWA acquisition...there is no reason with the current state of the airline economy for any carrier to acquire USAIRWAYS "just to keep somebody else from getting them." When the TWA deal came about, it was at a point in time that other carriers could/would have these concerns.....but now is a different economic landscape to put it mildly. There are valuable parts of U to be sure that are worth money......but it is unlikely that ANY carrier would want to take the WHOLE just to get a few cherries that might benefit their particular airline's needs, even if it means paying a premium at auction to get ONLY what they truly need for their operation.

And let's " not even go there " when it comes to the problems of integrating the 2 work forces.

 
767jetz said:
2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."
I remember a "highest source" that said in December of 2002 that there were no plans to farm out ANY maintenance. The "S" checks were starting due in July 2002. It seems that any statement from "high sources" means just about the opposite. Or perhaps the word imminent means tomorrow to high sources.
 
767jetz said:
Some info regarding USAirways and it's business partner

I had an interesting and rather long conversation with several high level people within UA. Here are a few facts I came away with:

1- The article many people have read (I believe in the Washington Post) referring to a merger or other transaction (something to that effect) was not a news article at all. It was a column written by a journalist who has long been in the Washington area and has ties to Crystal City. The column is subject to the writer's opinion and speculation. USAirway's management is well aware that their employees would rather experience a merger than a liquidation, and could be using this misinformation as a tool to advance their agenda of further concessions from the employees.

2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."

3-UA's decision to reduce retiree's benefits is not a signal that ATSB approval is in question. It is simply another stone that will not be left unturned. In many public statements to employees and the court, UA reserved the right to change these benefits through the BK process. In fact, it bolsters UA's application because it shows that UA is continuing to search for was to reduce expenses where possible.

4- UA's ATSB application process is on track. There is a high level of confidence that approval is likely. The application is predicated on keeping pensions intact. There is no desire or intention to seek an equity investor such as RSA.

5- A default by USAirways will not jeopardize UA's application. A liquidation of USAirways could cause some complication due to the loss of codeshare revenue, however it would NOT be a fatal blow to the ATSB application.

It has been speculated by a few that UA's ATSB application will not be approved, therefore forcing UA and US into some type of merger in order for both companies to survive, with funding for said transaction coming from an equity investor like RSA or similar.

I hope this clarifies some of the speculation that has recenty been floating around this board. We are all watching carefully as USAirways' drama unfolds, and I sincerely wish the employees well. These are tough times, and I don't like to see hardship fall on anyone. Keep the faith...

767jetz
and what higher up would tell you anything but????????
 
This is what I think is going to happen. I think the Pilots and F/A
at Usairways are going to cave in to management demands To save our
jobs. We have little choice in the matter if we want to stay in the
airline business. The only other choice is to try to get a job with a
LCC and start over. So for those of us who want to stay in this business why
not just change things here). I think part of this new plan will be to change
Usairways domestic operation and get it as close to a LCC as they can get and
keep the international operation intact until LCC get into the market
If U can restructure in this way it should set the standard for the
rest of the legacy carriers as LCC get heavily into their markets. There
is no way any legacy carrier can take on a LCC and win so we have to
change or die. Its hard to accept but true. I like working in this
industry. I will look at what management has for a plan and If I can
live on it I will stay and if not I will still stay until I can go
back to school and start a new career.
 
usfliboi said:
and what higher up would tell you anything but????????
Glen Tilton.

I had him on my jumpseat for 5 hours and he revealed UA's business plan! But he did ask me to keep it under wraps so he wouldn't go to jail for violating confidentiality laws.

Sorry Glen... :(
:p :D

In all seriousness, the conversation did take place, and I heard what I heard. Were they blowing smoke?? Maybe. Maybe not. But the people are certainly in a position to know. And I'm sure nothing they said was confidential.

Also, consider this. If something were going on between UA and US, they would not be allowed to say anything due to confidentiality laws. They could not confirm or deny a thing. Their only response can be "No comment." Since they were talking about it pretty freely indicates to me that there really is no plan for US & UA beyond a strengthening of code share that we all already know about.
 
AlabubbaRegional said:
767jetz said:
2- There is no talk of any form of merger between US and UA. Let me repeat using a direct quote that comes from the highest source... "A Merger is NOT imminent."
I remember a "highest source" that said in December of 2002 that there were no plans to farm out ANY maintenance. The "S" checks were starting due in July 2002. It seems that any statement from "high sources" means just about the opposite. Or perhaps the word imminent means tomorrow to high sources.
Management will come on these boards and post anything that will accomplish their goals of crushing labor. They are the masters at deception, deceit, and lies as this one post I quote here clearly shows. The internet is a nightmare to these people where information throws water on their fires that are trying to burn everything labor has won over the years.

It was not pure consequence that Jerry Glass, a known enemy of labor, was selected by Dave Siegel a young CEO out to make a name for himself. Jerry Glass sits at every meeting where labor is involved not as a promoter of labor’s cause, but to crush labor with threats of must do. They are relentless and totally ruthless using a bad situation as leverage for their goals. These people will stop at nothing and watch these boards like a Hawk. Management have PMed posters that represent a threat to them. Notice that they have stopped their Pming since they sent out the new ethic policy booklet. Another consequence? I don't think so. Ask the older posters who watch these boards.

Read these boards for entertainment that are mostly printed imaginations sprinkled with truth here and there along with management spin doctors stirring the pot when they feel it's necessary, which is often.