Why would United agree to let Continental have the west operations? Give it to Frontier, Airtran, or Virgin.
Merger with LCC in the spring
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Why would United agree to let Continental have the west operations? Give it to Frontier, Airtran, or Virgin.
jimntx
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First off, you need to name an airline that has some money to spend.
Frontier is in BK, and I don't think Airtran or Virgin has any extra shopping money right now.Without a presense in the west they can't obtain a market share they need to survive as a stand alone carrier. Therefore, it would be beneficial for them to pick up HP, in addition they were a codeshare partner with HP prior to HP buying US. That was my only thinking, plus you would think that UA in order to get a deal done by breaking up US would be willing to let CO have the US Routes to China they recently won IIRC. Plus I'm sure they could transfer the route from PHL to EWR with very little problems.
But then I read someplace that UA really wants a place to launch planes to South America......well didn't they try that already? MIA?
767jetz
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Ridiculous! Merger will be between CO & UA. Most details already worked out. If US is involved, it will be similar to AA acquiring TWA, where AA, US&CO, and possibly NW&DL will get parts of US. But in reality no one is interested in adding domestic capacity. In fact everyone has announced reductions in domestic seat capacity. The money and expansion is international. US brings almost nothing of value to the table. Merging with them simply makes no sense. consolidation is not about pure size, but global reach and pricing power.
And by the way, regardless of what unfolds, there will be no in house union at UA. They tried that and failed miserably. The only support for UPA (United Pilots Association) was a small group of vocal malcontents in IAD. UPA closed up shop about a year ago (give or take.) So even if US is involved in a merger, USAPA will be shown the door VERY quickly.
see this link on an article printed just today....
http://www.post-gazette.com/pg/08107/873809-100.stm
sorry not in paper today.... (couple of days ago)
<_<
767jetz
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This is last weeks news. Since then numerous articles have reported that the likelihood of a UA/Co merger is where the money is. They also say that everyone is talking to everyone else to size up the possibilities.
No doubt Parker and many US supporters (employees and customers) would love to hook up with UA, and I'm sure there have been discussions. But most (not all) true airline analysts and insiders don't see the benefit for a UA/US merger for anyone but US. A UA/CO merger makes much more sense and is where the money is.
And besides all this, a UA/CO merger mostly has the support of the employees, where a UA/US merger would be a bigger mess than US/AWA.
luvthe9
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From the one who knows all It's not me, have fun with it!!!!
Dear Fellow Pilot,
It is my understanding that the United-US Airways merger announcement could be made this week. UAL is bleeding to death and needs to get access to cash, which US Airways has. Doug Parker will become the combined carrier’s CEO with some members of the Tempe-based airline’s “executive management†team remaining, Glenn Tilton will retire, and most of senior management will come from UAL.
The Nicolau Award will be used as the new US Airways because it’s in the possession of the company, is the list that will be used when the snap shot is taken, the durability of the Transition Agreement is in question because we went from two MEC’s with separate operations to one union leadership group, and there could be some furloughs.
ALPA will return to the property when the UAL pilots use their voting majority to impose their will on the US Airways pilots.
Regards,
It's not me, have fun with it!!!! Dear Fellow Pilot,
It is my understanding that the United-US Airways merger announcement could be made this week. UAL is bleeding to death and needs to get access to cash, which US Airways has. Doug Parker will become the combined carrier’s CEO with some members of the Tempe-based airline’s “executive management†team remaining, Glenn Tilton will retire, and most of senior management will come from UAL.
The Nicolau Award will be used as the new US Airways because it’s in the possession of the company, is the list that will be used when the snap shot is taken, the durability of the Transition Agreement is in question because we went from two MEC’s with separate operations to one union leadership group, and there could be some furloughs.
ALPA will return to the property when the UAL pilots use their voting majority to impose their will on the US Airways pilots.
Regards,
767jetz
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From the one who knows all
Regards,
Where do you get this stuff?
luvthe9
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You should know, you're on our site enough, we only have one all knowing indvidual who the company contacts before any major move
Where do you get this stuff?
Take a guess!!I think UA is hoping for a CO merger but CO seems to be reluctant. They stated previously they would prefer to stand alone but will look at options. I'm just guessing maybe they don't think UA is their best move and they may have other ideas. If so, UA may have to agree to merge with LCC.
luvthe9
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UAL and CAL cut. http://biz.yahoo.com/ap/080418/s_p_airlines.html?.v=1
767jetz
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USA320Pilot
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J.P. Morgan Invetment Report - April 21, 2008
U.S. Airlines : United-US Airways: 3rd Time's The Charm?
Reports that United & US Airways continue to discuss a potential merger did not generate a single investor inquiry for us. Meanwhile, the furious speculation surrounding Continental-United continues. While we are steadfast in our view that the value of consolidation is best measured by the savings from flying less, we actually see considerable merit to a United-US Airways combination, including the removal of uncertainty as to whether United’s team would cede the level of control we believe Continental would insist upon.
Pilot Perspective – DAL had to purchase its pilot waiver in order to proceed, through a combination of wage and equity. CAL & UAUA have disparate wage structures with no existing code-share flexibility, suggesting requisite permissions may prove expensive. But UAUA & LCC contracts require no such waivers, and wages are already closely aligned. We envision no wage bump or equity, though longer-term labor cost advantages are unsustainable.
Fleet Perspective – DAL-NWA have disparate fleets, with similar Airbus/Boeing conflicts at CAL-UAUA. But save for 9 A330s, LCC doesn’t fly a single type UAUA doesn't (though engines are not perfectly aligned).
Capacity Perspective – LCC is beholden to a minimum fleet size of 322, about 20 fewer than today. But we estimate UAUA could shrink close to 15% (independent of M&A) before hitting EBIT-adjusted flying minimums. And both managements have proven aggressive when it comes to cuts, whereas Continental has been a laggard in this regard.
Alliance Perspective – UAUA-LCC doesn't rock the alliance boat. And we continue to cling to the unpopular belief that continued SkyTeam allegiance could prove a source of incremental liquidity for Continental.
Regulatory Perspective – Concentration at DCA could prove problematic. But our Principle of Consolidation Number Eight has long been the involvement of AirTran or JetBlue in hopes of currying regulatory favor and perhaps contributing capital.
Third Time’s The Charm? United was interested in America West in 1998, US Air in 2000. Today, both are available under one roof.
Finally, What’s Best for United? While we’ve criticized certain United policies in the past (its dividend, for example), there’s no doubt in our minds that United prioritizes owners over its other constituents to a greater degree than most in the industry. And this is how it should be, in our view. Rather than structure a deal that potentially affords disproportionate benefit for CAL shareholders, United management may instead place greater emphasis on an LCC transaction, given its highly depressed share price.
Regards,
USA320Pilot
U.S. Airlines : United-US Airways: 3rd Time's The Charm?
Reports that United & US Airways continue to discuss a potential merger did not generate a single investor inquiry for us. Meanwhile, the furious speculation surrounding Continental-United continues. While we are steadfast in our view that the value of consolidation is best measured by the savings from flying less, we actually see considerable merit to a United-US Airways combination, including the removal of uncertainty as to whether United’s team would cede the level of control we believe Continental would insist upon.
Pilot Perspective – DAL had to purchase its pilot waiver in order to proceed, through a combination of wage and equity. CAL & UAUA have disparate wage structures with no existing code-share flexibility, suggesting requisite permissions may prove expensive. But UAUA & LCC contracts require no such waivers, and wages are already closely aligned. We envision no wage bump or equity, though longer-term labor cost advantages are unsustainable.
Fleet Perspective – DAL-NWA have disparate fleets, with similar Airbus/Boeing conflicts at CAL-UAUA. But save for 9 A330s, LCC doesn’t fly a single type UAUA doesn't (though engines are not perfectly aligned).
Capacity Perspective – LCC is beholden to a minimum fleet size of 322, about 20 fewer than today. But we estimate UAUA could shrink close to 15% (independent of M&A) before hitting EBIT-adjusted flying minimums. And both managements have proven aggressive when it comes to cuts, whereas Continental has been a laggard in this regard.
Alliance Perspective – UAUA-LCC doesn't rock the alliance boat. And we continue to cling to the unpopular belief that continued SkyTeam allegiance could prove a source of incremental liquidity for Continental.
Regulatory Perspective – Concentration at DCA could prove problematic. But our Principle of Consolidation Number Eight has long been the involvement of AirTran or JetBlue in hopes of currying regulatory favor and perhaps contributing capital.
Third Time’s The Charm? United was interested in America West in 1998, US Air in 2000. Today, both are available under one roof.
Finally, What’s Best for United? While we’ve criticized certain United policies in the past (its dividend, for example), there’s no doubt in our minds that United prioritizes owners over its other constituents to a greater degree than most in the industry. And this is how it should be, in our view. Rather than structure a deal that potentially affords disproportionate benefit for CAL shareholders, United management may instead place greater emphasis on an LCC transaction, given its highly depressed share price.
Regards,
USA320Pilot
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