Merger with LCC in the spring

[phasersonstun2]

It will happen soon.

 

[NewHampshire Black Bears]

It will happen soon.

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Well, it would make sense, seeing(for the time being) that AA/DL/CO + NW are content flying "solo".

UA would lose all the way around,because the ONLY carrier that will deal with UAL, is LCC, who, with the exception of the BOS/LGA/DCA shuttle.....brings NOTHING to UAL's table.

Just the thought of being saddled with PHL, and DOUGWEISER...SHOULD make UAL GAG, but, then again, with Tilton, we are NOT talking Bob CRANDALL here !!!!

 

[FA Mikey]

As much as United wants a merger, even they will not go with the disaster called LCC.

 

[KCFlyer]

As much as United wants a merger, even they will not go with the disaster called LCC.

It depends on what's in it for management. If it's sweet enough, it'll get done.

 

[wopr21]

It depends on what's in it for management. If it's sweet enough, it'll get done.

Thats the key , How much will management get out of the merger. It doesn't matter if it makes sense or not.

IMO NW would be a better fit operationally.

wopr21

 

[PA18]

It depends on what's in it for management. If it's sweet enough, it'll get done.

Bingo.

As much as many Delta employees might like to think that they thwarted the US/DL merger, the fact of the matter is, they didn't. (Although I do admire the unity they displayed and the effort they put forth.)

When there is money to be made by the "suits", employees and customers are cast aside as mere collateral damage, like the nursery school and old people's home that were destroyed because they happened to be next to the targeted ammo dump.

 

[NewHampshire Black Bears]

Thats the key , How much will management get out of the merger. It doesn't matter if it makes sense or not.

IMO NW would be a better fit operationally.

wopr21

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With ALL due RESPECT to you..wopr21, ....WHY in GODS name,would NW want/NEED to hook up with UAL ????

If by chance you were refering to LCC, NW would,nt buy into that "Abortion" if it meant spending YOUR MONEY !!!!

(ABSOLUTELY ...NO DISRESPECT meant to the good folks of US east) !!!!!

 

[PA18]

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

With ALL due RESPECT to you..wopr21, ....WHY in GODS name,would NW want/NEED to hook up with UAL ????

If by chance you were refering to LCC, NW would,nt buy into that "Abortion" if it meant spending YOUR MONEY !!!!

(ABSOLUTELY ...NO DISRESPECT meant to the good folks of US east) !!!!!

NHBB,

You're missing the point of the last three posts.

It has nothing to do with the wants, needs, or synergies of the respective merging operations.

It has everything to do with how much the deal-makers get for doing the deal.

 

[Cosmo]

It will happen soon.

Is this even in the right forum?

IMHO, there is virtually no chance that UA will merge with US -- nada, zip, zilch. UA has been very clear that it wants to merge with either CO or DL because of their South American operations, the part of the world where UA is weakest, from stronger hubs in IAH and ATL, respectively. CLT simply doesn't have the South American operations that UA wants. Moreover, since both UA and US have been talking about "consolidation" for some time, they already would have merged (or at least announced a merger) if it was really going to happen.

And as Bears noted earlier, US doesn't really add much to UA, in terms of things UA really needs, other than the DCA-LGA-BOS shuttle, a larger Caribbean operation, and about 10 more (albeit mostly seasonal) destinations in Europe. And while the CLT hub works well and would add more UA service in the southeast part of the country, it's not really critical to UA's future. But in the highly unlikely event of a UA/US merger, CLT would almost certainly be the only surviving former US hub in the post-merger UA system. PHL would close in favor of an expanded IAD -- who needs PHL's problems, including the "Philly Factor", when you have IAD's higher yields, more runways and better ATC environment. PHX and LAS would also be reduced to merely spokes to UA's hubs, and PIT would finally lose whatever remains of its non-hub flying. And while it's possible that some of the non-hub flying at DCA, LGA and BOS might remain, such domestic flying is almost non-existent in UA's current system. So it's not hard to envision that slot and gate sales would help pay for a UA/US merger and also go far to satisfy any possible DOJ antitrust concerns.

With regard to Tilton and his desire for a big payday in any merger, he may be greedy but he's not stupid. He knows that Wall Street is not clamoring for a UA/US merger (unlike that hedge fund that is touting a DL/UA merger), and he doesn't want to annoy the money folks by wasting time, money and effort with a merger that doesn't do much for UA's future. IMHO, Tilton is pursuing a bigger prize, whatever that may be.

And if I were a US employee, I'm not so sure that I would be looking forward to a UA/US merger. If UA jettisons most of the US flying that does not involve CLT, the shuttle, Europe or the Caribbean, UA won't need the excess planes, ground facilities or employees either. So if you work for US, be very careful what you wish for in terms of airline consolidation -- IMHO, with a UA/US merger, there's a very good chance you won't like the result.

 

[etops1]

Is this even in the right forum?

IMHO, there is virtually no chance that UA will merge with US -- nada, zip, zilch. UA has been very clear that it wants to merge with either CO or DL because of their South American operations, the part of the world where UA is weakest, from stronger hubs in IAH and ATL, respectively. CLT simply doesn't have the South American operations that UA wants. Moreover, since both UA and US have been talking about "consolidation" for some time, they already would have merged (or at least announced a merger) if it was really going to happen.

And as Bears noted earlier, US doesn't really add much to UA, in terms of things UA really needs, other than the DCA-LGA-BOS shuttle, a larger Caribbean operation, and about 10 more (albeit mostly seasonal) destinations in Europe. And while the CLT hub works well and would add more UA service in the southeast part of the country, it's not really critical to UA's future. But in the highly unlikely event of a UA/US merger, CLT would almost certainly be the only surviving former US hub in the post-merger UA system. PHL would close in favor of an expanded IAD -- who needs PHL's problems, including the "Philly Factor", when you have IAD's higher yields, more runways and better ATC environment. PHX and LAS would also be reduced to merely spokes to UA's hubs, and PIT would finally lose whatever remains of its non-hub flying. And while it's possible that some of the non-hub flying at DCA, LGA and BOS might remain, such domestic flying is almost non-existent in UA's current system. So it's not hard to envision that slot and gate sales would help pay for a UA/US merger and also go far to satisfy any possible DOJ antitrust concerns.

With regard to Tilton and his desire for a big payday in any merger, he may be greedy but he's not stupid. He knows that Wall Street is not clamoring for a UA/US merger (unlike that hedge fund that is touting a DL/UA merger), and he doesn't want to annoy the money folks by wasting time, money and effort with a merger that doesn't do much for UA's future. IMHO, Tilton is pursuing a bigger prize, whatever that may be.

And if I were a US employee, I'm not so sure that I would be looking forward to a UA/US merger. If UA jettisons most of the US flying that does not involve CLT, the shuttle, Europe or the Caribbean, UA won't need the excess planes, ground facilities or employees either. So if you work for US, be very careful what you wish for in terms of airline consolidation -- IMHO, with a UA/US merger, there's a very good chance you won't like the result.

and your so sure of this why? is it just because you do not want it to happen or because you have solid evidence that it won't? we really do not know what is going on behind the scenes until it is announced . anything is fair game right now. a bunch of armchair ceo's around here.

 

[wopr21]

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With ALL due RESPECT to you..wopr21, ....WHY in GODS name,would NW want/NEED to hook up with UAL ????

If by chance you were refering to LCC, NW would,nt buy into that "Abortion" if it meant spending YOUR MONEY !!!!

(ABSOLUTELY ...NO DISRESPECT meant to the good folks of US east) !!!!!

Thats correct , I was referring to LCC and NW. It would be a good match. I agree with you that know wants to take on LCC with problems they have . Just like with DAL, that would have been unfortunate for everyone. What I'm saying is that if a deal looks good for management's pockets and the stock holders, it doesn't matter how the employees are effected.
Remember too that HP did not buy LCC , it was money from numerous investors. It could happen again with anyone at anytime with any combination.

It will be something totally unexpected....

No dis taken

wopr21

 

[wopr21]

NHBB,

You're missing the point of the last three posts.

It has nothing to do with the wants, needs, or synergies of the respective merging operations.

It has everything to do with how much the deal-makers get for doing the deal.

Thanks for clearing that up

wopr21

 

[FA Mikey]

Perhaps a better question is why LCC people are so gung ho on a merger, when they are still fighting over the last one?

 

[wopr21]

Perhaps a better question is why LCC people are so gung ho on a merger, when they are still fighting over the last one?

I think they are waiting for a golden knight to come save them from this train wreck, and all will be well.

wopr21

 

[FA Mikey]

Is this even in the right forum?

IMHO, there is virtually no chance that UA will merge with US -- nada, zip, zilch. UA has been very clear that it wants to merge with either CO or DL because of their South American operations, the part of the world where UA is weakest, from stronger hubs in IAH and ATL, respectively. CLT simply doesn't have the South American operations that UA wants. Moreover, since both UA and US have been talking about "consolidation" for some time, they already would have merged (or at least announced a merger) if it was really going to happen.

Why prize someone else's Latin American operation when you had a prime one of your own? UAL could rebuild their own with out all the hassle of a merger.