Merger with LCC in the spring

[phasersonstun2]

United just moved into their new skyscraper on Wacker St. ..

If LCC merges with UAUA, the headquarters will be in ORD. Parker knows any deal would involve leaving the Tempe "tombstone".

 

[NoMoreKoolAid]

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

Yep, Money talks!

 

[767jetz]

Reuters reports that UA and CO have picked up the pace on merger talks, but the deal still hinges on the outcome of DL and NW. Link here

Will this "UA merging with LCC" thread ever die?

 

[jimntx]

Reuters reports that UA and CO have picked up the pace on merger talks, but the deal still hinges on the outcome of DL and NW. Link here

Will this "UA merging with LCC" thread ever die?

Not as long as there is one forum member still breathing who wants it to happen.

 

[gaucho99]

The thread won't die until there is no more possibility for it to happen. That won't be until UA merges with somebody else. The fact that CO has had talks with AA means they are at least considering a hook up with AA rather than UA. If that happens, UA will pretty much be left with US unless they want to go alone.

 

[767jetz]

The thread won't die until there is no more possibility for it to happen. That won't be until UA merges with somebody else. The fact that CO has had talks with AA means they are at least considering a hook up with AA rather than UA. If that happens, UA will pretty much be left with US unless they want to go alone.

Excuse me but I am afraid you are mistaken. The only way a merger between CO and UA won't happen is if DL and NW do not merge. As has been reported, the UA/CO merger hinges on the DL/NW merger. If DL does not merge with NW, then UA and DL will proceed with a merger, leaving LCC with no one to dance with again. And if DL and UA merge, then CO will either pursue NW or possibly AA as a defensive move.

For the 1,000,000th time... If UA and LCC were going to merge it would have happened by now. No one wants to touch LCC with a 10 foot pole due to the current problems on their property and the fact that they bring very little to the table that the legacies are interested in.

 

[gaucho99]

Excuse me but I am afraid you are mistaken. The only way a merger between CO and UA won't happen is if DL and NW do not merge. As has been reported, the UA/CO merger hinges on the DL/NW merger. If DL does not merge with NW, then UA and DL will proceed with a merger, leaving LCC with no one to dance with again. And if DL and UA merge, then CO will either pursue NW or possibly AA as a defensive move.

For the 1,000,000th time... If UA and LCC were going to merge it would have happened by now. No one wants to touch LCC with a 10 foot pole due to the current problems on their property and the fact that they bring very little to the table that the legacies are interested in.

You are correct that a UA-CO merger is contingent on NW-DL merging. But if DL-NW merge it does not necessarily mean CO-UA will merge too. It is highly likely that it will happen but don't think it is automatic. CO may have other ideas.

 

[ThirdSeatHero]

You are correct that a UA-CO merger is contingent on NW-DL merging. But if DL-NW merge it does not necessarily mean CO-UA will merge too. It is highly likely that it will happen but don't think it is automatic. CO may have other ideas.

Well it would seem we'll find out soon enough.

News reports the DAL&NWA pilot groups have given the proposed merger the green light.

 

[gaucho99]

Here's some interesting connections between CO and AA.

http://www.newsvisual.com/newsvisual/2008/...nental-amr.html

 

[NewHampshire Black Bears]

Ah,...."what a TANGLED WEB we weave" 🙄

 

[jimntx]

Here's some interesting connections between CO and AA.

http://www.newsvisual.com/newsvisual/2008/...nental-amr.html

This may also simply indicate that the "public" governance of corporations is not nearly as public as we would all like to believe. This officer in Corporation A is also a Director of Corporation B. And, interestingly enough, an officer of Corporation B turns out to be a Director of Corporation A.

Look at how often a company gets rid of some goofball. He/she is known as a goofball. It is carefully documented how he/she screwed up in their current job. Yet, the next thing you see in the business pages is that said goofball has just been appointed to the same friggin' position in another company, usually in the same industry. The examples are legion. Can you say Jane Allen?

(At least, United had the good sense to get her out of Flight Service.)

 

[featheroleather]

Excuse me but I am afraid you are mistaken. The only way a merger between CO and UA won't happen is if DL and NW do not merge. As has been reported, the UA/CO merger hinges on the DL/NW merger. If DL does not merge with NW, then UA and DL will proceed with a merger, leaving LCC with no one to dance with again. And if DL and UA merge, then CO will either pursue NW or possibly AA as a defensive move.

Just curious,how would DL be able hook up with UA if the DL/NWA merger falls apart?From everything I've read,DL and UA would be too big for the government to allow,plus the time line of doing it while the current administration is in office would be a lot shorter.Thanks

 

[magsau]

Just curious,how would DL be able hook up with UA if the DL/NWA merger falls apart?From everything I've read,DL and UA would be too big for the government to allow,plus the time line of doing it while the current administration is in office would be a lot shorter.Thanks

Well what is the timeline that you approve of as being within the boundaries of the current administration? Since DL and NW are still "talking" and no official announcement just yet are you implying it is too late for DL/NW? I do not think AA/CO will ever occur. The CO and AA talks are much like the reports a couple of weeks ago of DL and CO talking. DL and CO have too many hubs too close together and AA and CO would be as unproductive of a merger as anyone could imagine. EWR/JFK IAH/DFW are the largest hubs, they are too close and if you work for either of these companies and hope for this marriage you best hope you have a plan B for your future as the job losses would be massive.

The one thing that will result from all of these mergers that will be good for passengers and the industry as whole will be the wholesale elimination of RJ's. The overlap that occurs between network carriers is in the RJ flying. With DL and NW they tend to have service with RJ's from the eastern cities to the hubs of ATL, CVG, DTW, MEM and MSP. No way all the hubs will be retained (look at STL in the AA/TWA merger). With CVG and MEM being mostly RJ's the rationalization of the delays will hopefully take place. Maybe we can start seeing a return to days without flow for TMI.

 

[767jetz]

Just curious,how would DL be able hook up with UA if the DL/NWA merger falls apart?From everything I've read,DL and UA would be too big for the government to allow,plus the time line of doing it while the current administration is in office would be a lot shorter.Thanks

If the DL/NW merger falls apart it would not have anything to do with it's size or the government. I was referring to the many details that must be agreed to before hand. Particularly surviving management, HQ location, and even more specifically pilot integration. Trust me when I say that right now, the ALPA MEC's at all 4 airlines are on the same page. The merger scenarios before us produce a huge amount of leverage that will raise the bar for every pilot at each airline. I recently attended a UA ALPA meeting that had a CO and an AA (APA) pilot in attendance. IMO the pilots at NW and DL are very close to a prenuptial agreement that would allow the merger to proceed. There are multiple reasons that pilots and management both want a quick and clean merger,and no one wants to repeat what has happened to USAirways/AWA.

The bottom line is that DL prefers a merger with NW, and as a second option UA. UA wants a merger with DL but will also be happy with CO. CO prefers to go it alone, but will not be left out of the process and will merge to protect itself in a new landscape. A clean and pre-packaged arrangement with labor's seal of approval that the board can announce and vote on in short order will trump any "spoilers" like AA from offering competing deals without the pre-nups and labor cooperation, avoiding a bidding war.

 

[USA320Pilot]

Here we go again...there is reason to believe US & UA could merge.

And, I agree with Doug Parker's comments to US News & World Report. Parker was asked, "Conventional wisdom seems to be there will be these two big mergers, Delta-Northwest, and maybe United-Continental, and then the dust will settle. Do you foresee any surprises?" Parker responded, "It's fair to say there will be surprises. Whatever seems like the most likely scenario is probably not where we'll end up. It's much more likely that something else will happen."

See Story

Moreover, one should not discount US Airways Vice-Chairman of the Board Bruce Lakefield's ability to work the financial markets to obtain M&A funding.

Regards,

USA320Pilot