Triple Combo?

[safety stud]

I know the thoughts of discussing mergers has been blasted to death on this board. However, I want to have you ponder this one. Yes I am a PIT commuter... And that's where I want you to ponder this....

Over the last two years, PIT has given up almost all of it's nonstops to everywhere...
Yet:
PIT-ORD is now covered by UAL
PIT-DEN by UAL
PIT-IAH by CAL
PIT-EWR by CAL
Sept 09
Both PIT-LAX/SFO by UAL

That said, with CAL and UAL and LCC all apart of the Star Alliance... Wouldn't it be a hoot to have all three merge and become the biggest airline domestically, and the number one carrier to Asia, South America, and beyond...

It would be bigger than DAL/NW
and Dwarf AMR...

Things that make you go....
HMMMM....

Just my opinion...

 

[whatkindoffreshhell]

Any banker who would finance this trainwreck would be shot.

And even if they did, the labor groups would kill it.

Moot point anyway. The brains at CO do not want to own any part of UA or US.

 

[28L_or_10R?]

We will eventually merge with UA. Not an if but a when. Not CO.

 

[bigbusboy]

We will eventually merge with UA. Not an if but a when. Not CO.

Let's just pray to the Gods this never happens. But my gut feeling says you might be right. As soon as the credit markets reopen, look out. I've heard several people talk about how Parker tried recently to get more A330-200s and a faster delivery schedule, but was turned down because of financing. The credit markets are what are keeping things quiet....for now. :blink:

 

[flybynite]

Lord a mercy......someone's been grazing in the loco weed.

 

[USA320Pilot]

Until the credit markets begin flowing there is likely no M&A capital available.

In my opinion, US Airways and United will attempt to merge at some point in the future. Here are the most important reasons why.

1. According to United Chief Financial Officer Kathryn Mikells who was interviewed by CNBC following the chicago-based carriers Q1 earnings release in April 2009, the point was made that United has downsized significantly and out of the nine largest U.S. airlines United was the only major air carrier with no aircraft on order. Mikells stated, "It's been known for years that United is up for sale and new aircraft orders could impede a buyer (paraphrased)."

2. "In the longer term after United and Continental complete their (alliance) antitrust review there will be “more opportunity (for US Airways) to work with Continentalâ€￾ and US Airways will become more “deeply embedded with United and it commits them to the domestic portion of the alliance,â€￾ US Airways Presdient Scott Kirby said in the April 28 Crew News employee meeting webcast. "It means it will have more opportunity for usâ€￾ and “don’t believe everything you read (in the media),â€￾ Kirby noted.

3. Last April Larry Kellner, Continental's chairman and CEO, said in a message to employees that the Houston-based airline was better off alone than merging. "We have significant cultural, operational and financial strengths compared to the rest of the industry, and we want to protect and enhance those strengths — which we believe would be placed at risk in a merger with another carrier in today's environment," Kellner said. Click here to read the story.

4. US Airways is not afraid to acquire a larger company and has tried to acquire United twice. And, Doug Parker showed his interest in acquring a larger airline when he made his hostile attempt to acquire Delta.

5. The companies are aligning networks, fleet plans, systems, marketing, and other programs; as well as Scott Kirby recently discussing in an employee webcast broad terms of what will happen with Continental & United and US Airways after Continental & United's anti-trust review is complete.

However, the msot compeling reason is Glenn Tilton and Doug Parker's strategic vision and their leadership style is that of two CEO's who publicly state they have "the urge to merge."

Regards,

USA320Pilot

 

[jimntx]

Any banker who would finance this trainwreck would be shot.

And even if they did, the labor groups would kill it.

Moot point anyway. The brains at CO do not want to own any part of UA or US.

I'm not trying to start an argument, or put down US Airways, but I agree. Given the mess that the US/AW merger is still in from a labor standpoint, and with the bad press and public opinion generated by the debacle that has been AA/TWA, I don't think any airline executive or financier in their right mind is going to rush to do any mergers any time soon. And, I don't think US or UAL have a whole lot of time to sit around waiting for a suitor.

I think the strategy going forward will be to wait until an airline ceases operation, then go to the yard sale and purchase just the equipment and/or routes wanted and needed. No employees involved. My airline (AA) still has a whole bunch of pilots and f/as on furlough they could recall if all they picked up was some routes and equipment. They would then start hiring off the street again to fill the rest of the available slots.

 

[mrman]

There won't be a merger. What there may be is a bankruptcy and purchase of assets. If you want to grow, why merge with another when you can wait for them to go bankrupt, avoid the employee issues, pick up the assets cheap, and then call up your you own furloughees or get new employees at a startup rate.

What advantage does an airline have today with combining.

 

[USA320Pilot]

if an airline bankruptcy occurs during this downturn some analysts beliew AA may be the first company to file for a "formal reorganization" because the Texas-based company has not entered Chapter 11.

There are many financial synergistic benefits in a merger merging that do not exist in other combinations.

Furthermore, Doug Parker and Glenn Tilton are merger advocates.

Interestingly, Gerard Arpey said today that he sees the credit markets easing. Click here to read the article.

Regards,

USA320Pilot

 

[FWAAA]

if an airline bankruptcy occurs during this downturn some analysts beliew AA may be the first company to file for a "formal reorganization" because the Texas-based company has not entered Chapter 11.

Link for that?

 

[jimntx]

First off, I don't see the Theory X management at AMR giving up the control they would have to cede to a bk court. Nor, do I believe they want public scrutiny of the books which would be a feature of bk. I'm not saying it won't happen, but not until there is no other course of action.

Doug Parker and Glenn Tilton are advocates of nothing except Doug Parker and Glenn Tilton. They will do whatever gives them the biggest payout when they walk away. I realize that does not make them wildly unique among airline executives, or corporate executives period. But, don't kid yourself that they care what happens to US or UAL in the long run. Or, even the short run if that means they collect quicker.

 

[Dog Wonder]

I want you to ponder this....

Over the last two years, PIT has given up almost all of it's nonstops to everywhere...
Yet:
PIT-ORD is now covered by UAL
PIT-DEN by UAL
PIT-IAH by CAL
PIT-EWR by CAL
Sept 09
Both PIT-LAX/SFO by UAL

Things that make you go....

UA and CO taking over PIT routes from US means a merger?

It means UA and CO will take whatever they want from US.

Things that make you go...

DOH!

 

[N965VJ]

For some reason, this thread title made me think of this:

 

[etops1]

anything is possible in this industry. nothing surprises me anymore.

 

[700UW]

Oh no the dreaded UCT or ICT is back, LMAO!!!!