UA AND US Merger Talks

[freedom]

Come people get real! This is April. It's the month when Parker rolls out the old playbook just like two years ago this very month. And the play is the same...."Okay, it's fourth and 30.....everyone go deep and I'll wing this Hail Mary pass and hope it works. Maybe they'll fall down and fail to defend it!"

And, just like two years ago the UAL MEC Chairman and the rest of the BOD at UAL will simply swat it away. Nothing personal but LLC brings nothing to the table of any REAL value that UAL wants/needs. REAL value is a lot different than PERCEIVED value. Continental and it's position at EWR/NYC presence has REAL value. US Airways at PHL/DCA , etc. are PERCEIVED value that has eroded much over the past decade. Given WN's incursions to most everyone's fortress hubs the value of these has gone down a lot!

If the roles were reversed and LLC had CO's EWR/NYC presence I'd be saying this thing has merit. The big goal of UAL is a major NYC presence and what CO can additionally bring to the route structure. Then again a UA-CO merger may not happen either. That being said, the smart money (check today's ticker prices!) isn't on UA-US.

Cheers,
Z B)

actually we have alot of REAL value and future value ...

control of DCA is vital to our survial , when you think DCA think of government traffic not affected by the recession ..

our hubs in PHL and CLT are well postioned compared to the rest of the nation in terms of economic fallout ,,, ( those two citites haven't been hit as hard as new york or say all of cali )

our HUB in PHX while not as vital as the other two presents the best west coast option for a merged airline to conduct traffic through .... califiorna should just be written off right now for conducting major operations due to the worsening unemployment rate in that state , and the desperation of the state government to raise taxes by "whatever means are necessary " ,,, we can expect any company doing bussiness within that state to pay ALOT more in taxes .

sure arizona is also in a bad way much like cali , but here the state government and the population is mostly conservative and thinks that it's a mistake to raise taxes on companies to make up for budget short falls ( meaning they will slash state services before taxing employers ... then there's the fact that US airways has ALOT of leverage in this state because we are one of the largest private employers ... even if HQ moved , we would STILL be a huge force within the state ...

once you compare us to denver and the weather problems that they have, PHX will continue as a HUB , maybe not as large as we once were , but still around ...

so in any merger with united we will bring strong hubs AND our world renow leadership ... Doug Parker has done a FANTASTIC job of making two airlines into one newer and stronger entitiy ... i know that many of you have an issue with him due to your labor "problems" . Looking at what he's done from a NON union perspective , he's accomplished great things ,so let's all hope he can do it again ...

 

[Real tired]

This will be great!

A group of Yes voting, management boot licking, company men, (ie. The USAirways Mechanics), combine with the, on their backs with their throats exposed, little puppy, Yes voting United Mechanics to form a group that will vote Yes for anything.

We'll show you!!

 

[HPDriver]

Take a guess, it wont be DEN, I can tell you that much.

DEN is far from being a shoe-in.

High costs, weather, two LCC's, etc don't make this airport all that attractive.

 

[Fly]

Continental May Top US Air as Stronger United Partner

Continental May Top US Air as Stronger United Partner



April 9 (Bloomberg) -- Continental Airlines Inc. would make the best merger partner for United Airlines, creating the world’s largest carrier, should the pair restart talks that fizzled in 2008, analysts said.
Executives at Continental started a review of options two days ago after the disclosure of United’s talks with US Airways Group Inc., according to a person familiar with the matter who asked not to be identified because details are confidential. Spokesmen for all three airlines declined to comment.

 

[gar]

Continental May Top US Air as Stronger United Partner

Continental May Top US Air as Stronger United Partner



April 9 (Bloomberg) -- Continental Airlines Inc. would make the best merger partner for United Airlines, creating the world’s largest carrier, should the pair restart talks that fizzled in 2008, analysts said.
Executives at Continental started a review of options two days ago after the disclosure of United’s talks with US Airways Group Inc., according to a person familiar with the matter who asked not to be identified because details are confidential. Spokesmen for all three airlines declined to comment.

 

[hp_fa]

Yes, but how does UA having major MX infrastructure at DEN work into the equation? Also, other than London, do the serve any Trans-Atlantic or Trans-Pacific cities with nonstop service? Going much further than London could be an issue for a PHX hub in the summer. I also think PHX lacks any way to compete on gate space requirements.

 

[gar]

Oops, disregard my last post. Hit the wrong key.

 

[Freighterguynow]

Nothing personal but LLC brings nothing to the table of any REAL value that UAL wants/needs.

Given WN's incursions to most everyone's fortress hubs the value of these has gone down a lot!

Z B)

You'd think 3 years in bankruptcy would tone done the attitude - oh well.

US Airways is doing the buying so it's what Parker wants wants/need at the Tilton/ UAL garage sale.

What ' fortress hub' do you speak of - Denver or Chicago? Southwest has a 14% share of the market in both as well as PHL.

Cheers to you.

 

[Freebird]

You'd think 3 years in bankruptcy would tone done the attitude - oh well.

US Airways is doing the buying so it's what Parker wants wants/need at the Tilton/ UAL garage sale.



Cheers to you.

Is this like AWA buying US Airways? Truth only.

 

[Freighterguynow]

Is this like AWA buying US Airways? Truth only.

AWA didn't have the money to buy a new lav truck.

It's wall street money and who has the bankers ear.

Never the less , It's 1985 United, a domestic only carrier, bought the Pan Am Pacific routes. The Pan Am dudes where staggered that this podunk airline dared to ..... well, you get the point.

"whom the gods will destroy they first make proud"

 

[usa1]

US Airway's demise would fix the industry. But Parker and Kirby are managing her finances in such a way that she's not going anywhere any time soon. BUT if Parker and Kirby can get the right deal for the two of them they will let her go. How it occurs is anyone's guess. Will Parker and Kirby make a bundle and walk or will they take the controls at some sort of combination.

 

[IberiaMAL]

US Airway's demise would fixing the industry.

Yep. Imagine if US Airways goes under. Imagine how much capacity that would reduce;

PHX: I'm sure no airline would expand here...
LGA: I'm sure no airline would expand here...
PHL: I'm sure no airline would expand here...
DCA: I'm sure no airline would expand here...

I bet LGA and DCA would see even more capacity and more competition with US Airways gone than with US Airways... Imagine the lowcost carriers bringing in mainline equipment replacing US Airways Dash 8's...

Southwest would most likely grow Philadelphia or some other airline would. PHL is too large not to be a hub/focus city for anyone...

Southwest, Allegiant, and maybe another regional would grow PHX

Airtran, JetBlue, American, United, Continental, or any other airline might set up shop in Charlotte... And even if none of them airlines don't set up shop in Charlotte.. it's not like the Southeast (the most populous region in the USA) needs less competitors... All it has is Delta and Airtran to a limited extent.


So, if US Airways does go under, it does nothing at all to fix the industry but just make it the same if not worse...

 

[BoeingBoy]

So, if US Airways does go under, it does nothing at all to fix the industry but just make it the same if not worse...

While most equate consolidation with merger, all it really means is fewer carriers - no matter if it's through mergers, fragmentation, or liquidation. As you say, overall capacity wouldn't change much or for long since the low cost carriers would fill in the void. Where it would make a difference is in the smaller markets that wouldn't be of that much interest to the lcc's - think AVP, AVL, etc. They would have less competition and see higher fares.

Jim

 

[mweiss]

control of DCA is vital to our survial , when you think DCA think of government traffic not affected by the recession ..

Fair point. Federal government is not especially subject to economic hard times.

our hubs in PHL and CLT are well postioned compared to the rest of the nation in terms of economic fallout ,,, ( those two citites haven't been hit as hard as new york or say all of cali )

PHL, sure. But I seem to recall CLT as being pretty financial-sector heavy, and that's been a rather tough part of the economy.

our HUB in PHX while not as vital as the other two presents the best west coast option for a merged airline to conduct traffic through

Here I strongly disagree, for several reasons, which I will outline below:

califiorna should just be written off right now for conducting major operations due to the worsening unemployment rate in that state , and the desperation of the state government to raise taxes by "whatever means are necessary " ,,, we can expect any company doing bussiness within that state to pay ALOT more in taxes .

Clearly you don't live in California, or you'd understand why that statement is pure fantasy. I'd suggest you look into the details of Proposition 13 before you talk about taxes in California.

sure arizona is also in a bad way much like cali

Which is the first reason why I don't think PHX makes sense for a network airline's hub.

, but here the state government and the population is mostly conservative and thinks that it's a mistake to raise taxes on companies to make up for budget short falls ( meaning they will slash state services before taxing employers

Blah, blah, blah...see above re: Proposition 13.

... then there's the fact that US airways has ALOT of leverage in this state because we are one of the largest private employers ... even if HQ moved , we would STILL be a huge force within the state ...

Yes, the Arizona government will bend over backward to try to keep airline business in the state. This is the only positive I see with keeping a PHX hub. And it's probably worth reminding that US got phenominal concessions from Pittsburgh government a decade ago. Today, PIT is an outstation for the most part. So anything Arizona's government offers may delay the inevitable, but it probably won't stop it.

once you compare us to denver and the weather problems that they have, PHX will continue as a HUB , maybe not as large as we once were , but still around ...

O&D margins are the more important factor. DEN's are better. PHX's are good enough for a focus city, for now.

Doug Parker has done a FANTASTIC job of making two airlines into one newer and stronger entitiy

Not from where I sit. And I don't even work for the airline.

 

[Dont call me Shirley]

Not from where I sit. And I don't even work for the airline.

I thought OP was joking about the "FANTASTIC" part.