UA AND US Merger Talks

[bigbusboy]

Our opinions notwithstanding, Union thoughts on the matter are little more than posturing for negotiations.

Bingo! UA ALPA states they are not opposed to a merger. They are just opposed to any merger that doesn't improve pilot careers and job security. Translation: A merger with US will cost you (US/UA mgmt.) BIG BUCKS. A merger with CO, not so much. UA AFA is basically the same. Union statements made public, for now at least, are posturing for negotiation purposes only.

One poster suggested a three way with CO. Pieces of US and UA go to CO and what remains becomes the new UA. Anything is possible and it's only speculation at this point. Of Course this assumes the NYT article to be accurate and their are actually merger negotiations going on.

 

[US Oringinal]

Let's face it: UA and US are two ugly girls(or guys) at a dance...each hoping to dance with someone prettier....will they settle for each other in the long run???? Stay tuned.....

 

[jimntx]

I think this is going to involve all three, US/UA/CO ..... CO and US have a lot of east coast overlap, just like US and DL did when US try to buy Delta. Parker and the other CEO's want to squeeze capacity out of the industry to gain pricing power. There are many scenario that could involve all three to accomplish it. All lead to fewer employees needed ...

And, you are assuming that a merger to squeeze capacity out of the market will do that. However, as BoeingBoy posted on another thread, "...the legacies reduced capacity by 85 billion available seat miles in the last decade, while the low cost carriers added over 84 billion available seat miles - basically just a shift from legacy capacity to low cost capacity."

Any time someone cuts service or capacity on a route, someone else starts service/increases capacity on that route. WN is particularly astute at seeing and acting on these growth opportunities.

 

[undercover]

Here's 'yer sign:

Yeah, and you finally get rotating reserve.

 

[undercover]

I'm I wrong or did the west pilots file a section 6 or something like that. Doesn't that help them????? 😛h34r: If the merger goes through....?????

 

[ZMAN777]

Our opinions notwithstanding, Union thoughts on the matter are little more than posturing for negotiations.

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)

 

[USA320Pilot]

United Chief on 3rd Verse of Old Tune

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A United, US Airways deal lacks luster, some analysts say- United-Continental deal could create more value, but may also be too complex

But J.P. Morgan analyst Jamie Baker said he thinks a United-US Airways merger would be less complicated than a deal with Continental, largely because of disparate labor cots, fleet structure and more difficult regulatory approval. "We've always felt consolidation was more likely between two airlines with low and commensurate wages than between higher cost, non-commensurate structures," Baker said in a note.

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Shares in US Air and United Rise Amid Merger Talks

News of the renewed talks caught many analysts off-guard.

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Continental: In Wings as United Partner?

http://www.thestreet.com/_yahoo/story/10721744/1/continental-in-wings-as-united-partner.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA


US Airways, United shares rise on reports of merger talks

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US Airways and United Airlines merger rumors fly

"This may be the most-tried deal around," said industry consultant Bob Mann of R.W. Mann & Co. in New York.

Gary Chase, airline analyst for Barclays Capital, called a US Airways/ United deal "compelling" in a report Thursday.

Jamie Baker, who follows airlines for JPMorgan Chase, called the merger the "most logical and feasible" pairing among the nation's hub-and-spoke airlines.

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Regards,

USA320Pilot

 

[USA320Pilot]

Note to US Airways: Fix Your Labor Problems First

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Regards,

USA320Pilot

 

[Black Magic]

US will merge with anyone that is willing, simple as that. Lots of theories and speculation out there. I'd just like to know if US and UA merge which hub will become a focus city PHX or DEN? You know one is gonna be gone.

 

[goodgirl37]

US will merge with anyone that is willing, simple as that. Lots of theories and speculation out there. I'd just like to know if US and UA merge which hub will become a focus city PHX or DEN? You know one is gonna be gone.

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

 

[davo77]

If this merger fails this time...I think you can call it a day for US.....If UA and CO get together..US is definately done....

 

[Black Magic]

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

I wouldn't be so sure, it could go either way.

Phx has far fewer weather delays and is like 4th largest city population wise.

But Denver has less competition from Southwest. I'm sure the people upstairs will crunch the numbers to the last detail to figure it out.

 

[ChrisUS]

Amen...remember there is more to these airlines than just pilots & fa's....

They would be shocked to read this. 🙄

 

[Phoenix]

.. I'd be saying..

Agreed. Its all opinions.

Of note the real UA/US merger announcement back when surprised everyone. NO ONE was talking UA/US when it was announced. Unions don't have much say at any rate. They are just yappers like this forum.

 

[Dont call me Shirley]

If this merger fails this time...I think you can call it a day for US.....If UA and CO get together..US is definately done....

Sadly, you are right. Unless US can find someone like AS, Even then, it would still be too small.

On this board, US was once called something like " a ragtag collection of also-ran regional carries." A description that may be hurtful to those who have a stake in and still care about the company, but is accurate.

These days you are either a mega carrier, a niche operator, or a true LCC (a stock ticker symbol does not make you one). US is none of these.

The same holds true in Europe. The Olympics and SASs are facing a tough future there in the face of LH, AF/KL, and IB/BA.