UA getting cold feet on U? (fingers crossed)

[UnitedChicago]

Let's hope this is true and UAL chooses to strike a very tight alliance with CO (with the ability to negotiate corporate deals as one entity, share gates, etc. How cool would it be to see CO 73's parked at the B concourse at ORD!).

Then dump Tilton, Tague, and Brace; demote McDonald; bring in a solid team that Kellner can influence to get UAL in-to-shape; potentially they merge some time in the future when things are stablized and working well.

Oh dare to deam the headline of Business Week sometime in the future about how [insert management team here] really fixed UAL and things are well; unions feel a connection to management, etc.

_____________________________________

Report: United balking at merger deal

Published: May 17, 2008 at 10:44 AM
Print story Email to a friend Font sizeITTSBURGH, May 17 (UPI) -- A report published Saturday said United Airlines is balking at the terms of a possible merger between it and US Airways of Pittsburgh.

The Pittsburgh Post-Gazette quoted sources close to the negotiations as saying "most" of the uncertainty surrounding the merger talks was coming from United, which has yet to agree with US Airways on such issues as where the headquarters of the combined operation would be and who would make up its management team.

The newspaper said its source confirmed "both sides have been engaged in conversations for the last two months" and that while US Airways "appears ready to work out the details, United could still decide to remain independent." While no formal timetable has been set for the merger, negotiators expect United could make a decision by the end of May, the newspaper said.

However, the Post-Gazette reported that concern is high among the two airlines that the longer the discussions drag on, the more likely the deal will draw tough antitrust scrutiny from Congress.

 

[LGA Fleet Service]

The Pittsburgh Post-Gazette quoted sources close to the negotiations as saying "most" of the uncertainty surrounding the merger talks was coming from United, which has yet to agree with US Airways on such issues as where the headquarters of the combined operation would be and who would make up its management team.

Where would the HQ be?! Why wouldn't the headquarters remain in ORD? Can there really be any doubt?

What, is Parker lobbying hard for Tempe? Christ on a bike, he's going to kill United Airlines if this deal goes through...


How about a prepackaged Chapter 11 Section 363 bankruptcy filing ala AA/TWA with Continental?

Section 363

Advantages of a Section 363 sale include speed, transfer of assets free and clear of encumbrances and interests, transfer of restricted contracts and avoidance of exposure to claims under fraudulent transfer laws. For a seller, the Section 363 process eliminates director and officer exposure for the sale and limits exposure for breach of representations and warranties.

 

[etops1]

usairways is not of pittsburgh. and don't beleive everything you read in the papers.

 

[Itestwell]

Hasn't the Pit Post- Gazette realized yet that it is not, and never was, "USAirways of Pittsburgh"?

Boy, I bet this article is just chock full of factual, unbiased information.
:mf_boff:

 

[wings396]

Based on what has been said so far, all indications were that HDQ would remain in ORD with Doug at the helm.........

 

[hp_fa]

The only reason that I would expect that Tempe, or the Phoenix metro area, is being considered is lower costs. I don't have any inside information, but the cost of living, the wages paid and, I suspect, the cost of infrastructure (building leases, etc.) are lower in the Phoenix metro area. That could be driving this issues, if it really is an issue.

BTW, before I get flamed, remember that I have previously posted that I expect Chicago to be HQ, mostly based on the perception that Chicago is a more worldly and presigious locale than the perception of the Phoenix metro area.

 

[brokenwrench]

Divided we stand, United we fall!


May 6, 2008

The IAG team does a quick review of the possible merger between United and US Airways and it looks nasty. As the table clearly illustrates United is the industry's weakest link. As stated in the podcast, the bear only has to catch the weakest - but there is more than one carnivore doing the chasing, so nobody is really safe.

Download the chart here.

That said, United and US Airways can clearly be bled to death by Southwest. The weakest are up against the strongest and the situation is dire. Merging the two weakest adds not one bit to a more secure future. Indeed, US Airways should reject United's overtures forthwith as the bear will catch United first. US Airways may be able to escape if the industry's fortunes turn within the year. For United, all things remaining the same, the year looks like being lunch.

 

[hp_fa]

I am not sure that I buy that particular argument for the reason that I seem to recall that a senior executive of Southwest went on record as saying that Southwest was going to stop growing the airline because it had hit it's limit with it's current infrastructure and didn't want to invest in expanding that infrastructure in the current market. Now, I will agree that thoughts like this can change, but if Southwest is looking at not wanting to invest in expansion because it could hurt the bottom line, then there is only so much that Southwest can do to go into new markets and still keep their high frequency schedule to the city pairs they serve.

 

[flydude]

http://www.thedeal.com/dealscape/2008/05/d...talk_united.php

 

[does this plane go to paris]

[quote name='hp_fa' post='607335' date='May 18 2008, 12:08 PM'][quote name='brokenwrench' post='607318' date='May 18 2008, 11:13 AM'That said, United and US Airways can clearly be bled to death by Southwest.

I am not sure that I buy that particular argument for the reason that I seem to recall that a senior executive of Southwest went on record as saying that Southwest was going to stop growing the airline because it had hit it's limit with it's current infrastructure and didn't want to invest in expanding that infrastructure in the current market. Now, I will agree that thoughts like this can change, but if Southwest is looking at not wanting to invest in expansion because it could hurt the bottom line, then there is only so much that Southwest can do to go into new markets and still keep their high frequency schedule to the city pairs they serve.[/quote]

WN has and will always be a growth stock/airline. They typcially double in size every 6-8 years. They have reduced the growth for this year and next due to oil skyrocketing. When a business cease's to grow it will not attract new invester's. Southwest is waiting on the sideline's conserving cash and waiting for the effect's of 133.00 oil to sink in and will take appropriate steps to grow at the right time/place.

 

[United1]

Divided we stand, United we fall!


May 6, 2008

The IAG team does a quick review of the possible merger between United and US Airways and it looks nasty. As the table clearly illustrates United is the industry's weakest link. As stated in the podcast, the bear only has to catch the weakest - but there is more than one carnivore doing the chasing, so nobody is really safe.

Download the chart here.

That said, United and US Airways can clearly be bled to death by Southwest. The weakest are up against the strongest and the situation is dire. Merging the two weakest adds not one bit to a more secure future. Indeed, US Airways should reject United's overtures forthwith as the bear will catch United first. US Airways may be able to escape if the industry's fortunes turn within the year. For United, all things remaining the same, the year looks like being lunch.

That chart is so inaccurate that its not even funny, the IAG team figured out how much cash every airline had on hand divided that amount by the operational loss for 1st quarter and came up with a death date for every carrier. There’s two problems with those dates that they came up with first they assume that the operational loss will remain constant, we all know that those numbers are never the same twice. Second they assume that that entire operational loss is made up of cash burn, something like 80% of UAs first quarter loss was a paper loss.

Sorry that chart is rubbish..... :down: :down: :down:

 

[767jetz]

Here's another indicator pointing to cold feet...

Clash over leadership could snarl airline deal

 

[LD3]

Here's another indicator pointing to cold feet...

Clash over leadership could snarl airline deal

Would you trust any of these stooges running an airline, they pretty well proved they are incapable.....

 

[casual rat]

Each of them ARE greedy to the point of selling their Mothers for a dime--that qualifies! Running an airline-- that's ridiculous! Only Southwest, and to a lesser extent, CO does that crazy thing these days! Embezzling money, on the other hand, we've got two great candidates!

 

[robbedagain]

im not sure i would rate US and UA as the highest and 3rd highest ch11 with the dough that us has id have to wonder how long they and all of the other airlines given the ridiculously high oil prices.