UA/UA merger?

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isthisok

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Aug 29, 2002
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www.usaviation.com
Check this out...............
UA files for Chapter 11 without concessions.
UA contracts are abrogated.
UA is history.
UA/US merge out of bankruptcy as US under new contracts in affect (abrogated IAM-M and CWA).
Big sticking point for original merger was seniority. US is more senior so they offer early retirements to get rid of senior people so seniority is not a big issue. Also in newly signed US contracts if their is a merger there is a snap back to old contract wages top make everybody happy.
Bottom line UA is history!
US is the new combo!
Believe it! It is written................
11.gif'']
 

dfw79

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Aug 20, 2002
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I wondered how long it would take someone to explain the obvious. UAL hiring TWA's old firm...and not really pushing as hard for consessions at U -- among other things, this merger is fairly obvious that it will eventually happen. US Airways will likely be the aquiring carrier with their new cost effective contracts -- and dare I say that US will be the surviving name. Now off to dreamland for a second -- a 747-400, or 777 for that matter, in US Airways colors. Oooooo
 
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chipmunn

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Lilninj:

Lilninj asked: Who has money for a merger???

Chip answers: The ATSB.

Chip
 

luv2fly

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Aug 21, 2002
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www.usaviation.com
[blockquote]
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On 9/12/2002 11:16:19 AM chipmunn wrote:

Lilninj:

Lilninj asked: Who has money for a merger???

Chip answers: The ATSB.

Chip
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[/blockquote]
Yes,

Because we all know that was the true intent of the ATSB. To save financially troubled airlines that were financially challenged long before the events of 9-11.
 

ITRADE

Veteran
Aug 19, 2002
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DCA/IAD US2
www.geocities.com
[P]
[BLOCKQUOTE][BR]----------------[BR]On 9/12/2002 11:27:06 AM dfw79 wrote:
[P]I wondered how long it would take someone to explain the obvious. UAL hiring TWA's old firm...and not really pushing as hard for consessions at U -- among other things, this merger is fairly obvious that it will eventually happen. US Airways will likely be the aquiring carrier with their new cost effective contracts -- and dare I say that US will be the surviving name. Now off to dreamland for a second -- a 747-400, or 777 for that matter, in US Airways colors. Oooooo [/P]
[P]----------------[/P]
[P]Here's a US Airways Boeing 777 for ya![/P]
[P][img src=http://ebay1.ipixmedia.com/abc/M28/_EBAY_a45b2270fa05b7bb540c0732e6a3cc1d/i-3_B_L.JPG border=0][/P][/BLOCKQUOTE]
[P][/P]
 

Lilninj

Member
Aug 21, 2002
48
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Who has money for a merger??? Can they afford to lobby for it? Can they afford to go back out there and tell the public that both airlines will fold without a merger? If they do and fail, there will be further degredation of loads and revenues. A merger proposed in the near future would be a huge gamble. I believe it will eventually happen but not until both airlines are again healthy and face a disadvantage to AA. Who knows when that will be but I'm sure it's not coming soon.
 
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chipmunn

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Itrade:

That is an awesome picture, which by the way could occur.

A few days ago I visited your website and I was very impressed. You did an outstanding job puting together an informative site which looks at US.

There is one area of the OMB regulations that discuss the ATSB’s shaping power. When discussing how a loan guarantee can be applied, the regulation says, “If loan funds are to be used to purchase an existing firm, or the substantial assets of an existing firm, the business plan of the combined entity shall contain a discussion of an existing firm, the business plan of the combined entity shall contain a discussion of the way in which any required regulatory or judicial approvals will be obtained, including antitrust approval for any proposed acquisition.â€￾

It is clear the ATSB has extraordinary authority, the rules discuss M&A activity, and the board can even make a condition for a loan guarantee such things as a bankruptcy filing, an asset divestiture, or a corporate combination.

I do not know if UA & US will combine in some fashion and it will be up to the parties involved to decide their course of action, but there are some unusual signs and something has to be done with the industry in crisis. In addition, I believe there are so many moving parts that even the players do not know how this will all wash out; however, nothing will be decided until its known whether or not UA seeks bankruptcy protection.

What I find interesting is that Norm Mineta serves on the ATSB and is the DOT Secretary. UA & US asked the DOT to not disclose their code share details and the DOT declined the ACAA (with DL & AA support) for a full docket review, which would have made the proceedings public. Why the secrets and why did the UA pilots obtain pre-nuptial seniority language in their agreement, if nothing could happen to combine the company's?

Chip
 
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chipmunn

Guest
Dfw79:

Dfw79: US Airways will likely be the aquiring carrier with their new cost effective contracts -- and dare I say that US will be the surviving name. Now off to dreamland for a second -- a 747-400, or 777 for that matter, in US Airways colors.

Chip comments: Dfw, you are close to a potential option, but until the UA & US situations play out, nothing is guaranteed and nobody can be assured who will survive. In the case of US, the first step is for employee restructuring accords to be reached (either voluntary or court-ordered), the TPG coordinated DIP/Emergence financing be executed, and the Plan of Reorganization be approved.

In the case of UA, the company and its employees must decide whether or not they will restructure inside or outside of bankruptcy; however, I understand there are some people in extremely influential positions that believe UA must enter bankruptcy to deal with what some believe is a cumbersome governance issue.

Just one more point, there are people close to the ATSB that believe combined loan guarantee funds could be used for a corporate combination, not to mention outside financing by a firm like TPG, if the parties agree this would be the best course of action. However, for anything good to happen to US and its employees the company must obtain restructuring accords and survive.

Chip
 

batman

Member
Aug 20, 2002
43
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[blockquote]
----------------

In the case of UA, the company and its employees must decide whether or not they will restructure inside or outside of bankruptcy; however, I understand there are some people in extremely influential positions that believe UA must enter bankruptcy to deal with what some believe is a "cumbersome" governance issue.

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[/blockquote]


Those people are gone. And Jack Creighton stuck around to make sure they are gone. As a matter of fact the two top execs still hanging around were against Ch11.
Offcourse the fact that Jack did not get any salary and only got stock options, make some sense too.
Also Jack is still hanging around as he shows the new guy the way around WHQ.
As for your theory, give it a rest. Its not going to happen. Usair is becoming more of a regional player and there is no reason to merge, just like there is no reason to merge with ACA or AirWisconsin.
 

UAL777flyer

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Aug 20, 2002
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While there may appear to be significant parallels between US Airways and United's situations, I don't believe they're going to attempt another merger via the ATSB and Chapter 11, despite how it may look. The employees of UA still have a VERY sour taste in their mouths over the last UA/US merger attempt and how it was crammed down their throats by lousy and incompetent Senior Management. Glenn Tilton is facing perhaps the most daunting challenge in the industry in attempting to turn UA around and fix its problems. To do that and be successful, he will need to change the culture and the senior management/workforce relationship. And to do that, he'll need trust and credibility. If he attempts to use the ATSB and Ch.11 to force another UA/US merger down the throats of employees........financed off the backs of their concessions while employees are on furlough, he would immediately lose all trust and credibility and be lumped into the same category as Goodwin, Dutta and Studdert. In other words..........start looking for ANOTHER CEO. I'm well aware of the revenue benefits of a combined UA/US. However, to get to the point of reaping all those benefits, you must have the support of the workforce, which you wouldn't get with another merger go-around using those circumstances.

I wish nothing but the best for US Airways and I hope you can restructure. And I'm all for the codeshare. But let UA get their house in order and on stable financial ground so we can lay the foundation for internal growth and recall of furloughed workers.
 
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