As I reported a few days ago with the starting of this thread, it seems that the 'heavy duty UA/US rumors' of last week are now fruitating with the 'initial' public merger comments by "Top Management" from UA. The fact that this rumor preceded the announcement by UA management is quite interesting.
I believe there is a heavy hitter and the most likely candidate is United. Look for arbitration cases to be dropped by both IAM districts and for a much more rapid timetable in getting a new agreement for both 141 and the mechanic group. The I'll Ask Management union will hoodwink its members but any deal will most likely be pushed through by the AWA members.
Big money may be knocking at US AIRWAYS door and having labor muzzled with new hoodwinked contracts will help secure any transaction. Whatever is going to happen is going to happen very quickly IMO, with ALPA eventually deciding sometime in late fall.
With secure contracts for a new investor, I look for the 'proposed merger' to become a reality on the condition that ALPA members at US AIRWAYS come to a resolution that doesn't jeopardize any investment by, let's say United.
IMO, if this comes to pass, I believe ALPA members will vote for the proper seniority provisions so that any potential merger will be 'seamless'. I would say that the deck of cards has changed and if United does pick US AIRWAYS up then it will most likley want DOH seniority provisions to make it seamless. A vote against a United merger may mean 'dire consequences'.
Of course I'm not on a board nor have I talked to any board members so consider all of the above 'speculative' at this time. It's merely based on an incredible rumor that has gained force of late. Although such a rumor may just be BS, IMO, this rumor might stick.
regards,
Dear friends, are you still waiting for those new uniforms, new routes, new aircrafts? Do you feel there's a lack of leadership at UAL? No meaningful PR announcements?
One airline analyst, and this one ONLY, wrote after getting acquainted with UAL's re-organization plan that it is a medium term plan. What if we don't find a "suitable" (dancing partner and we run out of time (reads money)?
Read on...
Safe travels...
Wednesday June 13, 3:59 pm ET
By Dave Carpenter, AP Business Writer
United Airlines Still Looking for a Merger, CFO Says
CHICAGO (AP) -- United Airlines remains interested in industry consolidation and would like to team up with a U.S. carrier with a strong presence in the Northeast and a hub in the South, its chief financial officer said Wednesday.
Jake Brace told analysts there are candidates for such a merger but indicated United has no intention of attempting a hostile takeover, citing the recent failed bid by US Airways Group Inc. to acquire Delta Air Lines Inc.
"Consolidation is not something that one company can do in isolation," he said at the Merrill Lynch Global Transportation Conference in New York. "We don't believe that ... hostiles in the airline industry are very successful. Our belief is that you have to do something on a consensual basis."
United, a unit of Chicago-based UAL Corp., publicly began touting the need for industry consolidation even before ending a three-year bankruptcy restructuring last year. But the nation's second-largest carrier has taken a lower profile on the subject in recent months with conditions less ripe for a merger.
Not only are U.S. airlines financially more stable than in recent years, both Delta and Northwest Airlines Corp. completed their restructurings this spring, thus eliminating rivals' ability to acquire them in bankruptcy and slash costs more readily in court.
Brace rejected a suggestion that United has downgraded consolidation as a priority and shed some light on what it has in mind if it can find a willing merger partner. He said it would like to combine with another airline that is strong in the Atlantic and needs a southern-tier hub to strengthen its service to the Caribbean and Latin America, where it has a smaller presence than other U.S. airlines.
"Our focus is on the Northeast, a southern-tier hub and helping us in Latin America," he said.
Delta, US Airways and Continental Airlines Inc. all have been mentioned as possible merger partners for United, although Brace didn't name names.
Airline consultant Robert Mann said Delta is the likeliest candidate, with strengths in both areas.
"If you're just taking the (Brace) hints, you'd say Delta," said Mann, who is based in Port Washington, N.Y.
"He's basically saying the same thing that (CEO Glenn) Tilton's been saying for a long time, which is 'Please, someone write us a big check.'"
Tilton and other advocates of consolidation say the industry would be financially stronger and more efficient by a merger that would eliminate excess capacity and help boost fares and revenue.
Delta CEO Gerald Grinstein disclosed last October that United had contacted the Atlanta-based airline about a possible merger in 2005, which Delta rejected. United also hired Goldman Sachs & Co. last year to explore strategic options.
Shares in United rose 10 cents to $34.70 in afternoon trading, down from $44 at the start of
