united usairways deal may be falling apart

[USA320Pilot]

UAL, US Airways Chiefs to Meet Tomorrow on Merger, People Say

The chief executive officers of UAL Corp.'s United Airlines and US Airways Group Inc. will meet tomorrow to discuss a possible merger as rising fuel prices add to pressure for a tie-up, people familiar with the talks said. United's Glenn Tilton and US Airways' Doug Parker will try to make progress on labor, financing, seating-capacity cuts and other issues that have slowed work on a merger, said the people, who asked not to be named because the matter is private.

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Regards,

USA320Pilot

 

[as the prop turns]

Yes, we have had the number one on time departures. At our passengers expense. Close doors in the face of connecting passengers because connecting times are too short, got to get that plane out. Leave non rev's behind because this piece of garbage computer system won't allow us to do our jobs properly and efficiently and at speeds we were used to, but, you got to get that plane out. Parker and his chimps are a disgrace. However, when the only competition they have ever know is WN and our only competition has been the world, you bet we look at things differently. Great customer service is how you seperate the men from the boys. I have been with this carrier for 27 years, and I will never lower my standards to HP levels. Every decision "they" have made, every one, has lowered us further into the abyss. Art has got it right. That man has been fighting for the reputation of a once great airline. Many have been right by his side. USAir delivered a superior product, but because of this incompetent group of men, we have lost our top flyers, corporate accounts; the list is endless. To quote someone I very much admire: "They know the price of everything, and the value of nothing."

 

[USA320Pilot]

Three points:

1. US management did not prevent a new pilot contract...the US East ALPA MEC and USAPA have prevented it. After the Nicolau Award was released the East MEC and JNC pulled out of joint contract talks because a new contract would have implemented the Nicolau Award.

2. I agree with Mary Schlangenstein that "rising fuel prices add to pressure for a tie-up (UA-US merger)."

3. I agree with ETOPS1 that "this aint' over by a long shot and I believed it then and still believe now that this merger will happen."

Regards,

USA320Pilot

 

[freedom]

Yes, we have had the number one on time departures. At our passengers expense. Close doors in the face of connecting passengers because connecting times are too short, got to get that plane out. Leave non rev's behind because this piece of garbage computer system won't allow us to do our jobs properly and efficiently and at speeds we were used to, but, you got to get that plane out. Parker and his chimps are a disgrace. However, when the only competition they have ever know is WN and our only competition has been the world, you bet we look at things differently. Great customer service is how you seperate the men from the boys. I have been with this carrier for 27 years, and I will never lower my standards to HP levels. Every decision "they" have made, every one, has lowered us further into the abyss. Art has got it right. That man has been fighting for the reputation of a once great airline. Many have been right by his side. USAir delivered a superior product, but because of this incompetent group of men, we have lost our top flyers, corporate accounts; the list is endless. To quote someone I very much admire: "They know the price of everything, and the value of nothing."

Hey , when you go back to 1970 , can you get me some of those stylish clothes ?


Your first point about sometimes closing the door etc…. well , we’re not trying to save every last passenger …. If you gotta close the door to get out on time , then you gotta close the door … I HIGHLY doubt we’re closing the door on groups of 20 or 30 … but one or two is acceptable .

I’d like to join you in your pity party over the fact that sometimes we can’t provide service to our non-revs … people who are flying our airline for free … ourselves actually …. Oh man I bet the pity party is going to be big on that topic , please take some pity party pictures and send them to me later OK ?

You don’t like PARKER because he’s done his job well ,in fact you hate him because he’s too good .. You want a new CEO who will bend over for labor … and when that happens we’re all either back in CH 11 or CH 7 ….

ART used to be useful , I used to love listening to his ditrades against our company back before I had a contract , also in those days we weren’t looking at going back into BK or worse … but times have changed and we can no longer afford to listen to the siren voice of disgruntled workers and passengers , no , we must stare reality right in the face …. And it sure ain’t pretty ..

 

[USA320Pilot]

CEOs of UAL, US Airways to Meet To Discuss Progress of Merger Talks

By SUSAN CAREY
May 28, 2008 5:22 p.m.

CHICAGO (WSJ.com) - The chief executive officers of UAL Corp. and US Airways Group Inc. are scheduled to meet Thursday to discuss the progress of their merger talks and share information on potential deal problems that UAL directors raised at their last board meeting, said people familiar with the matter.

The airlines have been exploring a combination for more than two months, although the discussions slowed in April while UAL held separate merger talks with Continental Airlines Inc. After Continental rebuffed United Airlines parent UAL a month ago by saying it prefers to remain independent, United stepped up talks with US Airways.

Thursday's CEO meeting has been scheduled for several days. If the executives can move the companies toward resolving the bulk of the outstanding items, they could approach their respective boards in mid-June for permission to move ahead with a deal, these people said. The people familiar with the situation cautioned that talks could fall apart at any time if the airlines can't agree on terms or if one or both decide a merger is too risky in the current environment of surging fuel prices, tight credit markets and the slowing U.S. economy.

Issues outstanding include how the airlines would raise capital to fund the combination; how to resolve some labor contract issues that could have adverse economic consequences; and how much flexibility they would have to take airplane seats out of their combined system. United continues to study other options that don't include a merger with US Airways, these people said.

If United and US Airways did come to agreement in mid-June, they would follow by two months the announcement of a merger between Delta Air Lines Inc. and Northwest Airlines Corp. That proposal already is undergoing scrutiny by the Justice Department and conceivably could close late this year, creating the world's largest airline by traffic. A UAL-US Airways transaction would be slightly larger.

There are no particular points of contention in the talks between United and US Airways, say the people familiar with the matter. While the airlines have yet to agree on an exchange ratio for a share swap or on who might run a combined company, the carriers do concur that a merger could unlock $1.5 billion in cost and revenue synergies, which is more than their current combined market capitalization.

UAL has been asking whether various labor and other risks can be mitigated without eating into the economic benefits of a combination. For example, integrating the airlines could result in large one-time costs to merge reservation systems, rationalize fleets, and train pilots on new aircraft types.

People familiar with the situation at Chicago-based United said some executives there think a US Airways merger would create value and holds better prospects for United than going it alone. But other executives are focusing more on the risks in the current climate and think it might be wiser to forge a marketing alliance with Continental, although those two options aren't mutually exclusive.

Complicating matters is the fact that United is still stinging from Continental's rejection. Some UAL directors are chagrined that the airline so far has failed to do what it has championed for several years-- merge with another airline, said one person familiar with the board's thinking. Directors felt blindsided by Continental's decision; when the idea of a deal with US Airways was raised at a May 15 board meeting, directors asked some hard questions. Some questions came from the two board members who are labor union representatives. United's unions have said they will oppose a merger with US Airways.

This internal debate has occurred as time grows shorter for a merger deal to receive antitrust scrutiny before the Bush administration leaves office in January. People familiar with US Airways, based in Tempe, Ariz., said the company is feeling frustrated by the shrinking regulatory window and is pressing United for a decision.

"We can continue to analyze (a deal) but not until Labor Day," said one person. "There's no point in keeping going if the antitrust clock runs out."

US Airways, itself the result of a 2005 merger with America West Airlines, is the nation's seventh-largest airline by traffic. It still is digesting some of the labor integration challenges present since the merger, but has largely recovered from the operational problems that dogged it soon after the merger closed. Its CEO, Doug Parker, is such an ardent proponent of consolidation that he made a hostile bid for Delta in late 2006, when that carrier was in bankruptcy-court protection. Delta ultimately repelled that effort.

Glenn Tilton, UAL's CEO, has been a champion of consolidation for several years, believing that fewer, larger U.S. airlines would have better pricing power in the domestic market and improved competitive posture against large, deep-pocketed foreign carriers. UAL has talked to Delta, Continental and US Airways in recent months.

USA320Pilot comments: As I indicated earlier this could be an interesting week.

Regards,

USA320Pilot

 

[Fly]

The people familiar with the situation cautioned that talks could fall apart at any time if the airlines can't agree on terms or if one or both decide a merger is too risky in the current environment of surging fuel prices, tight credit markets and the slowing U.S. economy.

Issues outstanding include how the airlines would raise capital to fund the combination; how to resolve some labor contract issues that could have adverse economic consequences; and how much flexibility they would have to take airplane seats out of their combined system. United continues to study other options that don't include a merger with US Airways, these people said.

Thought I'd bold some areas of that article too!

 

[oldiebutgoody]

Three points:

1. US management did not prevent a new pilot contract...the US East ALPA MEC and USAPA have prevented it. After the Nicolau Award was released the East MEC and JNC pulled out of joint contract talks because a new contract would have implemented the Nicolau Award.

Regards,

USA320Pilot

Good. Then they did the right thing. Can't fault them for that.

 

[flydude]

This thread is like the Twilight Zone.

So true!!

 

[freedom]

Doug Parker = 1 DUI. All other Airline CEO's = ZERO

i drink too , do you think i give a rat's ass ? he can snort white for all i care , as long as our company is run effectively i don't care WHAT he does in his free time ..
Reservations Migration Failure

Live in the past ... just stay there , hey can you send some cheap oil from that time period to us in the here and now ?

Last place DOT stats for Customer Complaints

well when the pilots hand out cards with the number of the DOT and tell the PAX to complain .. that's what's going to happen .. to our outside investors , this has been a tactic of our labor groups to put pressue on the company ..

500 Mile Minimum eliminated

i don't care

Uncompetitive F/C

are we making money on it ? if yes then fine , if not we need to make improvments .

Worst On-time performance numbers last summer on T/A flights

this could be due to a number of issues , pilots unhappy , wind resitance , i don't know ...how's it going so far THIS year eh ?

Failure to resolve Labor issues

fleet has a new contract , MX has a new contract ... FA's are waiting on the pilots , the pilots are waiting to "get rid" of each other ...

Below Average Lost Baggage stats
...

no DUH , we didn't have a new contract until a few weeks ago , expect that to change

 

[Fly]

Wait Freedom, are you saying that now that YOU have a contract that everyone else should shut up and fall into line?

 

[cltrat]

Yes, we have had the number one on time departures. At our passengers expense. Close doors in the face of connecting passengers because connecting times are too short, got to get that plane out. Leave non rev's behind because this piece of garbage computer system won't allow us to do our jobs properly and efficiently and at speeds we were used to, but, you got to get that plane out. Parker and his chimps are a disgrace. However, when the only competition they have ever know is WN and our only competition has been the world, you bet we look at things differently. Great customer service is how you seperate the men from the boys. I have been with this carrier for 27 years, and I will never lower my standards to HP levels. Every decision "they" have made, every one, has lowered us further into the abyss. Art has got it right. That man has been fighting for the reputation of a once great airline. Many have been right by his side. USAir delivered a superior product, but because of this incompetent group of men, we have lost our top flyers, corporate accounts; the list is endless. To quote someone I very much admire: "They know the price of everything, and the value of nothing."

you are dead on the money

Freedom ,quit embrassing yourself and get out of the bin and look around,

I assure you those one or two left behind doesn't matter that,s typical HP mentialty I'm up there I can tell you it means a hellva lot to them.
the planes are stupidly over sold and the pax gets duped into getting a voucher with so many strings it's near impossible to use it

the missing bags? not going to change because a pos contract cause most miss because the connection times are near impossible to make but hey we were on time leaving woohoo!

the next good decision the sand castle makes will be the first one

 

[cltrat]

Wait Freedom, are you saying that now that YOU have a contract that everyone else should shut up and fall into line?

Fly, the station he is at can't even correctly zone load an airplane less missing bags??lololol

 

[USA320Pilot]

Fly,

I believe the credit markets are tight, but I believe the parties can create the financing. US Airways' Vice Chairman Bruce Lakefield and US Airways Seabury Group consultant John Lutz worked wonders obtianing outside capital for the US-HP deal and I believe they can do it for the proposed US-UA deal, assuming the merger proceeds to the point that a cash infusion is necessary.

Regards,

USA320Pilot

 

[freedom]

OUR job is to make MONEY , that’s what a business Is all about …

Quit with your legacy , heritage , history B/S … all that got you was BANKRPUT …


Does the truth hurt ? good , because you might need that pain to keep you alive so you don’t go BAKRUPT again !

You can’t simply do service service service to the dertimenent of COMPETION … :down:

MAX JET WIKI PAGE


Some of you aren’t looking at the bigger picture , that’s why I’m sooo sooo happy we have DOUG PARKER as our head guy… he looks at everything , not just one segment or portion …. And he’s smart enough to hire talented help such as the new COO … Robert I .


These times are more trying than ever , we need THE BEST ….


Why do I even bother with this ? I just hope the united BOD has sense in their heads …. Don’t listen to what faceless nameless people write about Doug parker online , do you your own homework .

 

[cubfan02us]

People familiar with the situation at Chicago-based United said some executives there think a US Airways merger would create value and holds better prospects for United than going it alone. But other executives are focusing more on the risks in the current climate and think it might be wiser to forge a marketing alliance with Continental, although those two options aren't mutually exclusive.

This is the first time I have seen this in print...merge the two companies then form an
alliance with Continental...Brilliant !!!