US/UA Possible Merger Discussion IV

[767jetz]

Dog,

Who said there was going to bea big announcement. If my memory serves me correctly the comment was there would be interesting news.

Regards,

USA320Pilot

I don't get it. You've been saying for a couple of weeks at least that there would be "interesting news" while you speculated an prognosticated endlessly about a UA/US merger. You even had the seniority worked out with fences and the Nicolau award and pay raises. When it was reported that talks were on permanent hold, you were the first to chime in with news article after news article about how they were still talking (with bold faced highlighting and all). When todays meeting was announced you jumped right in, reiterating the 'interesting news is afoot' line. You were very convincing about where your beliefs fell.

Do you mean to tell us that ALL of that was nothing, and what you actually meant was that the "interesting news" would be that my information was correct and nothing was actually going to happen?

Deja vu!

 

[Be Careful What You Wish For.]

Deleted by me.

 

[USA320Pilot]

It appears that merger discussions between US Airways and United may not proceed “for nowâ€, but I find it curious that Susan Carey used the word “suspendedâ€, which means to "cease for a period of time" and did not say discussions were “terminated.â€

Any one of a number of issues may have caused the suspension -- "for now".

Reports indicate United has been accessing its “corporate combination†options, which might be to ease labor concerns. On May 7 in a press release United ALPA MEC said, "We therefore believe that a merger with US Airways should be a last resort and not a first choice for United."

The United ALPA MEC may be pushing the company to continue to explore an alliance with Continental before supporting a merger, and if true, could there be a bidding war for the Continental alliance partner between United and American/BA on the horizon?

Furthermore, if United and Continental strike a deal and Delta and Northwest merge, where does that leave American? Would they need to find a partner too?

The on again, off again talks between United and Continental and on again, off again talks between United and US Airways seem to have a new twist every couple of days and I am not sure if anybody knows what will happen next. For example, the news media reported on April 27 that United and Continental were about to announce a merger and then Continental’s Board rejected the proposed merger on April 28.

In addition, it would not surprise me if the so called “social issues†are still a big hurdle between the current Star Alliance/Domestic Alliance business partners with each CEO wanting to run the company and wanting to position their key men and women to remain within the “executive suiteâ€.

It remains unclear how industry consolidation may or may not proceed and I suspect American and British Airways may have something to say about a Continental alliance.

And, according to the WSJ because Continental is contractually tied to Northwest in the current SkyTeam arrangement, Continental wouldn't be able to exit those relationships until months after the Delta-Northwest merger closed, which could be why the WSJ indicated “Mr. Tilton told Mr. Parker that a merger plan between UAL and US Airways is off the table for now, although he didn't rule it out in the future, said these people.â€

Regards,

USA320Pilot

 

[767jetz]

The silver lining in all of this is that hopefully both carriers will redirect their respective energies into running companies that are operationally reliable and customer driven, reducing capacity where necessary, while focusing on the core strengths of each carrier, rather than crafting severance packages for senior executives and leaving a mess for someone else to manage...I believe that this is a good thing for both parties.

I Agree 100%

I think an alliance with CO is best and now we can focus on running an airline. If only we could ditch Tilton and get Bethune or some other talent!

 

[HPearlyretiree]

I believe that if Doug Parker and Scott Kirby invested as much time and energy into finding bold and creative ideas to run this company as a stand alone operation - as they have in chasing other companies around to merge with - we could do many good things, even in this economic climate.

I believe the price of oil is artificially high, it's price inflated by speculators. All those financial entities that placed bets on the sub-prime mortgage market and subsequently lost - are now betting on the oil market - trying to recoup some of their losses.

It doesn't take much to prick a bubble.

Doug said in his last employee meeting in CLT that we are better positioned than most to weather this industry storm. Outside pundits say otherwise and characterize USAirways as one of the most vulnerable.

Time to walk the walk, Doug and Scott.

I do agree that the oil bubble is just that, and I expect a break soon.

Happy for Phoenix and HQ friends.

Uncertain for future, but I didn't think this merger was ever a good idea though.

 

[nycbusdriver]

UA / CO BACK IN BUSINESS ?????

Plans to merge UAL Corp.'s United Airlines and US Airways Group Inc. were suspended -- for now -- when UAL Corp. Chief Executive Officer Glenn Tilton told his opposite number, Doug Parker, on Thursday that United is very near an alliance agreement with Continental Airlines Inc., said two people familiar with the situation.

United and US Airways had been in merger exploration talks for more than two months. After stop-and-go discussions, Mr. Tilton and Mr. Parker had lunch Thursday, said these people. During the meeting, Mr. Tilton raised concerns about the merger plan and said United thinks it is close to reaching an alliance agreement with Continental, a plan that wouldn't require all the pain of up-front merger integration costs and antitrust scrutiny by the Department of Justice.

UA / CO ALLIANCE ??

Sounds like yet another marketing agreement. US/UA put the same thing into place in the wake of their failed merger attempt in 2001. Management always said it made US money...the front line employees who could see who paid what fare and to whom had other things to say about the deal.

The problem with "alliances" is it doesn't effectively address overcapacity, and it really can't due to anti-trust issues. Even if the government gave them a break on the anti-trust issues, then you have two companies that are still basically competitors tap dancing around each other to see who can hang on to the most and make the other guy give bigger cuts.

 

[700UW]

The merger is dead, From the Charlotte Observer:

Thursday, May 29, 2008
Official word Friday that US-UA is dead?

A meeting of the minds Thursday between the chief execs of US Airways and United Airlines apparently hasn't changed what The New York Times reported earlier this week: A merger of the two carriers is dead, at least for now. Here's the latest Times story.

If true -- an official announcement is expected Friday, the Times says -- it's not surprising, for a lot of reasons. We've reported plenty on the potential hurdles, most of them on the US Airways side. Stay tuned for more, including where US Airways goes from here.

To the poster who posted about AS, the ramp in SEA is contracted out.

 

[Be Careful What You Wish For.]

The problem with "alliances" is it doesn't effectively address overcapacity...

So are we parking A/C?

 

[USA320Pilot]

Nycbusdriver,

I agree with your thoughts.

Furthemore, if the WSJ's comments are true that "Continental is contractually tied to Northwest in the current SkyTeam arrangement, Continental wouldn't be able to exit those relationships until months after the Delta-Northwest merger closed" that would not help United in the near-term with its high cash burn rate (all airlines have this).

I find it odd that the WSJ indicated “Mr. Tilton told Mr. Parker that a merger plan between UAL and US Airways is off the table for now, although he didn't rule it out in the future."

Maybe United's Plan "A" is an alliance if Continental selects the Chicago-based airline over America/British Airways and the US Airways merger is Plan "B". Or could there be posturing going on again with the "social issues" still a big impediment to the deal and Tilton is trying to pressure Parker into letting United's "executive team" run the combined US Airways-United.

Regards,

USA320Pilot

 

[Be Careful What You Wish For.]

I find it odd...

Substitute "interesting" for "odd"- !viola!.

All time batting average .000 - 0 for 4!

 

[Travelpro72]

You know...some on here (not many) will sing high praise about Parker but if he would have only negotiated FAIRLY with the union groups instead of low balling we'd be wrapping up contract talks. The whole pilot issue could have been resolved if he would have had negotiations pushed earlier. Same goes for the flight attendants. Overall the whole labor issue has BLOWN up in their faces and I hope it shakes this Goddamn place to it's core. I'm OVER it. Shut the F'n place down before I EVER gave another cent through BK. Who in their right mind wants to deal with this incompetent management? We have ALL been saying they are the laughing stock of the industry. DL fought us off and UA is now saying, "No thanks". Can we say, "Dead In The Water"? What now? Sell soda? Sell die cast airplanes, purses and perfume? JUNK, JUNK, JUNK! ! ! ! Thank You Mr. Parker and team for throwing two airlines together to create the worlds largest Junk airline. Wonderful. Bitter? YES! ! ! :down:

 

[USA320Pilot]

UAL suspends US Airways plans: report

UAL's Chief Executive Glenn Tilton told the head of US Airways, Doug Parker, at a lunch on Thursday that he was not ruling out the potential for a future deal between US Airways and UAL

See Story

Regards,

USA320Pilot

 

[700UW]

Spin Spin Spin, The deal is dead, move on.

 

[mike33]

" In the wake of the collapsed talks, one of the sources said there is a feeling at US Airways that they were strung along by United during the process."

OK Doug and clan.......You have been rejected twice now.......When are you going to learn that YOUR employees and

not any other from another company is going to get you through this. It's time to come down to earth and realize that the " Holders of the Future " are right

here in your own backyard. You just have to open your Ears, Eyes and Mind......Period

 

[flydude]

flydude said:
"Oh...ok, I feel much better now. We will all sit back and wait for your next update. :blink: From what I understand, the talks never ended, they just slowed down. Whatever happens is anyone's guess???"





So USA320pilot, BottomFeeder, and flydude, what say you now?

I was being sarcastic 767jetz....I didn't think I had to spell it out. :huh: It was entertaining to watch USA320Pilot and yourself going crazy over the chain of events the past few days. For the record, I am against another merger, I have been through PSA, Piedmont, Trump, and AWA. I see what they do to the front line employees. So we actually agreed on that!! But, I have said this before and I will say it again, your obsession and hatred towards US and it's employees is very disturbing and a bit neurotic. You and USA320Pilot are so much alike, just different airlines. You go back and forth, about who is worse. I have news for you, both airlines stink about the same. Again, these are just my observations from reading these boards over the years. Most of us at US are pretty laid back and sarcastic. USA320Pilot and yourself create enjoyable material for our wicked sarcasm. It becomes somewhat of a joke and if I was you I wouldn't be to proud of that. IMHO Now, again, take a deep breath, relax, and don't let these boards become your life.