- Joined
- May 19, 2008
- Messages
- 44
- Reaction score
- 0
I agree...I really don't think USA320Pilot and 767jetz will take your advise.
US/UA Possible Merger Discussion IV
- Thread starter Richard
- Start date
- Status
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
United-US Airways merger talks suspended: source
NEW YORK (Reuters) - UAL's United Airlines and US Airways have suspended merger plans for the moment, a source close to the talks said late on Thursday.
The source told Reuters that UAL's Chief Executive Officer Glenn Tilton told his counterpart at US Airways, Doug Parker, at a meeting on Thursday, that it was best not to pursue their planned merger at present.
But he left open future possibilities between the airlines, the source said.
See Story
Regards,
USA320pilot
NEW YORK (Reuters) - UAL's United Airlines and US Airways have suspended merger plans for the moment, a source close to the talks said late on Thursday.
The source told Reuters that UAL's Chief Executive Officer Glenn Tilton told his counterpart at US Airways, Doug Parker, at a meeting on Thursday, that it was best not to pursue their planned merger at present.
But he left open future possibilities between the airlines, the source said.
See Story
Regards,
USA320pilot
767jetz
Veteran
- Joined
- Aug 20, 2002
- Messages
- 3,286
- Reaction score
- 2,779
My thoughts exactly
PLEASE do yourself a favor and let go of the fantasies. Tilton is no brain surgeon, but he's smart enough to know that in this industry you never say never. It's called not burning bridges. So of course he's going to say he won't rule it out in the future.
But for right now this deal is dead. Try to remember that this is not about CEO egos but the fact that UA's Board of Directors sees other possibilities and is not convinced that a merger with US is in the best interest of UA. It is the Board that is steering this decision, and in no small part influenced by labor's involvement. UA is going to move forward with an alliance with CO that includes anti-trust immunity, and get back to the basics of running a good airline. Don't be surprised if LH has a hand in all of this and helps CO enter Star.
Now let go of the merger thoughts and concentrate on what USAirways' plan B is.
D
delta777
Guest
Sweet Jesus, do you ever quit?!?!? Face reality, this deal that never was is now officially dead. Get over it. 🙄
Jetsetter2Ord
Senior
jimcfs
Veteran
It's over, folks. At least DP isn't going to get to ruin UA! 
luvthe9
Veteran
- Joined
- Aug 30, 2002
- Messages
- 9,464
- Reaction score
- 14,119
UAL is already ruined, only problem is Parker ruined US more.It's over, folks. At least DP isn't going to get to ruin UA!
ahh news flash dude. ual is already ruined. i am going to keep my opininons to myself on this one all i am going to say is good luck to us all. ual and us.It's over, folks. At least DP isn't going to get to ruin UA!
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
I believe US Airways and United would have made a formidable carrier that could have competed now and in the future. The deal could have provided long-term stability and job security for the combined carrier’s employees.
With the proposed deal on hold employees from both carriers are likely to see some pain as the “executive suites†try to figure out how to pay for billions of dollars per year in higher energy costs.
Two big issues US Airways and United would have had to deal with where labor contracts and costs of integrating two operations might have overwhelmed a carrier and are probably the two biggest hurdles to a deal. In the end I believe the “social issues†would have been over come, but obtaining capital and dealing with the unions may be too much of a risk.
As the WSJ indicated “with fuel prices skyrocketing, credit increasingly tight and the economy slowing down, mergers are looking riskier than ever. And certain financial aspects of a UAL-US Airways deal related to labor contracts looked daunting.â€
As far US Airways, while Doug Parker and Glenn Tilton had lunch Scott Kirby held a Crew News session at the PHX Flight Training Center.
Reports indicate Kirby was very straightforward in his assessment of the problems facing US Airways and how the Tempe-based airline is going to pay for an estimated additional $1.6 billion in higher fuel prices. Kirby did not rule out the possibility of furloughs, further reductions in block hours, and/or the removal of some aircraft.
The transition agreement permits the company to remove 4 aircraft from the East operation and 9 from the West. However, if the company elects to remove more aircraft at some point they could implement the “Force Majuere†clause.
As far as United the company does have some assets it can sell to raise capital, but burning furniture will the airline is burning does not fix their fundamental problems of too much capacity. Furthermore, an alliance with Continental will not boost corporate combination savings of $1.5 billion per year. 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.
I agree with former AWA MEC Chairman John McIllvenna when he recently said, “United is facing a struggle for profitability even now and it is not likely to get better in the quarters ahead. The emotion surrounding this potential deal is a result of questions about reductions, seniority list integration and leadership/strategy of the combined company. This transaction will require some major fleet rationalization and route consolidation. The question for the United MEC is simply: Are you better off merging now as a likely dominant force in the transaction or out of a potential bankruptcy if oil stays at $125 a barrel plus?â€
Furthermore, I agree with another of McIlvenna’s comments that “The domestic airline industry is a economic mess, and has been for nearly thirty years. Sure we have had some good years but the bad ones really outnumber the good ones. And now we are entering a full blown economic downturn that includes our biggest assets (our homes) and with oil not simply at $90 or $100 but pushing $127 (and a new record every week) we should all be asking ourselves what will it take for any airline to survive? UAL’s transformation has been harsh, as they have lost millions and the CFO has been out renegotiating loan covenants not because he has nothing better to do. Like all, I hope that this is simply an “oil bubble†but until it pops, and settles – none of us can predict with certainty what fuel will cost the airlines. And unlike all of us, the airlines cannot run out and buy a hybrid to save money. All pilots need to face the fact that we had a very short season to get our collective bargaining back on track, and it is unfortunate some pilots would rather ride the 'my seniority is not for sale' airplane right into the ground.â€
Regards,
USA320Pilot
With the proposed deal on hold employees from both carriers are likely to see some pain as the “executive suites†try to figure out how to pay for billions of dollars per year in higher energy costs.
Two big issues US Airways and United would have had to deal with where labor contracts and costs of integrating two operations might have overwhelmed a carrier and are probably the two biggest hurdles to a deal. In the end I believe the “social issues†would have been over come, but obtaining capital and dealing with the unions may be too much of a risk.
As the WSJ indicated “with fuel prices skyrocketing, credit increasingly tight and the economy slowing down, mergers are looking riskier than ever. And certain financial aspects of a UAL-US Airways deal related to labor contracts looked daunting.â€
As far US Airways, while Doug Parker and Glenn Tilton had lunch Scott Kirby held a Crew News session at the PHX Flight Training Center.
Reports indicate Kirby was very straightforward in his assessment of the problems facing US Airways and how the Tempe-based airline is going to pay for an estimated additional $1.6 billion in higher fuel prices. Kirby did not rule out the possibility of furloughs, further reductions in block hours, and/or the removal of some aircraft.
The transition agreement permits the company to remove 4 aircraft from the East operation and 9 from the West. However, if the company elects to remove more aircraft at some point they could implement the “Force Majuere†clause.
As far as United the company does have some assets it can sell to raise capital, but burning furniture will the airline is burning does not fix their fundamental problems of too much capacity. Furthermore, an alliance with Continental will not boost corporate combination savings of $1.5 billion per year. 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.
I agree with former AWA MEC Chairman John McIllvenna when he recently said, “United is facing a struggle for profitability even now and it is not likely to get better in the quarters ahead. The emotion surrounding this potential deal is a result of questions about reductions, seniority list integration and leadership/strategy of the combined company. This transaction will require some major fleet rationalization and route consolidation. The question for the United MEC is simply: Are you better off merging now as a likely dominant force in the transaction or out of a potential bankruptcy if oil stays at $125 a barrel plus?â€
Furthermore, I agree with another of McIlvenna’s comments that “The domestic airline industry is a economic mess, and has been for nearly thirty years. Sure we have had some good years but the bad ones really outnumber the good ones. And now we are entering a full blown economic downturn that includes our biggest assets (our homes) and with oil not simply at $90 or $100 but pushing $127 (and a new record every week) we should all be asking ourselves what will it take for any airline to survive? UAL’s transformation has been harsh, as they have lost millions and the CFO has been out renegotiating loan covenants not because he has nothing better to do. Like all, I hope that this is simply an “oil bubble†but until it pops, and settles – none of us can predict with certainty what fuel will cost the airlines. And unlike all of us, the airlines cannot run out and buy a hybrid to save money. All pilots need to face the fact that we had a very short season to get our collective bargaining back on track, and it is unfortunate some pilots would rather ride the 'my seniority is not for sale' airplane right into the ground.â€
Regards,
USA320Pilot
767jetz
Veteran
- Joined
- Aug 20, 2002
- Messages
- 3,286
- Reaction score
- 2,779
I guess you COULD zero in on that one word, "suspended," if you want to since it implies your opinion is still alive.
But then again you could also zero in on these words...
It's curious to me that they used the words "off the table for now" which means "no longer a viable option under current circumstances" and did not say the ceo's were taking a "time out."
It's really not that unclear at all. Many industry analysts suggest that with oil at $130 per barrel, any merger would be too risky, even DAL/NWA which was penned before the current spike. Right now airlines will dig in and weather the storm, while weaker airlines might end up in bankruptcy. You will probably capacity reductions from everyone as they try to gain pricing power.
"Since then, however, crude prices have surpassed $130 a barrel and the cost of jet fuel has skyrocketed, eating into the cash reserves of all the network carriers and setting up a liquidity crisis for some by next year. Mergers, with their inherent risk and up-front costs, could now be looking too expensive."
See story here.
I do. United will pursue an alliance with Continental, which will have many of the benefits without the integration problems, upfront costs, or antitrust scrutiny.
United-US Airways deal off table as Continental link nears
By Steve Goldstein
LONDON (MarketWatch) -- A merger between United Airlines and US Airways is off the table as United is close to an alliance agreement with Continental Airlines, The Wall Street Journal and other media outlets reported. UAL Chief Executive Glenn Tilton on Thursday raised concerns about the merger plan in a meeting with US Airways chief Doug Parker and said the Continental plan wouldn't require the integration costs and antitrust scrutiny.
USA320Pilot
Veteran
- Joined
- May 18, 2003
- Messages
- 8,175
- Reaction score
- 1,539
- Status
