Will UA and U merge in CH11?

autofixer

Veteran
Aug 20, 2002
1,804
241
www.usaviation.com
Don't think it won't happen. Over here at U they are beating down the employee groups. They are cutting employees down to the minimum everywhere. UAL will soon endure the same. Under CH11, the judge and whomever is providing the D.I.P. financing calls ALL of the shots. Management loses control (whomever is providing the financing is able to go to the judge and demand concessions) and the employees are just along for the ride. In this scenario a merger could certainly happen. Either financing from some outsider or just a newly issued stock swap (remember all of that old UAL stock becomes worthless). I think that a U/UAL merger is more likly today than ever before. Under CH11 there can be no labor oppostition...the judge will say, "OK" from on high. If labor squaks, the judge can order them in contempt. You at UAL are about to enter a strange new and awful world. Get ready. Save every penny. The doodoo is about to hit the fan. I hope I am wrong.
 
OP
autofixer

autofixer

Veteran
Aug 20, 2002
1,804
241
www.usaviation.com
Don't think it won't happen. Over here at U they are beating down the employee groups. They are cutting employees down to the minimum everywhere. UAL will soon endure the same. Under CH11, the judge and whomever is providing the D.I.P. financing calls ALL of the shots. Management loses control (whomever is providing the financing is able to go to the judge and demand concessions) and the employees are just along for the ride. In this scenario a merger could certainly happen. Either financing from some outsider or just a newly issued stock swap (remember all of that old UAL stock becomes worthless). I think that a U/UAL merger is more likly today than ever before. Under CH11 there can be no labor oppostition...the judge will say, "OK" from on high. If labor squaks, the judge can order them in contempt. You at UAL are about to enter a strange new and awful world. Get ready. Save every penny. The doodoo is about to hit the fan. I hope I am wrong.
 

UnitedChicago

Veteran
Aug 27, 2002
756
0
www.usaviation.com
I remember that there was a theory regarding putting the two together in BK. Any thoughts? There would be no competitive issues as both carriers are CH11.[BR][BR]Glenn Tilton Chairman, CEO[BR]David Seagel President and Chairman, CEO heir apperant[BR][BR]Let the debate begin!
 

La Treal

Member
Sep 18, 2002
56
0
money to do this would come from?
or do you think they can just say ok now we are one?
Can they do that?
 

La Treal

Member
Sep 18, 2002
56
0
money to do this would come from?
or do you think they can just say ok now we are one?
Can they do that?
 

DCAflyer

Veteran
Aug 27, 2002
821
0
Picture this...

Retirement Systems of Alabama (RSA) which is US Airways DIP financer, also makes available to UAL similar financing and becomes a key shareholder of both U and UAL. It's not a stretch to think of the possibilities of merging the two airlines, especially given the express approval that ATSB-guaranteed funds that will be available to U can be used for M&A activities.

It will be interesting to see where UAL will file bankruptcy. Imagine them filing in Alexandria, the same court as the U proceedings.

It is a real possibility (if not a probability) that we will see some sort of activity in this regard.
 

DCAflyer

Veteran
Aug 27, 2002
821
0
Picture this...

Retirement Systems of Alabama (RSA) which is US Airways DIP financer, also makes available to UAL similar financing and becomes a key shareholder of both U and UAL. It's not a stretch to think of the possibilities of merging the two airlines, especially given the express approval that ATSB-guaranteed funds that will be available to U can be used for M&A activities.

It will be interesting to see where UAL will file bankruptcy. Imagine them filing in Alexandria, the same court as the U proceedings.

It is a real possibility (if not a probability) that we will see some sort of activity in this regard.
 

synchronicity

Advanced
Nov 27, 2002
144
0
[blockquote]
----------------
On 12/5/2002 5:54:11 PM DCAflyer wrote:

It will be interesting to see where UAL will file bankruptcy. Imagine them filing in Alexandria, the same court as the U proceedings.
----------------
[/blockquote]

UAL will file bankruptcy either in Illinois (where they are headquartered), or in Delaware (where they are incorporated). My best guess would be that they will file in Illinois.

-synchronicity
 

synchronicity

Advanced
Nov 27, 2002
144
0
[blockquote]
----------------
On 12/5/2002 5:54:11 PM DCAflyer wrote:

It will be interesting to see where UAL will file bankruptcy. Imagine them filing in Alexandria, the same court as the U proceedings.
----------------
[/blockquote]

UAL will file bankruptcy either in Illinois (where they are headquartered), or in Delaware (where they are incorporated). My best guess would be that they will file in Illinois.

-synchronicity
 

UnitedChicago

Veteran
Aug 27, 2002
756
0
www.usaviation.com
I don't think anyone at UAL is thinking that far ahead at this point. But the more I think about it...the more I think this could be beneficial to both airlines.[BR][BR]UAL will no doubt shrink further in CH11. U is shrinking further - how much further can they shrink before they cut into muscle? Of course there is the code share between each other.[BR][BR]If they did merge...solution for U: they are no longer small and fighting...[BR][BR]For UAL they emerge potentially bigger then they are today...and the shrinkage in CH11 doesn't affect the long term size. Man it would be a great combo.
 

UnitedChicago

Veteran
Aug 27, 2002
756
0
www.usaviation.com
I don't think anyone at UAL is thinking that far ahead at this point. But the more I think about it...the more I think this could be beneficial to both airlines.[BR][BR]UAL will no doubt shrink further in CH11. U is shrinking further - how much further can they shrink before they cut into muscle? Of course there is the code share between each other.[BR][BR]If they did merge...solution for U: they are no longer small and fighting...[BR][BR]For UAL they emerge potentially bigger then they are today...and the shrinkage in CH11 doesn't affect the long term size. Man it would be a great combo.
 

Latest posts