US Airways discussing merger with United

[800Dog]

AWA was a great airline. USAir wrecked that. I too would feel bad for United, but money talks.

Somethings up for sure, my sources say we'll know next week.

No offense but, AWA was not a great airline.

 

[Tejas-Jet]

AWA was a great airline. USAir wrecked that.

US Air "wrecked" that? Remember that nobody held a gun to Doug Parker's head to make this happen.

Once US Air mgmt told Dougie that they had secured the $$ to make this merger happen....Doug said "OK"

 

[vetrider]

No offense but, AWA was not a great airline.

It was to me.

 

[Dr. Rumack]

Concur with Vetrider, great place. BOHICA fellas.

 

[SuperFLUF]

My sources say April 25th is the announcement... No Joke. We'll see how good my sources are.

The CAL ALPA MEC has scheduled a special MEC meeting for the 24th to get a briefing from CAL execs as to what they are planning.

Coincedence?

 

[sonny320]

Talk about a short existance for USAPA. If UA/US merged USAPA would probably be the first thing to go.

How do you come up with that???

 

[AWACoff]

The CAL ALPA MEC has scheduled a special MEC meeting for the 24th to get a briefing from CAL execs as to what they are planning.

Coincedence?

I hope that USair and United merge. I want nothing to do with that boat anchor called United. Let us go it on our own with option "Z". We'd have to expand like crazy but it would be on our terms. We wouldn't have to deal with shedding dead weight from merging with a bloated whale corpse.

 

[Mr.B]

I hope that USair and United merge. I want nothing to do with that boat anchor called United. Let us go it on our own with option "Z". We'd have to expand like crazy but it would be on our terms. We wouldn't have to deal with shedding dead weight from merging with a bloated whale corpse.

When you say "we" just who are you referring to?

 

[Lampshade]

Let us go it on our own with option "Z". We'd have to expand like crazy but it would be on our terms. We wouldn't have to deal with shedding dead weight from merging with a bloated whale corpse.

Expand like crazy....lol... is the last thing you want to do in this environment.

 

[AWACoff]

Expanding international widebody flying is crazy...? One large order of "Crazy" please!

 

[Lampshade]

Please more details...

 

[Andy]

Expanding international widebody flying is crazy...? One large order of "Crazy" please!

CAL's current fleet of 777s is 20. They have 8 additional 777s on order, the first two are scheduled to be delivered in 2009.

The bulk of CAL's expansion is 737s, and with the retirement of 737s in CAL's conference call, those will merely be replacements in 2008 and 2009. (50 new, retiring 48 old).

And let's not forget that CAL's on the hook for XJT's entire fleet - XJT leases or subleases its ENTIRE fleet from CAL. (Read XJT's 10K to confirm - Page 7, Aircraft Financing). With XJT near bankruptcy, CAL is not in the position to buy a ton of widebodies. That could end up being a HUGE boat anchor. And Kellner's not happy with XJT's CASM results.
Another bad call by CAL management was the purchase of 4 slots at LHR for more than $200 mil. They WAY overpaid in this environment.
Did you read about how CAL's management turned >$250 mil in cash into a long term investment (ie money no longer available for a LONG time) in student loans due to an ARS failure?
CAL's balance sheet is starting to look like a train wreck.

The bottom line is that CAL doesn't have a ton of money to expand their widebody fleet. CAL's balance sheet has gone from great to great deal of trouble.
Like it or not, United's balance sheet has been cleaned up over the last year; lots of cash on hand and $2.3 billion of debt paid off last year. Yes, there weren't aircraft deliveries, but the company's finances werer significantly strenghtened going into a recession.

I saw that Kellner bought back the golden share. IIRC, the golden share doesn't stop CAL from acquiring another carrier, it only blocked being acquired. How about this quote:
Continental CEO Larry Kellner and president Jeff Smisek in a memo this week said, "As we've said repeatedly for more than a year and a half, our preference has been to remain independent as long as the competitive landscape remained the same. However, the landscape is changing. We will review our strategic alternatives and make sure we remain a strong long-term competitor."
Source: http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1003790811

Continental's also hinting at departing Skyteam. The Star Alliance kicks Skyteam's butt.

You want to talk about international widebodies? Take a look at United's fleet - 30 747s and 52 777s. With CAL's strained finances, a merger is CAL's best chance to expand internationally.
I don't want to merge with anyone, but if a merger were to take place, CAL is UAL's best dance partner. And vice versa. Comments like bloated whale corpse show ignorance in the extreme on your part.

And the bottom line is that neither of us will have control over what happens.

 

[D-Bo]

I hope that USair and United merge. I want nothing to do with that boat anchor called United. Let us go it on our own with option "Z". We'd have to expand like crazy but it would be on our terms. We wouldn't have to deal with shedding dead weight from merging with a bloated whale corpse.

The feeling is mutual.

 

[veneratio]

If CAL and United merged, would Keller be the CEO of the new airline?

 

[PCL_128]

How do you come up with that???

If UAL and USAir were to merge, it would trigger a new representational election to determine whether USAPA or ALPA represent the new combined group. With the UAL and AWA pilots vastly outnumbering the AAA pilots in that combo, USAPA would be toast.