Continental Airlines Chooses Not to Merge

[Sedona16]

I think United is toast.

Agreed. And this was the right choice for CAL given the latest earnings report from UAL.

"United's shares tumbled 37 percent on April 22 after the airline reported a first-quarter loss wider than analysts expected and some investors questioned whether the carrier had sufficient cash to meet loan covenants. United, which said the concerns were unfounded, is cutting 1,100 jobs and further reducing capacity after the loss of $537 million.

Continental, which had a first-quarter loss of $80 million, said on April 17 it would ground 14 older, less fuel-efficient aircraft on top of 34 it already planned to stop flying and would trim capacity by an undetermined amount at its regional airline partners."

 

[Cpt Oveur]

CAL and AMR are going to just fight for the pieces of United. That's the alliance they're talking about. AMR needs "new" narrowbodies, CAL needs widebodies, desperately.

 

[RocketRob]

"United's shares tumbled 37 percent on April 22

what do you think they are gonna do tomorrow? If CAL looked at the books and said no thanks...

 

[Deadalus]

Of course they don't want to merge. The hot red head(aka NW) at the bar already went home with someone else.

 

[D-Bo]

I think United is toast.

LOL. This is funny. We may be toast. Maybe not. Either way is fine with me. But this sounds like 03 all over again. Many assume CAL doesn't want to merge because of UALs books. It could be that they didn't want to merge under the terms presented. But hey, UAL might suck but you CAL guys don't walk around acting like you're SWA, FDX, and UPS rolled into one now. The whole industry sucks. That would include your place too. Good luck and congrats on having management that has wanted to run an airline for the past few.

 

[D-Bo]

what do you think they are gonna do tomorrow? If CAL looked at the books and said no thanks...

Our stock will be down at least 30% tomorrow.

 

[IAHERJ]

LOL. This is funny. We may be toast. Maybe not. Either way is fine with me. But this sounds like 03 all over again. Many assume CAL doesn't want to merge because of UALs books. It could be that they didn't want to merge under the terms presented. But hey, UAL might suck but you CAL guys don't walk around acting like you're SWA, FDX, and UPS rolled into one now. The whole industry sucks. That would include your place too. Good luck and congrats on having management that has wanted to run an airline for the past few.

You make an excellent point but the CAL guys aren't the ones on here bashing UAL if you look closely. UAL is still an international powerhouse and if they could just find people who want to run an airline the possibilities could be endless.

IAHERJ

 

[Sonny Crockett]

You make an excellent point but the CAL guys aren't the ones on here bashing UAL if you look closely. UAL is still an international powerhouse and if they could just find people who want to run an airline the possibilities could be endless.

IAHERJ

Best post I have read on FI yet to date.

It's UAL management stupid! NOT THE PILOTS, AIRPLANES, ROUTES, ETC......Our leader Tilton is the worst CEO ever! Maybe the UAL board will wake up and smell the coffee? FIRE TILTON!

 

[Tonedrvr]

D'Bo,
I hope you dont think we have our noses in the air. We just have a sound airline that we are excited about. No one here that I have talked to wishes any ill will towards United. I hope your company pulls through this with flying colors.

Tonedrvr

 

[Plunder Hound]

Wow, Tilton really blew this one. It was handed to him. Time for him to go like we have wanted for some time now. I'm sure he is out trying to save his rep by coming up with a USair deal. Eight years later and we are back where we started.

 

[wings421]

DFW to IAH is about the same distance as DTW is to CVG

I don't have the numbers in front of me, but I'd imagine that mainline AA and CO departures out of DFW and IAH are a lot more than DALs CVG and NWAs DTW. CVG isn't a very big mainline airport for Delta and is shrinking the RJ capacity with CHQ there when they remove the 135s.

 

[jmreii]

continental brought themselves back from the dead at least twice, and it is really good to see them doing so well. I hope they continue to prosper after having texas air buy them and lorenzo doing his best to destroy them. it took a long time, but keep up that excellent service and you will be fine. good luck, continental.

 

[lowecur]

So should we expect Airways and United to announce something within the next few weeks? Perhaps in some form of poetic justice the East guys will get what they have coming after all.

Yeah, I think they will get together at some point (their CEO's are the most verbal on consolidation). The only way they could survive together or alone with $100 oil is lots of plastic surgery with the blessing of the Feds. Better start sharpening the scapal now, as the window will close quickly.

imp:​

 

[densoo]

I wonder if this means the new plan at CAL is max expansion? Maybe the May system bid won't be as flat as everyone says. Things change fast.

 

[densoo]

I wonder if this had anything to do with it

Statement by the Union Coalition at United Airlines Regarding Possible Airline Industry Consolidation Involving United Airlines

April 15, 2008

"United CEO Glenn Tilton's dream of finding a dance partner for our airline appears, by most accounts, closer to becoming a reality."Mr. Tilton and his executives need a reminder concerning any merger or consolidation scenario that involves our airline.

Unlike bankruptcy, when Tilton and his minions exploited U.S. Bankruptcy laws to squeeze every penny it could from its employees, a merger would require United executives to address employee concerns if it is to succeed."Mr. Tilton can no longer hide behind the robes of a bankruptcy judge to get what he wants from labor. Those days ended once United exited bankruptcy.

Management now faces a group empowered by unity and a common determination of regaining what was taken from us under the guise of duress. CEO Glenn Tilton and his executives have helped themselves to millions of dollars of stock options, bonuses, pay raises and dividends without any regard to their employees or passengers. Management's self-serving approach to running this airline must end."We are firmly entrenched at the consolidation table.

The road to any consolidation involving United Airlines must pass through labor. And traveling that road requires a hefty toll."United Airlines exists today only due to the sacrifices and sweat equity the employees have invested, not from any heroic efforts of Glenn Tilton and his executives."Today, their honeymoon is over. It is now our turn to have a say in the future and direction of our airline. If the current management at United expects our cooperation in any consolidation or merger action, they must address our needs.

The Union Coalition at United Airlines, representing unionized employees, has had enough of Mr. Tilton and his executives lining their pockets at the expense of their employees and of management's lack of permanent interest in the company they pretend to serve."Together, we will reclaim our careers and our collective future. The road toward a successful merger or consolidation involving United Airlines goes through its unions.

Unless our concerns are met; unless we are extended the respect we've earned and are provided the future we so richly deserve, Mr. Tilton's merger dreams will remain just that."

The Union Coalition at United represents more than 48,900 United employees.

Signed,