UAL/LCC Tabled

[EdTeachLives!]

http://www.nytimes.com/2008/05/27/business/27cnd-air.html?hp

DAL/NWA the only merger? Or, will it be called off?

ED

 

[OPECJet]

Dougweiser is now "J. Douglas Parker"?!?!?!?

 

[LowlyPropCapt]

Next it will be:

"the CEO formally known as Doug."

 

[Ty Webb]

Next it will be:

"the CEO formally known as Doug."

I think you mean the CEO formerly known as "Doug" . .
It could just a easily be the "former CEO known as Doug", too.

TW

 

[Colonel Savage]

Watch out in PHX. Don't forget what happened last time one of Dougie's merger fantacys fell apart...

 

[catIIIc]

Rumor has it that CAL and UAL are talking again.

 

[jetflier]

Just like dogs in heat, they keep sniffing each others butt, and then humping !

 

[tomgoodman]

Bluff?

Be skeptical when you hear that someone has "walked away" from the negotiating table. That's a standard ploy to see how much the other guy wants a deal. The risk is that the "other guy" might not come back. It can also be a tactic to get your own employees to make deal-sweetening concessions. That can backfire too.

 

[Andy]

Rumor has it that CAL and UAL are talking again.

I'm not sure if I'd want to mix it up with CAL right now. They were very thinly hedged going into Q2 and they used 3 way collars, capping their upside protection. CAL may be in a lot more cash trouble than they're letting on.
... and unless (short bus) investors are willing to throw $3B or so in new cash into the merged entity, it'd likely be undercapitalized. I'm currently comfortable with UAL's cash position (pending Q2 results), but a merger is a hugely expensive proposition.

 

[Tejas-Jet]

Just like dogs in heat, they keep sniffing each others butt, and then humping !

Sadly...in an airline merger...only the employees get "humped"

 

[Colonel Savage]

Just like dogs in heat, they keep sniffing each others butt, and then humping !

That was pretty damn funny, JF!

 

[Bringupthebird]

Dougweiser is now "J. Douglas Parker"?!?!?!?

Funny, since his first name is William.

 

[Tweaker]

Well, I'm pleased that UAL/LCC is off. While LCC may not be perfect on their own, long term, a merger is not a solution to the revenue problem. Also, UAL is about the worst choice for a merger, IMHO.

As a LCC newhire, one of the best things about LCC is the pilot groups pending retirements. UAL would dilute this significantly.

 

[contrail67]

I'm not sure if I'd want to mix it up with CAL right now. They were very thinly hedged going into Q2 and they used 3 way collars, capping their upside protection. CAL may be in a lot more cash trouble than they're letting on.
... and unless (short bus) investors are willing to throw $3B or so in new cash into the merged entity, it'd likely be undercapitalized. I'm currently comfortable with UAL's cash position (pending Q2 results), but a merger is a hugely expensive proposition.

what about a code share like they were exploring...how much extra $$$ would that create? Don't have to have the extra costs of a merger...yes it is very expensive.

 

[daedaepilot]

Well, I'm pleased that UAL/LCC is off. While LCC may not be perfect on their own, long term, a merger is not a solution to the revenue problem. Also, UAL is about the worst choice for a merger, IMHO.

As a LCC newhire, one of the best things about LCC is the pilot groups pending retirements. UAL would dilute this significantly.

Hold your panties, the deal isn't off just yet.

http://money.cnn.com/2008/05/28/new...usairways.ap/index.htm?postversion=2008052821