CAL/UAL Merger Cancelled!!!!!

[Shrek]

Either it happens or it doesn't relax all....I'm gonna say it will happen. Time will tell soon enough

Agreed - if they are talking about which stock price to use - I think the will we or won't we has already been answered............

Time will tell.....

 

[whymeworry?]

Minor bump in the road of negotiations. The deal is still on. Announcement within 2 weeks.

But I wish it were true that the deal was dead. A merger will be bad for both pilot groups.

CAL has strong scope, weak rules. UAL has average work rules, pathetic scope. If we merge, I would imagine a minimum of 500-1000 more furloughs (probably come from both sides) IF (and that's a big IF) CAL mgmt gets it's way on scope. They have been trying to get us to cave for the past 10 yrs.
UAL and DAL hasn't helped our cause to hold firm on scope. If mgmt succeeds in whipsawing both groups, we could very well see the scope barrier being brought down in line with UAL... which will suck.

On the other hand, if both MECs agree to stand firm against mgmt, and CAL adopts UAL work rules while UAL adopts CAL scope, we will see recalls.

 

[AA717driver]

Either it happens or it doesn't relax all....I'm gonna say it will happen. Time will tell soon enough

Tilton wants it bad enough he can taste it. He just hasn't whored UAL shareholders out cheap enough yet.

Good thing the UAL employees got the ESOP wiped out or you'd REALLY be on pins and needles.

Good luck.

TC

 

[tomgoodman]

Salesmanship

Shareholders on both sides always grumble that they didn't get "enough" in a stock swap. Therefore, a good fight over the exchange price must be staged to mollify them, lest they disapprove the deal.

 

[Jetjockey]

The way I read it is they are just arguing over price. It would seem that Jeff is the driver seat. It reminds me of being at a car dealership. Glenn is the salesman. Jeff is the customer who can walk away from the deal because his car is just fine the way it is.

Glenn :"Jeff, what do I have to do put you in this combined airline today????"

Jeff : "well, I think the price is a little to high"


Glenn knows he can't let this one slip away. It's closing time on Friday night, with the monthly quota ending soon. Tick tock.

 

[Ex737Driver]

Minor bump in the road of negotiations. The deal is still on. Announcement within 2 weeks.

But I wish it were true that the deal was dead. A merger will be bad for both pilot groups.

CAL has strong scope, weak rules. UAL has average work rules, pathetic scope. If we merge, I would imagine a minimum of 500-1000 more furloughs (probably come from both sides) IF (and that's a big IF) CAL mgmt gets it's way on scope. They have been trying to get us to cave for the past 10 yrs.
UAL and DAL hasn't helped our cause to hold firm on scope. If mgmt succeeds in whipsawing both groups, we could very well see the scope barrier being brought down in line with UAL... which will suck.

On the other hand, if both MECs agree to stand firm against mgmt, and CAL adopts UAL work rules while UAL adopts CAL scope, we will see recalls.

You say average work rules but I have yet to see how CAL and UAL stack up when it comes to crewing their respective fleets when you apply both contracts. Simple math shows that CAL utilizes around 13-14 pilots per aircraft, not taking into consideration 3 or 4 man crews, training dept, CP's, etc. UAL utilizes between 17-18 pilots per aircraft. I didn't count the furloughs in this. Granted this is a very simple way to look at it but with this alone, CAL would need to bring in somewhere around 1300 pilots. Between the two companies there are about 1500 or so pilots on furlough. Remove the ones not coming back and you have a scenario where a merged company has no furloughed pilots.

Now throw in the wild card; getting the CAL pilots a new contract that we want since we can put the kibosh on the JV deal and getting UAL to buy off on that same contract while merging the two airlines. Can both Tilton and Smiseck allow this to become the train wreck that is USAir or will they follow the DAL example?

 

[fokker pilot]

Maybe the UAL pilots saw how the CAL guys were going to "Air Wisconsin" them, and told their buddy Tilton to call it off !

 

[Jetjockey]

Merger can't happen..............SFR said it was canceled.