Gate agents in Denver are talking like it's a done deal (like they know). Just waiting for the new fiscal year to announce.
Then this from Gordon Bethune today in New Jersey Star Ledger:
SL: There's another wave of merger speculation moving through the industry. Are more likely to happen?
GB: That's logic. Have you ever tried to predict what a crazy person's going to do. You say ... he'll never do that, but he just did it. You think, rightfully, Continental and United are two companies that ought to get together and win the game decisively. But it takes two sets of intellect and ob jectivity to do that, and it's not going to happen. Why do we have six big airlines? Do we need six? No. Would the marketplace have the long-term stability of good employment and predictable careers and no bankruptcies, yes, it sure would. What keeps that from happening? The government has been almost paranoid about antitrust provisions, to the point where they stifle any kind of consolidation. I think they may be getting more amenable. (Doug) Parker's doing a good job at US Airways (which merged with America West last year). He's a smart man. But those companies didn't have any alternatives where other companies see alternatives.
SL: You mentioned the pairing of Continental and United. Tell us more about that.
GB: Well, it would be strategic. Just take a look at it. United has Chicago, a huge market, Denver, the West Coast. They have facilities in San Francisco and L.A. that you can't replicate and never will. They have access beyond Tokyo, which are governmental rights that Continental can't ever, ever get. They have access to London Heathrow, which Continental will never get. Continental owns New York, has the best European connections out of New York out of anybody. And Latin America? It's the No. 2 carrier. It's got a huge operation in Houston, which is contiguous to Mexico. You put these two companies together, it's called checkmate. You've got to have people with an IQ of over 40 to figure it out, and they kind of like what they're doing. I think Continental would be the management team, obvi ously, because they've got the expertise and the track record investors would like and employees would bet on.
http://www.nj.com/business/ledger/index.ssf?/base/business-4/1158212167223780.xml&coll=1
Then this from Gordon Bethune today in New Jersey Star Ledger:
SL: There's another wave of merger speculation moving through the industry. Are more likely to happen?
GB: That's logic. Have you ever tried to predict what a crazy person's going to do. You say ... he'll never do that, but he just did it. You think, rightfully, Continental and United are two companies that ought to get together and win the game decisively. But it takes two sets of intellect and ob jectivity to do that, and it's not going to happen. Why do we have six big airlines? Do we need six? No. Would the marketplace have the long-term stability of good employment and predictable careers and no bankruptcies, yes, it sure would. What keeps that from happening? The government has been almost paranoid about antitrust provisions, to the point where they stifle any kind of consolidation. I think they may be getting more amenable. (Doug) Parker's doing a good job at US Airways (which merged with America West last year). He's a smart man. But those companies didn't have any alternatives where other companies see alternatives.
SL: You mentioned the pairing of Continental and United. Tell us more about that.
GB: Well, it would be strategic. Just take a look at it. United has Chicago, a huge market, Denver, the West Coast. They have facilities in San Francisco and L.A. that you can't replicate and never will. They have access beyond Tokyo, which are governmental rights that Continental can't ever, ever get. They have access to London Heathrow, which Continental will never get. Continental owns New York, has the best European connections out of New York out of anybody. And Latin America? It's the No. 2 carrier. It's got a huge operation in Houston, which is contiguous to Mexico. You put these two companies together, it's called checkmate. You've got to have people with an IQ of over 40 to figure it out, and they kind of like what they're doing. I think Continental would be the management team, obvi ously, because they've got the expertise and the track record investors would like and employees would bet on.
http://www.nj.com/business/ledger/index.ssf?/base/business-4/1158212167223780.xml&coll=1
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