CNBC reports US Air / United in merger talks

[johnsonrod]

It's very clear Tilton wants his $50 million merger success fee so that he can leave the industry. Parker probably wants out as well so that he could open his own nightclub.

The problem that I see is the hub overlap (i.e., PHL and IAD, DEN and PHX, etc.). Do you want hubs close together like that? Unlike NWA and Delta, this merger would not be very complementary in terms of hub locations. To me, that means consolidation and potential job losses... I can see big potential job loss on the regional side as well (as they consolidate vendors).

 

[FlyinPiker]

Celebrating at CAL, actually, this is what may push CAL to merge with United. Interesting.

I think your spot on.

 

[FlyinPiker]

It's very clear Tilton wants his $50 million merger success fee so that he can leave the industry. Parker probably wants out as well so that he could open his own nightclub.

The problem that I see is the hub overlap (i.e., PHL and IAD, DEN and PHX, etc.). Do you want hubs close together like that? Unlike NWA and Delta, this merger would not be very complementary in terms of hub locations. To me, that means consolidation and potential job losses...

Not only that, but I seem to remember the whole large presence of UAL at IAD and USAir at DCA stirring up trouble last time they were dancing.

 

[nyboilermaker]

celebrating at cal, actually, this is what may push cal to merge with united. Interesting.

...

+1

 

[Diesel-9]

Think CAL will join this fight and someone will be split up. UAL and CAL survive and split a few UsAir assets. Sell Airbus airplanes and routes to JetBlue to grow. USAF joins in and works code share to refuel all ComAir RJ's as DAL pays for refueling kits so they can fly RJ's to Asia. 787 never arrives as Delta RJ's hub and spoke out of NRT with 450 aircraft per bank. Have to hire 6000 Thai girls as Stews cause senior ATL babes don't fit thru exit doors on 76 seaters. Training center can't handle the load so all mainline aircraft are parked and furloughs start from the top as Lee Moak signs off on reverse seniority layoff in his final act as he heads to National Alpa. Moaks first act at ALPA is to sign on first cargo company that flies pilotless drones carrying cargo over the Pacific.

 

[COpilot]

LMAO !!! -9

You are as likely right as anyone

 

[johnsonrod]

Not only that, but I seem to remember the whole large presence of UAL at IAD and USAir at DCA stirring up trouble last time they were dancing.

That's a great point. There is some serious route overlap in that case... Especially on the regional partner side.

 

[General Lee]

DOH!!!!! I think this is going to be a MAJOR disaster, since the East and West stuff isn't settled (at least in the Eastie's heads) yet. Can a new "United" support a PHL and an IAD base right next to each other? Parker and Tilton want their money, and they want it NOW. I could see CAL getting AWA's assets, and UAL taking USAir East's? Good luck?


Bye Bye--General Lee

 

[General Lee]

If I were at CAL I would definitely be celebrating.





Then again, next would inevitably be AMR+CAL.

AMR and CAL? Both with Primary hubs in Texas (DFW and IAH), along with large bases in JFK and EWR? Doubt it.


Bye Bye--General Lee

 

[AceOnTheRiver]

Shrewd move by United. CAL will have to respond either by buying United, which is what United really wants or merging with AA as a backstop.

 

[becket]

Throw out the nic, ALPA would probably be back ,though I would not vote for them. Their new policy uses longevity/DOH press on with life.

They'd be sued in a nano second if they tried that. There is a permanent injunction in place that removes all doubt about what USAPA has to do with the Nic award in any negotiations with ANY entity.

 

[mamba20]

Shrewd move by United. CAL will have to respond either by buying United, which is what United really wants or merging with AA as a backstop.

I don't really care as long as whom ever we merge with is stapled to the bottom of the CAL list.

 

[MCDU]

AWA is going to Republic. Mark my words. List will go relative and will make all AWA pilots happy. They will get rid of the East and be on their merry way with a young motivated work group.( who can not wait to get their hands on some bigger metal)
USAIRWAYS is going to have a Westoasectomy.
Good luck Westies.

M

 

[Cheeta]

Shrewd move by United. CAL will have to respond either by buying United, which is what United really wants or merging with AA as a backstop.

"IF" this goes forward then jetBlue and Alaska will get drug into the aftermath of the deal. AA and CAL will approach both, they will have no choice but to grow thru aquisition.

 

[contrail67]

Celebrating at CAL, actually, this is what may push CAL to merge with United. Interesting.

And how would that push CAL to merge with United?....not sure what you mean by that...not being critical...just asking.

 

[Fubijaakr]

"IF" this goes forward then jetBlue and Alaska will get drug into the aftermath of the deal. AA and CAL will approach both, they will have no choice but to grow thru aquisition.

How do you figure?

 

[ATRCA]

Reading Tilton's comments in the NY Times it appears that he just wants to merge?? merge with anyone! It just seems like that's his only business strategy......how scary and unfortunate. He'll make off with millions for his efforts and what happens down the road becomes meaningless. I think this is more real than people are making it out to be. I've read several articles today regarding this and even the NBC Nightly News did a small piece on it this evening.

Just looks like Tilton's ready to cash in at all cost. If he thought CAL was interested in merging with UAL I don't think he would be pulling this. I think he's determined to get a merger done soon and he's going to make it happen regardless. CAL mgt has been fairly open about their desire to grow through alliances instead of mergers whereas Tilton ONLY speaks of mergers and how "the investor seems to have spoken".....what a joke. He's going to give the "investors" what they want......short term stock gains. Nothing else seems to matter to him or his team.

 

[johnsonrod]

I am betting AWA gets parsed out and sold to Cape Air. But wait, Jet Blue might object to that merger due to the pilot flow-through program with Cape Air. I bet the lawyers and investment bankers make a killing.

This could get interesting...

 

[Skyflyin]

This is all a PLOY by United and CAL management to merge. Here is how it will go:

Talks between United and US Air heat up, then cool down. THEN, they will be within "days" of an announcement and BAM! CAL bids more for United to protect themselves from being a small fish in a big pond.

Smisek is now a hero for protecting all of CAL jobs and has now turned the unions from being against it to for it.

DON'T FALL FOR IT! Let 'em merge. They will be outta money in 5 years after the merger backers money runs out.

BTW isn't that how the Delta deal kinda went?

 

[Quimby]

I don't see the problem. These mergers are always a great idea.