CNBC reports US Air / United in merger talks

[poppi]

The best thing to do is short either stock today and sell it the next few days

 

[Flying Horses]

Change of Control Pay Raise?

I don't understand something. If there is a change of control provision in the East pilot contract that says wages would snapback in case of a change of control, then why didn't that happen when AWA bought USAir? I know there is a who bought who argument, but since everything is run now by AWA management, isn't that a change in control... which should have resulted in this mysterious snapback provision?

 

[Old School 737]

Does anybody know what the "Snap Back " pay rates would be? The ones that Doug is trying to avoid.

 

[V1cutsrfun]

Tilton, Smisek and Parker are all money hungry.....

Finger this out...

Tilton and Parker do the dance long enough to drag in CAL (Smisek) and AMR...

CAL just switched from Delta's "SkyTeam" to UAL's Star Alliance, and in the process is seeking scope relief for Rj's Greater then 50 seats. A merger with CAL and UAL with UAL being the aquiring company would give the scope relief CAL seeks, and still leaving CAL furloughs on the street. It would mitigate any future hiring as UAL has recalls first and therefore leverage other items and even ones not yet seen or dicussed.

If a LCC and UAL merger were to take place... CAL would again be the odd man out in both SkyTeam and Star Alliance... (reference previous conversations as to CAL joining Star Alliance) It would then need to look for a differnent partner either through a merger or another alliance...

Keep the faith... stay professional. We can all hang together or we can all hang seperately.:beer:

Never EVER give up scope...

I'd rather go deaf in my T-prop before more outsourcing of jobs to occure to "RJ's"

"Did you say something?":erm:

V1

 

[Fly-n-hi]

The Nic isn't going away. It will be the seniority list of the US Airways final product. Any airline that merges with US Airways will be merging with the Nic list. If anything, I believe that a merger will accelerate the implimentation of the Nic list.

No court in its right mind will ever throw it out. It would set a terrible precedent and open a huge can of worms.

On a side note, it would have been nice to have been able to bring a better contract to the table in the event that we do merge with United...or anyone else for that matter. At least we could have raised the bar even if it was only a little better. Unfortunately that ship sailed a long time ago.

 

[satpak77]

Sadly this may happen...

Doug Parker appears to be a merger-happy manager. RE: http://en.wikipedia.org/wiki/Doug_Parker

Parker has been with US Airways since June 1995, when he joined as senior vice president and chief financial officer of America West Airlines. He additionally held titles as executive vice president, corporate group, and chief operating officer before being elected chief executive officer and chairman of America West in September 2001. He continued as CEO of US Airways following the merger with America West Airlines in 2005. Under his tenure as CEO, he made an unsuccessful bid to merge US Airways and Delta Air Lines in 2007.

The lack of happy pilots/seniority list resolved has not stopped him from trying to merge the airline, obviously. Also, he appears to have previous desires for "the Chicago market", RE 2008 article: http://www.thestreet.com/s/us-airwa.../newsanalysis/aerospace-defense/10416987.html

For the fourth time in four years, Doug Parker is actively chasing his dream of a game-changing airline merger..... Parker's chase began in 2004, when America West bid for troubled ATA Airlines. "That was the first indication that Parker was going for market size, trying to break into the Chicago market," says aviation consultant Robert Mann. The effort failed because ATA's aircraft lessors determined they could get more value for their planes from foreign operators than from America West.....

Tilton, United CEO, is no stranger to mergers either. He was Chevron CEO before Chevron and Texaco merged. Per http://en.wikipedia.org/wiki/Glenn_Tilton ;

Tilton is controversial for his stance as a major advocate for consolidation in the airline industry. Tilton has stated he believes it is the only way to end commercial aviation's cycles of booms and busts. Since 2006, Tilton has been searching for a merger partner for United Airlines. After failed negotiations with Continental Airlines and US Airways Group, in the summer of 2008, Tilton settled on an agreement with Continental to form a marketing agreement, but not an official merger as he hoped for. The agreement is scheduled to take effect in 2009. Tilton still claims to be open and willing to participate in a merger transaction when the right opportunity arises.

In summary, you have two apparent merger happy managers, who may be talking.

In my opinion this is very possible. I wonder how the lists would be intergrated.

 

[satpak77]

The best thing to do is short either stock today and sell it the next few days

I would buy it long my friend. It is gonna climb a lot more until this thing dies or merges

 

[ALGFLYR]

The Nic isn't going away. It will be the seniority list of the US Airways final product. Any airline that merges with US Airways will be merging with the Nic list. If anything, I believe that a merger will accelerate the implimentation of the Nic list.

No court in its right mind will ever throw it out. It would set a terrible precedent and open a huge can of worms.

If you read the Nic award, it says it will be the seniority list when a joint contract between US Airways and America West is implemented. If there is a merger with United, there will never be a joint contract between the East and West, thus there will never be a Nic list. The only way it could happen is if first the East and West get a joint contract, and then work on yet another joint contract with United... Not gonna happen that way if this merger turns out to be true...

There would never be a court that would have "throw it out", as it would never exist. The Wake ruling only states that the Nic WILL be used in a joint contract between the East and West. Period. Again, a merger with United would never trigger that...

 

[satpak77]

My observation is that the US/Cactus merger list issues were not resolved when he made a run at Delta. Pilot seniority related merger complications has not curbed Parker's voracious appetite to merge companies

 

[flyguppy]

That is wrong. Call your merger rep and get briefed as to the new policy.

But since UAL pilots do indeed think they get DOH, I wonder how they're feeling now since US is more or less a very senior airline now, isn' it?.

Where do you guys get "UAL pilots think they get DOH"??

I don't know ANY UAL pilots (other than a couple blowhards on this forum) that think DOH is fair, equitable or desirable.

If you think that the majority of UAL pilots would be in lockstep with the Easties, you've been smoking crack.