Continental Airlines Chooses Not to Merge

[Plunder Hound]

I agree, makes you wonder just how bad the books look at UAL

 

[D-Bo]

Any guessing what UAL's stock will do tommorow?

Can you short sell in the premarket? Our stock will be sub 10 bucks by 11edt. Too bad that won't be bad enough for the Board to dump Tilton. He needs to become sick. Like, very sick. Comatose like.

Funny thing is, we all know he doesn't give a F about us but he does have an ego and his ego can't be doing too well right now. The MFr has no idea what he's doing. By the way, UAL is the only major airline that hasn't announced RJ reductions. Guess he hasn't figured out RJ economics and fee per departure stuff yet.

We here at UAL know UAL still exist in spite of it's management. Not because of it. We'll see how much longer that can last. We'll help it get to the Abyss gleefully. The sooner the better.

 

[AWACoff]

Yes you can sell short in the morning starting at 8am Eastern. I already spoke with Chuck this morning about it. You have to name your price but otherwise it's about the same as the normal market. Anybody have $5k to loan me?

 

[SuperFLUF]

LOL. This is funny. We may be toast. Maybe not. Either way is fine with me. But this sounds like 03 all over again. Many assume CAL doesn't want to merge because of UALs books. It could be that they didn't want to merge under the terms presented. But hey, UAL might suck but you CAL guys don't walk around acting like you're SWA, FDX, and UPS rolled into one now. The whole industry sucks. That would include your place too. Good luck and congrats on having management that has wanted to run an airline for the past few.

Well said.

The "celebration" may be short lived. This was most likely the best of several choices. None of which have guaranteed sucess or an easy road ahead.

I'm pleased that we appear to not be merging with United but what we face "going it alone" doesn't seem to be a smooth straight road. Hopefully there are more promising details to come over the next few months.

 

[SuperFLUF]

I wonder if this means the new plan at CAL is max expansion? Maybe the May system bid won't be as flat as everyone says. Things change fast.

That would be an even bigger shocker than this announcement. Where would the widebodies come from?

 

[Pocono Pilot]

Larry K. says that CAL isn't going to merge, so I bet that is because CAL is going to be acquired by American. Ouch.

At least with United the CAL pilots had a chance to get a good deal out of it. With American, I think they will probably gobble CAL up.

But maybe that's just me. LOL

 

[whymeworry?]

Larry K. says that CAL isn't going to merge, so I bet that is because CAL is going to be acquired by American. Ouch.

At least with United the CAL pilots had a chance to get a good deal out of it. With American, I think they will probably gobble CAL up.

But maybe that's just me. LOL

Man Pokehole, you sure are clueless. Guess that's what happens when you choose to stay stuck at the commuters

 

[arthompson]

UAL's BoD needs to get rid of Tilton and get a good CEO. CAL is making the right decision and US is more than likely going to remain alone as well.

 

[BigMeat]

Larry K. says that CAL isn't going to merge, so I bet that is because CAL is going to be acquired by American. Ouch.

At least with United the CAL pilots had a chance to get a good deal out of it. With American, I think they will probably gobble CAL up.

But maybe that's just me. LOL

She couldnt have thought of something so intellectually insightful. Her husband told her what to say.

 

[CALDC9]

Larry K. says that CAL isn't going to merge, so I bet that is because CAL is going to be acquired by American. Ouch.

At least with United the CAL pilots had a chance to get a good deal out of it. With American, I think they will probably gobble CAL up.

But maybe that's just me. LOL

HUH!!!

 

[Kugelblitz]

Its the weekend, do you know where your mgmnt is?

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

 

[Vne]

The CAL/AA alliance is to divide up whats left after either a UAL/US merge when its a failure or a UA failure before they find a dance partner.

"One less airline can make a difference" - UAL flight bag sticker referring to CAL circa 1990.

History IS funny like that.

 

[AAflyer]

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

I was thinking the same thing. It appears to be more of mass than making up for areas each airline is deficient in.

However I think CAL ALPA and APA should get together now and discuss what this might mean....



Respectfully,
AAflyer

 

[Flopgut]

What I find interesting is the release of this memorandum on a Sunday. I would infer that means the management teams of UAL and CAL were working over this past weekend to finalize a deal. That the 'merger' didn't occur is startling and would lead one to think that the strategic marketing alliance with AMR is in the offing.

I would like someone's insight on the AMR/CAL alliance; specifically how this helps either party very much. It would seem to me the two carriers overlap each other a great deal, and neither helps with the pacific shortcomings of both carriers.

As for the failed merger with UAL, I would presume that the merger with USair is far along enough that we (CAL) were no longer desirable to UAL or the economics of UAL seemed to risky to CAL management.

Given AMR's lack of aircraft orders and our significant orders on delivery, as a former TWA pilot, I find getting in bed with AA a bit nerve racking. Either way, interesting times.

I don't know too much, but...

In 98 or so DAL and NWA were close to buying [essentially] CAL. The deal with NWA is the one that went thru and the plan was an enhanced code share affiliation. Both airlines were to stay separate, make a lot of money and both could grow. It required DOJ approval and they DECLINED to approve it!! I think [hope] that's the plan in this case because that would be good. BA, AA and CAL all do our thing and sharing revenue-- a good thing!!

I'm SICK of interesting times!! I'm going to write my own proverb: "May you fly in boring times"

Edit: It was the fact that NWA already had the KLM deal that squelched the code share. This deal with AA and BA accomplishes the same thing. It's supposed to make big money.

 

[Kugelblitz]

The CAL/AA alliance is to divide up whats left after either a UAL/US merge when its a failure or a UA failure before they find a dance partner.



History IS funny like that.

Aye. Be careful what you wish for.

 

[Flopgut]

Is anybody watching CNBC right now?? David Faber just reported that Tilton agreed to leave entirely and Kellner STILL said no!! Holy Crap!! Sorry UAL guys/gals. Maybe this will be sufficient to remove him on your own.

 

[Vne]

Be careful what you wish for.

I do not wish for anything any more....
30 plus years in this industry has killed the ability to "wish"...

 

[Sonny Crockett]

Just a theory.

Just why would CAL expend so much time and energy and money to put together a deal with United and then pull out when we thought the deal was closed?

Perhaps it sounds reminiscent of Delta's initial refusal to consider a merger with Northwest. When Northwest first made ovations to consolidate with DAL, Delta said very publicly that they would be better off as stand lone carrier. But as we all know a deal was finally struck...even a deal with those pesky pilots.

Now it seems Continental is just trying to sweeten the deal for themselves. They bait the hook and Glenn, being the stupid trout that he is, bit down hard. Then it comes time to sign on the dotted line and CAL changes their mind. Hmmm...

Let's not forget where Continental came from. This is a very familiar Lorenzo tactic. That is to say; Strike a great deal, get ready to shake hands and then change your mind because you can always ask for more. Continental is not going to let us into their pants unless we promise to marry them and buy them a big house. That means we give up a lot. And since Glenn can't play poker without showing his hand to everyone at the table, CAL thinks we have more to give. They are certianly not wrong about this.

The panic now showing among our employee groups is just what Continental wants to see. We are desperate and they think that our only other choice is USAir. Which of course, would be like marrying Brittany Spears. We get scared. Investors get scared and the bankers get pissed. Collective pressure is now put on Glenn and our union to soften our position to get a Continental deal done...since USAir will mean a quick (but painful) death.

Glenn has shown his cards and his rather well compensated ass to everyone. Continental is just going to prove that it is all too easy to fleece a moron. In fact, they can probably be excused for disbelieving their own luck.

 

[Jonny Sacko]

Holy crap I laughed, I'll laugh even harder if this thing does go through. That's so funny it reads almost as a script. Excellent job blowing off the fog! Thanks for the laugh! Either way Tilton should be booted this week. He's no good.

 

[D-Bo]

Is anybody watching CNBC right now?? David Faber just reported that Tilton agreed to leave entirely and Kellner STILL said no!! Holy Crap!! Sorry UAL guys/gals. Maybe this will be sufficient to remove him on your own.

I saw that on CNBC. Also said Tilton was blindsided by CALs decision. Pretty funny. Hopefully Wall Street will continue to see that Tilton is out of his league when it comes to managing an airline.