Hello Ual Goodbye Usappy

[johnsonrod]

With all of the potential consolidation going on, I'd say the dumping of ALPA at USAirways was ill-timed, to say the least. Good luck with any upcoming arbitration or integration - it's gonna get messy...

 

[Yuppyguppy]

any one got any extra staples?

 

[PlaneDrvr]

any one got any extra staples?

Don't have a dog in this fight, but the new law (passed last year, but still 'untested'), I believe pretty much guarantees that no one will get 'stapled.'

Will be interesting to see. If CAL walked away after 'looking closer at the books' kinda makes you wonder just how bad of Financial condition UAL is really in??

When UAL's CFO comes out in the last week or so and tries to reassure the investment community that UAL is not in danger of violating their 'bank loan covenants' again, makes you wonder?? When UAL filed for BK the first time, they had about 2.1Bil in cas on hand; and in the Q1 results, with the reported loss, UAL stated they had about 2.8Bil, in cash. Again, you have to wonder just how close to BK UAL may be??

For what its worth.

PD

 

[Carl S.]

2 billion is the number that is being floated before the credit card processor goes to 100% hold back and the loans get tighten. Will UAL shed people and planes before a merger or share the pain with their new bunkies?

 

[BeCareful!]

With all of the potential consolidation going on, I'd say the dumping of ALPA at USAirways was ill-timed, to say the least. quote]


Really? After going through two ALPA/ALPA mergers myself, I'd say it's great timing! Tell us about the last ALPA merge that went well (save for the uncashed lotto ticket called Nic)?

 

[On Your Six]

When I think about UAL and US, I think about the potential for hub overlap which may lead to downsizing:

UAL: DEN, SFO, LAX, ORD, IAD, JFK (small)

US: PHX, LAS, PHL, CLT, DCA, LGA

I guess CLT and ORD do not conflict but I see potential issues with LAX/SFO/DEN and PHX/LAS. I also see issues with IAD and DCA and potentially PHL. If any of these hubs are not performing optimally, I would guess they would be seen as potential candidates for reduction/closure. No big surprise there.

Where would these airlines seek to improve efficiencies to further reduce costs? The hubs would be a prime target. The airlines certainly won't get cost reductions willingly from labor. ORD and CLT will likely never get touched but other hubs might get more attention from the DOJ than others (DCA and IAD are a great example). Some potential divestitures might have to take place to make this deal more pallatable for the FEDs.

Overall, I am glad I am no longer a UAL employee - what a mess...

 

[lowecur]

The only way this flys is if the scalpal comes out. Doug and the Westies would like nothing better than to stick it to the Easties and they may get their wish.

This merger will be presented to the Feds as a total makeover to survive. The Feds will be told both carriers in their present form will cease to exist in the near term, and a combination will only survive with many appendages removed.

Will they get their wish?...yeah, I think so.

imp:​

 

[Deadalus]

With all of the potential consolidation going on, I'd say the dumping of ALPA at USAirways was ill-timed, to say the least. quote]


Really? After going through two ALPA/ALPA mergers myself, I'd say it's great timing! Tell us about the last ALPA merge that went well (save for the uncashed lotto ticket called Nic)?

You're kidding right? The Easties can kiss their arrogant stupid butt's goodbye.

 

[BeCareful!]

And the Westies? Who are they going to kiss?

 

[UALjan15]

When I think about UAL and US, I think about the potential for hub overlap which may lead to downsizing:

UAL: DEN, SFO, LAX, ORD, IAD, JFK (small)

US: PHX, LAS, PHL, CLT, DCA, LGA

I guess CLT and ORD do not conflict but I see potential issues with LAX/SFO/DEN and PHX/LAS. I also see issues with IAD and DCA and potentially PHL. If any of these hubs are not performing optimally, I would guess they would be seen as potential candidates for reduction/closure. No big surprise there.

Yeah, if I were in the war room trying to carve this big turkey up, I would see excess capacity in the west as an early cut. Unfortunately for AWA guys, PHX & LAS are missing the international connectivity of SFO & LAX, and might be high on the chop list. Out east, I would shutter the entire PHL operation. It's a crappy Int'l hub right now, the people and culture there are cancerous, and the airport is delay-prone. Keep as much IAD & DCA as you can get away with. As for CLT: I'm not quite sure--I like the SE exposure it garners, it's a good airport/hub in general, but I'm unsure of the yields there and whether it makes sense with a major Int'l hub just up the road in IAD.

The way I see it, a combination of these two doesn't make a ton of sense unless you start up the chainsaw and start hacking away major pieces. If those pieces could be structured to come from AAA assets (and people), all the better....but I'm just dreaming a bit there. In reality, there would be a lot of pain to be spread around all 3 employee groups. Normally, I'd say this speculation is just an exercise in mental masturbation, but I have a feeling these very discussions are happening for real as we speak.