Is the end of UAL finally here?

[Flopgut]

For a more recent account of how the UAL/AWA deal was panning out at the time, consider the more recent near deal with AWA and DAL. Oversight was on that like stink on sh!t right away. Fast forward to the deal that did get done: AWA hooks up with USAir. They do so because everybody felt the USAir people had taken a sufficient beating and the completed deal was going to be termed an low cost carrier. Went so far as to call that the stock ticker!

 

[~~~^~~~]

McKinsey are the same smart strategic planners that designed the Swissair business plan in the late 90's, and brought them to bankruptcy.
Way to go !!!

Add Delta to that list. Not only was Mullin a McKinsey alumni, he hired them once he was at the helm.

 

[UALjan15]

For a more recent account of how the UAL/AWA deal was panning out at the time, consider the more recent near deal with AWA and DAL. Oversight was on that like stink on sh!t right away. Fast forward to the deal that did get done: AWA hooks up with USAir. They do so because everybody felt the USAir people had taken a sufficient beating and the completed deal was going to be termed an low cost carrier. Went so far as to call that the stock ticker!

It's just my opinion, but I think what drops the Govt scrutiny is when one of the carriers is floating up to surface, belly up. Reference AA/TWA and AWA/AAA. They don't like to see airlines fail, and rescue missions like this tend to get a very fast green light. With two healthier carriers, it's a whole different ball game. You could bring up AAA/UAL as an anomaly to this, but at the time AAA wasn't sick enough to be considered a rescue mission.

 

[Flopgut]

Maybe you're right. I wish that they would go beyond "don't like to see airlines fail', and want to see one do well.

 

[ivauir]

UAL was a DOW component and a great company that should have been allowed to complete some transactions. Not allowing a large, successful [then] company the free market ability to grow is what has weakened our profession for most of us IMHO.

Thanks for the well thought out and polite response. I think you have an excellent point, some of our industry's troubles can be traced to the failure to deregulate properly. Now we live with the unenviable position of being poorly regulated.