Tilton talking merger again

[Ben Franklin]

http://www.ft.com/cms/s/0/0d6d9ef4-...ance&ft_ref=yahoo1&segid=03058&nclick_check=1


Sincerely,

B. Franklin

 

[ePilot22]

Can you cut and paste?




eP.

 

[Anonymous2]

United remains keen on consolidation

By Pilita Clark in London
Published: February 15 2010 20:53 | Last updated: February 16 2010 00:28

The head of United Airlines has hinted at the benefits of renewing merger talks with Continental Airlines, saying the market had judged in favour of rival Delta’s takeover of Northwest.
“The market capitalisation of Delta is approximately twice the combined market capitalisation of United and Continental,” said Glenn Tilton, chairman and chief executive of Chicago-based United.


Glenn Tilton, chairman and chief executive of United




“The investor seems to have spoken. The market seems to have suggested that scope and scale in a global business are important,” he told the Financial Times.
However, Mr Tilton, a prominent advocate of airline consolidation, played down the prospect of an imminent renewal of merger talks between United and Continental, which ended in 2008 amid soaring fuel costs and fading cash reserves.
Jeff Smisek, president of Continental, has since said that he was “very pleased” to remain independent but would review that position if Delta’s takeover of Northwest resulted in higher earnings and tougher competition.
“I think my counterpart [at Continental] has spoken and I think he’s been pretty clear,” Mr Tilton said. “So I accept that as their position and we’re taking full advantage of our partner relationship.”
Merger talks between United and Continental ended in April 2008. Continental then left the SkyTeam alliance headed by Delta and Air France, and joined United in the rival Star Alliance.
Delta merged with Northwest later in 2008, creating a group with a market capitalisation of $9.5bn, compared with a combined market value of just under $5.5bn for United and Continental.
Mr Tilton said he believed there would be another big airline merger within the next two years but declined to be more specific.
Mr Tilton, who spent more than two decades with the Texaco oil group before joining United in 2002, has been an outspoken critic of the web of international legal barriers to global airline consolidation.
He has stepped up his campaign in recent speeches, including one to the Aviation Club in London last week in which he said the airline industry had been marked by “our systemic failure to earn our cost of capital and achieve any level of consistent financial resilience”.
Comparing consolidation in other industries, he said: “Italy’s Fiat owns Chrysler. India’s Tata Motors owns Jaguar. Lenovo, a Chinese company, owns IBM’s PC business. Each is the product of mergers; each is the beneficiary of cross-border capital flows, and each demonstrates a corporate commitment to expand the reach of its business.
“Yet similar cross-border ownership is not permitted in the airline business. The bilateral system prevents cross-border consolidation, keeping the industry financially handicapped.”
















You're welcome.

 

[lookin4better]

The writing on the wall is pretty clear..... this merger is all but announced. This one will be very messy.

 

[Tail Gunner Joe]

Continental: “very pleased” to remain independent
United: Continental has spoken and I think he’s been pretty clear

Reporter conclusion: This is a hint of renewing merger talks

Me: Huh?!?

 

[crj567]

Continental: “very pleased” to remain independent
United: Continental has spoken and I think he’s been pretty clear

Reporter conclusion: This is a hint of renewing merger talks

Me: Huh?!?

Welcome to the airlines!

Mgmt (no matter which airline) is always gonna try and deflect attention from their true plans. When they say stuff like "we are very pleased to be independent," what they really mean is "we would be even more pleased" to merge with some other airline so that all the upper crust can take $40million packages and retire our asses down to the islands.... Screw all the employees, investors, passengers, and everyone else-we be rich!

 

[lookin4better]

I would love to see all the 70 seat jet flying at United get tossed in a merger due to Continentals scope..... THAT would be GREAT! and well worth a merger!

 

[trip]

I would love to see all the 70 seat jet flying at United get tossed in a merger due to Continentals scope..... THAT would be GREAT! and well worth a merger!

That would be stellar for Delta!

 

[Mike man]

I would love to see all the 70 seat jet flying at United get tossed in a merger due to Continentals scope..... THAT would be GREAT! and well worth a merger!

Yuppyguppy wants to take it all back...so it will never get tossed because he said so.

 

[Mr Hat]

You don't want it "tossed" but it would be good to capture it so it's flown by UniteCAL pilots.