UA/US in the back room?

[Lampshade]

WSJ article:

People familiar with the matter said there is no merger deal already drawn up between United and Continental. But the two were expected to resume talks, said one person, following up on informal discussions in the recent months about governance, with the idea that Mr. Kellner would be CEO of the combined entity if they got together.

Other people with knowledge of the situation suggested that the two could reach an agreement on a deal in the next few weeks. That would put their proposed transaction on the same timeline for regulatory scrutiny as the Delta-Northwest deal, with an eye toward receiving clearance from the Justice Department before the White House changes hands in January. The thinking is that the government wouldn't approve one deal and block a second.

To broaden its options, though, United also is looking at a more remote possibility of buying US Airways, said one person familiar with the matter. It wouldn't be the first time. United tried to acquire US Airways in 2000 but the plan was dropped in the face of regulatory resistance.

Another person familiar with the matter said United and US Airways have been in talks about a potential merger for over a month. The companies have done "a lot of work together" on what the synergies could be and are floating around a number that could be at least as attractive as synergies in a United-Continental linkup, this person said. Those synergies would be driven by the strength of US Airways' route network in the East, this person said, adding that the synergies would also be "meaningfully higher" than the $1 billion-plus in annual revenue and cost savings number that Northwest and Delta have said they expect to generate in a merger.

 

[Palomino]

maybe they should meet in the men's bathroom and tap their foot

 

[Master Shake]

maybe they should meet in the men's bathroom and tap their foot

ROFL! Nice...:laugh:

 

[becket]

Hopefully the USAPA attorney is right and UAL will dump ALPA and gamble on the empty promises he's pushing.


Sure.

 

[Gnarloooo]

maybe they should meet in the men's bathroom and tap their foot

Careful...don't jump to conclusions. I hear United just has a wide stance.

 

[BigMeat]

I saw a United guy and a UsAir guy making out. I have no dog in that merger. Im just saying what I saw.....

 

[Lampshade]

http://www.thestreet.com/_yahoo/new...12357.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

http://biz.yahoo.com/ap/080416/us_airways_ceo.html?.v=1
More media insight

 

[Crzipilot]

"Rest assured if US Airways chooses to participate in any industry consolidation, we will do so because we believe it is the best interests of our employees and our airline."


This is coded language, meaning, all the excutives at the remaining airlines are on 5 different phones, talking all to one another trying to see what way to split the pie to get the biggest pay offs for each other. And who will be left with the headache of running one of the entities that comes together. that's probably the hold up, as each are looking at the $$$$ and saying.....I'll take it and run.....but so is everyone else, so they gotta figure out who's staying to run the place.

 

[LowlyPropCapt]

This is coded language, meaning, all the excutives at the remaining airlines are on 5 different phones, talking all to one another trying to see what way to split the pie to get the biggest pay offs for each other. And who will be left with the headache of running one of the entities that comes together. that's probably the hold up, as each are looking at the $$$$ and saying.....I'll take it and run.....but so is everyone else, so they gotta figure out who's staying to run the place.

Winner winner chicken dinner...

I would call it a CEO circle jerk, but your version is far better.

 

[Lampshade]

The "winner" is actually the loser. LOL

 

[Wiskey Driver]

I saw a United guy and a UsAir guy making out. I have no dog in that merger. Im just saying what I saw.....

You nasty bastage!!!

WD.

 

[Ky.BrownBourbn]

Straight from Parker's mouth (probably with some kinda media twist as usual)

On the local CLT News station's website:

US Airways Chief Talks To Employees About Deal Speculation


POSTED: 6:07 pm EDT April 16, 2008



PHOENIX -- US Airways chief executive Doug Parker warned employees Wednesday that airlines will have to make "dramatic changes" as oil prices rise and the economy sours, though he wouldn't comment about speculation that his airline is in deal talks with other carriers.
In a letter to employees, Parker mentioned a news report that US Airways was in talks with United Airlines and another that said it would be good partner for American Airlines.
"I can't comment on any specific discussions or transaction," Parker wrote.
However, "we can't ignore what's happening in the world around us. Oil has risen to over $113 per barrel and Wall Street is anticipating a recession that, if it happens, will lower all airline revenues."
And if Delta Air Lines Inc. and Northwest Airlines Corp. combine as planned, it would create "a formidable competitor," he said.
For years, Parker has been a major booster for airline consolidation. His airline, Tempe, Ariz.-based US Airways Group Inc., was formed in 2005 from America West Airlines and the former, Virginia-based US Airways. It has its largest hub in Charlotte, N.C.
Parker also tried to combine with Delta Air Lines last year, but the carrier's $9.8 billion hostile bid failed.
Investors also have pushed consolidation as a way to keep airlines aloft in a volatile economy. By joining forces, airlines would be in a better position to cut redundant flights, put fewer planes in the sky, and have better control over fares.
"If done properly, (consolidation) could result in a much healthier industry which would be good for our employees, our customers and the communities we serve," Parker said.
"Rest assured if US Airways chooses to participate in any industry consolidation, we will do so because we believe it is the best interests of our employees and our airline."
News reports have speculated that US Airways could be in talks with United and American Airlines. But industry observers disagree about whether those pairings would work.
Michael Boyd, an airline consultant in Colorado, said US Airways has been tainted by operational problems and union fights since its previous combination in 2005.
"If you're United or American, why would you embrace something that's been nothing but problems?" Boyd said. "It just strikes me that Parker wants to merge something. I don't know why."
However, Avondale Partners analyst Bob McAdoo said US Airways might make a good partner for United Airlines because it would boost their presence in the Northeast.
"People tend to believe that there's no real value in acquiring or merging with US Airways because it doesn't have any list of unique international destinations that they could tack onto their network," McAdoo said. "What people are missing is it has a tremendous market presence up and down the whole East Coast."
Shares of US Airways closed down 10 cents, or 1.23 percent, at $8.05 on Wednesday.

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