Ual-cal?

[BIGGOAT]

'Inside Wall Street' notes fresh UAL-Continental deal rumors



http:///
By Mike Maynard

Last Update: 6:11 AM ET Aug 11, 2006





WASHINGTON (MarketWatch) -- Business Week says there's renewed market buzz going around that UAL Corp. (UAUA) and Continental Airlines Inc. (CAL) might make for a good merger, particularly from the strategic standpoint of international travel. UAL, having gone public after emerging from Chapter 11 last winter, is the parent of No. 2 U.S. carrier United Airlines. United's strong on overseas routes serving Asia, while Continental's international service is geared toward Europe destinations. A combined UAL-Continental would have revenue of about $30 billion, or some 50% higher than AMR Corp. (AMR) , parent of market leader American Airlines, according to the report in Business Week's "Inside Wall Street" column. Business Week said neither UAL nor Continental would comment on merger rumors.

 

[PA-22]

Yeah, we'll all merge to become one huge airline. Reminds me of an island south of FL.

 

[coogebeachhotel]

"No comments on merger rumors" That is what is scary. Would be a lovely cluster mess. Can you imagine the senority intergration? So much for the quick movement at Cal.

 

[fatboyplt]

Why the issues? There is alot of different ways to merge... If in fact it becomes reality. From fences to ratios and a host of other options, no need in borrowing trouble. Fortunately there are some pretty smart people with both firms to look at the possibilities. Don't you think?
Birdman
BTv

 

[Hangin' On]

Why the issues? There is alot of different ways to merge... If in fact it becomes reality. From fences to ratios and a host of other options, no need in borrowing trouble. Fortunately there are some pretty smart people with both firms to look at the possibilities. Don't you think?
Birdman
BTv

With all due respect, I wouldn't call folks who made an exit plan to a 3yr BK based on $50/barrel oil "smart." Plus, as a 777 CA, I doubt you are too worried about being bumped out of your seat, are you?

Even two ALPA carriers are having a rough time of it--and they have some guidelines to follow. Take a look at some of the other threads--mergers/acquisitions are not a good time!!

 

[Hangin' On]

A combined UAL-Continental would have revenue of about $30 billion, or some 50% higher than AMR Corp. (AMR) , parent of market leader American Airlines, according to the report in Business Week's "Inside Wall Street" column. Business Week said neither UAL nor Continental would comment on merger rumors. http://i.mktw.net/mw3/News/greendot.gif

Let's hope these management types don't get what Carty had and try this! Egomaniac from He.....uke:

 

[fatboyplt]

The smart people I was refering to were hopefully involved with the union. I was not commenting about $50 oil management predictions as well. That is a different subject too. I am concerned as all should be about what is fair ref subject integrations. I know these things get ugly as all do, but maybe once there could be a nice outcome for all. As far as myself in my current position is concerned all it means is I have just been here long enough nothing more or less..
I personally believe that the two firms would make one heck of a fit but of course that again is a different subject.
Birdman
BTV

 

[Palomino]

it would be the equivalent of a Piedmont/USAir merger. take a great company with growth & enthusiastic employees and mix them with sour grapes. no thanks.

i say keep things just as they are and let CAL continue their impressive trend in the market. why ruin a good thing?

 

[CaptAntoineMack]

In the 80's it was capture market share or die.

This decade it will be find a consolidation partner or die.

As soon as two blink, you will instantly see six airlines go to three.

And that will probably solve their problems in that part of the industry.

 

[BigShotXJTdrvr]

The bankers will dictate if it will be attempted or not. Airlines have to pay their "credit card" bills just like we do, and a merger of two airlines from the perspective of the money men is really just a form of debt consolidation and possibly increasing the likelyhood of being paid back on schedule and having less bad loans end up on the books or get flushed for repayment at $.30 on the dollar by the bankruptcy court.

 

[SWAdude]

The bankers will dictate if it will be attempted or not. Airlines have to pay their "credit card" bills just like we do, and a merger of two airlines from the perspective of the money men is really just a form of debt consolidation and possibly increasing the likelyhood of being paid back on schedule and having less bad loans end up on the books or get flushed for repayment at $.30 on the dollar by the bankruptcy court.

Mergers are not done by only bankrupt carriers.

And I believe it is far more involved than just the "bankers".

I agree with Antoine on this one. In a blink of an eye, six carriers will become three.

 

[Tomct]

it would be the equivalent of a Piedmont/USAir merger. take a great company with growth & enthusiastic employees and mix them with sour grapes. no thanks.

i say keep things just as they are and let CAL continue their impressive trend in the market. why ruin a good thing?

I agree, too merge CAL with anyone would be a TRAGEDY!! All that new growth and movement at CAL would come to an abrupt STOP! Please make the bad man go away.......

 

[pkober]

Hey maybe ALPA will represent me this time like they did when I was at TWA!

 

[Sonny Crockett]

I think a UAL/CAL might actually be a good fit. Much better than the USAir deal in 2000. Who knows?

 

[BID]

United And Continental?

[FONT=arial,helvetica,univers]

After coming out of bankruptcy on Feb. 1 much leaner, United Airlines' parent, UAL (UAUA ), is drawing fresh attention for its turnaround efforts. There's also buzz of a merger with Continental Airlines (CAL ). The two have talked in the past, and some pros think the effort will be rekindled. One money manager who owns UAL shares, has close ties with executives, and asked not to be named, says Continental has not given up. "The strategic fit [would] be great," he argues. A merger would make UAL-Continental tops in the U.S. In passenger revenues, UAL is second only to AMR (AMR ), parent of American Airlines. Combined, UAL and Continental, now No. 5, would have sales of $30 billion, vs. AMR's $20.7 billion. Since March, UAL stock has fallen from 43 to 23.83. Helane Becker of investment firm Benchmark, who rates UAL a "buy," says the rumored merger is "entirely possible." Apart from the fit, she says, a merger would remove "overlapping capacity" from the system. Since Chapter 11, UAL's labor costs are competitive with those of low-cost airlines, notes Becker. She has a 12-month price target of 43, based on eight times her estimated 2007 profit estimate of $5.32 a share. For 2006, she expects a loss of 25 cents. Roger King of CreditSights.com notes in a report that UAL is strong in Asia, while Continental is strong in the Atlantic. That suggests that a merger would strategically benefit both. UAL and Continental both declined comment on merger rumors. [/FONT]


source: Business Week.com

 

[Flying the Line]

Agreed once the first merger happens the next two till occur quickly.

I know AA would prefer pacific routes but their airplane have more commonality with DAL and NW and US could end up an all Airbus airline one day.

US + F9 could happen too.

 

[Sonny Crockett]

Same topic/slant...

[FONT=Arial,Helvetica,Geneva][SIZE=-1]BusinessWeek Online
United And Continental?
Friday August 11, 3:56 pm ET
By Gene G. Marcial


After coming out of bankruptcy on Feb. 1 much leaner, United Airlines' parent, UAL (NASDAQ:UAUA - News), is drawing fresh attention for its turnaround efforts. There's also buzz of a merger with Continental Airlines (NYSE:CAL - News). The two have talked in the past, and some pros think the effort will be rekindled. One money manager who owns UAL shares, has close ties with executives, and asked not to be named, says Continental has not given up. "The strategic fit (would) be great," he argues. A merger would make UAL-Continental tops in the U.S. In passenger revenues, UAL is second only to AMR (NYSE:AMR - News), parent of American Airlines. Combined, UAL and Continental, now No. 5, would have sales of $30 billion, vs. AMR's $20.7 billion. Since March, UAL stock has fallen from 43 to 23.83. Helane Becker of investment firm Benchmark, who rates UAL a "buy," says the rumored merger is "entirely possible." Apart from the fit, she says, a merger would remove "overlapping capac ity" from the system. Since Chapter 11, UAL's labor costs are competitive with those of low-cost airlines, notes Becker. She has a 12-month price target of 43, based on eight times her estimated 2007 profit estimate of $5.32 a share. For 2006, she expects a loss of 25 cents. Roger King of CreditSights.com notes in a report that UAL is strong in Asia, while Continental is strong in the Atlantic. That suggests that a merger would strategically benefit both. UAL and Continental both declined comment on merger rumors. [/SIZE][/FONT]

 

[FreightNazi]

UniCal? or is that already taken?

 

[geshields]

UniCal? or is that already taken?

I still want to see us and AerLingus merge...that would be a great name..

Continental and AerLingus

 

[Bavarian Chef]

I love it ... ConAerLingus. Your mascot could be Colonel Angus, kind of like at Ole Miss.

 

[hyflyt560]

I love it ... ConAerLingus. Your mascot could be Colonel Angus, kind of like at Ole Miss.

I don't think that's what he had in mind!

 

[PA-22]

I love it ... ConAerLingus. Your mascot could be Colonel Angus, kind of like at Ole Miss.

American and Northwest are merging to form the new America West. :laugh:

 

[Bavarian Chef]

Both of you are dorks.

 

[Devil Dawg]

As for your integration pkober...
They will have to staple you. UAUA is the nations #2 airline and you are at the nations #5 airline. That means they will own you. You will be forever indebted to the crewmembers at UAUA and It is they who will have personally saved your company because if you don't merge you will die. And you will like this.

 

[FlyBoeingJets]

In the 80's it was capture market share or die.

This decade it will be find a consolidation partner or die.

As soon as two blink, you will instantly see six airlines go to three.

And that will probably solve their problems in that part of the industry.

I am also anticipating the next tier of players (Airtran, JetBlue, Midwest and Alaska) to seek some partnerships during this free for all, when it happens.

It goes without saying that SWA will work some sort of deal too.

 

[SWAdude]

I am also anticipating the next tier of players (Airtran, JetBlue, Midwest and Alaska) to seek some partnerships during this free for all, when it happens.

It goes without saying that SWA will work some sort of deal too.

I respectfully disagree. This sector in the airline business does not have the needs competitively that the legacies have.

 

[FlyBoeingJets]

I respectfully disagree. This sector in the airline business does not have the needs competitively that the legacies have.

We'll see. I don't expect SWA to merge with anyone, but gates are getting harder to get. Maybe more long term codeshare or an outright purchase with 2 separate companies operating. Like World and North American or Atlas and Polar.

If it doesn't happen, that would be better news than I expect and you would be the better prognosticator...I will happily buy you a few beers.

 

[pkober]

As for your integration pkober...
They will have to staple you. UAUA is the nations #2 airline and you are at the nations #5 airline. That means they will own you. You will be forever indebted to the crewmembers at UAUA and It is they who will have personally saved your company because if you don't merge you will die. And you will like this.

Awesome, thanks for the laugh.

 

[Andy]

As for your integration pkober...
They will have to staple you. UAUA is the nations #2 airline and you are at the nations #5 airline. That means they will own you. You will be forever indebted to the crewmembers at UAUA and It is they who will have personally saved your company because if you don't merge you will die. And you will like this.

Thanks for fanning the flames, richard.
I don't want a merge with CAL either, because as a UAUA furloughee (to be recalled shortly), I'd expect to be stapled to the bottom of the combined seniority list.
CAL is a great company with great management and a lot of upward movement; a merge would be great in those respects. However, no integration goes well and I'd prefer to fly with unhappy UAUA crews rather than miserable b!tchy UAUA/CAL crews.
BTW, I see you use Nancy Stuckey (sp) in your profile. Nancy Stuke was shown the door at UAUA prior to me being hired there in June '00. I believe that it was not a voluntary departure on Nancy's part; she is no longer a UAUA employee. Roger Vessely replaced her; he is still at UAUA.

 

[Morning Wood]

I really can't see the DOJ allowing this kind of merger. One of them would have to go out of business and the other would come in and pick up the scraps.