UAL/Continental Part II

[WSurf]

http://www.reuters.com/article/marketsNews/idINWEN598820080530?rpc=44

NEW YORK, May 29 (Reuters) - UAL (UAUA.O: Quote, Profile, Research) and US Airways (LCC.N: Quote, Profile, Research) have suspended merger plans as UAL's United Airlines is near and alliance agreement with Continental Airlines Inc (CAL.N: Quote, Profile, Research), according to a Wall Street Journal online story.
But the story, which cited unnamed people familiar with the matter said that UAL's Chief Executive Glenn Tilton told the head of US Airways, Doug Parker, at a lunch on Thursday that he was not ruling out the potential for a future deal between US Airways and UAL.
UAL is hoping for anti-trust immunity for a Continental Alliance that would allow the pair to coordinate on fares, capacity and schedules in foreign markets, according to the story. (Reporting by Sinead Carew; Editing by Louise Heavens)

 

[densoo]

Does an "alliance" change things? Seems administrative rather anything else. Nothing like a merger.

 

[Palomino]

does an alliance trigger the ripcord on the golden parachute of Tilton?

 

[flyboy006]

what exactly is an alliance in this case?? What does it do different than a code share??

 

[Jonny Sacko]

Is it something like pimping a seat? If I sell a seat on your plane, maybe I get a cut. The code share, (I could be way off) gives the company the chance to sell a ticket to a place they don't fly, but still sell the ticket. Anyone know?

 

[SuperFLUF]

Its about entering the Star Alliance. Not just an alliance with UAL alone. CAL is also talking with American and BA about the One World alliance.

Its about code sharing and interlining and eticketing and frequent flyer programs and a whole host of other things along with a limited amount of strategery as far as who flies where.

 

[737 Pylt]

does an alliance trigger the ripcord on the golden parachute of Tilton?

If it does, you can guarantee he'll be gone faster than Jmoney on a 13 year old boy!

737