United Airlines' First Choice: Continental

[Eagle757shark]

United Airlines' First Choice: Continental
United Airlines would pursue a merger with Continental Airlines to create the industry's biggest carrier if given the go-ahead, a United board member said.
Continental is without question, the first choice for a United merger, Stephen Canale, a union representative on the United board of directors told the Houston Chronicle.
A merger between Delta Airlines and Northwest Airlines, currently under consideration, would provide both the impetus and the go-ahead for United to pursue a merger with Continental.
Talks between Delta and Northwest broke down last week as the two carriers' pilots disagree on how seniority issues would be handled.
But, if Northwest merged with another airline it would relinquish its golden share, which amounts to veto power over any merger Continental wants to pursue.
United Chief Executive Officer Glenn Tilton, has been frequently vocal about pursuit of a merger for United and a deal could happen quickly should Northwest abandon its veto power, Canale told the Chronicle.
A deal with Continental is a great fit business-wise and internationally. There's no two ways about that, he said.

Story from REDORBIT NEWS:
http://www.redorbit.com/news/display/?id=1281115

Published: 2008/03/04 15:00:38 CST

© RedOrbit 2005

 

[pkober]

Let's hope it never happens.

 

[General Lee]

United Airlines' First Choice: Continental
United Airlines would pursue a merger with Continental Airlines to create the industry's biggest carrier if given the go-ahead, a United board member said.
Continental is without question, the first choice for a United merger, Stephen Canale, a union representative on the United board of directors told the Houston Chronicle.
A merger between Delta Airlines and Northwest Airlines, currently under consideration, would provide both the impetus and the go-ahead for United to pursue a merger with Continental.
Talks between Delta and Northwest broke down last week as the two carriers' pilots disagree on how seniority issues would be handled.
But, if Northwest merged with another airline it would relinquish its golden share, which amounts to veto power over any merger Continental wants to pursue.
United Chief Executive Officer Glenn Tilton, has been frequently vocal about pursuit of a merger for United and a deal could happen quickly should Northwest abandon its veto power, Canale told the Chronicle.
A deal with Continental is a great fit business-wise and internationally. There's no two ways about that, he said.

Story from REDORBIT NEWS:
http://www.redorbit.com/news/display/?id=1281115

Published: 2008/03/04 15:00:38 CST

© RedOrbit 2005

Well, NWA would have to merge with someone to give up the golden share, and AMR doesn't look good thanks to the ORD hub between MSP and DTW. There is NO WAY any airline would have three hubs next to each other. Nope. Maybe two (like DTW and CVG would be stretching it, thanks to local politicians), but very unlikely 3. So, who does that leave for NWA other than DAL? USAir? That would be great. Those senior USAir Easties would show the old geezers at NWA a thing or two.

Looks like NWA's best bet is DAL, and with Air France throwing money down instead of a hedge fund (to keep some hedge fund money out), it would be hard to get that type of deal anywhere else. Looks like Senior Green Book Committee Chairman man better come down on his demands, or Steenland will remember that when you go for a new contract in 2011 (is that right?).


Bye Bye--General Lee

 

[Bigoober]

Please, no. United screwed away its reputation and stature and now wants to rebuild it by merging with a company that has some.

 

[viper548]

US Air would still be a good fit

 

[Eagle757shark]

Well, NWA would have to merge with someone to give up the golden share, and AMR doesn't look good thanks to the ORD hub between MSP and DTW. There is NO WAY any airline would have three hubs next to each other. Nope. Maybe two (like DTW and CVG would be stretching it, thanks to local politicians), but very unlikely 3. So, who does that leave for NWA other than DAL? USAir? That would be great. Those senior USAir Easties would show the old geezers at NWA a thing or two.

Looks like NWA's best bet is DAL, and with Air France throwing money down instead of a hedge fund (to keep some hedge fund money out), it would be hard to get that type of deal anywhere else. Looks like Senior Green Book Committee Chairman man better come down on his demands, or Steenland will remember that when you go for a new contract in 2011 (is that right?).


Bye Bye--General Lee

General you know the Delta Northwest merger is not dead. With all the money on the table, these executives are not going to walk away because a few pilots can't agree on intergration. Delta will get Northwest eventually. Now that it has kind of cooled off in the media, now is the time to watch out because an announcement is probable going to happen when we least expect it. With the current state of the economy, consolidation is coming.

If not Northwest and Delta, Northwest and US Airways may make a good fit strategically. Now seniority intergration would be a blood bath. But I don't think it will come to that. I believe the powers to be at Delta and Northwest are planning now and will probable make an announcement soon if something doesn't happen between the two pilot groups. We've all been in this business long enough not to believe face value what they may say in the media. So hang on, an announcement between Delta and Northwest will be coming real soon. The calm before the storm!

 

[General Lee]

General you know the Delta Northwest merger is not dead. With all the money on the table, these executives are not going to walk away because a few pilots can't agree on intergration. Delta will get Northwest eventually. Now that it has kind of cooled off in the media, now is the time to watch out because an announcement is probable going to happen when we least expect it. With the current state of the economy, consolidation is coming.

That may be true. Will merging airlines cause the cost of fuel to go down? Hardly. But, I do think they will be looking at it again, and if the NWA guys don't take it now with the money they are offering, they may get it later without. The Greeny Committee Chair may want to change his demanding stance. It won't work.

Bye Bye--General Lee

 

[Andy]

Well, NWA would have to merge with someone to give up the golden share, and AMR doesn't look good thanks to the ORD hub between MSP and DTW. There is NO WAY any airline would have three hubs next to each other. Nope. Maybe two (like DTW and CVG would be stretching it, thanks to local politicians), but very unlikely 3.

ROTFLMAO! Which airline do you think was AMR's first choice back in 2000? http://news.minnesota.publicradio.org/features/200007/26_catlinb_nwa/
Carty walked away because NWA's BOD wanted too much money for the airline.
And FWIW, DOJ did not voice any issues with the proposed merger.

 

[Eagle757shark]

That may be true. Will merging airlines cause the cost of fuel to go down? Hardly. But, I do think they will be looking at it again, and if the NWA guys don't take it now with the money they are offering, they may get it later without. The Greeny Committee Chair may want to change is demanding stance. It won't work.

Bye Bye--General Lee

I agree a merger will not cause fuel to go down, but it will be one of the arguments used by all of the executives to justify consolidation. With the economy on the eve of a possible recession, the credit crisis, and the cost of oil, an argument will be made that the airlines have to consolidate to be competitive globally. That will be their spin on it.

 

[Tanker Clown]

That may be true. Will merging airlines cause the cost of fuel to go down? Hardly. But, I do think they will be looking at it again, and if the NWA guys don't take it now with the money they are offering, they may get it later without. The Greeny Committee Chair may want to change is demanding stance. It won't work.

Bye Bye--General Lee

GL,

Nice work getting a CAL/United thread back to where it should be: DAL/NWA. (Sarcasm implied)

Good luck CAL guys. You got a great product, I hope it stays that way. UAL folks, I hope this gets you a new mgt team that you deserve. Maybe it will work out.