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.

 

[moresky]

Why wouldn't CAL be their first choice? They would be the easiest pilot group roll-over. The UAL pilots will pummel the CAL pilots on every issue of a merger. Period! I know being a CAL pilot. Simple unfortunate reality, CAL pilots are weak, look at our contract. We don't have the percentage of pilots strong enough to be a majority voice of solidarity yet.

 

[General Lee]

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.

AGAIN, Andy, tell me how it would work with 3 hubs next to each other? They are all within 1 hour flight of each other. Which one would they trim down? What would local politicians think?


You can ROTFLMAO all you want, but it won't work. Again, you are shooting from the hip with NO ammo.

Bye Bye--General Lee

 

[flygirlqt]

Why wouldn't CAL be their first choice? They would be the easiest pilot group roll-over. The UAL pilots will pummel the CAL pilots on every issue of a merger. Period! I know being a CAL pilot. Simple unfortunate reality, CAL pilots are weak, look at our contract. We don't have the percentage of pilots strong enough to be a majority voice of solidarity yet.

If you think like that then it will happen.

 

[moresky]

It's the majority, not me. Just being real.

 

[Pocono Pilot]

If you think like that then it will happen.

I just hope I can get on at United before the merger, because UAL will probably staple the CAL pilots, and it would be fun to be senior to all the flowbacks. LOL

 

[viper548]

What happened to you being so happy in the left seat at a regional?

 

[bpapaDC8]

General,

The article Andy was quoting was from year 2000. AMR could easily try to play spoiler in the Delta-Northwest merger scenario today. Do you think every other airline will sit on their hands and watch this play out?

 

[flygirlqt]

I just hope I can get on at United before the merger, because UAL will probably staple the CAL pilots, and it would be fun to be senior to all the flowbacks. LOL

I'm sure you will get rejected there as well. Didn't you run your clap trap earlier you had "connections"?

What happened, get your knees roughed up for nothing?

 

[Andy]

AGAIN, Andy, tell me how it would work with 3 hubs next to each other? They are all within 1 hour flight of each other. Which one would they trim down? What would local politicians think?

You can ROTFLMAO all you want, but it won't work. Again, you are shooting from the hip with NO ammo.

Bye Bye--General Lee

Geez, you're freaking dense. In 2000, AMR needed another hub in the center of the country to offload excess traffic from DFW and ORD. DFW and ORD were maxed out - need I remind you of the slot restrictions put in place at ORD back then?
Carty wanted NWA because the MSP and DTW hubs were great fortress hubs with a lot of O&D traffic. The O&D traffic out of STL was smaller and not the high yield variety.
There was zero talk of dismantling any of the three hubs, because MSP and DTW are high revenue fortress hubs. I understand that the high revenue fortress hub is a difficult concept for a deltoid to grasp, since SLC is about the closest thing to such a beast for Delta.
It's pretty obvious from previous exchanges with you that you have near zero understanding of why AMR would want/need additional midwest hubs. Again, DFW and ORD were maxed out; ORD is still maxed out - I can't speak for DFW since I haven't been through there for quite a while. So what's the importance of additional midwest hubs for AMR? Look at AMR's fleet. Mad dogs and guppies aren't built for transcons. They've dissembled most of their STL hub; it's a crappy hub city, so that's the logical move.

AGAIN, USAirways had 4, count 'em, FOUR hubs within an hour of each other - PHL, PIT, DCA, and BWI. Those hubs are used primarily for north/south traffic. And PHL and DCA are great high yield O&D hubs. I know, I know, high yield O&D hubs are an abstract concept to deltoids.

 

[Andy]

I just hope I can get on at United before the merger, because UAL will probably staple the CAL pilots, and it would be fun to be senior to all the flowbacks. LOL

It'd be guaranteed to go to arbitration, and would almost certainly end up being relative seniority with minor tweaks.
Exactly what did you hope to gain with such an inflammatory comment? Are you having a contest with GL to see who's got the lowest IQ?