United and Continential are now dancing partners

[contrail67]

jobs......... worried?

Not really...they laid eveyone off already.

 

[IAHERJ]

I think the merger will come before a ch11 by anyone.....

Nope, if CAL merges with UAL, it will be after a pre-packaged filing by United. Continental is not that stupid.

 

[contrail67]

A prepackaged filing??? I don't think so.

 

[tie1on]

thats what delta and nwa did

 

[catIIIc]

And TWA/AA

 

[ExAF]

thats what delta and nwa did

However the B/K rules were different then.

 

[Mr.B]

Nope, if CAL merges with UAL, it will be after a pre-packaged filing by United. Continental is not that stupid.

Pre-packaged? Is that a Harvard Business term?

Gawd...you keyboard CEOs crack me up.

 

[IAHERJ]

I don't know what kind of term it is. What I do know is that Continental can't afford to just merge with United. We have our own problems. The "pre packaged" stuff I've heard is the only way CAL could afford to merge with United. It would allow United to get rid of some debt load that CAL could never take on without a bankrupsy filing of its own down the road. I don't claim to be a keyboard CEO, just passing along the crap I hear from my side.

 

[Daedalus]

Latest bad news on United from Chicago Crain's Business:

"Chicago-based United's cash is evaporating as the recession chokes off air travel. With more than $1.5 billion in debt coming due by next year, Mr. Tilton can only hope the economy recovers before the cash runs out...."

http://www.chicagobusiness.com/cgi-bin/article.pl?articleId=32164

 

[BID]

that is an interesting article.

I agree that the odds of a merger are less now. but if one does happen it will be easier and smoother, not including labor issues!

I also have mixed feeling about this joint venture, but I think in the end, it is necessary.

so many changes in this business, its amazing what can happen in less than a year.