United merger 'might make sense,' Continental president says

[crxpilot]

http://m.usatoday.com/Air_News/921938/

United merger 'might make sense,' Continental president says
11/03/2009 13:46:25
​

Continental President Jeff Smisek – who will become the airline's CEO next year – says Continental would consider a merger with United if rival Delta’s merger with Northwest makes that airline more profitable, The Plain Dealer of Cleveland reports. The paper writes that "if the Delta/Northwest combination proves too potent, Smisek said in a Bloomberg Television interview, a Continental merger with United might make sense."

"We are watching Delta to see whether Delta outperforms us financially," the Plain Dealer quotes Smisek as telling Bloomberg. "They've gotten bigger, they've gotten more complex, but they haven't gotten profitable." United and Continental discussed a possible merger last year. Continental ultimately broke off talks, saying then that if felt its best path was to remain a standalone carrier.

 

[Ben Franklin]

"They've gotten bigger, they've gotten more complex, but they haven't gotten profitable."​

This sounds like 85% of the Captains I fly with.

Sincerely,

B. Franklin​

 

[crj567]

Yep-
Just look at the history of airline mega-mergers... Every single one has taken two weak airlines and magically created one much-weaker airline.

 

[Data]

This sounds like 85% of the Captains I fly with.

Sincerely,

B. Franklin

Good one!

 

[nimtz]

This sounds like 85% of the Captains I fly with.

Sincerely,

B. Franklin

Well played sir...

 

[densoo]

a Continental merger with United might make sense

Too bad "making sense" has nothing to do with a merger--only making money. If those who own the airlines--the banks--think it's a slow period and need to make some money, they'll merge the two airlines. Lawyers don't make money in a marriage, they make money in the divorce. The bankers and lawyers need chaos to make money, not calm. Of course, the execs will make money regardless. If it's fixed, they are rewarded; if it's broken, they are needed to fix it and are rewarded once again.

 

[climbhappy]

that's funny..I thought the shareholders owned the company.

 

[climbhappy]

and the shareholders elected a board of Directors who appointed officers to run the company to determine if a merger was suitable then brought it before the board which in turn brought it a shareholder vote.... Did I miss something?

 

[johnsonrod]

Personally I like the name "Unitental" better than "Continited"... Make it happen!!!!

 

[Whine Lover]

Too bad "making sense" has nothing to do with a merger--only making money. If those who own the airlines--the banks--think it's a slow period and need to make some money, they'll merge the two airlines. Lawyers don't make money in a marriage, they make money in the divorce. The bankers and lawyers need chaos to make money, not calm. Of course, the execs will make money regardless. If it's fixed, they are rewarded; if it's broken, they are needed to fix it and are rewarded once again.

THAT is the best, most succinct, absolutely most spot on analysis, I have ever seen, heard, read, or heard talked about in this Industry. ( Or any other for that matter. )

Kudos to you SIR.

YKMKR