AirportPlan From United States, joined Jan 2004, 434 posts, RR: 4 Posted (2 years 11 months 3 weeks 4 days ago) and read 9458 times:
Continental Airlines prepared to enter merger fray
Tue Nov 21, 2006 12:20 PM ET
NEW YORK, Nov 21 (Reuters) - Continental Airlines Inc. , concerned about being dwarfed by larger competitors, would consider a merger if necessary to maintain its competitiveness, its chief executive said.
"If the landscape of the U.S. airline industry does indeed change, we'll do what we need to do to act in the best interests of you (employees), our customers, our shareholders and the communities we serve," Chief Executive Larry Kellner said in a recorded message to employees on Friday.
Continental sent the transcript to Reuters on Tuesday.
US Airways Group last week made an $8 billion bid for larger, bankrupt rival Delta Air Lines . Analysts expect the offer to spark counterbids or other combinations.
The statement positions Continental, the No. 4 U.S. carrier, as another potential player in industry deal-making, alongside United Airlines parent UAL Corp. .
Discount carrier Southwest Airlines has expressed interest in picking up assets that might have to be unloaded following a deal.
But unlike UAL, which has long been a proponent of consolidation, Continental would be a reluctant participant, concerned about the implications of staying on the sidelines.
"The creation of a competitor even larger than American Airlines would not be good for us in the long run," Kellner said. "Our preference is to remain independent and continue our growth plan."
Continental shares were up 1 percent at $42.96 in midday trading on the New York Stock Exchange.
Co/ba From United States, joined May 2001, 397 posts, RR: 6 Reply 2, posted (2 years 11 months 3 weeks 3 days 22 hours ago) and read 9129 times:
They have been saying this for a while now. It would be nice to see CO become a real domestic as well as international powerhouse. It's just a shame it would have to be through aquiring UA and not growing on it's own.
Travelin man From United States, joined Mar 2000, 2989 posts, RR: 0 Reply 5, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8874 times:
AirportPlan From United States, joined Jan 2004, 434 posts, RR: 4 Reply 6, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8813 times:
Quoting CO767FA (Reply 4): CO is looking for specific items...LHR, Asia and West Coast Hubs (DEN, LAX, SFO). Of those items, US doesn't bring any of those to the table.
I agree. Neither DL or US brings hubs at ORD, DEN, LAX and SFO to the table. Also dozens of slots at NRT, rights to China, and LHR.
UAL777UK From United Kingdom, joined Nov 2005, 2249 posts, RR: 1 Reply 7, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8815 times:
Quoting CO767FA (Reply 4): CO is looking for specific items...LHR, Asia and West Coast Hubs (DEN, LAX, SFO). Of those items, US doesn't bring any of those to the table.
Which is where UA comes in. Glen Tilton in a message to employees at the weekend made a point of saying that UA was placed to be in a position to enter consolidation and his message suggested UA was going to acquire as opposed to be acquired!. IMHO they are lining up a spoiling party for US takeover of DL or they are waiting to go after CO. Its all getting very interesting!
Justloveplanes From United States, joined Jul 2004, 471 posts, RR: 0 Reply 9, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8711 times:
If this stuff is going to happen Continental needs to jump aggressively for NWA.
Both NWA and UA have what CO really needs and that is a large TransPacific Asian network. UA's ideal merger partners are CO and DL for route structures to Europe and Latin America.
So CO, which does not want to screw up its growth and operational culture is has been building for 15 years, will not want to be acquired by UA.
Therefore, the logical choice is to acquire NWA the same way US is getting DL, via creditor buy out. NWA seems a more target focused Airline than UA and has a good cost control culture (from a financial standpoint, don' know how the employees feel about their management).
They get their Asia Routes and a carrier that is smaller than themselves that they can integrate easier than UA.
Rampart From United States, joined Aug 2005, 1665 posts, RR: 11 Reply 10, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8698 times:
Quoting CO767FA (Reply 4): West Coast Hubs (DEN, LAX, SFO).
US, now based in PHX, has a hub there, and in LAS. Count those if you also count DEN as "west coast" (maybe after a few million years of plate tectonics). However, I'd think that US and CO would have too much East Coast overlap and very different missions to be merger partners.
PropilotJW From United States, joined Mar 2000, 568 posts, RR: 10 Reply 11, posted (2 years 11 months 3 weeks 3 days 21 hours ago) and read 8680 times:
Delta - All Boeing
Delta Connection - mostly erj's
Continental - All Boeing
Expressjet - erj's
ATLAaron From United States, joined Apr 2006, 1017 posts, RR: 7 Reply 12, posted (2 years 11 months 3 weeks 3 days 20 hours ago) and read 8509 times:
Remember the article posted above reiterates what many on here says, and that is that CO would have to be the acquirer because of NW's golden shares. That being said a CO/US marriage will not happen because Parker is looked to acquire not be acquired.
I hate to fuel merger speculation but can we assume that in a CO/UA marriage that the United name would stay?
AirportPlan From United States, joined Jan 2004, 434 posts, RR: 4 Reply 13, posted (2 years 11 months 3 weeks 3 days 20 hours ago) and read 8358 times:
Quoting Justloveplanes (Reply 9): Therefore, the logical choice is to acquire NWA the same way US is getting DL, via creditor buy out. NWA seems a more target focused Airline than UA and has a good cost control culture (from a financial standpoint, don' know how the employees feel about their management).
They get their Asia Routes and a carrier that is smaller than themselves that they can integrate easier than UA.
But with a NW merger CO don't get a west coast hub (LAX or SFO) or the rights to LHR. As far as the cultural issue goes if CO is the buyer they control the situation.
Tan Flyr From United States, joined Aug 2000, 1482 posts, RR: 0 Reply 15, posted (2 years 11 months 3 weeks 3 days 19 hours ago) and read 8170 times:
A UA/NW hookup would require divesting the Asia routes no doubt. How about an AA/ CO marriage with the new AA the acquiring the castoff Asia/ Narita rights.
Great domestic system, Great european coverage, outstanding Latin America routs and then, yes, those Asian routes to boot.
ARGinLON From Vatican City State (Holy See), joined Jun 2005, 613 posts, RR: 0 Reply 19, posted (2 years 11 months 3 weeks 3 days 19 hours ago) and read 8019 times:
Quoting AirFrnt (Reply 17): The question is, does the "Golden Share" still hold up if CO is the one that does the acquisition?
Delta Connection does not have mostly ERJs, they have mostly CRJs. Some of the connection partners use ERJs, by Comair, Skywest and Comair, which constitute majority of connection flying are all CRJ, and CR7&9 if you want to get technical.
Steeler83 From United States, joined Feb 2006, 7305 posts, RR: 19 Reply 22, posted (2 years 11 months 3 weeks 3 days 18 hours ago) and read 7909 times:
Quoting AirportPlan (Reply 6): Quoting CO767FA (Reply 4):
CO is looking for specific items...LHR, Asia and West Coast Hubs (DEN, LAX, SFO). Of those items, US doesn't bring any of those to the table.
I agree. Neither DL or US brings hubs at ORD, DEN, LAX and SFO to the table. Also dozens of slots at NRT, rights to China, and LHR.
US can't fly to LHR because of the stupid Bermuda2 law. Only AA and UA can fly to LHR from select USA hubs/large cities. So natually CO would make a pitch for UA, as someone else stated. Plus, they get SFO for a west coast hub. Would their hubs look like the following if there was a CO UA merger?
IAD, EWR/JFK, ORD, DEN, LAX?
I suppose EWR would be the domesticl hub with flights to Asia with JFK being the gateway to LHR and other places in Europe. Thoughts?
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
Thomasphoto60 From United States, joined Jan 2000, 3318 posts, RR: 31 Reply 23, posted (2 years 11 months 3 weeks 3 days 18 hours ago) and read 7879 times:
Quoting Steeler83 (Reply 22): Would their hubs look like the following if there was a CO UA merger?
IAD, EWR/JFK, ORD, DEN, LAX?
I can't help but to notice that you left out one important CO hub. This is very telling with regards to IAH's future. post merger (should it come to pass).
Justloveplanes From United States, joined Jul 2004, 471 posts, RR: 0 Reply 24, posted (2 years 11 months 3 weeks 3 days 18 hours ago) and read 7815 times:
I just read the Houston Chronicle article. I now think the best layout is:
US/DL
CO/UA
AA/NW
That's 3 majors, makes sense. I am from Houston and I am hoping this is what happens for CO's sake. The above line up I think would have the best overall benefits for everbody. I think its a scenario most likely to be approved too. You have three main players all competing in the same markets. The only weak thing is US/DL will still be weak in Asia.
Smart move by Parker - He's started the ball rolling, and they'll be in the game if they pull it off. Can't say for sure they would have been otherwise.
CO767FA From United States, joined Aug 2005, 478 posts, RR: 2 Reply 25, posted (2 years 11 months 3 weeks 3 days 18 hours ago) and read 7687 times:
Quoting Steeler83 (Reply 22): I suppose EWR would be the domesticl hub with flights to Asia with JFK being the gateway to LHR and other places in Europe. Thoughts?
Picture JFK becoming just a domestic point in the system; EWR would hold domestic, international and LHR
Quoting Thomasphoto60 (Reply 23): I can't help but to notice that you left out one important CO hub. This is very telling with regards to IAH's future. post merger (should it come to pass).
IAH would be HQ if CO is the acquirer.
26 B737900er: A CO/UA merger would hurt the people who matter most. The employees. The labor unrest would make it extremely difficult for this carrier to succeed in
27 AirportPlan: In a CO/UA merger Houston would still be HQs plus an important hubs. But probably not as important of an hub as it is today. This merged entity would
28 Scaledesigns: Between UA and CO right now,what is the biggest hub I doubt if a merger between the two happened that that would change.
29 N766UA: The vast majority of DCI RJ's are Canadairs... I don't know where you come off saying that they fly mostly ERJs.
30 KingAirMan: hmm.. A united and CO merger would possibly mean some airbus in continental colors ? I am curious to know what that would look like!
31 Steeler83: Yeah, I can't believe I forgot to mention IAH as a hub. It would be like what PHX is for US. I really don't know which hub would be the biggest, whet
32 Haggis79: to come back to my favourite topic with respect to merger talk... - what would be the surviving name with these mergers and to which alliance would t
33 Scaledesigns: If there is a UA/CO merger you will only see the Airbuses in CO colors as a retro
35 STT757: CO+UAL Airline branded United Airlines Airline Headquarters Houston, Texas CO Management team Primary Hubs: Newark, Chicago, Houston, Denver, San Fra
36 Scaledesigns: No,not that Airbus..UA/CO are not dumb enough to order the A340!!
37 Legacytravel: My guess is that the UA names and colors will be kept and the CO name will disappear. Mark in MKE
38 Cessna057: This seems so smart, but theres one huge problem. They both serve very similar cities, just from different HUBs, and CO wants, as said before, expans
39 Gigneil: Los Angeles is bigger for United than it is for American at this point. I would expect both IAD and LAX to remain amongst their "hub" cities. IAD is a
40 STT757: CO has 20 firm and 20 options for 787s, couple CO's 787s with UAL's hubs at LAX and SFO and you have the cornerstone of a strong Asian growth strategy
41 KingAirMan: I love CO livery and would hope that UA would not win the colors , but im sure as posted this would be correct. A-340 doesnt look too bad in the conti
42 CO767FA: IF the UA names stays, the CO colors prevail. If the CO name stays, the CO colors prevail. If the CO name and colors are retained; I think it would c
43 CuriousFlyer: I think UA sucks, bad service, sad employees, the Continental name has a much better recognition, at least on the East coast. And as CO would control
44 ATLAaron: This is a merger I would really like to see. The other I would like to see just disappear.
45 USPIT10L: It already is for both UA and CO. The international ops for UA were switched to IAD and to DL respectively.
47 DfwRevolution: Says who? Contrary to popular opinion, the DOJ has not proven to be anti-merger. Many people assume that it was the DOJ who prevented the US Airways
48 Augustrg: Any predictions? In a CO/UA merger, would the surviving brand (presumably United) still offer Economy Plus? Would it offer CO's 2-class or UA's 3-clas
49 United777atGU: I know that it is not that important when it comes to mergers, but that sure has been on my mind for such a long time!!! I don't want to lose 3-class
50 Aero0729: what a mess...no one should be allowed to merge at this point. One merger sparks another....then another. The airline industry is ifnally on a rebound
51 JAAlbert: Why don't we bring out the big boys in this speculation -- How about AA acquiring DL, or even more audacious, UA. That would put AA in the US, Carribe
52 HPAEAA: ummm your forgetting the CR7, CR1, E170.. Comair, ACA, and Skywest all had a ton of CRJ aircraft.. I'd say the bulk of the fleet is CRJ not ERJ
53 HPRamper: Agreed...I think this idea makes more sense than just about any other merger proposal. In fact it would be very similar to US/HP. Big airline stronge
54 ANNOYEDFA: I don't know why everyone thinks the UAL name would stay. It's nothing special and sure doesn't have the brand notoriety that Contiental has... Sorry
57 BlazingCessna: Amen! But then again, US Scareways is worse!! BWAHAHAHAHA!!!! Thanks for the laugh!!! Let me see when will CO buy AA...hmm...err...never.
59 Scaledesigns: Some people still remember what CO was like 15 years ago. UA has alot of "blue chip" companies using there service and has been flying many Asian and
60 Scaledesigns: My opinion is that if CO took over UA, AA would be able to steal alot of long term contracts from what was UAL.
61 Wingnut767: I hope That CAL-UAL does not happen. To much dead weight at UAL.
62 Wingnut767: I don't know why everyone thinks the UAL name would stay. It's nothing special and sure doesn't have the brand notoriety that Contiental has... Sorry
63 CO767FA: Yet, many more remember how many awards and accolades CO has received over the last decade. Those same people remember more recently the largest and
64 Scaledesigns: Yep,those many folks remember the pilot issues.And they still fly UA or AA,not CO. UA took over all the Pan Am Pacific network. You call Air Micronesi
65 Travelin man: Everyone has different opinions. I've had very good United experiences (and some bad -- like every airline), and it has a far bigger frequent flyer b
67 Ctheworld: Uh, ok you know nothing then, because brand study after brand study shows that the United name has a much stronger reputation around the world, the U
68 CO767FA: Let's have a link to those studies or other tangible proof. Where would UA get the money? We all know that both would get the money via investors. I
69 HPRamper: Both CO and AA would seem really viable...and I would probably lean AA except AS is retiring its MD fleet while AA seems to want to keep them around
70 Rampart: I understand the arguments for "United", but I represent and unknown number of travellers who would respect "Continental" more than "United" for the
71 JSquared: Agreed. From a purely selfish point of view, I don't want NW acquired by anybody. I enjoy having the ability to get a direct flight from MSP to nearl
72 Travelin man: I just can't think of any merger/acquisition where the smaller airline's name was kept. US/HP -- US AA/TW -- AA US/DL(?) -- DL
73 United777atGU: I like what Rampart said the best so far (rationally speaking, because I could be a brat and say screw you all United is the best, always will be, et
74 Rampart: How civil of you, thanks! Imagine, a congenial disagreement on A.net, what a novelty! In the spirit of the upcoming holiday and what I heard on my lo
75 Mariner: Hmmm? The DOJ said they would sue to stop it: http://www.usdoj.gov/atr/public/press_releases/2001/8701.htm The Department expects to file suit to blo
76 AirFrnt: It was pretty widely reported, and I have seen a recent reference that both US and UA soured on the merger even before the DoJ move.
77 Mariner: I'm sure that's true - given the share price that UA was offereing and the looming evidence that all was not well in airline land. United had tried t
79 Fewsolarge: Great example. After the 1996 crash, Valujet was looking for a new brand. Unique circumstance ... thankfully we don't have that concern this time arou
80 Gnomon: With increasing detail, the media teased out the story behind the persistent UA/CO merger rumor during the spring and summer of this year. Quotes from
81 CTHEWORLD: That might be yur perception, but in brand study after brand study, UA is the more recognizable global brand, and we are talking global airlines here
82 CO767FA: Show us the "brand study after brand study" that proves your point. Until then, it is your mind working overtime.
83 AADC10: LAX is not a hub for either DL or CO although it has been in the past. Only UA claims LAX as a hub and that claim is pretty weak. Coincidentally, CO
84 LAXdude1023: According to DL's last video on international destinations, LAX is a hub for DL. I think DL at LAX will get much bigger if they exit stand alone.
85 CO767FA: What if the name illicits a negative, but the quality of the product is very good?
86 CTHEWORLD: Here's one http://www.salientmarketing.com/market-research/fortune1000/index.html There are more that I am too tired to look for at this time, but I
87 CO767FA: Thanks for the link, but one study for one month in 2005 doesn't prove your point. The fact that UAL was still in BK (Oct 2005) could be a reason for
88 COewrAAtysAZ: Yes, UAL/CO looks like a good merger because of the route structures you would see. However, I don't think many people realize that there is more to a
89 B737900er: Just look at the bickering between the CO and UA employees on this site. CO and UA could not be more different on the inside, the part that outside o
90 United777atGU: That's a darn good observation. But I'd say that would happen with the employees of today's airline mergers, anyway.
91 CO767FA: Corporate culture has to do with having a management, support staff and front line team that "buy" into the product/service. Given CO's strong corpor
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