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Could UA Be Divided Up?  
User currently offlineIloveboeing From United States of America, joined Oct 2005, 796 posts, RR: 0
Posted (6 years 7 months 2 weeks 20 hours ago) and read 5908 times:

In one of the other threads last night, someone posted a fake news release that said that DL, NW, and CO had agreed to by UA, and divide it up amongst themselves. I know that press release was fake, but could it actually happen? It was an interesting idea. Here's what could happen:

DL, CO, NW with support from AF-KL offer to buy all the stock of UA, spending a total of $4 billion (greater than UA's current market cap of $3.59 billion).

DL: Take UA's ORD and LAX hubs and their Boeing 757/767 aircraft.
CO: Take UA's DEN and SFO hubs and their Boeing 737/777 aircraft
NW: Take UA's IAD hub and their AIrbus A319/A320 and Boeing 747 aircraft

With UA so messed up as it is, would it be better to divide it up? It would eliminate a competitor and provide a great boost for the SkyTeam Alliance.

46 replies: All unread, showing first 25:
 
User currently offlineFriendlySkies From United States of America, joined Aug 2004, 4105 posts, RR: 5
Reply 1, posted (6 years 7 months 2 weeks 20 hours ago) and read 5899 times:

Anything is possible...however, the above would most likely be the messiest acquisition in the history of the world. Something tells me it wouldn't be as simple as "ok, you guys take these planes and these routes, we'll take the rest, and everyone's happy." And that's not even bringing the heavily unionized and already very pissed off UA employees into play...

Also, if such a proposal came out, I have a feeling LH and other Star members would attempt to outbid, or risk loosing their main NA carrier (US Airways would never be able to fill the gap UA would leave behind, nor could AC).


User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1035 posts, RR: 1
Reply 2, posted (6 years 7 months 2 weeks 20 hours ago) and read 5865 times:

I think this would be the best setup for the industry - allows each to grow incrementally with bite size managable chunks to be set into their network and completely fits into each' strategy. No regulatory issues either.

DL - midwest hub and LAX
CO - two west hubs
NW - east coast hub

I'm sure there would be an all out war for the w/b aircraft, but your attempt is valid. Also, one survivor would need to go to Star - more than likely CO which would be just fine w/NW and DL as they are really tied up w/AF/KL.

Despite all that good stuff, no way in heck will this ever occur.


User currently offlineStitch From United States of America, joined Jul 2005, 30877 posts, RR: 86
Reply 3, posted (6 years 7 months 2 weeks 20 hours ago) and read 5867 times:
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UA has been offering/selling off parts that are not directly-related to the business of flying passengers from Point A to Point B, but the goal is to sell/merge the passenger-movement operations as a complete piece.

Only if UA can't find such a buyer/merger partner for the whole, but could them for the parts that would significantly boost shareholder value, would I expect UA's shareholders to agree to the airline being shut down and then broken up. And I just don't see that happening.


User currently offlineIloveboeing From United States of America, joined Oct 2005, 796 posts, RR: 0
Reply 4, posted (6 years 7 months 2 weeks 20 hours ago) and read 5852 times:

Quoting FriendlySkies (Reply 1):
Also, if such a proposal came out, I have a feeling LH and other Star members would attempt to outbid

If the U.S. government would relax foreign ownership rules, then LH could buy UA outright and turn them around. LH is a successful company and are doing very well; in the first 9 months of 2007, they reported a profit of 1.578 billion euros ($2.33 billion USD).

http://www.lufthansa-financials.de/s...vlet/PB/menu/1023630_l2/index.html

However, if a Democratic president gets elected and the Democrats increase their control of Congress, then this would be highly unlikely.

[Edited 2008-01-11 08:47:42]

User currently offlineCharlienorth From United States of America, joined Jun 2006, 1119 posts, RR: 4
Reply 5, posted (6 years 7 months 2 weeks 20 hours ago) and read 5839 times:

How come the great push to split up UAL I always see on this site...why not NWA,AMR or even CAL?

User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 6, posted (6 years 7 months 2 weeks 20 hours ago) and read 5799 times:



Quoting Stitch (Reply 3):
Only if UA can't find such a buyer/merger partner for the whole, but could them for the parts that would significantly boost shareholder value, would I expect UA's shareholders to agree to the airline being shut down and then broken up. And I just don't see that happening.

Hell will freeze over before it does happen, or I become the Pope

Quoting Charlienorth (Reply 5):
How come the great push to split up UAL I always see on this site...why not NWA,AMR or even CAL?

Exactly!


User currently onlineLAXdude1023 From India, joined Sep 2006, 7550 posts, RR: 25
Reply 7, posted (6 years 7 months 2 weeks 19 hours ago) and read 5746 times:



Quoting Iloveboeing (Thread starter):
In one of the other threads last night, someone posted a fake news release that said that DL, NW, and CO had agreed to by UA, and divide it up amongst themselves. I know that press release was fake, but could it actually happen? It was an interesting idea. Here's what could happen:

Well, this would be an enourmous economic blow to the city of Chicago. I highly doubt it will happen. A takeover or merger involving UA could happen. In that case Chicago probably would lose the HQ, but I just cant see ORD being with out their huge hub.

In short, UA wont leave in pieces, it will be an all or nothing deal.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlinePavlovsDog From Norway, joined Sep 2005, 657 posts, RR: 0
Reply 8, posted (6 years 7 months 2 weeks 19 hours ago) and read 5710 times:



Quoting Iloveboeing (Thread starter):
DL: Take UA's ORD and LAX hubs and their Boeing 757/767 aircraft.
CO: Take UA's DEN and SFO hubs and their Boeing 737/777 aircraft
NW: Take UA's IAD hub and their AIrbus A319/A320 and Boeing 747 aircraft

That would indicate that NW would get NRT as well?

Interesting idea that certainly has some merit. SkyTeam would have too much market power in the US though. One of them would have to leave the alliance to appease regulators.


User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1035 posts, RR: 1
Reply 9, posted (6 years 7 months 2 weeks 16 hours ago) and read 5580 times:



Quoting PavlovsDog (Reply 8):
That would indicate that NW would get NRT as well?

No, NW already has NRT. DL or CO would have to get it. Actually, whatever one went to Star would get it most likey due to regulatory issues.


User currently offlineHalls120 From , joined Dec 1969, posts, RR:
Reply 10, posted (6 years 7 months 2 weeks 12 hours ago) and read 5426 times:



Quoting Iloveboeing (Reply 4):
However, if a Democratic president gets elected and the Democrats increase their control of Congress, then this would be highly unlikely.

You mean "when a Democratic president gets elected and the Democrats increase their control of Congress, this will be near impossible."


User currently offlineEMB170 From United States of America, joined Nov 2007, 647 posts, RR: 0
Reply 11, posted (6 years 7 months 2 weeks 12 hours ago) and read 5426 times:



Quoting LAXdude1023 (Reply 7):
Well, this would be an enourmous economic blow to the city of Chicago. I highly doubt it will happen. A takeover or merger involving UA could happen. In that case Chicago probably would lose the HQ, but I just cant see ORD being with out their huge hub.

In short, UA wont leave in pieces, it will be an all or nothing deal.

That's what they said when Macy's closed the Marshall Field State Street Store...but life went on. Even still, ORD is too valuable for someone not to want it...probably DL or CO. I can't see NW taking it without serious divestiture over antitrust concerns...otherwise NW would have the upper midwest totally locked up.



Can passenger jets fly as fast as my feet do? Let's find out...
User currently offlineBicoastal From , joined Dec 1969, posts, RR:
Reply 12, posted (6 years 7 months 2 weeks 12 hours ago) and read 5383 times:

Quoting Iloveboeing (Thread starter):
With UA so messed up as it is, would it be better to divide it up?

UA so messed up??? Splain yourself, Lucy! Making nice sums of cash, spending money on a best in the business first and business class refurbishment, a route network others crave, paying dividends to shareholders, eliminating unprofitable routes, investing in new frontline technology, a founding member of the best alliance on earth, paying down debt earlier than expected, not going in to more debt on new aircraft before a global recession, right-sizing aircraft for the routes, not interested in market share (just evil profit). Messed up? Ok, the communist unions aren't happy, but until the government confiscates all airlines, unions won't be.

[Edited 2008-01-11 16:51:37]

User currently offlineDeltaL1011man From United States of America, joined Sep 2005, 9317 posts, RR: 14
Reply 13, posted (6 years 7 months 2 weeks 11 hours ago) and read 5262 times:



Quoting FriendlySkies (Reply 1):
Also, if such a proposal came out, I have a feeling LH and other Star members would attempt to outbid, or risk loosing their main NA carrier (US Airways would never be able to fill the gap UA would leave behind, nor could AC).

25% is all they can get not close to what would be needed to save UA

Quoting Iloveboeing (Thread starter):

i would be willing to bet DL would take the some 737s 757s 767s 777s and 747s and most 737s and airbus sold also DL would try to get SFO and LAX but if it came down between the 2 i bet SFO would win alot biggerinto Asia than LAX

Quoting Charlienorth (Reply 5):
How come the great push to split up UAL I always see on this site...why not NWA,AMR or even CAL?

i see DL buying UA and selling DEN and IAD and UA name to CO and keeping SFO,LAX,ORD and NRT all for them selves

Quoting UAL777UK (Reply 6):
Hell will freeze over before it does happen, or I become the Pope

hahahaha nice one

Quoting PavlovsDog (Reply 8):
That would indicate that NW would get NRT as well?

nope possable would be DL or CO

Quoting EMB170 (Reply 11):
That's what they said when Macy's closed the Marshall Field State Street Store...but life went on. Even still, ORD is too valuable for someone not to want it...probably DL or CO. I can't see NW taking it without serious divestiture over antitrust concerns...otherwise NW would have the upper midwest totally locked up.

DL would give up CVG in a heart beat to get back into ORD



yep.
User currently offlineIloveboeing From United States of America, joined Oct 2005, 796 posts, RR: 0
Reply 14, posted (6 years 7 months 2 weeks 10 hours ago) and read 5217 times:



Quoting Bicoastal (Reply 12):

UA so messed up??? Splain yourself, Lucy!

UA has been upgrading some things, but they've been neglecting others (the economy class, for example). They're giving AVOD and all other luxuries to premium customers, but they're not giving them to economy. The 744s, the backbone of the transpacific fleet, lack PTVs in economy. It is a shame. I will admit that UA's business class is quite nice, though (even though I was on a non-updated version last summer flying from PEK-ORD; I got a complimentary upgrade), but it still doesn't meet the standards of carriers like SQ, EK, and BA. SQ is a Star Alliance partner; UA needs to at least match, if not exceed, them in all classes on all flights. If UA wants to be a "premium carrier" like they aspire to be, they need to do some serious upgrading fleet-wide.

Another mistake was starting "Ted." Ted was a horrible idea right from the beginning. UA needs to get rid of it and install PTVs fleet-wide with AVOD. Being all things to all customers doesn't work. UA needs to decide whether they are going to be a premium carrier or a discount carrier. And if they choose to be a premium carrier, like they've apparently chosen, it needs to show across the entire fleet and entire network. UA executives boasted how people would pay a premium to fly UA. People are not going to pay a premium to fly UA if they don't upgrade their service fleet-wide.

I'll give you an example. I have flown UA many times internationally, because they have the most convenient schedules and the prices were reasonable. But domestically, it's a different story. I was looking at going from the Midwest to the East Coast and UA wanted over $600 r/t for it! That's absurd! Now, if UA offered more legroom, PTVs, AVOD with an "ICE" style system like EK, and a hot meal, then I might have paid that price. Then I would be paying a "premium" to fly UA because they have better service. But right now, it doesn't show.

And then there's the greedy management. CEO Glenn Tilton and his management team seem to think that they are entitled to receive millions of dollars in bonuses while their employees suffer, many of them not able to feed their familieis. If WN can pay good wages and their employees are happy, then surely a carrier like UA can afford to. They can forgo the $50 million bonus to Tilton and use it to pay the employees more and upgrade the product. If UA thinks they are a premium airline, they need to act like it, get rid of their current management, and match the service offered by other Star Alliance partners such as SQ.


User currently offlineLawnDart From United States of America, joined May 2005, 970 posts, RR: 3
Reply 15, posted (6 years 7 months 2 weeks 10 hours ago) and read 5188 times:



Quoting Iloveboeing (Thread starter):
In one of the other threads last night, someone posted a fake news release that said that DL, NW, and CO had agreed to by UA, and divide it up amongst themselves. I know that press release was fake, but could it actually happen? It was an interesting idea.

I posted the fake press release in the other thread about Delta and their SkyTeam buddies buying UA and dividing the spoils.

In it, DL, NW and CO announced they had purchased UA (usually cheaper to buy the whole than the parts...). DL took over the ORD and LAX hubs...ORD is way bigger than CVG (bye, Covington) and would give DL real presence in the Upper Midwest and the northern tier east-west traffic, plus they would be the number one carrier at a limited-entry airport. They would also get the LHR and Pacific flights associated with the ORD operation (3 daily to LHR and service to NRT, PEK and HKG (I believe)) LAX would solidify their attempts to re-build their service there, and would give them service to LHR (one daily, as well as the AF codeshare), as well as additional service to NRT and HKG and would take out a competitor for the LAX - MEX/Central America market.

Delta would also get beyond rights from NRT to BKK and SIN, as well as LAX to Australia, the (PW-powered) B767-300 fleet and the (PW-powered) 757 fleet, aircraft/engine combinations DL already has.

CO would get the DEN hub, which takes them back into a market they were once in, and more importantly diversifies their market reach. The would also get the SFO operation and all the Pacific routes out of there...NRT / NGO / KIX / HKG / ICN / PVG, as well as (2?) daily flight to LHR (one of which the slot could be used for DEN-LHR). They would also get UA's 737 fleet...okay, granted it's getting a little old and tired, but they need something to operate DEN with. Could they use the 777s? Split them with DL? Sure...why not (ok, PW engines that neither they nor DL has...).

NW would get the IAD hub...did you all know that NW has quite a few slots at DCA they don't use (or at least they did)..so that would give them a good presence in Washington and along the east coast,,,north - south and across the Atlantic. Plus PEK from IAD. Oh, and the A320s (ok, IAE engines instead of CFM...but think of the DC9s they could retire.)

Importantly, CO would leave SkyTeam and join LH in Star...CO doesn't seem to like anyone else in SkyTeam anyway, and market concentration across the North Atlantic would be (somewhat) evened out. And US would give Star the presence in SE US.

So, the acquisition is less costly and shared by three carriers (no great increase in debt), capacity is reduced in the overall system slightly (CVG), and the US now has 4 fairly powerful carriers across the Pacific, and four across the Atlantic (US doesn't count, which is unfair, but true...). Best of all, not many layoffs...okay, some...but not as much as a DL/NW or DL/UA combo would produce...


User currently offlineBicoastal From , joined Dec 1969, posts, RR:
Reply 16, posted (6 years 7 months 2 weeks 10 hours ago) and read 5170 times:

Quoting Iloveboeing (Reply 14):
I'll give you an example. I have flown UA many times internationally, because they have the most convenient schedules and the prices were reasonable. But domestically, it's a different story. I was looking at going from the Midwest to the East Coast and UA wanted over $600 r/t for it! That's absurd! Now, if UA offered more legroom, PTVs, AVOD with an "ICE" style system like EK, and a hot meal, then I might have paid that price. Then I would be paying a "premium" to fly UA because they have better service. But right now, it doesn't show.

First, thanks for your reply. Well written. Comparing UA, saddled as are all domestic legacies with money losing domestic networks, with SQ and EK, airlines with only high profit international routes is apples and oranges. I'd love to see SQ and EK make money and provide an international level of service on a domestic network from Peoria to Po-dunk, USA. They'd be in bankruptcy, too. And your well deserved anecdotal story about what you, personally, would be willing to pay, does not jibe with the fact that you are in a very small minority of domestic USA travelers. Bottomline price is what fills the back of the plane. $600 r/t? UA did a good job in pricing and selling its seats, if that's the only seat/fare bracket they had available.

Ted, I'm ambivalent. One class to leisure destinations...156 seats rather than 138. Doesn't bother me. Given UA's recent history of willingness to make tough decisions on axing routes that aren't making as much as others, then I'm sure TED won't be spared if it doesn't make money. I'm not privy to UA's books.

As for PTVs...so UA 747s don't have them....yet. Boo, hoo. Damn that folks have to read these days. In any case, the 747s are filled to the brim and UA is making money on international routes with them. People up front make the profit and that's where the priority is on refurbishment. Someday, you'll get your boob-tube in back.

Glenn Tilton and his team have saved the jobs of the poor, underpaid UAL employees. Yes, life is not fair. The boss makes more than the employee. Good for Tilton and other execs who can get it. He gave up a lot more to come to UA and save the jobs and the airline. So far the employees are still getting a paycheck every two weeks. Can't say the same for TWA, Eastern, Sabena, Braniff, etc, etc.

[Edited 2008-01-11 18:53:54]

User currently offlineHalls120 From , joined Dec 1969, posts, RR:
Reply 17, posted (6 years 7 months 2 weeks 10 hours ago) and read 5156 times:



Quoting Iloveboeing (Reply 14):
They can forgo the $50 million bonus to Tilton and use it to pay the employees more and upgrade the product.

Tilton got a $50 million bonus? When? According to a Forbes May 2007 article, Tilton was paid 5.55 mil this past year, and has earned $16.60 mil over the past 5 years.


User currently offlineIloveboeing From United States of America, joined Oct 2005, 796 posts, RR: 0
Reply 18, posted (6 years 7 months 2 weeks 10 hours ago) and read 5135 times:



Quoting Halls120 (Reply 17):
Tilton got a $50 million bonus? When? According to a Forbes May 2007 article, Tilton was paid 5.55 mil this past year, and has earned $16.60 mil over the past 5 years.

Ok, maybe it wasn't that much. But he did get millions in stock options and stuff.


User currently offlineHalls120 From , joined Dec 1969, posts, RR:
Reply 19, posted (6 years 7 months 2 weeks 9 hours ago) and read 5090 times:



Quoting Iloveboeing (Reply 18):
Quoting Halls120 (Reply 17):
Tilton got a $50 million bonus? When? According to a Forbes May 2007 article, Tilton was paid 5.55 mil this past year, and has earned $16.60 mil over the past 5 years.

Ok, maybe it wasn't that much. But he did get millions in stock options and stuff.

Yes, he did. He is also earning a profit for the people who own United - the stockholders, so it's natural that they would give him stock options.


User currently offline777fan From United States of America, joined Jan 2006, 2496 posts, RR: 2
Reply 20, posted (6 years 7 months 2 weeks 8 hours ago) and read 4982 times:



Quoting Halls120 (Reply 10):
You mean "when a Democratic president gets elected and the Democrats increase their control of Congress, this will be near impossible."

I think he meant "won't happen!" Then again, the economy might slow to the point where carriers are forced to merge just to survive at all. In that case...nah, they probably wouldn't allow it. I'll save the rest of my comments for the non-av threads.

Quoting EMB170 (Reply 11):
That's what they said when Macy's closed the Marshall Field State Street Store...but life went on.

For who? If you're Federated, you're at odds figure out a way to make amends with Chicago. Nearly two years into the Marshall Fields rebranding, both the State Street and Michigan Avenue stores' revenue levels are way down.

Quoting Iloveboeing (Reply 14):
UA needs to get rid of it and install PTVs fleet-wide with AVOD.



Quoting Iloveboeing (Reply 14):
Now, if UA offered more legroom, PTVs, AVOD with an "ICE" style system like EK, and a hot meal, then I might have paid that price. Then I would be paying a "premium" to fly UA because they have better service. But right now, it doesn't show.

You're pretty good at spending someone else's money but apparently don't want to pony up the cash to fly C or F class on UA's int'l routes, I presume. AVOD and PTVs in Y class are the least of their concerns. Have you flown an AA maddog anywhere...ever? If not, bring a book or sudoku. We're seeing how well the PTV bells and whistles have served the likes of B6, et al. As for the legroom - ante up the $50 or so at check-in for E+ and you'll have more than enough. While a $600 fare might seem outrageous to you (at 16-20 years old, that's understandable), it's probably no more or less than any of UA's competitors - the market is based on supply and demand, afterall.

Quoting Iloveboeing (Reply 18):
Ok, maybe it wasn't that much. But he did get millions in stock options and stuff.

Posting hyperbole or inaccuracies are going to get you flamed at some points. Stick to the facts. As a UA shareholder (for a brief period of time, at least), I, too benefitted from Tilton's manuevers. He's been doing what he was brought in to do and that is to return the carrier to profitability.


777fan



DC-8 61/63/71 DC-9-30/50 MD-80/82/83 DC-10-10/30 MD-11 717 721/2 732/3/4/5/G/8/9 741/2/4 752 762/3 777 A306/319/20/33 AT
User currently offlineUnited787 From United States of America, joined May 2005, 2698 posts, RR: 1
Reply 21, posted (6 years 7 months 1 week 6 days 21 hours ago) and read 3867 times:



Quoting Iloveboeing (Thread starter):
With UA so messed up as it is, would it be better to divide it up? It would eliminate a competitor and provide a great boost for the SkyTeam Alliance.

Huh? How is UA so screwed up? 3rd Quarter Results for those of you that can’t remember…

Operating Margins (= Operating Income / Operating Revenues)

UA: 11.9%
B6: 10.3%
WN: 9.7%
DL: 8.7%
CO: 7.3%
AA: 5.4%

Pre-Tax Margins (= Pre-Tax Income (i.e., Operating Income - Interest Expenses) / Operating Revenues):

WN: 10.7%
UA: 10.2%
DL: 6.9%
CO: 6.3%
B6: 6.0%
AA: 2.9%

Net Margins (= Net Income (i.e., Pre-Tax Income - Tax Provisions or Benefits) / Operating Revenues):

WN 6.3%
CO 6.3%
UA 6.0%
DL 4.2%
B6 3.0%
AA 2.9%

Notice that both AA and CO had Pre-Tax Margins = Net Margins (i.e., No Tax Provisions)

Why is it that so many A-Netters think that DL is God’s gift to aviation. Seems to me like UA is stronger than DL.

I think the following mergers should happen:

1. UA buys CO since UA has a ton of cash on hand. UA gets a southern hub (IAH) and NYC hub (EWR). Fleets are complimentary.

2. US and NW merge. US gets the Midwest hubs it lacks in DTW and MSP and NW gets the east coast and western hubs it lacks in PHL and PHX. Fleets are complimentary.

3. AA buys AS (if financially possible). AA gets the west coast presence it lacks. Fleets are complimentary.

4. DL does nothing which is how they would prefer to be.


User currently offlineN174UA From United States of America, joined Jun 2006, 994 posts, RR: 0
Reply 22, posted (6 years 7 months 1 week 6 days 19 hours ago) and read 3521 times:



Quoting LawnDart (Reply 15):
Delta would also get beyond rights from NRT to BKK and SIN, as well as LAX to Australia, the (PW-powered) B767-300 fleet and the (PW-powered) 757 fleet, aircraft/engine combinations DL already has.

Do DL would fly LAX to SYD...using a 777?? Think of the market today. You have UA operating 744's that go out full, and QF that does the same thing. QF will be putting the A380 on the SYD-SFO/LAX route when they get them. So if it becomes DL vs QF, the market goes from about 50/50 now to a huge a advantage for QF practically overnight. In your example, DL would have to put the widget on a 744 in order to effectively compete against QF.

For whatever it's worth, I think it's going to be UA/CO and NW/US. DL and AA could probably make it on their own, but would likely buy a smaller carrier like AS, F9 or B6.


User currently offlineSTT757 From United States of America, joined Mar 2000, 16858 posts, RR: 51
Reply 23, posted (6 years 7 months 1 week 6 days 19 hours ago) and read 3485 times:

One thing is for sure you are not going to see NWA and DL work together to divide up UAL, if anything I can see this scenario playing;

IF DL makes a bid for UAL instead of NWA, CO makes a counter bid for UAL. To appease anti-trust regulators and to help shoulder some of the acquisition burden AA agrees to buy certain assets and take on some of the debt.

CO is the acquiring airline of UAL, CO acquires UAL's ORD, DEN and SFO operations and certain aircraft to support those operations.

AA buys UAL's Narita landing slots, IAD hub and gates and routes at LAX. As well as certain aircraft to support those operations.

One thing is for sure, UAL is likely to cause anyone indigestion in the first 4-5 years post merger. I'm not sure anyone is likely to take on the whole thing, I would see a carrier like AA who is in no position to acquire anyone as of now being a partner to a divestiture of UAL assets.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineMalaysia From United States of America, joined Nov 1999, 3342 posts, RR: 0
Reply 24, posted (6 years 7 months 1 week 6 days 19 hours ago) and read 3412 times:

I think US should get NRT Big grin


There Are Those Who Believe That There May Yet Be Other Airlines Who Even Now Fight To Survive Beyond The Heavens
25 EvilForce : I think most of you are overlooking the fact that a 3 way buyout of UAL would be an asset sale. There would be no union merging like many of you are a
26 Bobnwa : Why did you leave NWA out of your comparisons? They would have shown up favorably in all categories.
27 Iloveboeing : Yes I have, and I think that AA needs to replace them immediately. They're not fuel efficient enough with these high oil prices. I'm sure Boeing woul
28 MasseyBrown : Without the Asian routes, why would CO want the "United" name?
29 LawnDart : That's true, and one of the reasons I put forth the idea that the US SkyTeam carriers get together and finance a buyout of UA and then break it up am
30 Iaddca : why not just reward him then when the stock price drops? would that make the unions happy?
31 Post contains images UAL777UK : My god, I dont usually swear but your getting me close to it, you are spoating absolute garbage. They may be the majority, but they are also the majo
32 Iloveboeing : But you also get what you pay for on EK. And they treat you to more legroom, PTVs, AVOD (ICE entertainment system), and good meals (from what I hear)
33 N174UA : A tremendous one. But it's profitable, though. Bankruptcy is a brutal process. The restructuring must be done right the first time, because the histo
34 Cubsrule : Seeing the serious problems at Macy's North, a loss of Chicago's hometown airline might be the best thing that happened to happen to AA since they bo
35 777fan : By cutting unnecessary spending, as any company in bankruptcy is obligated to do. Bear in mind, each of the unions that are griping about wage cuts a
36 DeltaL1011man : right which is why they are the only airline asking the BOD to merge with UA and or NW........nice call no 744 but i could see DL bring LAX/SYD-MEL t
37 ACVitale : If you are going to cite examples you might have wanted to get it right. TWA went thru bankruptcy twice. Pan Am went once and did not survive. Branif
38 STT757 : Not in an all cash transaction, the Golden Share only comes into play when an exchange of stock is included.
39 DeltaL1011man : ok does CO have the cash to buy UA outright?
40 N174UA : The fact they went through several times and didn't survive underscores my main point...Ch. 11 is a brutal process, and the more times a company has
41 777STL : So basically what you're saying is that UA is going to go under because they don't have PTV's in coach? Huh? Comparing a US airline to a premium inte
42 Bobnwa : No, it comes in to play for any carrier with revenues over a billion, whether its cash or stock. Look it up!! NWA if it chooses can block any merger
43 Post contains links STT757 : Bob I read the agreement when they signed it: CO cannot acquire another carrier without NWA's premission save the following: A.) The carrier has reve
44 STT757 : No, CO would need financing from a third party which is why CO is hesitant to pursue this option unless forced. The third party option could range fr
45 United787 : I didn't have the numbers, I pulled these numbers from an old thread from before NW issued their 3Q. Only because they are being pushed by investors.
46 Post contains images EMB170 : Sounds to me like a great way for a non-union airline to work around seniority rules, prevent new unions from forming, and protect its own workforce.
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