CALMSP From United States of America, joined Aug 2003, 3537 posts, RR: 10 Posted (4 years 2 weeks 5 days 7 hours ago) and read 6164 times:
interesting little article from the Houston Chronicle regarding where a proposed merged airline would place their headquarters based on tHe agreement that UA signed with the city of Chicago to keep its HQS in Chicago rather than DEN/SFO......
UAL777UK From United Kingdom, joined Nov 2005, 3103 posts, RR: 1 Reply 2, posted (4 years 2 weeks 5 days 6 hours ago) and read 6101 times:
The money we are talking about here is insignificant in the grand scheme of things.
If the do merge and of all the combo's, this is the one I would prefer to see, then I would like to see the Airline HQ's in Chicago with Larry heading up the team.
Cubsrule From United States of America, joined May 2004, 19207 posts, RR: 18 Reply 3, posted (4 years 2 weeks 4 days 23 hours ago) and read 5863 times:
Quoting PavlovsDog (Reply 1): I presume CO/UA could always pay back the $15.5 million Illinois gave them to get out of the deal.
My guess is that Daley and G-Rod would pay what's necessary to keep the headquarters in Chicago.
Slider From United States of America, joined Feb 2004, 6089 posts, RR: 43 Reply 6, posted (4 years 2 weeks 4 days 21 hours ago) and read 5602 times:
Quoting UAL777UK (Reply 2): The money we are talking about here is insignificant in the grand scheme of things.
Precisely right. It’s a drop in the bucket of the orgy of cash and financing that would be changing hands if a CO/UA deal were ever consummated. Just a line item for the financiers to reconcile. Nothing more, nothing less. The decision would be much tougher.
Quoting Cubsrule (Reply 3): My guess is that Daley and G-Rod would pay what's necessary to keep the headquarters in Chicago.
Too bad, Daley doesn’t get a vote in this one. Otherwise, he’d get his way know how the infamous Chicago politics of Daleyville work—vote early and often, dead people, criminals, everyone! And there would be a political pissing contest to be sure if it came down to it between the various Chicago/Houston, Illinois/Texas officials.
Quoting Scorpy (Reply 5): They could also compromise and have corporate headquarters in a different spot than operational headquarters.
e.g. Corporate HQ at IAH and Ops HQ at ORD..
That would be, IMHO, disastrous. It’s retarded quite frankly. In fact, I can’t believe US is doing it with having SOCC in PIT and HQ in PHX. People don’t realize just how integrated an airline HQ is—how often you have meetings with people of various divisions, how you have to have face to face pow-wows, etc. It is in a company’s best interests to consolidate and NOT have either duplicative functions or disparate functions in far-flung locations.
One thing is for certain, both cities have compelling interests to vie for the location if it came down to it. But one thing is also for certain—that employee interests may not be first and foremost in the determination. Cost of living from housing to taxes to everything is horrid in Chicago compared to IAH.
LAXdude1023 From United States of America, joined Sep 2006, 5949 posts, RR: 28 Reply 7, posted (4 years 2 weeks 4 days 21 hours ago) and read 5549 times:
I personally think that it will depend on which carrier calls the shots. I honestly think it will be in Houston.
I might also point out that the place that houses the HQ will be the one that offers the most tax breaks and other incentives for the company. Not necesarily where the biggest hub will be. ORD will be the biggest hub no doubt, but Texas and Houston are known for low taxes and cheap cost of living and operating cost. Therefore Im thinking Houston.
United787 From United States of America, joined May 2005, 2051 posts, RR: 1 Reply 8, posted (4 years 2 weeks 4 days 20 hours ago) and read 5426 times:
Quoting Drerx7 (Reply 4): If Continental purchased...I'd hope hq would stay in the H. I think the tax/political/economical environment of Houston is more friendly.
Political? Not anymore since W will be leaving office in less than a year!!!! No more Texas favoritism sorry AA and WN.
Since two of the democratic presidential candidates are from Illinois (Obama and Clinton), I would think Chicago would be a better choice, politically. Of course, I don't think this would have any bearing on the decision...
TWAL1011 From United States of America, joined Nov 2003, 190 posts, RR: 2 Reply 9, posted (4 years 2 weeks 4 days 19 hours ago) and read 5342 times:
Are you kidding? Chicago
Sorry people from Houston are nice..but it is no Chicago. I bet a lot of the operational structure would be based in Houston due to cheaper labor/lower overhead for less skilled jobs. The legal/finance/marketing/accounting/revenue management brain power will want to be in Chicago.
Sorry people from Houston are nice..but it is no Chicago. I bet a lot of the operational structure would be based in Houston due to cheaper labor/lower overhead for less skilled jobs. The legal/finance/marketing/accounting/revenue management brain power will want to be in Chicago.
Yeah, because we all ride horses, chew tabacky and carry guns running amok down here.
102IAHexpress From United States of America, joined Feb 2005, 1146 posts, RR: 4 Reply 11, posted (4 years 2 weeks 4 days 19 hours ago) and read 5245 times:
Quoting TWAL1011 (Reply 9): The legal/finance/marketing/accounting/revenue management brain power will want to be in Chicago.
Yeah, that makes sense I mean the boys in Chicago have done such a bang up job in ruining i mean running UA the last few years, so naturally that will continue in this merger scenario.
COflyerBOS From United States of America, joined Jun 2007, 233 posts, RR: 0 Reply 12, posted (4 years 2 weeks 4 days 19 hours ago) and read 5182 times:
Uh, hopefully you are the one who is kidding. Quite frankly, why would anyone at Continental care what the legal, finance, marketing, accounting, and revenue management brain power in Chicago wants? After all, they are the ones who have run a once proud airline giant into the ground.
So, while you fellas up in Chicago are busy telling the world how great you are, the team down in Houston is busy running a solid, successful, clean operation!
Atmx2000 From United States of America, joined Oct 2004, 4576 posts, RR: 45 Reply 13, posted (4 years 2 weeks 4 days 18 hours ago) and read 5149 times:
Quoting TWAL1011 (Reply 9): Sorry people from Houston are nice..but it is no Chicago. I bet a lot of the operational structure would be based in Houston due to cheaper labor/lower overhead for less skilled jobs. The legal/finance/marketing/accounting/revenue management brain power will want to be in Chicago.
Quoting 102IAHexpress (Reply 11):
Yeah, that makes sense I mean the boys in Chicago have done such a bang up job in ruining i mean running UA the last few years, so naturally that will continue in this merger scenario.
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Apparently the smart people are already in Houston. Maybe some will want to move, but maybe not.
Quoting United787 (Reply 8): Political? Not anymore since W will be leaving office in less than a year!!!! Â Â Â Â Â Â No more Texas favoritism sorry AA and WN.
Exactly what favoritism did either of these airlines get? Nothing that I can think of. Frankly presidential politics are irrelevent. What matters is local and state politics for each potential HQ.
Quote: Since two of the democratic presidential candidates are from Illinois (Obama and Clinton), I would think Chicago would be a better choice, politically. Of course, I don't think this would have any bearing on the decision...
Clinton is from Chicago? Oh, that's right she is carpetbagger in NY. Â
Regardless that's assuming that either gets elected. I expect the ugly race and gender-based politics of the Democratic Party is going to come back and haunt them in the national election.
Of course if national politics are important for an airline, maybe they should HQ at IAD instead.
[Edited 2008-01-25 12:07:52]
ConcordeBoy is a twin supremacist!! He supports quadicide!!
Deltaflyertoo From United States of America, joined Nov 2000, 1472 posts, RR: 1 Reply 14, posted (4 years 2 weeks 4 days 18 hours ago) and read 5144 times:
Sorry people from Houston are nice..but it is no Chicago. I bet a lot of the operational structure would be based in Houston due to cheaper labor/lower overhead for less skilled jobs. The legal/finance/marketing/accounting/revenue management brain power will want to be in Chicago.
Is this for real? Are you aware of the demographic makeup of the greater Houston area? Houston is a thriving metropolis of wealth, brains and power. Most people who live there are "transplants" I.E. moved all over the world to take part in a variety of diverse and interesting industries from energy (gas/oil resources) to medical (if you ever need transplant, Houston is your best bet!) and of course high tech and finance. Houston is America's 4th biggest city, excellent cost and level of living. There is a boatload of opportunity to draw on skillful high level workers by basing an airline there, not to mention as was already pointed out, Continental already is based there and we see how well its managed compared to ummmm....something else in Chicago.
Ouboy79 From United States of America, joined Nov 2001, 3125 posts, RR: 26 Reply 15, posted (4 years 2 weeks 4 days 18 hours ago) and read 5082 times:
Quoting COflyerBOS (Reply 12): Uh, hopefully you are the one who is kidding. Quite frankly, why would anyone at Continental care what the legal, finance, marketing, accounting, and revenue management brain power in Chicago wants? After all, they are the ones who have run a once proud airline giant into the ground.
LOL Exactly. It is amazing how some people think. The heads at CO are among the best in the business - can't really say the same for UA. I would definitely say cutting Chicago and the higher operating costs of that HQ would be best. Texas has pretty nice tax laws...I believe no personal income tax is one of them (granted property taxes are a bit higher). It will be a long process...much longer tha US/HP was. There, US just rejected the lease at the Crystal Palace in bankruptcy so they didn't have to worry about it.
CALPSAFltSkeds From United States of America, joined Dec 2006, 1624 posts, RR: 9 Reply 17, posted (4 years 2 weeks 4 days 18 hours ago) and read 4965 times:
The article says that UA would need to keep 350 people in the building until 2016. Big deal - move 350 UA Chicago people in a department that can be split until at least 2016. If that's not as cheap as paying the penalty of leaving, then pay the penalty.
My question is why would UA move downtown in the first place? Who want to fight the traffic and parking problems to be downtown when your operation (ORD) is in the suburbs? Sounds like a sweetheart deal that makes only the CEO or other top execs happy so they can have a downtown suite and walk (or limo) to hot spots.
Drerx7 From United States of America, joined Jun 2000, 4111 posts, RR: 10 Reply 18, posted (4 years 2 weeks 4 days 17 hours ago) and read 4883 times:
Quoting TWAL1011 (Reply 16): The brain power isn't necessarily from UA. The real talent at CO will flee Houston and head to Chicago. Just being realistic.
I'm all for intelligent discussion on this matter...this however, has no value or merit. I like Chicago (except winter time) but realistically Houston is a much friendlier business climate. Besides, it will come down to the better run or acquiring carrier. Now which name survives I think is more variable than HQ locale.
Slider From United States of America, joined Feb 2004, 6089 posts, RR: 43 Reply 19, posted (4 years 2 weeks 4 days 17 hours ago) and read 4834 times:
Quoting Ouboy79 (Reply 15): The heads at CO are among the best in the business - can't really say the same for UA.
To be fair, the "heads" are sharp everywhere. It's the leadership that makes the difference. Even though I'm an admitted CO homer, I can't impugn the intelligence or acumen of all UA people like that--there are some damn smart and good folks there. It's not their fault their company is rudderless.
Quoting Ouboy79 (Reply 15): Texas has pretty nice tax laws...I believe no personal income tax is one of them (granted property taxes are a bit higher).
From a cost of living standpoint, it's a no brainer. I love both cities, each have distinct advantages and drawbacks. Economically though, IAH wins in a walk.
Quoting TWAL1011 (Reply 16): The brain power isn't necessarily from UA. The real talent at CO will flee Houston and head to Chicago. Just being realistic.
What a non sequitur. This is what passes for Chicago Bears fans I guess. LMAO
LGAtoIND From United States of America, joined Jan 2005, 490 posts, RR: 1 Reply 20, posted (4 years 2 weeks 4 days 17 hours ago) and read 4784 times:
Quoting CALPSAFltSkeds (Reply 17): My question is why would UA move downtown in the first place? Who want to fight the traffic and parking problems to be downtown when your operation (ORD) is in the suburbs? Sounds like a sweetheart deal that makes only the CEO or other top execs happy so they can have a downtown suite and walk (or limo) to hot spots.
Departments such as finance, revenue management, planning, accounting, etc. do not need to be near the operation. However, many top executives DO need to be near the business center of the Midwest, which is downtown Chicago.
AirRyan From United States of America, joined Mar 2005, 2500 posts, RR: 7 Reply 21, posted (4 years 2 weeks 4 days 15 hours ago) and read 4329 times:
Quoting TWAL1011 (Reply 16): The brain power isn't necessarily from UA. The real talent at CO will flee Houston and head to Chicago. Just being realistic.
We're forgetting that Houston would likely offer a similar tax break for CO to remain in Houston and not only is the cost of living (housing, etc.) much more reasonable in Houston there is no state sales tax let alone inclement weathered snow breaks in the winter: clear choice is Houston.
I wonder, what does UA or CO do right now as far as hiring people to work in their HQ offices - do you think it has been temporarily suspended unitl they figure out who is going where or do you think the people that they offer employment are able to get any sort of additional financial incentive in case they take the new job and have to leave a few months later?
CALPSAFltSkeds From United States of America, joined Dec 2006, 1624 posts, RR: 9 Reply 22, posted (4 years 2 weeks 4 days 15 hours ago) and read 4256 times:
Quoting LGAtoIND (Reply 20): Departments such as finance, revenue management, planning, accounting, etc. do not need to be near the operation. However, many top executives DO need to be near the business center of the Midwest, which is downtown Chicago.
Then why isn't EWR/NYC the Main Officer of CO or any airline? CO seems to do fine in IAH.
Flyingcat From United States of America, joined May 2007, 427 posts, RR: 0 Reply 23, posted (4 years 2 weeks 4 days 14 hours ago) and read 4217 times:
Quoting LGAtoIND (Reply 20): However, many top executives DO need to be near the business center of the Midwest, which is downtown Chicago.
That makes no sense many top companies are not headquartered in Chicago. The fact is for an airline the headquarters should be in a hub. WN a very successful company is located in what could best be described as a focus city.
Using your logic every business from Chicago should move to NYC which is the largest business center in the US.
Falcon84 From , joined Dec 1969, posts, RR: Reply 24, posted (4 years 2 weeks 4 days 14 hours ago) and read 4099 times:
Screw 'em both. Relocate it here to Cleveland.
We could use the jobs.
25 Justlump: Gee Guys, you forgot the most important reason executives pick Houston....year round golf.
26 COSPN: Would stay in Houston for many reasons UA HQ Excessive Realestate Prices and poor Road network in and out of the Western Suburbs CO HQ Good Roads Reas
27 CO777ER: Well living in IAH I'd beg to differ lol. If you like traffic, then yes. Also, the housing prices are above average, but not overpriced. For about 4 m
28 AirRyan: DAL iminus the WA is by every meaning of the word a hub for WN... Not sure of which you are defining as "average?" I've lived in both climes and l'll
29 LAXdude1023: I never tell people they are wrong, but ill go ahead and say it: youre wrong. IF they decide to go with Chicago (and they might), that wont be the re
30 N104UA: I would love to have the HQ in CHI and the CO Execs with keeping the United name is IMO what could most likely happen
31 MasseyBrown: In theory, but most management texts would disagree. Every author that wrote about Eastern Airlines always noted that having the financial and top ma
32 Graphic: The new headquarters will be in Omaha.
33 CALPSAFltSkeds: Would that have been before better computers and communications devices - I think so. The proposal was to see if keeping 350 people in the building d
34 Jobu7282: On the issue about CO employees wanting to run to Chi-Town, you are way off. I know its hard for non-Texans to understand but this is Texas it's like
35 FreequentFlier: Somewhat related and unrelated topic: Why is LH headquartered in Cologne? They don't even have a hub or focus city there. Anyone in Germany know the a
36 DeltaL1011man: lol i feel your pain lol anything can happen thing now is DL is 99% sure they don't want to go at it alone and CO will pick the one DL doesn't (could
37 LGAtoIND: Then why isn't EWR/NYC the Main Officer of CO or any airline? CO seems to do fine in IAH. First of all, I did not say that every company must be run f
39 DeltaL1011man: I won't be surprised if/when DL moves there HQ to downtown Atlanta and change there HQ into an Operations Center.(like UA has done with Elk Grove)
40 COSPN: Is Elk Grove part of the City of Chicago ??? If not I dont see why Chicago has anything to say about it , As far as UA breaking their commitments Just
41 AirportPlan: If this merger happens it should be an interesting civic battle. I was marginally involved in Chicago's battle against Dallas and Denver to win Boeing
42 Cubsrule: No (and, anyway, UA's Elk Grove operations are technically in unincorporated Cook County), but UAL management is in the city.
43 DeltaL1011man: that should say Chicago souldn't it?
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No more Texas favoritism sorry AA and WN. 
 
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