Quote: People familiar with the matter said there is no merger deal already drawn up between United and Continental. But the two were expected to resume talks, said one person, following up on informal discussions in the recent months about governance, with the idea that Mr. Kellner would be CEO of the combined entity if they got together.
Other people with knowledge of the situation suggested that the two could reach an agreement on a deal in the next few weeks. That would put their proposed transaction on the same timeline for regulatory scrutiny as the Delta-Northwest deal, with an eye toward receiving clearance from the Justice Department before the White House changes hands in January. The thinking is that the government wouldn't approve one deal and block a second.
To broaden its options, though, United also is looking at a more remote possibility of buying US Airways, said one person familiar with the matter. It wouldn't be the first time. United tried to acquire US Airways in 2000 but the plan was dropped in the face of regulatory resistance.
Another person familiar with the matter said United and US Airways have been in talks about a potential merger for over a month. The companies have done "a lot of work together" on what the synergies could be and are floating around a number that could be at least as attractive as synergies in a United-Continental linkup, this person said. Those synergies would be driven by the strength of US Airways' route network in the East, this person said, adding that the synergies would also be "meaningfully higher" than the $1 billion-plus in annual revenue and cost savings number that Northwest and Delta have said they expect to generate in a merger.
PanAm330 From United States of America, joined Mar 2004, 2660 posts, RR: 10
Reply 10, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15700 times:
Oh good Lord no! I don't have high hopes of this working. It didn't last time, when US was smaller. I was just starting to like the outcome of the much-rumored UA/CO merger, too. I hope this doesn't happen!
Ikramerica From United States of America, joined May 2005, 21369 posts, RR: 60
Reply 12, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15701 times:
Quoting MAH4546 (Reply 4): I personally rather see UA be divided up between CO and AA. Say, for example, AA gets NRT/LAX/IAD; CO takes ORD/DEN/SFO.
I would too.
But I see it as AA with SFO+IAD+some ORD slots, and CO with LAX+DEN+ORD terminal and slots. Not sure about NRT. AA has a lot of flights in, and could benefit from continuation to other cities, but CO could use more NRT access.
Of all the things to worry about... the Wookie has no pants.
CIDflyer From United States of America, joined Apr 2005, 2190 posts, RR: 3
Reply 14, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15669 times:
well this is certainly interesting. I thought UA/US the 1st time around actually would have made a good combo. The two things I see UA gaining in this would be the CLT hub for instant southeast presence and also a major presence in the northeast. Problems that would have to be worked on would be the DC area, where both carriers dominate at either IAD (UA) and DCA (US). Perhaps because US is also in Star Alliance LH would be contributing/investinging into this combination as well. I wonder if the would probably turn the PHX hub into a TED hub, due to its low yield nature??
United1 From United States of America, joined Oct 2003, 5787 posts, RR: 9
Reply 15, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15623 times:
Quoting FriendlySkies (Reply 2): Quoting Ikramerica (Reply 1):
What value is there in this for UA? The southeast?
None, but I guess they might as well explore all options. US doesn't have any ops in the southeast, though they do have a stronger operation in the northeast that UA could be looking at.
I'm sure over the next few weeks we will be hearing about every airline under the sun merging with every other one. Just hold on to your hats and see what happens. either way it sounds like we should know something more concrete in the next few weeks.
Tornado82 From , joined Dec 1969, posts, RR:
Reply 18, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15558 times:
The sweet bitter end to PHL/USAirways trying to extort another new airport out of the Commonwealth of PA would be US/UA merging and staying at room-to-grow IAD... which is still a stronger travel market than PHL.
StarAlliance38 From United States of America, joined Jan 2008, 1445 posts, RR: 4
Reply 19, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15515 times:
Quoting GlobalDude (Reply 13): Do it! Please. Anything but CO/UA. UA/US! then CAL can buy AirTran AND Frontier. Sorry...just dreaming
I so agree with you. I'm for merging within your alliance and if AirTran doesn't become a Star regional member, then just get the prize: the hospitality and the 7-1-7s . Not so sure about CAL and Frontier though
PM From India, joined Feb 2005, 6833 posts, RR: 64
Reply 20, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15511 times:
I'm far removed from this whole thing and haven't flown either airline for years (wow - more than 10 years in each case now that I check!) but, on the face of it, there is some logic to a UA/US tie-up.
Quoting Thomasphoto60 (Reply 7): Didn't the Feds put a kibosh a UA/US marriage on this some years back?
Quoting ShannoninAMA (Reply 9): Exactly what I came here to say as well. Do they think if they say please this time, the feds will reconsider?
That was then. This is now. The situation has changed with oil at $100+ and the DL/NW tie-up...
GlobalDude From United States of America, joined Sep 2001, 237 posts, RR: 0
Reply 22, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15450 times:
FRNT just for Denver and some west coast ( not the planes)...and maybe cheap to buy. Airtran has a lot of 737ng's and most of teminal C in ATL and have a market share...great to play against the new #! global monster Delta. Just a fantasy!
Commavia From United States of America, joined Apr 2005, 10939 posts, RR: 62
Reply 23, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15409 times:
I see some major problems with this - chief among them that neither United or USAirways is in any sort of state to merge with the other. Both have major, major operational, financial or service issues of their own to deal with, and the only hypothetical solace for either would be merging with (read: being taken over by) a better-managed carrier.
United's Dulles hub is almost entirely redundant with USAirways in Philadelphia, and there is no way that any airline would need Los Angeles, Phoenix and San Francisco as hubs - serving much the same markets with lots and lots of overlap and low-yielding competition with Southwest.
I think United's best option is to merge with Continental, which offers a far more balanced network and far, far more attractive management. However, absent that full-blown merger with Continental, I agree with MAH4546 that splitting United up between American and Continental would be better than seeing United and USAirways merge.
Nycbjr From United States of America, joined Aug 2007, 447 posts, RR: 0
Reply 24, posted (5 years 10 months 3 weeks 5 days 12 hours ago) and read 15358 times:
this would be a mess of a tie up,,, as bad at DL/NWA is going to have it integrating everything, CO/UA is going to just be nasty nightmare... I've had the worst experiences on UA and the best on CO.. I'm afraid that it will mess up that exp.. CO IMO is the best at most everything (DL a close second and I wish them the best)...
as a customer of both DL and CO in the NYC area this is all very interesting to watch!!
: I dont necesarily want to see UA split up, but this might cause the same affect in the long run. Oh well, Id hate to see bad things happen to their e
: Anything is possible, although that one doesn't seem likely. As has been mentioned on other threads other peoples opinions may and do differ.
: Hmm. PHX and LAS vs. SFO and LAX, which ones win? PHL and CLT vs. IAD, who wins there? Washington is a more important market than Philadelphia or Char
: I think UA is probably just exploring all options. I highly, highly doubt it will happen, the result would go bankrupt in a week.
: Routes would be somewhat complimentry. It would be a good fleet mix, the only issue the 777/330, I cant think of any others. I'd be awful of any airli
: Sorry meant no disrespect.. u are right EVERYONE has their opinion and has had both good and bad on their flights.. I'm sure everyone at UA works ver
: US Airways + United = One huge pile of sh*t. If it happened in 2000, that would have been a much different story.
: No worries, I just wanted to make sure that this thread didn't degrade into the who's better then who thread that some of the others have... CO is al
: Not to mention US' strength in the Northeast Other than DL in ATL, US has the strongest operation in the southeast at CLT. Very different times, very
: yay, a whole new can of worms for people to bash airlines in.
: The irony is the fleet mess. UA and NW have similar fleets (A320/757/744). DL and CO have similar fleets (737/757/767/777). And yet the mergers went c
: Like someone mentioned in here, being that both UA and US are in the Star Alliance, might help the case, as well I can see LH (and other *A members) p