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Will CO Merge With UA? Will US Join The Game?  
User currently offlineUnited Airline From Hong Kong, joined Jan 2001, 9168 posts, RR: 15
Posted (5 years 8 months 2 weeks 1 day 20 hours ago) and read 7779 times:

Will CO merge with UA? If yes when?

There are lots of talks so I wonder whether or not this will happen. Wonder if US will join the game

54 replies: All unread, showing first 25:
 
User currently offlineEnilria From Canada, joined Feb 2008, 7138 posts, RR: 13
Reply 1, posted (5 years 8 months 2 weeks 1 day 20 hours ago) and read 7737 times:



Quoting United Airline (Thread starter):
Will CO merge with UA? If yes when?

I said in another thread that I expect it to be announced during 2009. I think DL/NW forces them to do it. They just might not have realized it yet. We'll see if Obama allows another merger.

If there are more mergers it will be good for LCCs since mergers always reduce capacity.


User currently offlineDrerx7 From United States of America, joined Jun 2000, 5174 posts, RR: 8
Reply 2, posted (5 years 8 months 2 weeks 1 day 20 hours ago) and read 7732 times:

UA needs to get its financial house in order first. With this codeshare they are about to start they are moving themselves in position so that if it happens then it will be a smooth transition. Labor/financial/other issues not withstanding, a Continental + United combined route map is impressive.


Third Coast born, means I'm Texas raised
User currently offlineEtops1 From United States of America, joined Nov 2005, 1073 posts, RR: 1
Reply 3, posted (5 years 8 months 2 weeks 1 day 20 hours ago) and read 7709 times:

oh how i would wish we at usairways were involved in a co/ua merger. i highly doubt it though.

but ... in this industry you never know.


User currently offlineB707forever From United States of America, joined Dec 2007, 459 posts, RR: 0
Reply 4, posted (5 years 8 months 2 weeks 1 day 19 hours ago) and read 7704 times:

Yes, I see this happening. I just hope that Continental is the airline who's name and service remains, though I'm not a United-hater.

User currently offlineAvek00 From United States of America, joined Oct 2004, 4369 posts, RR: 19
Reply 5, posted (5 years 8 months 2 weeks 1 day 19 hours ago) and read 7692 times:

There's no desire for US to be part of anything.


Live life to the fullest.
User currently offlineLuv2fly From United States of America, joined May 2003, 12103 posts, RR: 49
Reply 6, posted (5 years 8 months 2 weeks 1 day 19 hours ago) and read 7647 times:
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The thing to remember is UA needs CO more than CO needs UA, and I have also said on another thread that I do not see this happening. CO gets all the benefits being in an alliance and code share without the grief that UA brings to the table.


You can cut the irony with a knife
User currently offlineUSPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 7
Reply 7, posted (5 years 8 months 2 weeks 1 day 19 hours ago) and read 7647 times:



Quoting B707forever (Reply 4):
Yes, I see this happening. I just hope that Continental is the airline who's name and service remains, though I'm not a United-hater.

UA's brand is far too strong for that, but I do think the current CO management would be in charge of the carrier.



It's a Great Day for Hockey!
User currently offlineFlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 8, posted (5 years 8 months 2 weeks 1 day 18 hours ago) and read 7500 times:

I think in time, this will likely happen - to create a competitor to new DL. I think they are taking a different approach, but I think it's only a matter of time. It will be CO taking over UA, but without a strong UA, CO can't get anything from the alliance. This is a perfect marriage of CO's first class service and managerial efficiency and top-rate Y products, combined with UA's first rate J product and world-wide known brand name. You get CO's transatlantic network, which is strong, and its eastern hub at EWR and it's strong Latin/South American network and hub at IAH and cross it with UA's strong midwestern domestic hubs at ORD and DEN and their first-rate trans-pacific network and the hub out of SFO.

In my opinion, the merged entity would be AT LEAST the equal of new DL.



"Let the world change you, and you can change the world"
User currently offlineAtomsareenough From United States of America, joined Feb 2008, 566 posts, RR: 2
Reply 9, posted (5 years 8 months 2 weeks 1 day 18 hours ago) and read 7435 times:

i'd like to see this happen.

but doesn't it seem like this topic comes up at least every week or two though, and with no new developments or actual news?


User currently offlineAvek00 From United States of America, joined Oct 2004, 4369 posts, RR: 19
Reply 10, posted (5 years 8 months 2 weeks 1 day 18 hours ago) and read 7425 times:

Airline mergers are often great on paper, horrible in reality.


Live life to the fullest.
User currently offlineUnited Airline From Hong Kong, joined Jan 2001, 9168 posts, RR: 15
Reply 11, posted (5 years 8 months 2 weeks 1 day 18 hours ago) and read 7387 times:

So will UA's name remain? Will CO's name disappear?

User currently offlineEnilria From Canada, joined Feb 2008, 7138 posts, RR: 13
Reply 12, posted (5 years 8 months 2 weeks 1 day 18 hours ago) and read 7363 times:



Quoting Drerx7 (Reply 2):
UA needs to get its financial house in order first.

If fuel stays low that will over time fix their problems.

Quoting Avek00 (Reply 5):
There's no desire for US to be part of anything.

Despite that, from a network point of view a US-CO merger is actually quite attractive.

Really it is CO that needs to merge. They are too small now relative to everybody else. UA's future is not as tied to a merger as it is tied to other things.


User currently offlineDiscoverCSG From United States of America, joined Jan 2007, 831 posts, RR: 0
Reply 13, posted (5 years 8 months 2 weeks 1 day 17 hours ago) and read 7363 times:



Quoting FlyDreamliner (Reply 8):
This is a perfect marriage of CO's first class service and managerial efficiency and top-rate Y products, combined with UA's first rate J product and world-wide known brand name.

I've never flown UA, but am a CO elite (I mention this in the interest of full disclosure).

Even among loyal CO flyers, there's a widespread opinion that CO's Y product is no great shakes, and specifically that UA, with its Y+, is the best game in town for economy travel.

On the other hand, many of us CO'ers will say that CO is the best airline for domestic F, and that CO's J is a solid product that will be industry-leading after its upcoming renovation.


User currently offlineAvek00 From United States of America, joined Oct 2004, 4369 posts, RR: 19
Reply 14, posted (5 years 8 months 2 weeks 1 day 17 hours ago) and read 7323 times:



Quoting Enilria (Reply 12):
Really it is CO that needs to merge.

The Continental BOD recently rejected, unanimously, that opinion.



Live life to the fullest.
User currently offline777ER From New Zealand, joined Dec 2003, 12111 posts, RR: 18
Reply 15, posted (5 years 8 months 2 weeks 1 day 17 hours ago) and read 7282 times:
AIRLINERS.NET CREW
FORUM MODERATOR

I strongly believe that UA, CO and US make the perfect couple with the UA name remaining due to its better world-wide brand, but with CO management.

UAs new J product and Y+ combining with COs service and with US hubs like LAS, it makes a perfect combination for domestic and International coverage.

[Edited 2008-12-18 21:02:12]

User currently offlineEvan767 From United States of America, joined Aug 2005, 2957 posts, RR: 2
Reply 16, posted (5 years 8 months 2 weeks 1 day 17 hours ago) and read 7238 times:



Quoting FlyDreamliner (Reply 8):

In my opinion, the merged entity would be AT LEAST the equal of new DL.

Ehh, I don't think so. Yes, it might outdo Delta as the largest airline in the world, but the network still wouldn't come close to Delta's. UA/CO wouldn't be as strong in South America, Africa, Europe, the Middle East, and East Asia.



The proper term is "on final" not "on finals" bud...
User currently offlineUSPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 7
Reply 17, posted (5 years 8 months 2 weeks 1 day 17 hours ago) and read 7207 times:



Quoting United Airline (Reply 11):
So will UA's name remain? Will CO's name disappear?

United would be the surviving name, with CO manaagement running the show. That's the best outcome for all involved. Put bluntly, Tilton and company need to go, now.



It's a Great Day for Hockey!
User currently offlineHNL-Jack From United States of America, joined Mar 2001, 819 posts, RR: 0
Reply 18, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7196 times:



Quoting Enilria (Reply 12):
Really it is CO that needs to merge. They are too small now relative to everybody else. UA's future is not as tied to a merger as it is tied to other things.

Completely agree. UA has to first get is financial affairs in order, which I believe they're on track to do. Once they've accomplished at least some degree of stability, I suspect we'll see some management changes and a renewed emphasis on service. It is UA that has the network to build itself as a "stand alone" carrier of consequence. UA is a shadow of its once proud self, but slowly, much like CO in the 80's it's getting its act together...beware the sleeping giant.



Grew up in the business and continued the family tradition.
User currently offlineMax Q From United States of America, joined May 2001, 4463 posts, RR: 19
Reply 19, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7191 times:

Don't bet on United being the surviving name.

Better a lesser known good name than a well known bad one.



The best contribution to safety is a competent Pilot.
User currently offlineFA4UA From United States of America, joined Nov 2003, 812 posts, RR: 20
Reply 20, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7174 times:

Awesome!! Can you picture it!? US + UA + CO.... who are we kidding, it wouldn't be United's logo kept, nor CO, nor US... it would be re-branded as Aeroflot if it was a three way merger! HUGE!

I'd love to watch that trainwreck as they sort out seniority and workforce integration! wow... the thought...



The debate continues... Starwood or Hyatt... which is better
User currently offlineN104UA From United States of America, joined Dec 2007, 908 posts, RR: 0
Reply 21, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7177 times:

Since DL/NW went through we will see a UA/CO merger and my from my sources in UA they will announce it in the first half of 2009 (and it will be a merger not a buyout like DL/NW) and it will be the UA name but based in Houston with mostly CO management, (Hopefully Glenn will leave Smile), but rumour also says that it is taking awhile because Glenn is trying to stay on, and CO management will not allow that. but IMHO I do not believe that any U.S. airline will not merge with US.


"Learn the rules, so you know how to break them properly." -H.H. The Dalai Lama
User currently offlineHNL-Jack From United States of America, joined Mar 2001, 819 posts, RR: 0
Reply 22, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7166 times:



Quoting Max Q (Reply 19):
Don't bet on United being the surviving name.

Better a lesser known good name than a well known bad one.

If that were true, CO wouldn't be here today. CO was probably the worst carrier imaginable in the 80's, but they have worked hard and "long" to rebuild their reputation. Those of us in the US are particularly hard on UA, but internationally, particularly in the Pacific, UA 's reputation fares pretty well against our other major US carriers. UA has lots of work to do, but not nearly as much as CO had to accomplish.



Grew up in the business and continued the family tradition.
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5420 posts, RR: 7
Reply 23, posted (5 years 8 months 2 weeks 1 day 16 hours ago) and read 7101 times:



Quoting United Airline (Thread starter):
Wonder if US will join the game

US's difficulty in resolving post-merger union relationships makes an asset purchase the only sensible approach for an acquiring airline.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineHiflyer From United States of America, joined Nov 2004, 2172 posts, RR: 3
Reply 24, posted (5 years 8 months 2 weeks 1 day 14 hours ago) and read 7008 times:

IMHO until the new administration is fully in place and the industry see's who the major players are this will just be the codeshare and such the two carriers have repeatedly publicly stated....despite all the jumpseat rumors everyone is fond of quoting...grin. It is going to be a new environment for these actions....one that may be not as favorable as in the past.

25 EXAAUADL : Enrilla usually you have such good posts but: Both these are wrong. 1. Fuel is falling cuz the world economy is tanking. In the short term like next 3
26 Par13del : If LCC won't enter it mean's that they are not there now, so whats preventing them from reducing capacity to increase fares, yields etc., human kindn
27 OzarkD9S : Where I come from we call that a "three-way" The CO & UA partnership will be as close as they can make it without the hassles of an actual merger. Wi
28 STT757 : CO and UA merging I give better than 50% chance in the next two years, US will not participate though.
29 Georgiabill : I think AA and AS merger makes more sense for AA. The proximity of JFK to PHL negates the value of US PHL hub. CLT and PHX would be valuable assets fo
30 DC8FanJet : This keeps coming up. There really isn't any advantage for a merger, and many, many reasons not to. The marketing agreement between CO & UA has all th
31 Drerx7 : This alliance is undoubtedly a winner but, could someone bullet the positives of the alliance? I mean we keep hearing about cost sharing and ground h
32 SPREE34 : US has enough unfinished business to keep them busy for some time. Employee merger nightmare. The 2 most arrogant pilot groups on the planet,(I exclu
33 Enilria : As I said, I think it will become apparent over the next year how much of a disadvantage they are facing against the much larger majors. Their positi
34 DiscoverCSG : That's an interesting idea ... I think the greatest advantage would be in the combined route networks. CO isn't terribly strong in the southeast, and
35 Brilondon : Why would he even be involved? He is the president not the FAA or any regulatory body. They want control not a partnership. Well at the very least th
36 HNL-Jack : I don't know who your "sources" are, but if I were you I wouldn't bet money on it. Anything is possible, but as so many have pointed out the alliance
37 United1 : From what little we know about UA & COs discussions on the merger a few months ago UA was indeed going be the surviving name. Picking a name in a mer
38 MasseyBrown : Any airline that has to shrink that much might see a positive EBITDAR, but debt service would kill them. They would have to sell assets, declare bank
39 Luv2fly : Again biggest not does not mean best or most profitable. Also DL is not the benchmark that all airlines compare themselves to/with.
40 Enilria : If you think that the administration has no effect on the position of DOJ or DOT regarding competitive matters, you are 100% wrong. Even if you belie
41 DL767captain : I think there is a strong possibility that down the line CO and UA will merge. I could actually see CO buying out UA much like DL bought NW. Right now
42 THEENGINEER : What if they just merge and keep their brand names like KLM and Air France. Whats the possibility that CO enters Star Alliance?
43 United1 : 99.999999999999% CO is expected to enter in the 3rd quarter of next year.
44 Windy95 : I will second that. We are in full integration mode to the Alliance. As far as a merger I highly doubt it and all rumors of that have been quiet sinc
45 OzarkD9S : In no way would I suggest an AA/US merger. US is gonna be the odd man out in Star domestically, which may drive them over to oneworld and an integrat
46 Like2flyguy : I don't think AS will merge with anyone (in the short term, at least). If they do, my opinion is they would be another addition to the DL family. DL
47 777ER : Yea I ee what you mean. I had first only said UA and CO would make the perfect couple, but I then started thinking about US's advantages like some of
48 United1 : No idea at this point, I would assume that CO is waiting for the DOJ to allow CO to join Star ATI and the UA/LH JV before they actually list the flig
49 Cws818 : What they would have, that DL does not, is a strong position in the 3 largest metro areas in the United States: NYC, LA, Chicago (AA also has this ad
50 MasseyBrown : Today's market caps and Dec 31 projected unrestricted cash balances for the two companies are CO - $1.87 billion cap and $2.9 billion cash and UA $1.
51 Post contains links United1 : One of the biggest issues with that right now would be the larger the combined company is the higher the minumum cash ballance that that UA/CO would
52 MasseyBrown : CO would have $2 billion or so left and you would also count UA's $2 billion, so a combination would have $4 billion unrestricted. I'm not sure they
53 United1 : UA has around 2 Billion worth of unencumbered assets left, what your thinking of is the 800M worth of assets that they pledged to chase in lue of nee
54 727LOVER : Not to mention, still relatively weak in the southeast USA.
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