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CO/UA Merger, Is CO Just Waiting For NW To Vanish?  
User currently onlineNorthstarBoy From United States of America, joined Jun 2005, 1832 posts, RR: 0
Posted (5 years 6 months 2 weeks 5 days 3 hours ago) and read 13826 times:
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I'm well aware that NW owns a stake in CO, called the golden share. I'm also aware that CO and UA had preliminary talks last year then CO dropped off after looking at UA's finances. That being said, I assume that when NW ceases to exist, so will the golden share, freeing Continental to pursue it's own destiny for a change, so, i wonder, once NW disappears at the end of this year, will we see a merger between UA and CO?


Why are people so against low yields?! If lower yields means more people can travel abroad, i'm all for it
75 replies: All unread, showing first 25:
 
User currently offlineLAXdude1023 From India, joined Sep 2006, 7606 posts, RR: 24
Reply 1, posted (5 years 6 months 2 weeks 5 days 2 hours ago) and read 13785 times:



Quoting NorthstarBoy (Thread starter):
That being said, I assume that when NW ceases to exist, so will the golden share, freeing Continental to pursue it's own destiny for a change, so, i wonder, once NW disappears at the end of this year, will we see a merger between UA and CO?

Nothing is stopping them right now. Once NW announced their intent to merge, CO bought the Golden Share back.

The Golden Share no longer exists. CO could merge with UA now if they wanted to.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlineAznMadSci From United States of America, joined Dec 2007, 3667 posts, RR: 5
Reply 2, posted (5 years 6 months 2 weeks 5 days 2 hours ago) and read 13786 times:



Quoting NorthstarBoy (Thread starter):
I'm well aware that NW owns a stake in CO, called the golden share.

CO has bought back the Golden Share at $100 when DL announced intentions to merge with NW. CO had been free to do with what they want and had eyed possible merger with UA, but no longer the case.

Quoting NorthstarBoy (Thread starter):
will we see a merger between UA and CO?

Not at this time. As old posts have mentioned, CO didn't like the looks of the UA books, and instead worked out a partnership with UA similar to what CO and NW had. This also allowed CO to rethink their position in SkyTeam. With this partnership with UA, it's a reason why CO is leaving SkyTeam to join Star.

Last day CO will be a SkyTeam member will be 24Oct09 with the very last flight out before midnight. CO's entrance into Star will be soon thereafter.



The journey of life is not based on the accomplishments, but the experience.
User currently onlineNorthstarBoy From United States of America, joined Jun 2005, 1832 posts, RR: 0
Reply 3, posted (5 years 6 months 2 weeks 5 days ago) and read 13565 times:
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thanks for the info, I did not realize that the golden share was no longer in play.

As for what made me think that a UA/CO merger might be in the works is the change from skyteam to star, and also CO realligned all of their booking codes to correspond with UA. I just figured that those were the first steps in an eventual merger, which, i think would actually be a good idea, combining UA's massive asia presence with CO's massive presence in Europe and S.America might create a carrier able to go up against DL/NW successfully, not to mention the domestic networks would balance well, with UA's west coast presence and CO's heavy presence in the south and east. Even the fleets would balance fairly well as they pretty much mesh with the exception of UA's A320s and 744s, otherwise CO and UA both operate basically the same types.



Why are people so against low yields?! If lower yields means more people can travel abroad, i'm all for it
User currently offlineFUN2FLY From United States of America, joined Dec 2006, 1044 posts, RR: 1
Reply 4, posted (5 years 6 months 2 weeks 4 days 20 hours ago) and read 13261 times:

My philosophy has always been, prior to the economic meltdown, when UA and CO were looking at eachother's books, CO saw things they did not like. CO gave UA 10 (pick a number) things to fix and we'll take a look later when those things are taken care of. Until then, we'll play the alliance game to make the merger easier and combine to fight DL and AA.

Strangely enough, with the changes both have made in the last 9 months, they are both in better shape. But with the economic downturn, I'd guess any and or all plans made last year are off the table. Airlines are cash poor and certainly could not get any financing to put the deal together. Credit markets are pretty tight for the awhile and I'd think that airlines are low on the totem pole to get any funds when they are freed up.


User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7545 posts, RR: 8
Reply 5, posted (5 years 6 months 2 weeks 4 days 18 hours ago) and read 12913 times:



Quoting NorthstarBoy (Thread starter):
I'm well aware that NW owns a stake in CO, called the golden share.

Not anymore.

Quoting LAXdude1023 (Reply 1):
Nothing is stopping them right now. Once NW announced their intent to merge, CO bought the Golden Share back.

I heard it was once the merger was approved.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineSTT757 From United States of America, joined Mar 2000, 16866 posts, RR: 51
Reply 6, posted (5 years 6 months 2 weeks 4 days 18 hours ago) and read 12877 times:



Quoting NorthstarBoy (Thread starter):
I'm well aware that NW owns a stake in CO, called the golden share



Quoting Burnsie28 (Reply 5):
I heard it was once the merger was approved.

Yeah CO bought back the Golden Share last April for $100.00 as soon as the announcement was made. CO did not have to wait for the merger to actually get approval or to be consummated, the mere announcement of the intent to pursue a merger triggered CO's buy back of the Golden Share.

Quote:
Continental Buys Back Golden Share From Northwest
APRIL 17, 2008, 9:46 AM
From Micheline Maynard

Bid “buh-bye” to the golden share.

On Thursday morning, Continental Airlines announced that it has bought back its freedom from Northwest Airlines, which had veto power over any deal that Continental wanted to enter. The price: $100.

http://dealbook.blogs.nytimes.com/20...-back-golden-share-from-northwest/

The reason why CO hasn't aligned themselves with UA yet is that CO is contractually oblige to participate with Skyteam until September. The new relationship with UA and Star Alliance begins in October.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
User currently offlineSnn2003 From United States of America, joined May 2001, 298 posts, RR: 0
Reply 7, posted (5 years 6 months 2 weeks 4 days 15 hours ago) and read 11984 times:

They wont merge. CO's management wants them to fail so we can buy some hubs and Asia routes.

SNN



One way, IAH-RTB please! No return ticket required.
User currently offlineChase From United States of America, joined Nov 2005, 1054 posts, RR: 0
Reply 8, posted (5 years 6 months 2 weeks 4 days 15 hours ago) and read 11897 times:



Quoting AznMadSci (Reply 2):
Last day CO will be a SkyTeam member will be 24Oct09 with the very last flight out before midnight

Question: If CO has, hypothetically, a HNL-IAH flight that departs simultaneously with an NRT-IAH flight, but when the two depart it is 25Oct09 at NRT and 24Oct09 at HNL, do you mean that the HNL-IAH will be Skyteam and the NRT-IAH will be *A?


User currently offlineLabswalker From United States of America, joined Dec 2008, 24 posts, RR: 0
Reply 9, posted (5 years 6 months 2 weeks 4 days 14 hours ago) and read 11716 times:

CO will have about a month with no codeshare partner. The change to STAR will not happen immediately.

User currently offlineLincoln From United States of America, joined Nov 2004, 3887 posts, RR: 8
Reply 10, posted (5 years 6 months 2 weeks 4 days 14 hours ago) and read 11459 times:



Quoting Labswalker (Reply 9):
CO will have about a month with no codeshare partner.

Er... A month with no alliance, yes. A month with no codeshares... no.

AFAIK, nothing's happening to their AS, ExpressJet, Cape Air, Colgan Air, VS, AE, Amtrak, or US Helicopter codeshares.

Lincoln



CO Is My Airline of Choice || Baggage Claim is an airline's last chance to disappoint a customer || Next flts in profile
User currently offlineAznMadSci From United States of America, joined Dec 2007, 3667 posts, RR: 5
Reply 11, posted (5 years 6 months 2 weeks 4 days 12 hours ago) and read 10662 times:



Quoting Chase (Reply 8):
Question: If CO has, hypothetically, a HNL-IAH flight that departs simultaneously with an NRT-IAH flight, but when the two depart it is 25Oct09 at NRT and 24Oct09 at HNL, do you mean that the HNL-IAH will be Skyteam and the NRT-IAH will be *A?

From what I remember, it will be what they will classify as the last departure on the 24th. So yeah, the HNL flight would be a SkyTeam flight just because it will depart on the 24th and not the NRT flight. Would could be real tricky would be the 11:55pm departure from SEA or West Coast departure. What happens if they are late?

Quoting Labswalker (Reply 9):
CO will have about a month with no codeshare partner. The change to STAR will not happen immediately.



Quoting STT757 (Reply 6):
The reason why CO hasn't aligned themselves with UA yet is that CO is contractually oblige to participate with Skyteam until September. The new relationship with UA and Star Alliance begins in October.

Hey STT757, so CO will be able to start negotiating full details with Star members in September so that entrance into Star can be much sooner than proposed? So this might bring about the hopeful entrance into Star on the 25th? I had the notion that they would work agreements so that entrance into Star would coincide with the start of IAH-FRA nonstop. Again, sooner would be nicer!

While they will no longer codeshare, CO will honor its agreement with SkyTeam till the stroke of midnight on 25Oct, which many have said will be the start of the Winter timetable.



The journey of life is not based on the accomplishments, but the experience.
User currently offlineAA777223 From United States of America, joined Feb 2006, 1246 posts, RR: 6
Reply 12, posted (5 years 6 months 2 weeks 4 days 12 hours ago) and read 10328 times:

Pardon my ignorance, but on God's green earth did CO ever sell this "golden share" to NW? I'm sure there is some logical, business justified explanation, but I just cant possibly imagine what it is...


Sic 'em bears
User currently offlineMcdu From United States of America, joined Apr 2005, 1466 posts, RR: 17
Reply 13, posted (5 years 6 months 2 weeks 4 days 11 hours ago) and read 10282 times:



Quoting Snn2003 (Reply 7):
They wont merge. CO's management wants them to fail so we can buy some hubs and Asia routes.

I don't know you and you don't know me. You obviously work for CO and I work for UA. What you wrote is pretty sorry excuse for someone in this industry to write. CO has been at the brink many times before, had some not so nice CEO's and yet survived to prosper. To cast something as disparaging as what your wrote is sad.

I have to ask, would you say the same thing to the UA Pilot that you were asking for a jumpseat from? Would you say the same thing to the F/A serving you a coke on a non-rev flight? Would you say that to a UA CSR giving you a seat on standby?

Keyboard heroes are zeros.


User currently offlineAirFRNT From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 14, posted (5 years 6 months 2 weeks 4 days 11 hours ago) and read 10261 times:

CO is expecting UA to go the way of the dodo, and then step into UA's role in Star.

User currently offlineUnited1 From United States of America, joined Oct 2003, 5955 posts, RR: 9
Reply 15, posted (5 years 6 months 2 weeks 4 days 11 hours ago) and read 10130 times:



Quoting AA777223 (Reply 12):
Pardon my ignorance, but on God's green earth did CO ever sell this "golden share" to NW? I'm sure there is some logical, business justified explanation, but I just cant possibly imagine what it is...

The way I understand it in a nutshell is CO did that in an effort to stave off a takeover bid by DL.



Semper Fi - PowerPoint makes us stupid.
User currently offline9252fly From Canada, joined Sep 2005, 1392 posts, RR: 0
Reply 16, posted (5 years 6 months 2 weeks 4 days 11 hours ago) and read 9968 times:



Quoting AirFRNT (Reply 14):
CO is expecting UA to go the way of the dodo, and then step into UA's role in Star.

Do you sit on CO's board? For someone that has a significant amount of respected users,your comment is surprisings and lame. My opinion is that they will merge in due course,the details of that merger I will not speculate on. Times have changed and the industry is always in a state of evolution,combining these two carriers will I hope lead to a stronger competitor that will keep DL on their toe's. My concern is where AA fits into the picture as they may be left behind and become the step-child of the remaining legacy carriers unless they pull a rabbit out of the hat.


User currently offlineCoewraatysaz From United States of America, joined Jun 2006, 196 posts, RR: 0
Reply 17, posted (5 years 6 months 2 weeks 4 days 10 hours ago) and read 9814 times:



Quoting NorthstarBoy (Reply 3):
CO realligned all of their booking codes to correspond with UA.

This was done in order to align our res system with that of the Star Alliance carriers... not for a merger.



Continental Airlines: Trabajar con empe�?��?�±o, Volar con Pasi�?��?�³n
User currently offlineLAXdude1023 From India, joined Sep 2006, 7606 posts, RR: 24
Reply 18, posted (5 years 6 months 2 weeks 4 days 10 hours ago) and read 9798 times:



Quoting United1 (Reply 15):
The way I understand it in a nutshell is CO did that in an effort to stave off a takeover bid by DL.

Frankly I doubt it. The theory about CO seeing somthing they didnt like in UA's books is probably more accurate.

Quoting 9252fly (Reply 16):
My concern is where AA fits into the picture as they may be left behind and become the step-child of the remaining legacy carriers unless they pull a rabbit out of the hat.

They are already big enough to survive fine reguardless. They dont need to merge with anyone.

Quoting 9252fly (Reply 16):
My opinion is that they will merge in due course,the details of that merger I will not speculate on.

Its almost comical how sided this issue is. Everyone on UA's side on this board is insisting a merger will happen. Everyone on CO's side is insisting it wont and that they can achieve all the benefits (ATI, FF programs, Star Alliance, etc.) without merger. Frankly I think the later is more accurate.

Why merge if they dont have to and can get the same thing without it?



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlineUnited1 From United States of America, joined Oct 2003, 5955 posts, RR: 9
Reply 19, posted (5 years 6 months 2 weeks 4 days 10 hours ago) and read 9504 times:



Quoting LAXdude1023 (Reply 18):
Quoting United1 (Reply 15):
The way I understand it in a nutshell is CO did that in an effort to stave off a takeover bid by DL.

Frankly I doubt it. The theory about CO seeing somthing they didnt like in UA's books is probably more accurate.

You might want to go back and re-read what AA777223 was asking as it had nothing to do with the aborted UA/CO merger. He wanted to know why CO sold the golden share to NW back in the 1990s before UA was ever in the picture....



Semper Fi - PowerPoint makes us stupid.
User currently offlineAznMadSci From United States of America, joined Dec 2007, 3667 posts, RR: 5
Reply 20, posted (5 years 6 months 2 weeks 4 days 9 hours ago) and read 9458 times:



Quoting AA777223 (Reply 12):
but on God's green earth did CO ever sell this "golden share" to NW?



Quoting United1 (Reply 15):
The way I understand it in a nutshell is CO did that in an effort to stave off a takeover bid by DL.

That's my understanding of how CO and NW became partners and how KL and CO had developed their codesharing partnership. When AF took controlling take of KL, and DL's partnership with AF, that's how CO, KL, and NW joined SkyTeam. Of course this is the simplistic view.

But back to the Golden Share, NW bought part of CO to ward off DL back in the day. CO ended up buying back most of what NW bought except for the Golden Share. Fast forward to today, NW is now part of DL and CO will partner up with UA.

Quoting LAXdude1023 (Reply 18):
Its almost comical how sided this issue is. Everyone on UA's side on this board is insisting a merger will happen. Everyone on CO's side is insisting it wont and that they can achieve all the benefits (ATI, FF programs, Star Alliance, etc.) without merger. Frankly I think the later is more accurate.

That was pretty much the take home message from CO DO IV. CO has no interest at this time to merge with anyone just because there has not been any successful ones that make it worth it for the airline. The partnership with UA is seen as a partnership with compatible partners rather than a "forced" arrangement.



The journey of life is not based on the accomplishments, but the experience.
User currently offlineUnited1 From United States of America, joined Oct 2003, 5955 posts, RR: 9
Reply 21, posted (5 years 6 months 2 weeks 4 days 9 hours ago) and read 9422 times:



Quoting LAXdude1023 (Reply 18):
Everyone on UA's side on this board is insisting a merger will happen. Everyone on CO's side is insisting it wont and that they can achieve all the benefits (ATI, FF programs, Star Alliance, etc.) without merger. Frankly I think the later is more accurate.

It's not that one sided at all, if you go back and re-read what has been said in the past on the topic you'll find that a good number of UA AND CO fans believe that merger will eventually take place. However most of them (me being one of them) believe that this is the correct first step ( as you said aligning FF programs, Star Alliance, ATI etc.) instead of betting the farm (alla DL/NW) and seeing what happens....

Either way merger or alliance UA and COs destiny seem to be intertwined at this point.



Semper Fi - PowerPoint makes us stupid.
User currently offlineN801NW From United States of America, joined Jul 2004, 744 posts, RR: 1
Reply 22, posted (5 years 6 months 2 weeks 4 days 9 hours ago) and read 9377 times:



Quoting AznMadSci (Reply 20):
But back to the Golden Share, NW bought part of CO to ward off DL back in the day. CO ended up buying back most of what NW bought except for the Golden Share. Fast forward to today, NW is now part of DL and CO will partner up with UA.

NW purchased TPG's CO stake in 1998 to help CO ward off DL and establish a code-share agreement. The DOJ sued NW over what it thought to be an anti-competitive stake. So to settle, Continental purchased the shares back from NW in 2000 and NW received the "Golden Share" and an extension of the code-share agreement for twenty five years.


User currently offlineLAXdude1023 From India, joined Sep 2006, 7606 posts, RR: 24
Reply 23, posted (5 years 6 months 2 weeks 4 days 9 hours ago) and read 9095 times:



Quoting United1 (Reply 21):
Either way merger or alliance UA and COs destiny seem to be intertwined at this point.

No doubt. They will be very close and they will align themselves very closely.

Quoting United1 (Reply 21):
However most of them (me being one of them) believe that this is the correct first step ( as you said aligning FF programs, Star Alliance, ATI etc.) instead of betting the farm (alla DL/NW) and seeing what happens....

Why go through the hassle of mergeing when you can get the benefits without the mess? CO had the chance to merge, they declined. UA has to get their ass in gear before CO will explore the possibilty again.

Quoting AznMadSci (Reply 20):
CO has no interest at this time to merge with anyone just because there has not been any successful ones that make it worth it for the airline. The partnership with UA is seen as a partnership with compatible partners rather than a "forced" arrangement.

Absolutely. I hear over and over from my contacts at CO that they have no interest in mergeing. They want to be closely aligned with UA no doubt, but they will remain their own airline.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlineSTT757 From United States of America, joined Mar 2000, 16866 posts, RR: 51
Reply 24, posted (5 years 6 months 2 weeks 4 days 8 hours ago) and read 9018 times:



Quoting AA777223 (Reply 12):
Pardon my ignorance, but on God's green earth did CO ever sell this "golden share" to NW? I'm sure there is some logical, business justified explanation, but I just cant possibly imagine what it is...



Quoting United1 (Reply 15):
The way I understand it in a nutshell is CO did that in an effort to stave off a takeover bid by DL.

Read the quotes below, AznMadSci and N801NW has it correct.

Quoting AznMadSci (Reply 20):
But back to the Golden Share, NW bought part of CO to ward off DL back in the day. CO ended up buying back most of what NW bought except for the Golden Share. Fast forward to today, NW is now part of DL and CO will partner up with UA.



Quoting N801NW (Reply 22):
NW purchased TPG's CO stake in 1998 to help CO ward off DL and establish a code-share agreement. The DOJ sued NW over what it thought to be an anti-competitive stake. So to settle, Continental purchased the shares back from NW in 2000 and NW received the "Golden Share" and an extension of the code-share agreement for twenty five years.

DL was trying to acquire CO back in '98 by purchasing Texas Pacific Group's stake in CO, CO did not want to merge with anyone especially DL so they approached NWA about buying TPG's stake and forming an Alliance. NWA did just that and CO and NWA joined an alliance, however the Department of Justice after a year or two sued to force NWA to divest their stake in CO. NWA liked the revenues they received from their alliance with CO and wanted to maintain the relationship, in exchange for NWA selling their stake back to CO NWA asked that CO continue to participate with NWA and KLM in their Alliance. CO agreed and granted NWA a single "Golden Share" of Stock which had no purpose other than give NWA the ability to veto mergers and acquisitions CO might otherwise participate.

The Golden Share was a single voting stock that gave NWA the ability to veto changes of control at CO, the mere announcement of NWA's intention to merge with DL triggered a clause enabling CO to buy back the Golden Share which they did last April for $100.00.



Eastern Air lines flt # 701, EWR-MCO Boeing 757
25 United1 : UA and CO can get most, but not all, of the benifits of a merger through the alliance at some point they may want all of the benefits that a merger w
26 LAXdude1023 : I have no doubt they are trying. I for one would love to see UA return to their glory days. They have such a great route network.
27 Frequentflykid : Assuming I owned a pizza joint and there was a competing pizza joint across the street why wouldn't I want them to fail? It may sound cruel, however c
28 AznMadSci : How can a pizza place in Houston compete with a pizza place in Chicago? Why wait for one to fail when they tend to serve different markets. Partner t
29 DL Widget Head : I don't have a dog in this fight but I firmly believe that the two will merge. All of the necessary steps to an eventual and IMO necessary merger are
30 MasseyBrown : I think the deciding factor will be how successful the new Delta will be in winning corporate contracts. If UA and CO see themselves as losing busine
31 Brilondon : If the above statement is true, they probably don't at this time want to get into a merger situation. With CO joining Star Alliance why would they wa
32 LAXdude1023 : If CO were interested, why not do it now? They dont have to wait. CO will end up calling the shots. UA would have them right now, CO didnt want to. C
33 FL787 : Like people have said, to give some time for UA to clean some stuff up without merger costs on top of that. Also what we're forgetting is will the ne
34 9252fly : Having three big legacy network carriers might be a good thing if it allows them to be profitable and sustainable. My hope is if you end up with thre
35 Cairo : Do you have some indication that bigger is more profitable? It seems to me growing size regardless of profitability has been one of the hallmarks of
36 Airbazar : AA was the first of the remaining legacy carriers to merge when they gobbled up TWA. They're fine the way they are right now.
37 United1 : As I said they can get MOST but not ALL of the benefits of a merger through the alliance but there are a few things that they can't do via ATI. One o
38 DL Widget Head : I agree and another is enjoy the benefits of the economies of scale that only a merger would bring. True synergies (fleets, purchasing, employees, ga
39 LAXdude1023 : I think theres virtually no way UA would be in the drivers seat if a merger was announced. CO is the one that has the superior management. CO is one
40 DL Widget Head : Maybe, but one thing is for sure. UA has got more clout now than they did a year ago. They're not going to be steamrolled by the boys in TX. We'll kn
41 LAXdude1023 : They do? What changed?
42 United1 : Quite frankly allot of the management team, outside of a couple at the very top UAs senior management has had a rather radical shakeup.
43 Avek00 : Not really - CO and UA will effectively synergize all of the above with respect to their international flying once the ATI is approved and the joint
44 United1 : They can probably get 70-80% of the benefits of a merger without actually merging but if they eventually want that last 20-30% they only way is via a
45 Avek00 : I agree, but I'm also saying that last 20-30% would come at a price tag of BILLIONS of dollars wasted, operational dysfunction, management infighting
46 United1 : Ultimately its going to end up being a business decision based on what makes the most since at the time. I can appreciate your position that a full b
47 DL Widget Head : The merger was rejected because UA's "quarter from hell" spooked them. At the time, UA was in a tailspin. No company, in their right mind, would want
48 LAXdude1023 : Its amazing how short term peoples memory is. AA was actually the first to jump on the bandwagon. AA is now of a size that it really doesnt matter if
49 United1 : UAs numbers are pretty much on par with their peers.... Its one of the things UA has going for them but its not the only thing... CO is a great airli
50 DL Widget Head : I believe that I've already answered that question (as much as I'm going to) in my reply 38. Many others like United1 have also illustrated throughou
51 United1 : I tried to edit to add a few things but that function seems to be broken.... I don't think either Houston or Chicago are going to allow themselves to
52 LAXdude1023 : On an alliance level, yes I think they would make an excellent team. You put UA's route network with CO's service levels and you have a clear winner.
53 DL Widget Head : Well, I don't have the time to produce a dissertation on my thoughts about UA's turnaround but, since you're failing to grasp the essence of why I be
54 STT757 : CO's top management team have been with the company since Gordon Bethune and Greg Brenneman's dramatic turn around of the airline in 1994, Larry Kelln
55 United1 : No but its a start, remember CO didn't exactly turn around on a dime either and it took years of constant change to get CO where they are today. UA m
56 Max999 : Agreed. I personally believe that CO only wants certain valuable assets (Asia routes, Heathrow slots, some widebody aircraft) from them. But I disagr
57 HNL-Jack : "The times they are a changing." A year ago CO stated it wanted to go it alone" and walked, probably with good reason, away from the merger. UA appare
58 WorldTraveler : Based on existing regulations in the US, two US airlines can't coordinate anything of a significant commercial nature in the domestic market without
59 Avek00 : Not quite. Delta's operational performance has gone lackluster as its management has taken its eye off the ball in favor of expansion (NWA continues
60 Avek00 : UA and CO will be coordinating on resource allocation internationally, where union issues are far less troublesome than for USA-based employees.
61 Avek00 : Whether true labor cost efficiencies can be had with legacy mergers in the US is an open question at this point. Most airlines tend to find that labo
62 DL Widget Head : Not according to the numbers I've seen. DL is #1 year to date (2009) in A14 this year at 80.5% followed by UA-80.2, US-79.6, NW-79.2, AA-78.4, B6-77.
63 United1 : While I'm sure that UA and CO unions would never allow jobs to be sacrificed in the name of cost cutting the alliance will allow UA and CO to cut ove
64 AznMadSci : My guess is if you're talking about cabin and flight crew, then yes, both airlines cannot coordinate and a "mixed" crew without going through a legal
65 United1 : I suppose that depends on COs union contract with its rampers, I'm assuming as CO is keeping its ticket counters in T2 and moving its flights ops to
66 DL Widget Head : Month to date for Feb 2009 DL-84.2, NW-82.1, UA-82.1, US-82.1, B6-81.5, AA-81.1, CO-78.3, AS-75.3.
67 NorthstarBoy : Bigger may not be more profitable, but, if you can use your combined size to basically suffocate your competition out of the market, why not do that?
68 Ikramerica : Well, no, because the Star membership won't begin until October. There will be at least 7 days when CO is not in an alliance. This does not mean that
69 AznMadSci : In terms of Chase's response, the last day you can earn miles on a SkyTeam member with CO is on a 24October departure, even if the flight arrives on
70 Dsuairptman : As an aviation professional, not arm chair CEO, it disgust me to see a great airline with a fantastic culture and image such as CO get in bed with the
71 DL Widget Head : Interesting that you say that when CO itself is the by-product of many airline mergers (plus 2 and 3/4 bankruptcies) over several decades. So too are
72 Avek00 : The likely passage in the near future of the Employee Free Choice Act -- which would make it far easier for employees to unionize -- is a development
73 Cairo : How much bigger was Southwest when they started to dominate intra-Texas markets and other shorthaul flying from Texas cities at the expense of Americ
74 MasseyBrown : Don't be. They don't have them by accident. FWIW, 99% of board decisions at 99% of companies are unanimous. I think you underestimate the gains UA ha
75 WorldTraveler : Perhaps but 90+% of any US airline's employees are US based. If you can't deal with the biggest source of the problem or opportunity, in the end you
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DSM-DCA, Approval For NW To Fly Yet? posted Tue Sep 21 2004 04:09:54 by Iowaman
I-Air TYS/CAE-MCO...just Waiting For The Buses? posted Wed Aug 18 2004 23:50:11 by SHUPirate1
Alliance Is Not A Quick-fix For KUL To Become Hub? posted Thu Feb 19 2004 11:40:44 by KEno
Merger: AA, US Outcome If DL/NW, UA/CO Merge? posted Sun Apr 13 2008 17:54:32 by IliriBDL
8/15: Chicago Tribune Adds To CO-UA Merger Rumors posted Tue Aug 15 2006 23:37:04 by 777fan
Hilarious BusinessWeek Cover On The CO/UA Merger posted Thu Feb 2 2012 08:51:35 by ContinentalFan