D L X
Topic Author
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Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:40 am

http://www.marketwatch.com/News/Stor...e=blq%2Fyhoo&dist=yhoo&siteid=yhoo

Quote:
Shares of Continental climbed by nearly 8% after Benchmark Co. analyst Helane Becker suggested UAL Corp. could launch a bid for Delta Air Lines Inc. or announce a merger with Continental.

The feeding frenzy has most definitely begun. This would also suggest that regardless of whether US gets DL or not, Your Delta might not be staying Your Delta much longer.
 
roseflyer
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:49 am

There definitely is the possibility of some carriers merging. I doubt there won't be another large merger.

UA would do more of a takeover of DL, but UA does not have the financial assets for CO. UA and CO have about the same value based on market cap, so it would be very difficult for UA to buyout CO, but rather the two companies could evenly merge, but retain the stronger United brand.
If you have never designed an airplane part before, let the real designers do the work!
 
Boeing7E7
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:52 am

CO is the only one of the two that makes sense.
 
flyorski
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:54 am

I'm still waiting to see that CO/ AS merger (won't happen).

Quoting D L X (Thread starter):
The feeding frenzy has most definitely begun

 checkmark 
"None are more hopelessly enslaved, than those who falsly believe they are free" -Goethe
 
gigneil
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:55 am

I am a big proponent of a CO/UA merger. I think it makes sense and bridges together two very, very strong route networks.

United's domestic network and Asian routes are perfect for CO's strong position in Europe and to Latin America. I would imagine that having UA aboard will help them strengthen to South America, too.

NS
 
atmx2000
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 5:58 am

I don't think there is anything inherently wrong with the DL-UA combination in terms of hubs, but it will never fly given the size of the two airlines and the resultant opposition of the DOJ/DOT. CO-UA has always been in my mind the best combination.
ConcordeBoy is a twin supremacist!! He supports quadicide!!
 
jetdeltamsy
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:01 am

Quoting Boeing7E7 (Reply 2):
CO is the only one of the two that makes sense.

Because of United history of competing on such a nasty, unprofessional level with Continental, I just don't see that one happening with United being the acquiring entity. I'd LOVE to see Continental acquire United and fire ever single manager that's been there for than 5 years.

United doesn't have the money to acquire Continental and I think Delta would pilots would make it very difficult to merge the two companies.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
DfwRevolution
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:04 am

Quoting Atmx2000 (Reply 5):
I don't think there is anything inherently wrong with the DL-UA combination in terms of hubs, but it will never fly given the size of the two airlines and the resultant opposition of the DOJ/DOT

I doubt that would be a significant problem.

IMO, the notion that the DOJ is "anti-merger" is a misconception. They did, after all, allow the formation of the world's single largest carrier via the AA/TWA merger.

[Edited 2006-12-11 22:07:49]
 
ikramerica
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:10 am

Quoting Flyorski (Reply 3):
I'm still waiting to see that CO/ AS merger (won't happen).

If CO want to protect themselves, buying out AS might be a smart move. It makes CO that much larger and harder to buy out without permission. But AS doesn't offer any international expansion for CO beyond Mexico.
Of all the things to worry about... the Wookie has no pants.
 
D L X
Topic Author
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:14 am

Don't forget, CO can't be bought unless NW says it can.
 
steeler83
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:42 am

Quoting DfwRevolution (Reply 7):
IMO, the notion that the DOJ is "anti-merger" is a misconception. They did, after all, allow the formation of the world's single largest carrier via the AA/TWA merger.

True, they surpassed UA in size. Hey, I suppose this is why the DOJ shot down the US-UA merger proposal in 2000 - because it would have become too big, providing that UA was already the largest carrier?

Regarding the largest carrier, AA, I don't think they'll hitch up with anybody. CO and DL I think want to go it alone, DL especially as they have emphatically stated they do NOT want to merge with US. UA has already been argued to not be able to afford to acquire anyone. The only airline left to merge is NW, and they said pretty much that they'll consider that if they absolutely have to... US does not want NW (and I think that US should focus on completing the deal with HP before anything else), so who would NW merge with???
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
atmx2000
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:55 am

Quoting DfwRevolution (Reply 7):
IMO, the notion that the DOJ is "anti-merger" is a misconception. They did, after all, allow the formation of the world's single largest carrier via the AA/TWA merger.

TWA was a shell of its former self at that point. DL is a lot bigger AFAIK. A merger between two of the largest three airlines in the US seems unlikely to pass muster to me, but then again maybe it won't be a problem given the lack of hub overlap anywhere except NYC.
ConcordeBoy is a twin supremacist!! He supports quadicide!!
 
LawnDart
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 6:59 am

Ah, yes...the annual airline merger frenzy...as predictable as the return of the swallows to Capistrano  smile 
 
USPIT10L
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:01 am

Quoting DfwRevolution (Reply 7):
IMO, the notion that the DOJ is "anti-merger" is a misconception. They did, after all, allow the formation of the world's single largest carrier via the AA/TWA merger.

TW was in bankruptcy. That's the only reason the merger was approved.

Quoting Steeler83 (Reply 10):
Regarding the largest carrier, AA, I don't think they'll hitch up with anybody.

Northwest. AA has to stay competitive with what DL and UA do, or they perish.

Quoting D L X (Thread starter):
The feeding frenzy has most definitely begun.

 checkmark 
It's a Great Day for Hockey!
 
PanAm747LHR
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:03 am

Frankly, the only way that a UA/CO merger (or any take-over bid) would work is if CO were to make the bid, which I don't see happening any time soon. NW currently retains a "golden share" of CO stock, meaning that in order for another airline to be able to buy CO's assests, NW would have to agree to the sale. I can guarantee you that NW is not going to agree to the creation of a mega-competitor, such as a UA/CO company. That said, CO does not need NW's approval to make a bid for another airline. Therefore, the only way I see a CO merger happening is if CO makes the bid. If UA were to make a bid for CO, it would be shot down by NW.
On a more personal note, I quite like our company the way it is. CO has done very well the past few years, coming up with a business formula that has served the company well. CO is healthy and growing, and I would like to see an independant CO continue to do so. The reality of the airline industry may have other things in store, but I do hope that we continue to fly solo for the time being...

Nick
 
silentbob
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:11 am

Quoting Atmx2000 (Reply 11):
A merger between two of the largest three airlines in the US seems unlikely to pass muster to me

I have to agree with that statement.
 
UAL777UK
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:12 am

Quoting Jetdeltamsy (Reply 6):
United doesn't have the money to acquire Continental and I think Delta would pilots would make it very difficult to merge the two companies.

You seem very confident in that statement...I would not be so sure. many financial institutions would IMHO line up to offer the money for UA to do a deal!
 
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STT757
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:48 am

Quoting Ikramerica (Reply 8):
buying out AS might be a smart move. It makes CO that much larger and harder to buy out without permission. But AS doesn't offer any international expansion for CO beyond Mexico.

CO merging with AS would give them an oppurtunity to develop Seattle into a West Coast EWR, the 787 could open alot of routes for the combined carriers from SEA to China, Japan, Europe and India (Bangalore is within the 787s range from SEA).
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
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aloha73g
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:48 am

Quoting PanAm747LHR (Reply 14):
NW currently retains a "golden share" of CO stock, meaning that in order for another airline to be able to buy CO's assests, NW would have to agree to the sale.

Just a question....being that NW is in Ch. 11, wouldn't they lose ownership of any and all shares of CO, as they would be sold/transferred to creditors to pay off outstanding claims.

-Aloha!
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bobnwa
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:52 am

Quoting PanAm747LHR (Reply 14):
That said, CO does not need NW's approval to make a bid for another airline. Therefore, the only way I see a CO merger happening is if CO makes the bid. If UA were to make a bid for CO, it would be shot down by NW.

Northwest has control either way. The agreement between NW and CO states "a change of control shall mean any merger,reorganization,share exchange, consolidation,business combination, recapitalization, liquidation, dissolution or similar transaction." involving CO must be approved by NW.
 
jetdeltamsy
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:52 am

Quoting UAL777UK (Reply 16):
Quoting Jetdeltamsy (Reply 6):
United doesn't have the money to acquire Continental and I think Delta would pilots would make it very difficult to merge the two companies.

You seem very confident in that statement...I would not be so sure.

You are correct. This is my opinion. I lay no claim to inside information about United's finances and access to the capital markets.

But I do know that there is a lot of protection for Delta pilots in their current contract. I imagine they could block any merger proposal. Delta's corporate culture always considered itself superior to United's. I would be extremely surprised if the pilot group would allow this to go through.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
wingnut767
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:56 am

Quoting Gigneil (Reply 4):
am a big proponent of a CO/UA merger. I think it makes sense and bridges together two very, very strong route networks.

United's domestic network and Asian routes are perfect for CO's strong position in Europe and to Latin America. I would imagine that having UA aboard will help them strengthen to South America, too.

As an employee of CAL we have no desire to join with the archaic dinosaur that is UAL

Quoting Jetdeltamsy (Reply 6):
Because of United history of competing on such a nasty, unprofessional level with Continental, I just don't see that one happening with United being the acquiring entity. I'd LOVE to see Continental acquire United and fire ever single manager that's been there for than 5 years

Cal has had the best business plan of all the majors. It is working so far so why would we want to join with UAL?
Yakum purkan min shmaya
 
B737900ER
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:58 am

Quoting Jetdeltamsy (Reply 6):
Because of United history of competing on such a nasty, unprofessional level with Continental, I just don't see that one happening with United being the acquiring entity.

United people and Continental people hate each other. It would be a messy, messy integration

Quoting PanAm747LHR (Reply 14):
If UA were to make a bid for CO, it would be shot down by NW.

Or CO would ask NW to shoot it down and do everything in it's power to stop a takeover.

CO will not merge unless forced to do so, and only to increase it's network. AS would do this sufficiently, they would have a large west coast presence and could and would make SEA and asian EWR
 
vega
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 7:59 am

Quoting Aloha73G (Reply 18):
Just a question....being that NW is in Ch. 11, wouldn't they lose ownership of any and all shares of CO, as they would be sold/transferred to creditors to pay off outstanding claims.

You're confusing Chapter 11 with Chapter 7.
We are but a moment in this vast Universe and when gone we will never have existed.
 
panamair
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:00 am

Quoting Wingnut767 (Reply 21):
Cal has had the best business plan of all the majors. It is working so far so why would we want to join with UAL?

Because UAL's basic network structure is a jewel (probably the best of all the legacies); they just haven't done a very good job of fully leveraging or developing it in the past few years. In the right hands, it can be developed into an all-around powerhouse US flag carrier.
 
terryb99
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:18 am

I keep reading posts saying, "XX does not have the money to buy XX".

It does not matter how much money a given company has in the bank. What matters, is does the deal make sence to investors. Wall Street is the one who puts these deals together.

If US were to really take over DL, to you think they plan on writing a check from the company account?
 
srbmod
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:26 am

Quoting Terryb99 (Reply 25):
I keep reading posts saying, "XX does not have the money to buy XX".

It does not matter how much money a given company has in the bank. What matters, is does the deal make sence to investors. Wall Street is the one who puts these deals together.

With the big names in the private equity investment industry (Texas Pacific, Apollo Management, KKR, etc.) flush with cash, they're be the ones getting involved in some of these mergers.
 
wingnut767
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:30 am

Quoting Panamair (Reply 24):
Because UAL's basic network structure is a jewel (probably the best of all the legacies); they just haven't done a very good job of fully leveraging or developing it in the past few years. In the right hands, it can be developed into an all-around powerhouse US flag carrier.

I am not doubting the route structures, it is the integration of Unions and employees that will not go well. Also the Aircraft are not compatible. No one at CAL wants to integrate with UAL. We would be better off picking up the pieces that are left after the other Airlines merge. Buy routes that are selling off and use our new aircraft to fill the holes. UAL's fleet is older as well as it Employees. Thus calling them an archaic dinosaur
Yakum purkan min shmaya
 
CO767FA
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:32 am

Quoting RoseFlyer (Reply 1):
, but retain the stronger United brand.

And the stronger CO paint scheme; management; contracts and just about everything else. Only the UA name might remain, but then everything else would scream CO.....thank goodness.

Quoting D L X (Reply 9):
Don't forget, CO can't be bought unless NW says it can.

Right, but neither CO nor NW has said whether the "Golden" share is void after NW's recapitalization via BK.

Quoting PanAm747LHR (Reply 14):
That said, CO does not need NW's approval to make a bid for another airline.

B-I-N-G-O!!

Quoting Bobnwa (Reply 19):
Northwest has control either way. The agreement between NW and CO states "a change of control shall mean any merger,reorganization,share exchange, consolidation,business combination, recapitalization, liquidation, dissolution or similar transaction." involving CO must be approved by NW.

Bob, you are deluding yourself: CO is not going to give that kind of control to NW. They will use the agreement to thwart being a takeover target (modern day poison pill). NW is in deep water and may still sink before it is all said and done. After all they have yet to get out of BK and they are in the hands of the judge and creditors.
 
worldtraveler
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:39 am

Quoting RoseFlyer (Reply 1):
but UA does not have the financial assets for CO.

UAL doesn't have the financial strength to acquire any other airline; they have the highest debt levels in the industry. Any banker that loans anything to UA is just asking for it to be wiped out in another bankruptcy.
 
B737900ER
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:44 am

Quoting Wingnut767 (Reply 27):
No one at CAL wants to integrate with UAL.

 checkmark 
Nobody

Quoting Wingnut767 (Reply 27):
We would be better off picking up the pieces that are left after the other Airlines merge.

CO has said time and time again all they want is LHR access. Get LHR and Open skies arguments go away, get LHR and foreign ownership objections disappear. They wont go after the mess a United merger would be just to have LHR slots and NRT routes
 
gigneil
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 8:53 am

Same tired refrains

1) The employees don't want to merge. SO WHAT?
2) They don't have enough cash and can't get it. HIDE AND WATCH THEM
3) Their fleets are incompatible. YOU'RE TELLING ME MERGING AN AIRLINE THAT FLIES 737s, 757s, 767s and 777s INTO AN AIRLINE THAT FLIES THOSE SAME PLANES IS INCOMPATIBLE?

Folks, public companies exist to provide shareholder value. A UA/CO combination makes sense. Consolidation makes sense.

These threads do nothing but underscore that the employees of airlines are their number one problem.

NS
 
CO767FA
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:00 am

Quoting Gigneil (Reply 31):
These threads do nothing but underscore that the employees of airlines are their number one problem.

Damn employees....if we could only get robots to do it all; then there would be no talking back (only logical discord); no need for holiday's off; no worrying that they would not accept mandatory overtime; they'd work for nothing!!!
 
gigneil
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:07 am

We'd be fine if employees acted like professionals.

Their personal feelings about United or anything else should be irrelevant. Its work. These are new management teams that have done a good job of turning their respective airlines around.

A United and Continental merger would be a financially sound one that would create both value and job security at a larger air player. The issue? Employees don't like it. Jesus.

Go to work. Fly the planes. Serve the customers. If you can't or don't want to, stay home.

NS
 
Werkur767
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:08 am

Quoting Boeing7E7 (Reply 2):
CO is the only one of the two that makes sense

I agree with Boeing 7E7, CO is make sense, because they are in good situation. DL stilll with big debts, so is not sense.

Quoting Terryb99 (Reply 25):
I keep reading posts saying, "XX does not have the money to buy XX".

XX to buy another XX, only good financial healthy, otherwise is bad, for market share and passengers. i think a merger between UA and CO would be great.

But guys...tell me something, the merger US Airways with America West shows good results? No, because it is an exemple of one in bad situation with another in the same bad situation.

Werner from GRU.
Werkurspotter
 
gigneil
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:12 am

Quoting Werkur767 (Reply 34):
But guys...tell me something, the merger US Airways with America West shows good results? No, because it is an exemple of one in bad situation with another in the same bad situation.

They've done a GREAT job over there. The airline is making money, and Wall Street has rewarded them handsomely for it.

NS
 
justloveplanes
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:13 am

Quoting Silentbob (Reply 15):
Quoting Atmx2000 (Reply 11):
A merger between two of the largest three airlines in the US seems unlikely to pass muster to me

I have to agree with that statement.

I disagree. I think a CO/UA merger would be welcomed if presented as a necessity to compete globally, which I think is a valid point. There are highly capitalized and agressive competitors out there, like EK and VS, and a US airline that can globally compete on all fronts is good for the US
 
LAXdude1023
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:17 am

Quoting Gigneil (Reply 31):
These threads do nothing but underscore that the employees of airlines are their number one problem.

Thats a stupid observation. Megers need to be a collective effort. Not just a benifit for the shareholders but a screw in the backside for the rest of the world.
It is what it is...
 
CO767FA
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:18 am

Quoting Gigneil (Reply 33):
Go to work. Fly the planes. Serve the customers. If you can't or don't want to, stay home.

Now that is an original statement!

Quoting Gigneil (Reply 33):
We'd be fine if employees acted like professionals.

I say old chap.... it is the Internet and people are free to voice their opinions, just like you have done; but there isn't anyone here that hasn't been unprofessional at some point in their career....including you!

Airlines are obviously a idolized industry; what other forums are as popular (ok, maybe porn)?

How calm are you when your company is targeting or the target of a merger or acquisition? Unless you are in the top 1% of population (wealthy), this could mean additional years of a roller coaster ride that started in 2001 and doesn't seem to be ending.
 
gigneil
Posts: 14133
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:22 am

My company leads our industry in growth and diversification via merger and acquisition. We've acquired some 30 companies in the 2000s alone.

It solidifies our place in the market, makes us more competitive, and means I have more products and services to offer and sell.

In exchange, the employees from that company have access to our resources to further their careers. More places to move to, more products to work with, more departments to transfer to if they're interested.

Its all about the culture of your employees. We genuinely want everything we do to succeed, so when we bring in new company or merge with one we go OUT OF OUR WAY to make sure it succeeds, instead of secretly hoping it fails, even if they were formerly a competitor.

NS
 
TL8490
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:29 am

Quoting Gigneil (Reply 35):
hey've done a GREAT job over there. The airline is making money, and Wall Street has rewarded them handsomely for it.

I keep reading where you are applauding the results at US/HP...at this point in the business cycle any company who had been through 2 or 3 bankrupcies should be doing well...They cleaned everything up and cut the creditors share of debt a few times. If they were in such great shape and such great managers as you say Wall Street would have already pressured Delta to take the deal and we would be talking about integration right now...we are not...Dougie is sham and his house of cards will fall very soon....the only way he can keep it going is to merge again. Remember Delta would not be in trouble today if US had been allowed to die a few years ago.....US leveraged bankrupcy as much as anyone and charged low fares and created overcapacity while in bankrupcy....


The irony is Delta tried their best to pay all of their debts and was hampered by US and UA in bankrupcy...now these same guys think they are first in line to buy the same airline....


Gotta love the American way...
 
B737900ER
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:33 am

Quoting Gigneil (Reply 39):

No business is like airline business. And you can't compare a normal industry to the airlines.

Unless you work in this industry and have firsthand knowledge you have no clue what really goes on.
 
CO767FA
Posts: 388
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:35 am

Quoting Gigneil (Reply 39):
Its all about the culture of your employees.

And the airline culture is all about seniority; that is what most of us worry about. No matter how "senior" you are with in the respective employee group, you know that one or one thousand more added can make the difference between holding the holiday off or working the weekends.

Does your job require you to work every weekend for years? Or does it require you to work on major holidays for years on end? Once you've achieved that "freedom" a merger could force you to go back to working shifts, holidays, routes or seats that you no longer thought possible.

Oh, don't waste your typing skills on telling me or any other airline employee to "get another job"; its just wasted energy and ignorance to our ears/eyes.

[Edited 2006-12-12 01:37:08]
 
jfk777
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:38 am

UA and CO would make a great airline. But then so would DL and UA, with Atlanta, Chicago, Salt Lake City, CVG, IAD, LAX, SFO and JFK that would make a MEGA-Airline. JFK to LHR again with UA LHR slots, Tokyo from about every major US hub, 6 from the list above. South America, Australia, Asia, Europe and Africa all covered. Delta is really the belle of the merger stakes. ITs good for US, UA and NW.
 
CO767FA
Posts: 388
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:45 am

Quoting Jfk777 (Reply 43):
Delta is really the belle of the merger stakes.

No, DL is the belle of the BK carriers available for purchase. I think DL/UA would mean the end of SLC. Which name would be retained?
 
steeler83
Posts: 7391
Joined: Sat Feb 25, 2006 2:06 pm

RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:46 am

Quoting Gigneil (Reply 35):
Quoting Werkur767 (Reply 34):
But guys...tell me something, the merger US Airways with America West shows good results? No, because it is an exemple of one in bad situation with another in the same bad situation.

They've done a GREAT job over there. The airline is making money, and Wall Street has rewarded them handsomely for it.

I fully agree with Gigneli here! The airline, pre-HP, sucked big time. It was a mess, losses mounting, poor goals set. The first time thru bk didn't do much. Sure, the second time around, they had to strip PIT of its hub; it was losing money big time for US. Then while US was in it the second time, WN came into strong-hold PHL and its now-focus city PIT, driving up competition with some key routes out of the two cities. US then anounced the merger with HP, cut costs, fixed a considerable amount of its problems, and like you said, is making money.

US still has some things to work out, including that baggage situation at PHL, and I think labor issues. Mergers do allow airlines to become more competitive, but DL management has come a long way to help improve that airline and fix their problems. I don't want to see that all disappear into US management. And US should focus on finishing the HP merger, as I have said before, like many of us have said time and time again before...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
sac
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:49 am

I am guessing your company is not seniority based or unionized. When your life revolves around seniority, a merger is a big deal to the employees. It effects not only your work schedule, but your family and home life. Without the backing of the so called employees, a merger in the airline industry will never succeed. A happy work force and a good management team is what makes a company profitable. It's not how big you are.
 
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ER757
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 9:58 am

Quoting Gigneil (Reply 39):
My company leads our industry in growth and diversification via merger and acquisition. We've acquired some 30 companies in the 2000s alone.

It solidifies our place in the market, makes us more competitive, and means I have more products and services to offer and sell.

In exchange, the employees from that company have access to our resources to further their careers. More places to move to, more products to work with, more departments to transfer to if they're interested.

Its all about the culture of your employees. We genuinely want everything we do to succeed, so when we bring in new company or merge with one we go OUT OF OUR WAY to make sure it succeeds, instead of secretly hoping it fails, even if they were formerly a competitor.

I've been through no less than six mergers/aquisitions at the company where I work and while much of what you say is true - let's not overlook the downside and why some people take a dim view of consolidations. Some people DO lose their jobs. This is one of the things that mergers and aquisitions produce. Duplication of job functions. Not everyone gets to stay on board and many times it's through no fault of their own. It's not that they do a bad job or are un-cooperative etc. I've been fortunate so far, apparently so have you. Not everyone is so lucky. Keep that in mind and maybe it will help you understand some folks' disdain for possible mergers.
 
B777-700
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 10:00 am

Quoting Gigneil (Reply 33):
Go to work. Fly the planes. Serve the customers.

I noticed 'bend over and take it up the tail pipe when a crappier company wants to take over the one you've worked so hard to give a good reputation too' isn't on your list.

 Yeah sure
If you don't chew Big Red, then @#$% you.
 
LAXdude1023
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RE: Report: UAL Could Bid On Delta Or Continental

Tue Dec 12, 2006 10:02 am

Quoting Steeler83 (Reply 45):
US still has some things to work out, including that baggage situation at PHL, and I think labor issues. Mergers do allow airlines to become more competitive, but DL management has come a long way to help improve that airline and fix their problems. I don't want to see that all disappear into US management. And US should focus on finishing the HP merger, as I have said before, like many of us have said time and time again before...

Very well said, my friend from PIT. US still has alot to swallow before they bite off more. US and DL both have indeed come along way from where they were. It wasnt long ago that DL was in Mullins death grip and the US was asking its employees to work for free so that it wouldnt sink. They are both in better places now. However if this merger goes through, I believe they will not survive.
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