United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

United: US Airways Deal Isn't Dead

Sun May 13, 2001 3:49 am

United: US Airways deal isn't dead:

May 12 2001 5:30PM, source Rocky Mountain News


Newsletter spawns rumors that both sides will walk away Aug. 1

By Heather Draper, News Staff Writer

United Airlines officials denied reports Friday that the company's proposed $4.3 billion acquisition of US Airways is in trouble.
The reports, which stemmed from an article in USA Today, quoted an internal United newsletter that said 500 employees involved in the US Airways merger would return to their "regular jobs."

United spokesman Andy Plews said the inference that the announcement meant the deal is in jeopardy is "not a correct assumption."

But industry analysts following the deal think the internal announcement is a clear indication that United, Denver's dominant carrier, is worried about it.

"It's a financial Vietnam, and they're gathering on the roof of US Airways with a helicopter right now, trying to get out," said Mike Boyd, president of the Boyd Group of aviation consultants in Evergreen. "It's a marriage made in Chapter 11."

"The whole word on the street in Washington is that it's dead and the parties are going to walk away from it Aug. 1," said Kevin Mitchell, president of the Business Travel Coalition, based in Pennsylvania.

Aug. 1 is the latest deadline for Department of Justice approval of the United-US Airways deal, which United parent company UAL Corp. announced almost a year ago. After Aug. 1, the parties are free to walk away.

"They want out as early as it can be cheaply done," Boyd said. "United has clearly understood for months that this is a financial disaster for them."

The United newsletter said: "The hundreds of employees who have focused on US Airways integration in the past nine months have finished their work -- for now. The teams have completed their planning for days one through 100, the company is prepared, and team members are returning to their regular jobs until United gets closer to day one."

United's Plews said, "There will always be those who want to interpret news like this in a certain way." But, he said, the internal announcement Thursday was meant to "formalize that the mission was fulfilled, that those teams would stand down to a degree because the bulk of their work was done."

UAL Corp. Chief Executive Officer Jim Goodwin said earlier this week that he remains optimistic the merger will be approved by the Justice Department.

David Stempler, president of the Air Travelers Association, said he thinks the internal message doesn't "mean much of anything but that they're dealing with reality. I don't see it as anything but them being financially prudent. What's the point of having (employees) just sitting there and waiting (for merger approval)?"


May 12, 2001

 
User avatar
lindy field
Posts: 2937
Joined: Tue Mar 27, 2001 1:52 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 4:00 am

Yes it is.
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 4:11 am

I don't think so. Why do you have employees sitting there doing nothing while they have better things to do and nothing more they can do about the merger. So, the best way is to......... sit down and wait.
 
srbmod
Posts: 15446
Joined: Tue Mar 20, 2001 1:32 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 4:42 am

The deal will have to be altered even further to pass anti-trust muster with the Department of Justice. More than likely, slots at DCA, and selling off more of U.S. Airways' assets will have to be gotten rid of to other carriers in order to get approval. Since United has a hub at PHL as well as U.S. Airways, one of U.S. Airways' other hubs will have to be downsized in order to get gov't approval of the merger. The most likely candidate for hub downsizing would be PIT. It is close enough to the PHL hub to not really be of great use to the combined companies. U.S. Airways is beginning to struggle at PIT with the increased competition from AirTran on several routes. The smart thing to do would be to bring AirTran into the fold of this deal, by allowing them to buy a portion of the PIT operation, including gates, aircraft and slots at DCA. Whether or not AirTran could afford this deal is not a real factor, considering that AirTran was considering buying TWA around this time last year. This sort of deal would look good in the eyes of the DoJ, and may get Joe Leonard and his associates out of the government's hair for a little while. Since a low-cost carrier would be involved, this would be seen as giving more competetion in the region. That has been a concern at the DoJ that AA and UAL would control a significant portion of the Northeastern market, and by involving a low-cost carrier in the deal would make the merger as a whole seem like a godd idea for all passengers in the region.
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 5:07 am

They have done what they can. What do you think?  Smile  Smile  Smile

Singapore Airlines? I think Emirates is rated number 1. So where has it gone to?  Smile  Smile

 
User avatar
lindy field
Posts: 2937
Joined: Tue Mar 27, 2001 1:52 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 5:13 am

Singapore Airlines, yes. Emirates, no.
 
chepos
Posts: 5931
Joined: Sat Dec 02, 2000 9:40 am

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 8:17 am

I hope the deal dies soon because I hope to see US Airways for years to come.
Chepos
Puerto Rico
Fly the Flag!!!!
 
Martinez
Posts: 15
Joined: Sat Sep 10, 2005 5:24 am

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 8:19 am

I certainly hope this merger comes true. I want to use the Dividetend Miles Program I have to fly to America.
 
watewate
Posts: 2216
Joined: Sun Nov 12, 2000 6:00 am

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 10:24 am

Please excuse my ignorance, but what's the point of the merger if they throw away DCA and one of either PIT or PHL? It's very likely that UA will drastically scale back operations at either PIT or PHL after the merger- which leaves UA with CLT and PHL or PIT hub after the merger. The merger sounded too expensive to start with even with half the stake in proposed DC Air. UA shot itself and opened the floodgates for AA to cherry pick TWA.
 
chepos
Posts: 5931
Joined: Sat Dec 02, 2000 9:40 am

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 10:37 am

Who wants this wonderfull airline to disappear ?





Click for large version
Click here for full size photo!

Photo © Richard Silagi






No one so hopefully no merger will go through

Chepos
Puerto Rico
Fly the Flag!!!!
 
USAFHummer
Posts: 10261
Joined: Thu May 18, 2000 12:22 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 10:42 am

"Since United has a hub at PHL as well as U.S. Airways"

Right...UAL has flights to
LAX
SFO
DEN
IAD (UA Express)
ORD
FRA (LH codeshare operated by LH)
I dont think that even remotely defines a hub...since all those flights go to UAL's real hubs...

Greg
Chief A.net college football stadium self-pic guru
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 11:38 am

Chepos:


They have already sent a great airline into History. TWA.....

Very sad.

But I think the merger should go through at this stage. Otherwise, AA will be huge and its hard to compete with them. Harder at least.


Des
 
ORD Boy 2
Posts: 298
Joined: Fri Aug 25, 2000 12:25 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 1:26 pm

TWA is a legend in aviation us airways isn't a legend like twa is but i agree with wolf and his stooge gangwal that if the merger isnt approved us airways will die
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 1:39 pm

By merging UAL with US Airways, I think it is the best way to save US Airways.

Otherwise, US Airways will die eventually.

Just my 2 cents.
 
ILOVEA340
Posts: 2064
Joined: Sat Oct 30, 1999 9:49 am

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 2:27 pm

I personaly think it is dead. It would creat the biggest monopoly ever (even bigger than Microsoft wow!!!)
 
Guest

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 2:42 pm

Then they can be investigated by the FTC, wow!!!
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Sun May 13, 2001 2:50 pm

Umm........ Then why did the EU approve the merger?

It would create another giant to compete with AA I would say.

 Smile
 
D L X
Posts: 11628
Joined: Thu May 27, 1999 3:30 am

RE: United: US Airways Deal Isn't Dead

Mon May 14, 2001 10:42 am

The EU approved the merger (with concessions) because it won't affect the EU that much. They don't care that all flights between San Francisco and Philadelphia will be the same airline. They only care that all the flights from Italy and most of the flights from Germany will be Star Alliance flights if the merger went through. As a result, the merged airline would have to drop some of these flights.
 
United Airline
Topic Author
Posts: 8765
Joined: Wed Jan 10, 2001 5:24 pm

RE: United: US Airways Deal Isn't Dead

Mon May 14, 2001 11:25 am

D L X:

I agree.

Des

Who is online