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STT757
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"If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 6:30 am

It seems the general consensus of the business community is that if a CO/UAL deal goes through CO is running the combined, I find the same belief is shared by most of A-net's community even the UAL folks.

Quote:
companyIf deal is done, Continental is seen the boss

Better management cited
Posted by the Asbury Park Press on 12/15/06
BLOOMBERG NEWS SERVICE

UAL Corp.'s United Airlines employees may end up taking orders from the management of smaller rival Continental Airlines Inc. should the two carriers decide to merge.

"Continental will be the one who will be doing the acquiring, not United," Maldutis said Wednesday as the merger talks were disclosed by people familiar with the discussions. "They've got a stronger management. They've changed the culture at Continental. Tilton and company want to cash out."

Under CEO Larry Kellner, Houston-based Continental is one of the best-managed U.S. airlines, said Jon Ash, president of InterVistas-GA2 consulting firm in Washington. Its shares have more than doubled this year to lead the Bloomberg U.S. Airlines Index.

"If there is a combination, I'd see Continental taking over United and, in effect, running it," Ash said.

Kellner, 47, took the reins at Continental in 2004 from CEO Gordon Bethune, who restored profits after 10 years on the job. Kellner joined Continental in 1995 as senior vice president and chief financial officer, and he was promoted to president by Bethune in 2001.

More

Quote:

The airline posted profits in four of the past six quarters. Fourth-quarter earnings are projected at 25 cents a share, according to estimates from 10 analysts compiled by Bloomberg.

Analysts Susan Donofrio of Cathay Financial and Jamie Baker of J.P. Morgan Securities Inc. this week revised their outlook for the quarter to a loss from a profit after the airline forecast higher costs and lower-than-expected revenue.

"Continental is the prettiest girl at the dance party right now," said Darryl Jenkins, an independent airline consultant in Marshall, Va. "They're the best-managed among the legacy carriers over the longest period of time.'

Full article can be viewed at..

http://www.app.com/apps/pbcs.dll/art...=/20061215/BUSINESS/612150369/1003
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NW748i
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 6:35 am

I nod in agreement from my armchair.
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AirframeAS
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 6:48 am

What would the name be if this goes through? Will the FA uniforms be UA's or CO's?
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thomasphoto60
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 6:50 am

Well while I am opposed to any merger regardless of who is left in charge, however this scenario would be the most palatable for IAH and Houston overall.

Thomas
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EWRCabincrew
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:02 am

Quoting AirframeAS (Reply 2):
What would the name be if this goes through? Will the FA uniforms be UA's or CO's?

If...my bet is UA. Uniforms and all.
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Cessna057
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:02 am

Quoting AirframeAS (Reply 2):
What would the name be if this goes through? Will the FA uniforms be UA's or CO's?

I think pretty much if the deal goes through, its just going to be Super Continental. Same paint, same CO uniforms..
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DIA
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:07 am

Quoting STT757 (Thread starter):
It seems the general consensus of the business community is that if a CO/UAL deal goes through CO is running the combined, I find the same belief is shared by most of A-net's community even the UAL folks.

Actually I've read and heard the complete opposite. Industry experts quoted on this subject in our local news sources and nationally by CNN and I believe FoxNews have stated that CO execs are the ones who should be worried about their jobs. UAL will be carrying CO in-tow.

Furthermore, UAL will expand their Denver hub and possibly add service to Latin America.
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tsaord
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:11 am

Quoting AirframeAS (Reply 2):
Will the FA uniforms be UA's or CO's

Im sure A new uniform would be considered. CO needs some badly I think. I used to like UA's but they have grown sour on me. I guess its just how the people dress in them.
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jetbluefan1
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:17 am

Quoting DIA (Reply 6):
Furthermore, UAL will expand their Denver hub and possibly add service to Latin America.

This is certainly the way to go. DEN seems to be getting busier and busier by the day.

JetBluefan1
 
LH417AF025
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:19 am

i think that regardless of who does the taking over, the UAL brand will stay.
esp with their presence in asia and all of those cash cow routes
 
LAXdude1023
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:20 am

CO is a much nicer airline and they have one of the best management teams. I hope they give UA's management team the "boot".
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aa757first
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:22 am

Quoting Cessna057 (Reply 5):

I think pretty much if the deal goes through, its just going to be Super Continental. Same paint, same CO uniforms..

There was a Reader's Digest game page a while ago with the top ten brands worldwide. There was the Nike Swoosh, the McDonald's Golden Arches and the United "U".

I doubt the CO brand would survive, as much as I would hate to see that brand die.

AAndrew
 
DfwRevolution
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:25 am

I agree that CO should be the "top" in this merger. That being said, I would hate to see the United Airlines name die. Let's not forget that UA was originally the air mail division of the Boeing Company from the earliest days of aviation.

That being said, CO has shown to have better management and has the rightful place at the helm of a CO/UA merger.
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supa7E7
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:26 am

My armchair told me UAL will have 2 new hubs - Newark and Houston.

But just because it's called United does not mean WHQ will be in Chicago anymore. I'd bet against it.
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freedom747
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:28 am

I really don't hate either company, to a point. Having relatives that worked for UA in the 70s, 80, & 90s, it just seems like United employees' have yet to shed the foul tasting days of when Stephen M. Wolfe was the Ring-Leader, but hopefully, I'm dead wrong. On the other hand, I see Continental as the 21st Century focused company with a mind-set of knowing where it wants to go and has got some good thinkers. Has United lost their pioneered-thinking days when they were "The First Airline To Pioneer__________".

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supa7E7
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:29 am

As I have said before - UA is a beautiful body in search of a new brain.
"Who's to say spaceships aren't fine art?" - Phil Lesh
 
jfk777
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:32 am

Given the more recent BK at UA, that brings more bitterness, Continental's management showed be in command. Also by Cal buying UA, NW "Golden share" is not a problem.
 
gigneil
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:36 am

I don't think this was ever in doubt... just like keeping the United name is not in doubt.

NS
 
USPIT10L
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 7:47 am

Quoting Freedom747 (Reply 14):
I really don't hate either company, to a point. Having relatives that worked for UA in the 70s, 80, & 90s, it just seems like United employees' have yet to shed the foul tasting days of when Stephen M. Wolfe was the Ring-Leader, but hopefully, I'm dead wrong.

Actually, it's Stephen Wolf. He did a great job building up the global side of UA's network, but he also took quite a bit of cash with him. Remember when Marvin Davis tried to LBO UA and Wolf tried to side with him, giving the employees effective control of the company? When word got out about how much Wolf stood to take in as the CEO of the new-breed UA, it nearly destroyed his reputation. He also was the first airline executive to start outsourcing. He sold UA's flight kitchen operation in 1993 when their union refused to take concessions. His tenure at US Airways wasn't much better along these lines, but that's a whole other thread.
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Falcon84
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 8:08 am

Quoting DIA (Reply 6):
FoxNews have stated that CO execs are the ones who should be worried about their jobs. UAL will be carrying CO in-tow.

Then you're setting up the new company for failure, if you want UA's management to stay in charge. Actually, you're dead wrong. I can't see a merger being approved by either board if Tilton and his gang are going to remain. Kellner and his group have proven there is life after Gordon, and have kept CO the steadiest ship in the U.S. industry outside of WN.

I don't think Tilton WANTS to remain in control, but is looking for a golden parachute out of the airline.

As for UAL carrying CO in tow, nice image of trying to see CO meekly following UA's lead, but it won't happen that way. UA needs CO right now more than CO needs UA.
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flydreamliner
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 8:13 am

Quoting Cessna057 (Reply 5):
I think pretty much if the deal goes through, its just going to be Super Continental. Same paint, same CO uniforms..

United is a much stronger global brand name, especially in the pacific, where CO almost doesn't exist (you know, except for those two transpolar flights they run from EWR).

Quoting Supa7E7 (Reply 13):
My armchair told me UAL will have 2 new hubs - Newark and Houston.

Haha, 'New UA' would likely have hubs at EWR, IAD, ORD, IAH, DEN, and SFO...

CLE would be dropped, EWR would see its ops reduced and more northeast redirected through UA's less problematic IAD hub. IAH would hang on, largely unchanged, the ORD superhub would pick up CLE's slack, DEN would serve as their western hub, and SFO would continue to grow its list of transcons, and its service as a pacific gateway.... HQ would likely be in Houston, though I think ORD (which I have taken to referring to as the center of the universe) would likely remain their largest, flagship hub. ORD would remain the anchor of their operation, with EWR and IAD serving as transatlantic gateways and hub to the east coast, ORD shooting flights off to everywhere, IAH with its selection of transatlantic flights, acting as a hub to the south/southwest and remaining as a connection between flights from either coast. DEN would likely be largely unchanged.

But just because it's called United does not mean WHQ will be in Chicago anymore. I'd bet against it.

If CO leadership takes over, it would seem to make sense it would move to houston. I'd miss UA as 'Chicago's' airline though.

Please also note - largest US airlines
UA/CO - Houston Texas
AA - Fort Worth Texas
WN - Dallas Texas
DL (or, the unlikely US/DL) - Atlanta Georgia
NW - Minneapolis (Eagan) Minnesota
US - Phoenix (Tempe) Arizona

Top 3 airlines in the US would all be based in Texas, the top 4 would all be in the South.... pretty interesting.
"Let the world change you, and you can change the world"
 
CO767FA
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 8:21 am

Quoting DIA (Reply 6):
Actually I've read and heard the complete opposite. Industry experts quoted on this subject in our local news sources and nationally by CNN and I believe FoxNews have stated that CO execs are the ones who should be worried about their jobs. UAL will be carrying CO in-tow.

Furthermore, UAL will expand their Denver hub and possibly add service to Latin America.

This is just a flaming post. I also live in DEN; none of the reports on the Channel 9 or 7 or 4 said UA's management would "stay". The same is true of the reports in The Denver Post and The Rocky Mountain News.

If you'd like to share your "sources", I'll stand corrected. All accounts of the proposal indicate LK would rule the roost.
 
DIA
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 8:25 am

Quoting Falcon84 (Reply 19):
Then you're setting up the new company for failure, if you want UA's management to stay in charge.

Same loophole in journalism/reporting this news as well. And, btw, don't kill the messenger. Smile

Quoting Falcon84 (Reply 19):
As for UAL carrying CO in tow, nice image of trying to see CO meekly following UA's lead, but it won't happen that way. UA needs CO right now more than CO needs UA.

Maybe, but UAL will be the surviving brand...CO in-tow, or walking hand-in-hand down the aisle.
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Falcon84
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 8:28 am

Quoting DIA (Reply 22):
Maybe, but UAL will be the surviving brand...CO in-tow, or walking hand-in-hand down the aisle.

We'll see. You may be right, but I don't think that's as cut and dried as some of the armchairs on here seem to think. UA may have a better brand name in some places, but in the last decade, CO is the much more respected brand name.
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trex8
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 9:20 am

Quoting Falcon84 (Reply 23):
CO is the much more respected brand name.

perhaps in the industry but not to the average paying consumer, outside the Americas CO as a brand name for airline passengers is close to non existent compared to UA.
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 9:30 am

Well, purely from an aesthetic point of view, CO have one of the classiest colour schemes in North America (or anywhere, for that matter) while UA have one of the dreariest. Most likely, a new CO/UA would soon have a new identity but I'd be very sorry to lose the current CO scheme.

Anyway, when the two Boards ask for my advice, that's what I'll tell them.
 
letsgetwet
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:00 am

Ford may be better known globally than BMW, but I'd take a BMW over a Ford.
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:12 am

Quoting Letsgetwet (Reply 26):
Ford may be better known globally than BMW, but I'd take a BMW over a Ford.

Indeed. Being "known" isn't necessarily an advantage. I've heard people rave about flying on SQ or CX or VS or whoever but I don't know anyone who goes out of their way to fly on UA.
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:13 am

Quoting Falcon84 (Reply 23):
UA may have a better brand name in some places, but in the last decade, CO is the much more respected brand name.

You gotta be kidding. The UA brand name has much more recognition in the world than CO, especially in Asia, and this counts for more on the balance sheet. Any merger would be shooting itself in the foot by not keeping the UA logo.
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trex8
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:15 am

Quoting Letsgetwet (Reply 26):
Ford may be better known globally than BMW, but I'd take a BMW over a Ford.

now that is debatable that Ford is better known worldwide, there are some parts of the world where there are more mercs on the road than fords!
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:32 am

Quoting FlyDreamliner (Reply 20):
United is a much stronger global brand name, especially in the pacific, where CO almost doesn't exist (you know, except for those two transpolar flights they run from EWR).

Look at the route map again and then get back to us.

Quoting Trex8 (Reply 24):
outside the Americas CO as a brand name for airline passengers is close to non existent compared to UA.

The only reason many outside of the "Americas" or "Asia" knows about UA, is due to the events of 9/11
 
trex8
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:48 am

Quoting CO767FA (Reply 30):
The only reason many outside of the "Americas" or "Asia" knows about UA, is due to the events of 9/11

there is certainly some truth to that but since PAs demise UA has been seen by many in the rest of the world as the "American flag carrier". IMHO CO has still less brand recognition than UA though I agree as others have pointed out that the CO management and CO in general is probably a better company and product today than UA but sometimes a marginal difference in quality can be more than made up by brand name recognition
 
Zone1
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RE: "If Deal Is Done, Continental Is Seen The Boss

Sat Dec 16, 2006 10:50 am

Quoting FlyDreamliner (Reply 20):
the top 4 would all be in the South.... pretty interesting.

The south will rise again!  Silly
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dz09
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:52 am

Mr. Bethune's thoughts about the CO/UA merger back in 2003

"Bethune said the idea of Continental acquiring United was a "great concept" but unworkable: "You have 45,000 OK people and 85,000 disgruntled people. Both have to want to do it."

Here's the link to full article.
http://www.gsb.stanford.edu/news/headlines/vftt_bethune.shtml
 
777fan
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:53 am

Quoting Thomasphoto60 (Reply 3):
however this scenario would be the most palatable for IAH and Houston overall.



Quoting LH417AF025 (Reply 9):
i think that regardless of who does the taking over, the UAL brand will stay.
esp with their presence in asia and all of those cash cow routes

IF the two were to merge, it's not like one concept, brand, fleet, etc. would be dumped in favor of what the other had to offer. The point of a merger is to maximize profitability by taking advantage of the best that each party has to offer. In the case of UA, it's brand recognition, an enviable hub system (it's not like you'd dump ORD in favor of IAH), a huge presence in Asia (the world's fastest growing market for aviation), a good reputation with business travelers, and membership and partners around the world (*A kicks the pants off of SkyTeam). In CO's case, they'd also bring a solid hub system, a huge presence in Europe and Latin America, a modern fleet, a good reputation in regards to customer service, and a forward-thinking business model.

IF the parties involved play their cards right, the end result could be an airline bar none. I'm a huge UA fan and FF but would love to see CO management takeover because I don't see UA suceeding in the long run; there's simply too much bitterness, infighting and apathy hanging around. Then again, UA simply has too much to offer to just fade into oblivion. I am confident, however, that if UA and CO execs are willing to consider this merger, that they're not going to do it half-assed because there's too much at stake.


777fan
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dz09
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 10:58 am

Why Does one brand have to disappear. Why can't the merger be more like AF/KLM?
 
thomasphoto60
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 11:00 am

777fan,

If UA were the surviving/managing carrier, IAH would not be 'de-hubbed', however I doubt that UA would put a lot of resources in terms of future int'l expansion from IAH, outside Latin America. That said, even if CO were to survive and in control, I suspect with the acquisition of UA's sizable operations at LAX and SFO as well as their IAD hub, IAH would probably get left out in the cold in terms of future and promised expansion to Europe and Asia.

At this stage all we can do as wait and see what happens.

Thomas
"Show me the Braniffs"
 
777fan
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 11:07 am

Quoting Thomasphoto60 (Reply 36):
IAH would not be 'de-hubbed',

I agree - I think IAH would become the Mexico/Latin America hub for the "new" carrier. As has been discussed ad nauseum, the other hubs would be as follows:

LAX/SFO: Asia, US west
EWR/IAD: Europe, US east, Mideast (?)
ORD: mix of Asia, Europe, Latin America, US central
DEN: US central
HNL/GUM: Southeast Asia/Pacific Rim


777fan
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Bradleycheuk
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 11:21 am

I flew on Continental from NEW York to Hong Kong, it was a very pleasant flight with excellent service. Those 777's are really comfortable and spacious unlike Air Canada's A340-500 or 300's. From my point of view, the two airlines are probably not going to change any colour schemes at all. Recently, Delta and U.S. Airways emerged with one another right?

Thanks
Brad
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 11:25 am

Quoting Bradleycheuk (Reply 38):
Recently, Delta and U.S. Airways emerged with one another right?

Wrong.
 
777fan
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 11:27 am

Quoting Bradleycheuk (Reply 38):
Recently, Delta and U.S. Airways emerged with one another right?

Wrong, very wrong. US Airways and America West "recently" merged (a year ago?) but have yet to finish converting the fleet to a common color scheme. US Airways subsequently attempted a semi-hostile takeover of DL but has been rejected; DL intends to fight it to the end.

I will agree with you, however, on any statement that contains the words "Air", "Canada" and "sucks"!!!


777fan
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daron4000
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 12:06 pm

IF there is a merge, it will 100 percent keep the United brand name but retain Continental management. This is because, as stated before, the United brandname is one of the best known in the world thanks to their amazing route network. Furthermore, as stated before as well, most consider either United or American to be the US flag carrier and not CO, even if they have better service. Also, another reason why United should stay is because of LHR (Bermuda II) and NRT routes, both of which could be lost if United became Continental. That said, this doesn't mean CO can't buyout United and that is probably what they will do. While it would be sad to see Chicago lose its hometown airline so to speak (although you never know, ORD could still remain the HQ even with CO management), I do believe that the onboard products will be merged so to speak so that the good from both sides is combined like E+ and free meals. The one big issue of course would be about dealing with the 2-class vs. 3-class problem. My guess would be that if UA's plans to introduce an amazing Business seat go through, all planes would be refitted with that C seat and the CO seats, when going through that refit, would also be fitted with the new United First Seat that was recently introduced. Hoewver, some 757 routes and maybe some 763 routes could remian 2-class.
 
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:05 pm

Quoting Daron4000 (Reply 41):
most consider either United or American to be the US flag carrier and not CO, even if they have better service.

So? BA is (was?) widely perceived as the British flag carrier (with a much bigger overseas presence than UA) but it didn't stop VS establishing and building a highly successful long-haul operation.

Quoting Daron4000 (Reply 41):
another reason why United should stay is because of LHR (Bermuda II) and NRT routes, both of which could be lost if United became Continental.

I assume they wouldn't. If CO came to own UA they'd acquire those assets too. No?
 
Falcon84
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:09 pm

Quoting Trex8 (Reply 24):
perhaps in the industry but not to the average paying consumer, outside the Americas CO as a brand name for airline passengers is close to non existent compared to UA.

Uh huh. That's why CO is all over Europe; is huge in Central and South America; has expanded in Asia. Sure.

CO's name is surely not "non-existant", else they wouldn't be doing so well internationally. You're going on 15-year old information, not what the present state of affairs is.

Another Armchair CEO, down the drain.  Big grin
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coerj
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RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:38 pm

While the UA brand name is much more well known in the global market as a national flag carrier, the CO brand name is much more reputable in a growing generation in the US, Europe, Latin America, and is growing in Asia. Clearly the name United is more representible for a future monopoly rather than Continental, but CO may want to keep its name as many forsee it as a better airline.
 
freedom747
Posts: 104
Joined: Fri Aug 12, 2005 10:31 am

RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:42 pm

Quoting USPIT10L (Reply 18):
Actually, it's Stephen Wolf.

Sorry bro, my mistake of placing the letter "E" onto Wolfe. Thx
 
daron4000
Posts: 608
Joined: Mon Mar 07, 2005 12:17 pm

RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:51 pm

Quoting PM (Reply 42):

I assume they wouldn't. If CO came to own UA they'd acquire those assets too. No?

Exactly, I think I read somewhere that CO wouldn't aquire these assets (at least not with NRT and proably not with LHR).

Quoting COERJ (Reply 44):
While the UA brand name is much more well known in the global market as a national flag carrier, the CO brand name is much more reputable in a growing generation in the US, Europe, Latin America, and is growing in Asia. Clearly the name United is more representible for a future monopoly rather than Continental, but CO may want to keep its name as many forsee it as a better airline.

I don't think it matters whether you're growing or shrinking in a market but how much brand awareness already exists. For example, CO in Asia is absolutely nothing compared to UA, given their huge presence at NRT, in China, and in HKG. Further, the Star Alliance with 4 major Asian Airlines also helps. While you are right that in Europe and Latin America, UA has shrunk in the last years, they still have a fairly large presence in the large captial markets and also have their huge alliance with Lufthansa, including their transatlantic revenue sharing, another thing that might be lost if CO took over the brand. And in Latin America, while UA's presence is now minimal, it has only been a few years since dismantling the MIA hub and so I'm sure the name is still recognizable. In the US, while CO may have the better onboard service, E+ is still huge among travellers and overall, UA is usually considered teh number two after CO in terms of service, not number six or something drastically worse. Further, their network within the US is much more extensive as well and that adds some awareness too. OVerall, it just goes back to my original point that the UA brand name will be kept for obvious reasons like recognizability (is that a word?), LHR/NRT rights, Lufthansa alliance, bigger and better network, overall Asian presence. That said, while UA has a worse product in some aspects, a UA brand with a CO service would probalby not hurt the overall image but rather, it would improve it.
 
coa747
Posts: 380
Joined: Wed Jul 13, 2005 3:11 pm

RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 1:51 pm

It isn't as simple as just adding flights to Latin America from Denver. You have to have a market and Denver doesn't have much of one for flights to Central and South America. Houston has become a true latin american gateway second only to Miami. Just because United has a large hub at Denver doesn't mean it is well placed to serve latin america. United would be stupid to reduce IAH becuase Denver will never be a gateway to South America like Houston. The more likely scenario would be to pair down Denver and Washington as Dulles isn't going to win out over Newark becase they are too close together. SFO will grow and so will Chicago and Cleveland will dissappear altogether as a hub if the merger happens that is my take anyway.
 
tymnbalewne
Posts: 714
Joined: Mon Mar 21, 2005 3:06 am

RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 2:05 pm

I wonder if names mean as much today as they did in the past? United, Continental, what's in a name? Do people now book their travel based on the name painted on the side of the aircraft or do travellers look more for the best fare; quickest routing; frequent flyer perqs?

C.
Dewmanair...begins with Dew
 
777fan
Posts: 2256
Joined: Wed Jan 04, 2006 12:09 pm

RE: "If Deal Is Done, Continental Is Seen The Boss"

Sat Dec 16, 2006 2:06 pm

Quoting Coa747 (Reply 47):
The more likely scenario would be to pair down Denver and Washington as Dulles isn't going to win out over Newark becase they are too close together.

Have to disagree with you there - IAD serves the nation's capital, something that can't be overlooked if you're planning to appeal to lobbyists, politicians, and other dirtbags, I mean, people. EWR will remain a viable option as it serves the NYC area (financial hub). There's room for both IAD and EWR; the new airline would be foolish to relinquish its hold on both unless ordered to do so (doubtful as they would lobby to no end to keep it).

777fan
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