CNN-FN is reporting that UAL Corporation has given US Airways an offer to purchase the latter for more than double US Airways' closing price (Tuesday).

Could it be true?
http://www.cnnfn.com/2000/05/23/deals/ual/

It's all over the wires BostonBoy.

$4.3 billion in cash, $1.6 in US debt, and $5.7 in US capitalized leases.

UA will keep the Shuttle and sell some of the DCA slots, supposedly to Robert Johnson of BET, who will start up DCAir.

From the Washington Post:

"The newly merged airline will have about 6,500 flights daily flights with hubs from coast to coast, nearly double the daily flights of American Airlines, the nation's second-largest carrier.

Holy cow. You have to think this is going to get very tough regulatory scrutiny.

[This message has been edited by motnot (edited 05-23-2000).]

When I posted it seems that it was just a rumor, but now it appears to be official.

WOW!

If this deal is real and goes through, it'll be the 2nd airline where I have gold status that gets sucked into the orbit of *A!

Sounds like bad news for upgrades for USAir Elites, especially if UA's Mileage Plus policies hold on the new airline. It would mean the end of free, unlimited upgrades, not to mention competing against millions of UA Premiers and above.

It'll also be interesting to see what happens with plane configs, assuming this deal does go through, with Envoy being heads and shoulders above UA business, and US having almost no Int'l 1st.

Also this deal would bring quite an interesting fleet mix. There's commonality in all of those 737s, 757s and 767s, but add on various Airbus typess not common to both airlines (including the 330), 777, 747s and F100s, plus DC10s and 727s- so much for fleet simplification.

Originally posted by socalterp:
Also this deal would bring quite an interesting fleet mix. There's commonality in all of those 737s, 757s and 767s, but add on various Airbus typess not common to both airlines (including the 330), 777, 747s and F100s, plus DC10s and 727s- so much for fleet simplification.

They should sell some of the older planes on eBay. Hell, I'd buy a "well-loved" 727 for a couple thousand http://www.flyertalk.com/forum/biggrin.gif

This is very very bad news indeed http://www.flyertalk.com/forum/frown.gif I can't even imagine being a 1K or whatever. Well, it's all over the news here in PIT. Personally I see the US hub here being trimmed down a lot since ORD to the West and DC and PHL to the East makes it useless.

Sigh; well I understand it will probably take a while for any real change to occur, assuming the govt eventually says OK... I just wonder if 'Chairman's Preferred' will mean anything next year and to what Chairman...

One thing the local news mentioned is that maybe they'll keep US as a wholly owned subsidiary, and act more like the NW/CO situation. We'll see.


[This message has been edited by dg1 (edited 05-23-2000).]

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[This message has been edited by FQTV (edited 10-07-2000).]

In Charlotte today and news is all over here. But as others have indicated, this may be a real struggle getting it through the government regulators. Could this be going the way of the telephones --- down to 3 or 4 major airlines?

The Charlotte Observer is reporting it as a full acquisition by United, with the requirement to create a minority-owned airline serving DCA. Read it here:
http://www.charlotte.com/0524usair.htm

I can't say that I'm pleased.

Ah yes, I forgot about UA Employee Class as well- the highest Elite level possible...

As for PIT, there have been rumours around for some time that TWA is looking at either PIT or PHL as a possible focus city. Note that this would not be a full-scale hub, but targeted flights to some major cities. This would make even more sense if this proposed merger does indeed go through, and the PIT hub gets significantly downsized.

according to some people here in PIT who are involved with the ongoing porject of buidng a maintenance base in PIT --

US and UA have been talikng about this for awhile and they intend on keeping the hubs intact for now. but it seems that PHL may be the one to get downsized instead of PIT b/c of its closer proximity to IAD (and more imp the fact that it has a common target market). they will apparently go forward with the airbus hangers at PIT and do work on UA's busses as well.

these people usually have a n accurate picture of whats going on so i belive them for now. but as alsways - this is not official US info so it may not be true - its just something think about??

personally - i would hate seeing PIT downsized as I live there, sometimes, and it would be a big blow to the airport. but of course then maybe other airlines would actually start flying there http://www.flyertalk.com/forum/smile.gif

US airways offers very good bulk walk up fares(ie no saturday night stay, walk up return trip for under $500). These fares would be the first to go if UA buys out US. Same thing happend to Reno's bulk fares when AA bought them out. That would only leave HP and F9 with decent walkup bulk fares.

Any speculation on the US/AA FF alliance when US gets sucked up by UA???

I HAVE SEEN SOME WHERE THAT US WILL BE A SEPERATE CO FROM UA BUT MILEGE PROGAMS WILL BE ONE IF THAT HAPPENS YOU CAN BET AA/US PROGRAM WILL BE NIXED

Any speculation on the US/Amex alliance once DM is merged into MP? MP is currently not a MR affiliate. (alphabet soup http://www.flyertalk.com/forum/wink.gif )

There is no way US will be run as a separate co. inside UA. The US Airways brand will disappear if/when this deal is approved by the regulators and the unions.

I'm sure the US/AA alliance will go away, unless AA makes this complicated by putting in a bid.