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Old Dec 11, 2005 | 2:37 pm
  #51  
DrBeeper
 
Join Date: Dec 2002
Location: Washington DC
Programs: United Mileage Plus, Hilton Honors
Posts: 935
Burlington / Santa Fe merger - UAL / CO?

Originally Posted by cerealmarketer
They did eliminate a competitor and some capacity. Again, no one argues it was a great move financially. The price/assumptions were predicated on 2000-level traffic. But the deal makes the point that a seemingly incompatible fleet/product (i.e. UA/CO) won't prevent a merger.

At the right price, with the ability to cut enough out of the combined system, it could be healthy for the industry.
In the Burlington Northern merger with Santa Fe Pacific railroad, BNI technically took over SFP. In reality, SFP officers were put in charge.

It might make sense if UA takes over CO, but lets CO managment take over.
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