This former CO/OnePass fan certainly hopes the new FF plan looks more like MildeagePlus than the currently constituted OnePass.

UA is a much bigger airline than CO. Kellner and company will have a harder task trying to force OnePass down the throats of UA's more numerous FFers than he would forcing MileagePlus down the throats of CO's less numerous FFers. They will especially have a tough problem forcing OnePass on UA's folks once they figure out that CO's international upgrade policy is the pits, whereas UA's is arguably the best in the industry--this alone would be a huge step backward for UA's FFers. Yes, yes, CO has unlimited domestic upgrades. But that just isn't the draw -- both from a marketing and a reality perspective -- that it was 10 years ago. And none of this even mentions CO's abysmal standard reward redemption levels, that will also shock UA's FFers. UA/CO won't have DL and NW to reply upon for reward inventory, as CO has done so much in the past.

Looks like at least one CEO doesn't think a CO-UA merger makes sense.

"That scenario seems less likely than popular perception," US Chairman and CEO Doug Parker recently argued. "Delta and Northwest getting together makes lots of sense [based on their route networks], but taking Continental out of the [SkyTeam] Alliance doesn't make sense. . .There's more behind all these transactions than just looking at two route maps. It's a lot more complicated than that."

DL, NWA and CO are all SkyTeam members and a merged DL-NWA obviously would be a SkyTeam carrier. But presumably UA is not leaving the Star Alliance, of which it is a founding member, and therefore CO's Newark and Houston hubs would become part of Star under the DL-NWA/CO-UA consolidation scenario. "Why would you go through all the trouble [of a merger] to lose [Newark and Houston] from the alliance?" asks Parker, wondering aloud whether non-US SkyTeam members would be ready to embrace a merger that could cost them CO's network.

Full article:

http://www.atwonline.com/channels/indepth/index.html

Strictly speaking, I think that should read "at least one CEO doesn't think a DL-NW merger makes sense to their SkyTeam partners if it would force CO into UA and the Star Alliance".

He doesn't really make any negative points about the CO-UA merger from the perspective of either CO, UA or the Star Alliance.

Once the golden share is gone it isn't any of their business whether the merger happens or whether CO leaves ST. I'm sure there's a buyout clause or something that CO would have to exercise to get out of the alliance, but to suggest that DL/NW are going through with this to lose CO is stupid. Similarly, the non-US carriers have little say in this as I don't see them coming up with a way to prevent it unless the ST marketing agreements are stronger than I think.

I suspect that Dougie is very interested in CO remaining in ST because he certainly doesn't want them in *Alliance.

Here, I'll try to make FCTSTY happy...

Does anyone know the differences between CO's and UA's pilots agreements with respect to their regional feeder partners? I know CO has the 50 seat limit, but doesn't United Express fly some routes with the Embraer E-170?

Any guesses on how the differences would be handled in a merger?

Fortunately for Uncle Sam's employees, the Federal Travel Regulations include the entire trip (without overnight stop-overs). However, if CO begins non-stop LAX-GUM flights in a few years, the distance would be well over eight hours.

From a travel authorization: "a single-leg flight of over 10 hours." I take the "single-flight" to mean a single flight, not an entire trip.

UA has no problem running the 70 passenger UA Express flights currently.

How would it be handled in a merger....I suspect that would be a major part of the negotiations. I suspect all the pilots would love to see it be a CO does it now...it's just makes good sense from the pilots' point of view in order to preserve mainline pilot jobs.

http://www.nytimes.com/2008/02/19/bu.../19air.html?hp

DL and NW both have emergency board meetings scheduled for today. If they come down for a merger, how long will it be before UA and CO announce merging? (weeks, days, hours, minutes)

P.S. Do you really think NW will demand the 100$ for the golden share or will they just willingly turn it over?

I would think they will have to pay for contractural reasons.

The real question is whether CO will pay the $100. Or will they refuse to send money over to another airline and cite "weather?" ;)

Post of the week! :D^

peace,
~Ben~

Or maybe the $100 will get stuck along with my $100 ETC that CO can't seem to send out!

He is also trying to protect the US route structure! From a UA perspective, CO/UA makes sense, better coverage, better route and hub structure. It doesn't make sense if you realize you're going to be up against a better airline!