flyingcat

US may not be much on its own but it has very valuable DCA adn LGA presence. The only problem is that it is not part of a larger network. PHL has more Euro service than UA at IAD. True WN has presence at PHL, but it is much less than MDW. DCA and LGA slots are great bu they need network reach to be even more valuable.

CLT is probably US best asset. It is the only ATL alternative and has less LCC presence. CO and UA would love to have it.

PHX is not very attractive for anyone to add as a hub in any US merger. UA could redirect all the airbii to expand other hub and make up for the loss of the 737s.

Bottom line the airline industry is fast becoming musical chairs. AA CO UA and US will have to merge eventually with someone.

If UA and CO merge it will no doubt spell the end for CLE. However as a result AA will have to make a move for US which means bye bye PHX and possibly PHL for JFK.

CLT adds a very unique region to whomever acquires it.

Imagine this scenario, not too unlikely. While it is true UA and CO were close to merging US also did officially acknowledge that they were talking to UA also. If a UA/US merger were to occur simply beacuse CO has not overcome their fright things will really get crazy.

CO and AA have way too much overlap to make sense. AS is very averse tooo mergers they have several poison pills to stop one from occuring. Everyone hates the goliath but if DL does get its economy of scale and pulls off anywhere near increased returns everyone will be forced to merge due to bank/shareholder pressure.

HonestABE

I imagine that US is prostrating themselves to anyone who will take them. A UA/US merger would be horrible - both from a financial and customer perspective. I find it difficult to believe that that combination could raise any significant amount of capital. And from a customer perspective, it would burn any remaining goodwill UA has with its current base.

OTOH, if UA were crazy enough to try a hookup with US, CO would be licking their chops knowing that such a combination would be doomed to failure, and then CO could pick up some tasty assets real cheap.

Renard

The problem is that CO thinks that SWUs are very costly from a business prospective. They know now that SWUs for CO Plats would be popular....and they don't do it even though AA and UA have such things for their top tier. I wouldn't want to predict what would happen to them if they merge but if CO is at the helm, it is fair to predict that SWUs would be at risk.

BostonHockeyGuy

[QUOTE=flyingcat;11796508]
I wouldn't call it that. IAD is better, and DL has both Atlanta AND JFK

I would personally hope for an reduced presence in Chicago....the mother of all guaranteed delays!


I think even UA management knows a merger with US spells doom. They are plain awful. As a codeshare, every time I fly them I immediately remember why I promised not to do it again.....and now I mean it. If US is my only alternative now....I'd be inclined to drive or take a train.

chitownflyer

IF US goes into CH 11 again, UA might consider acquiring certain US hubs like CLT, PHL, and JFK, but a full merger with USA would be truly awful. I like the arrangement with CO becoming part of Star but not owning or running UA.

prestonh

If you think that SWU's will be valuable from July forward, you are deluding yourself. Just look at the fare difference between W below versus co-pay+miles and you can't say they are not already at risk.

BostonHockeyGuy

Can you elaborate on this. I haven't read enough to know what you are talking about.

WineCountryUA

That Region 2 W fares differentials (from cheaper S, T, L, K fares) are equal to or greater than the co-pays with miles and SWUs will have to compete with mileage upgrades for space. Lots or discussion in
http://www.flyertalk.com/forum/unite...ion-rules.html
and
http://www.flyertalk.com/forum/unite...-july-1-a.html

FOH

Unfortunately for UA the continued reduction in the network has reduced connection opportunities for my most traveled routes to the point where they have no frequency advantage over other airlines. So if they are indeed downsizing to make the business more palatable for CO I hope it happens soon before UA looses more customers for similar reasons. I split my business travel between UA and DL for both cost and schedule reasons.

ExCrew

UA doesn't give two $h*tz about the southern part of the USA. They pulled up stakes in all So. Florida destinations, save for MIA. Plus...you can get to parts of the south...just don't plan on going anywhere else in the south without going back up north first.
Likewise I can say the same about the NYC market. UA's aptly named 'P.S.' service (as in Post Script, or an afterthought), is a shell of what it was when it started earlier this decade, was never expanded beyond the destinations of JFK/SFO/LAX, and has cabins that are in such a state of disrepair.
UA has a nasty habit of starting off a very nice product, but never being consistent with it beyond the first year or two.

chiproos

I have been reading a bunch of postings on the Yahoo msg boards (I know there isn't much credibility there) and there have been a bunch of rumors of a UAL/CAL merger today. There is supposedly a conference call and/or a press conference late this afternoon - also just a rumor.

I'm wondering if any of you have heard any solid information on this possibility.

Thanks!

ryan182

I have highlighted what is probably the biggest understatement in the history of mankind. I would take stock tips from a talking rabbit (that is only seen with the use of powerful psychotropic substances) before anything on yahoo msg boards.

SEA1K4EVR

The same amount of credibility as hearing merger talk from a flight attendant.

dgcpaphd

Agree! Rumors are generally something to be ignored.

JetAway

Smoke doesn't always mean fire. It may just mean smoke.