United to Drop Purchase
Jul 2, 2001, 11:05 am
#16
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Perhaps UA is simply waiting for US to go the way of TWA - and unless management at US wakes up - it will, perhaps not in the coming months - but with the highest costs of any domestic airline - it could happen - then UA can do like AA, and get little resistance from Justice for saving jobs and pick up the airline for a fraction of today's cost.
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Askworldtraveler, EXP,4 million AA miles+++
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Askworldtraveler, EXP,4 million AA miles+++
Jul 2, 2001, 1:09 pm
#17
Join Date: Jul 2000
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Hooray!!!!! 
Great news about the demise of the merger!! In my opinion, UAL should focus on 'getting it's own house in order'.
Great news about the demise of the merger!! In my opinion, UAL should focus on 'getting it's own house in order'.
Jul 2, 2001, 2:08 pm
#18
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AND:
Warren Buffett once said in a speech at the University of North Carolina's business school that if a capitalist had been present when the Wright Brothers made their historic flight, he should have shot the plane down. But I think US Airways may have finally come upon a perfect way to make money: Keep agreeing to mergers with other companies, and then wait for them to back out.
http://biz.yahoo.com/mf/010702/news02_010702.html
Warren Buffett once said in a speech at the University of North Carolina's business school that if a capitalist had been present when the Wright Brothers made their historic flight, he should have shot the plane down. But I think US Airways may have finally come upon a perfect way to make money: Keep agreeing to mergers with other companies, and then wait for them to back out.
http://biz.yahoo.com/mf/010702/news02_010702.html
Jul 2, 2001, 2:41 pm
#19
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US wouldn't be in jeopardy of going the way of TWA if US's management weren't set on trying to prop the airline up on the merger auction block for sickly airlines. How is it that the US shareholders have allowed this anemic management team to continue in their jobs???
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"Sire, it is not a revolt. It is a Revolution!"
<font face="Verdana, Arial, Helvetica" size="2">Originally posted by askworldtraveler:
Perhaps UA is simply waiting for US to go the way of TWA - and unless management at US wakes up - it will, perhaps not in the coming months - but with the highest costs of any domestic airline - it could happen - then UA can do like AA, and get little resistance from Justice for saving jobs and pick up the airline for a fraction of today's cost.
</font>
Perhaps UA is simply waiting for US to go the way of TWA - and unless management at US wakes up - it will, perhaps not in the coming months - but with the highest costs of any domestic airline - it could happen - then UA can do like AA, and get little resistance from Justice for saving jobs and pick up the airline for a fraction of today's cost.
</font>
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"Sire, it is not a revolt. It is a Revolution!"
Jul 2, 2001, 3:18 pm
#20
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Analyst Julius Maldutis of CIBC World Markets speculated that United's pullout from the deal before the August deadline could be aimed at helping its stock or its labor relations, with the merger having added to contract disputes with mechanics, customer service representatives and flight attendants.
http://biz.yahoo.com/apf/010702/unit...irways_14.html
The costs associated with satisfying regulators' antitrust concerns appeared to be the main turn-off for United, which would have had to sell off some of US Airway's most valuable assets in order to gain approval for the deal.
http://biz.yahoo.com/apf/010702/us_airways_future.html
AND:
Aviation analysts said Arlington, Virginia-based US Airways may be forced to sell off its assets as an alternative to the takeover that promised to stave off financial concerns and low-fare rivals.
``US Airways are facing some major challenges. They might sell the airline piecemeal or try to fix the problem of not earning any profits,'' said Ray Neidl
http://biz.yahoo.com/rf/010702/n02289675.html
[This message has been edited by doc (edited 07-02-2001).]
http://biz.yahoo.com/apf/010702/unit...irways_14.html
The costs associated with satisfying regulators' antitrust concerns appeared to be the main turn-off for United, which would have had to sell off some of US Airway's most valuable assets in order to gain approval for the deal.
http://biz.yahoo.com/apf/010702/us_airways_future.html
AND:
Aviation analysts said Arlington, Virginia-based US Airways may be forced to sell off its assets as an alternative to the takeover that promised to stave off financial concerns and low-fare rivals.
``US Airways are facing some major challenges. They might sell the airline piecemeal or try to fix the problem of not earning any profits,'' said Ray Neidl
http://biz.yahoo.com/rf/010702/n02289675.html
[This message has been edited by doc (edited 07-02-2001).]
Jul 3, 2001, 5:16 am
#21
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Some of the United deal's influential supporters expressed their displeasure yesterday. Senator Arlen Specter, a Republican of Pennsylvania, where US Airways operates hubs in Pittsburgh and Philadelphia, wrote a letter to James E. Goodwin, the chairman of the UAL, urging him to press ahead with the Justice Department so that it would be forced to make a final judgment on the deal.
Kevin Murphy, an airline analyst at Morgan Stanley in New York, has long argued that industry consolidation is inevitable because the airlines are simply not profitable enough to cover their investments in airplanes, terminals and other expenses.
"The market forces pushing consolidation are still there," Mr. Murphy said. "This happens because the marketplace wants it to happen. It is not happening because of egos."
http://www.nytimes.com/2001/07/03/business/03AIR.html
Merger news needs a long-term look
http://www.marketwatch.com/news/yhoo...672D9DF73E5%7D
US Air May Sell Assets After Deal Fails
http://biz.yahoo.com/rb/010703/busin...utlook_dc.html
United's Breakup With US Airways Hailed As Welcome, Overdue Move
http://biz.yahoo.com/apf/010703/unit...airways_2.html
The impending demise of the proposed merger between United Airlines and US Airways was welcomed by industry experts and politicians alike, even though the two carriers were reluctant to officially proclaim their troubled 13-month relationship over.
Airline analysts said that after being overtaken by American Airlines as the world's largest carrier, United can now devote more attention to improving service and on-time problems that haven't been fully resolved from last year.
"United saw they were going to end up with a giant mess to merge, while American was in a position to eat their lunch," said airline industry consultant Michael Boyd.
In Washington, the chairman and ranking member of the Senate Antitrust Subcommittee applauded the fact that the deal "appears to be void."
"This merger, if permitted to occur, would have resulted in less choice and higher fares for millions of American air travelers," Sens. Herb Kohl of Wisconsin and Mike DeWine of Ohio said in a joint statement.
After months of speculation that the proposed $4.3 billion acquisition was doomed to failure, United and US Airways issued a terse statement Monday saying they are in talks "regarding the possibility of terminating the proposed merger."
http://washingtonpost.com/wp-dyn/art...-2001Jul3.html
AND:
Political opponents of the deal were pleased. Senators Herb Kohl (D., Wis.) and Mike DeWine (R., Ohio), chairman and ranking member, respectively, of the Senate Antitrust Subcommittee, said Monday the deal would have led to "dangerous levels of concentration" in the industry, and fewer choices and higher fares for consumers.
http://public.wsj.com/sn/y/SB994086915993350631.html
[This message has been edited by doc (edited 07-03-2001).]
Kevin Murphy, an airline analyst at Morgan Stanley in New York, has long argued that industry consolidation is inevitable because the airlines are simply not profitable enough to cover their investments in airplanes, terminals and other expenses.
"The market forces pushing consolidation are still there," Mr. Murphy said. "This happens because the marketplace wants it to happen. It is not happening because of egos."
http://www.nytimes.com/2001/07/03/business/03AIR.html
Merger news needs a long-term look
http://www.marketwatch.com/news/yhoo...672D9DF73E5%7D
US Air May Sell Assets After Deal Fails
http://biz.yahoo.com/rb/010703/busin...utlook_dc.html
United's Breakup With US Airways Hailed As Welcome, Overdue Move
http://biz.yahoo.com/apf/010703/unit...airways_2.html
The impending demise of the proposed merger between United Airlines and US Airways was welcomed by industry experts and politicians alike, even though the two carriers were reluctant to officially proclaim their troubled 13-month relationship over.
Airline analysts said that after being overtaken by American Airlines as the world's largest carrier, United can now devote more attention to improving service and on-time problems that haven't been fully resolved from last year.
"United saw they were going to end up with a giant mess to merge, while American was in a position to eat their lunch," said airline industry consultant Michael Boyd.
In Washington, the chairman and ranking member of the Senate Antitrust Subcommittee applauded the fact that the deal "appears to be void."
"This merger, if permitted to occur, would have resulted in less choice and higher fares for millions of American air travelers," Sens. Herb Kohl of Wisconsin and Mike DeWine of Ohio said in a joint statement.
After months of speculation that the proposed $4.3 billion acquisition was doomed to failure, United and US Airways issued a terse statement Monday saying they are in talks "regarding the possibility of terminating the proposed merger."
http://washingtonpost.com/wp-dyn/art...-2001Jul3.html
AND:
Political opponents of the deal were pleased. Senators Herb Kohl (D., Wis.) and Mike DeWine (R., Ohio), chairman and ranking member, respectively, of the Senate Antitrust Subcommittee, said Monday the deal would have led to "dangerous levels of concentration" in the industry, and fewer choices and higher fares for consumers.
http://public.wsj.com/sn/y/SB994086915993350631.html
[This message has been edited by doc (edited 07-03-2001).]
Jul 4, 2001, 8:44 am
#22
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So are United Airlines' efforts to kill its deal to acquire US Airways good news or bad news for frequent fliers?
Depends on the scenario. And the one that many industry experts are betting on -- that US Airways may have to sell parts of its operations -- could cause real pain for US Airways' 20 million frequent fliers.
If United or any other airline ends up acquiring only pieces of US Airways, rather than the entire thing, the new owner will probably feel less obligated to honor the miles, according to frequent-flier expert Randy Petersen, who has monitored airline frequent-flier programs for the past 15 years and is the publisher of Inside Flyermagazine.
United has said it is negotiating with US Airways to terminate their $12.3 billion deal because of government antitrust concerns. United executives said they might wait for US Airways to sell individual assets rather than try to acquire the entire airline.
US Airways executives have not publicly discussed selling parts of the nation's sixth-biggest airline. But they have said that it cannot survive as a stand-alone operation.
If the merger is called off and US Airways remains intact, so will the mileage points of its customers and other attractive aspects of its plan. With its non-expiring miles and the ability to earn miles by using American Express cards, "US Airways' program on its own is pretty darn good," Petersen said.
"They need some international help," he said, said Petersen, but US Airways could get that by creating a code-sharing agreement with another international airline.
http://www.washingtonpost.com/wp-dyn...-2001Jul3.html
Depends on the scenario. And the one that many industry experts are betting on -- that US Airways may have to sell parts of its operations -- could cause real pain for US Airways' 20 million frequent fliers.
If United or any other airline ends up acquiring only pieces of US Airways, rather than the entire thing, the new owner will probably feel less obligated to honor the miles, according to frequent-flier expert Randy Petersen, who has monitored airline frequent-flier programs for the past 15 years and is the publisher of Inside Flyermagazine.
United has said it is negotiating with US Airways to terminate their $12.3 billion deal because of government antitrust concerns. United executives said they might wait for US Airways to sell individual assets rather than try to acquire the entire airline.
US Airways executives have not publicly discussed selling parts of the nation's sixth-biggest airline. But they have said that it cannot survive as a stand-alone operation.
If the merger is called off and US Airways remains intact, so will the mileage points of its customers and other attractive aspects of its plan. With its non-expiring miles and the ability to earn miles by using American Express cards, "US Airways' program on its own is pretty darn good," Petersen said.
"They need some international help," he said, said Petersen, but US Airways could get that by creating a code-sharing agreement with another international airline.
http://www.washingtonpost.com/wp-dyn...-2001Jul3.html
Jul 4, 2001, 10:35 am
#23
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US has painted itself as a deathbed case for more than a year now, but it's a ruse for the benefit of regulators.
US has captive east coast markets, solid hubs in PIT, PHL and CLT, a well-liked transatlantic product and plenty of room for growth.
The board ought to fire Stephen Wolf and bring in a CEO who has some credibility with labor groups. Don't believe the we're-almost-dead-without-UA line. That's nonsense. CO was in bankruptcy ten years ago and look at it now. US isn't in nearly as rough shape now as CO was then.
US can be a profitable stand-alone airline. United, on the other hand... now, here's a basket case.
US has captive east coast markets, solid hubs in PIT, PHL and CLT, a well-liked transatlantic product and plenty of room for growth.
The board ought to fire Stephen Wolf and bring in a CEO who has some credibility with labor groups. Don't believe the we're-almost-dead-without-UA line. That's nonsense. CO was in bankruptcy ten years ago and look at it now. US isn't in nearly as rough shape now as CO was then.
US can be a profitable stand-alone airline. United, on the other hand... now, here's a basket case.
Jul 5, 2001, 6:10 am
#24
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A marriage canceled at the altar usually isn't cause for celebration. But when the proposed partners are major airlines, consumers may be forgiven for cracking a smile. With the demise this week of the United Airlines and US Airways deal, travelers escaped a merger that likely would have resulted in fewer competitive routes and higher fares.
http://www.usatoday.com/news/comment...05-edtwof2.htm
http://www.usatoday.com/news/comment...05-edtwof2.htm
Jul 7, 2001, 12:36 pm
#25
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Yet despite rumors to the contrary, Mr. Goodwin's job appears to be safe, at least for now. "I don't hold him fully accountable for what has gone wrong," Frederick C. Dubinsky, the head of United's pilots union and a member of the UAL board, said in an interview on Thursday. "I don't think the board blames him."
When its major unions and salaried employees bought control of UAL in 1994, the two union representatives on the UAL board gained veto power over the appointment of the company's chief executive. Mr. Goodwin was chosen after the unions rejected John A. Edwardson, then UAL's president.
Mr. Dubinsky does not conceal his unhappiness with Mr. Goodwin. He said Mr. Goodwin did not understand labor relations and had not shown a strong enough commitment to employee ownership. But he does not see an attractive alternative.
"There is not a lot of capable talent today running the airlines," Mr. Dubinsky said. "I am more in favor of rehabilitating the guy we've got rather than teaching a new one what United should be."
http://www.nytimes.com/2001/07/07/business/07UNIT.html
When its major unions and salaried employees bought control of UAL in 1994, the two union representatives on the UAL board gained veto power over the appointment of the company's chief executive. Mr. Goodwin was chosen after the unions rejected John A. Edwardson, then UAL's president.
Mr. Dubinsky does not conceal his unhappiness with Mr. Goodwin. He said Mr. Goodwin did not understand labor relations and had not shown a strong enough commitment to employee ownership. But he does not see an attractive alternative.
"There is not a lot of capable talent today running the airlines," Mr. Dubinsky said. "I am more in favor of rehabilitating the guy we've got rather than teaching a new one what United should be."
http://www.nytimes.com/2001/07/07/business/07UNIT.html
Jul 7, 2001, 12:45 pm
#26
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Is Dubinsky kidding? I could do a better job than Goodwin, and I'll work cheaper.
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"Sire, it is not a revolt. It is a Revolution!"
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"Sire, it is not a revolt. It is a Revolution!"
Jul 8, 2001, 9:41 am
#27
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I think perhaps they just "enjoy" negotiating with him! 
Jul 9, 2001, 6:02 am
#28
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Jul 9, 2001, 7:45 am
#29
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by doc:
Confidence Carries Chief of UAL Over Rough Patch
http://www.iht.com/articles/25480.html</font>
Confidence Carries Chief of UAL Over Rough Patch
http://www.iht.com/articles/25480.html</font>
Not that there's anyting wrong with that ...
Jul 9, 2001, 4:33 pm
#30
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Forget about the 50 Mil.That is the least of UA worries.
Look for more inflight service cuts,and surprise..cutting ,reducing air service to some cities.UA is clearly facing a crisis with mounting costs and declining revs.
Can you believe it ..UA may shortly announce a pilot hiring freeze. Yes folks ,UA is in for some tough flying..will their losses reach the 1 Billion dollar level this year ?
Look for Mr. G to be Mr. GONE .