News Alert: April 2010 US Airways/United Merger Speculation
#46
Join Date: May 2006
Location: BOS and ...
Programs: UA 2MM, AA 600k, DL 500k, Hyatt GP 1M, HH Gold, Rad. Gold, CP Gold, Miracle Fruit-su Club
Posts: 9,950
Interesting that Mr. Petersen reported this several weeks ago. Sorry, can't retrieve a link.
#47
Join Date: Sep 2007
Location: PHX
Programs: AA1MM, QF/NZ/VA/UA/DL, etc...
Posts: 516
Ain't that the truth! But oh, we'll have plenty of award availability in regional jets doing short domestic runs, no doubt - just never hope for any other *A carrier seats intl
#48
Join Date: Sep 2000
Location: DCA/IAD
Programs: AA EXP; 1W Emerald; HHonors Diamond; Marriott Gold; UA dirt
Posts: 7,816
This would be a perfect time for somebody like AA to try to step up and acquire the DCA assets.
#49
Join Date: Dec 2008
Programs: UA Gold; US TIB; Hyatt Diamond
Posts: 248
Someone suggested burning miles quickly. What are the likely implications for the Frequent Flyer program and the mileage agreements with Star Alliance? Do we have any history with other mergers to use as a guide? I too have lots of 250% bonus miles that I was hoping to hang onto for a bit longer.
Compare US's chart (http://www.usairways.com/pv_obj_cach...wardtravel.pdf) to the CO/UA chart (http://www.continental.com/web/en-US..._20091027c.pdf) and you tell me which you'd prefer.
#50
Join Date: Mar 2001
Location: AA EXP & Life Plat; AA 4MM; TWA Life Plat; HH Diamond
Posts: 1,109
I think if this gets traction, a serious letter writing campaign to Senators should take place explaining the 'immoral' actions United takes with Starnet blocking, urging Congress to get an ironclad commitment from UA/US to end the practice as a condition of the merger.
#51
Join Date: Sep 2006
Location: PHL
Programs: DL PM/SC, SPG Gold, Hyatt Platinum, Hertz Five Star
Posts: 523
Seriously? UAL is on record as stating that there is a legitimate business reason for its blocking: they spend -much- less on partner awards. Why on earth would congress get involved based on FF partner availability, especially when the carrier in question has a legitimate business interest in its conduct?!?
#52
Join Date: Nov 2007
Location: halfway between JFK and LGA
Posts: 976
I wouldnt worry so much about CLT. DCA/IAD, now thats a different story. That was the real hang up in the 2001 merger with US/UA proposing essentially a shill company called "DCAir" to operate DCA (IIRC, using UA aircraft and pilots (pretty much defying notion of arms-length)). DOJ said, "ha ha, no that won't work."
This would be a perfect time for somebody like AA to try to step up and acquire the DCA assets.
This would be a perfect time for somebody like AA to try to step up and acquire the DCA assets.
i think that all of this leaves CLT completely unnecessary as a hub. it goes the way of CVG and PIT...
#53
In memoriam
Join Date: Mar 2000
Location: IAD, BOS, PVD
Programs: UA, US, AS, Marriott, Radisson, Hilton
Posts: 7,203
#54
Join Date: Nov 2009
Posts: 60
It wouldn't even be eventual. If they were to merge together as United they would dominate both IAD and DCA from the start. They may call DCA a focus city, but for all intents and purposes, it is a hub at this point. US already has all of terminal C and a good chunk of B, not to mention what United has at DCA.
#55
Join Date: Nov 2007
Location: halfway between JFK and LGA
Posts: 976
It wouldn't even be eventual. If they were to merge together as United they would dominate both IAD and DCA from the start. They may call DCA a focus city, but for all intents and purposes, it is a hub at this point. US already has all of terminal C and a good chunk of B, not to mention what United has at DCA.
very true, but with delta out of the way in DCA...
anyway, as a NY traveler, i am NOT looking forward to a delta-dominated NY. i find their LGA operation shoddy, at best.
oh well...
#56
Join Date: Apr 2004
Location: Scottsdale, AZ
Programs: AA 2MM - UA 1P / Hyatt Diamond - SPG Plat / Hertz 5* - Avis 1st
Posts: 3,886
1. Parker has demonstrated the ability to get the necessary financial backing to merge with bigger partners.
2. Parker has demonstrated the ability to rationalize and keep the financial returns at a better-than-expected levels once the merger goes through.
3. Wall Street likes the idea - they don't trust Tilton, and they know he just wants out, and they are buying UA in the hope that he jumps and Parker runs the show. This is good for current UA stockholders, who are seeing a valuable increase in their holdings.
4. A merger is a good time to wipe out the redundancies between the two companies in administration, IT, executive ranks, etc., as well as rationalizing los of routes in the USA that overlap, shrinking some of the obvious overcapacity in the market.
5. A deal structured as a US buy of UA may avoid the US pilots' snapback provision. In any case, the internicine warfare between unions doesn't necessarily hurt passengers, it just provides a lesson in union disfunctionality.
6. Parker could probably dump or drastically reduce the importance of PHL in a combined US-UA airline, thus eliminating a huge source of current US customer service and efficiency failures.
7. A combined US-UA airline could have almost comprehensive reach in the USA, and a nicely-spread set of European destinations. Shuttle covers the NE corridor, old US covers the SE from CLT, UA and US cover the Washington area and can reduce duplication in WAS, UA covers the midwest, and the combined company can rationalize all the duplicative flights amongst SFO-PHX-DEN-LAS-LAX. Only Texas is a little bare, and the CO cooperation covers that within *A.
This could be a good thing.
2. Parker has demonstrated the ability to rationalize and keep the financial returns at a better-than-expected levels once the merger goes through.
3. Wall Street likes the idea - they don't trust Tilton, and they know he just wants out, and they are buying UA in the hope that he jumps and Parker runs the show. This is good for current UA stockholders, who are seeing a valuable increase in their holdings.
4. A merger is a good time to wipe out the redundancies between the two companies in administration, IT, executive ranks, etc., as well as rationalizing los of routes in the USA that overlap, shrinking some of the obvious overcapacity in the market.
5. A deal structured as a US buy of UA may avoid the US pilots' snapback provision. In any case, the internicine warfare between unions doesn't necessarily hurt passengers, it just provides a lesson in union disfunctionality.
6. Parker could probably dump or drastically reduce the importance of PHL in a combined US-UA airline, thus eliminating a huge source of current US customer service and efficiency failures.
7. A combined US-UA airline could have almost comprehensive reach in the USA, and a nicely-spread set of European destinations. Shuttle covers the NE corridor, old US covers the SE from CLT, UA and US cover the Washington area and can reduce duplication in WAS, UA covers the midwest, and the combined company can rationalize all the duplicative flights amongst SFO-PHX-DEN-LAS-LAX. Only Texas is a little bare, and the CO cooperation covers that within *A.
This could be a good thing.
Last edited by Wilbur; Apr 8, 2010 at 7:59 am Reason: Cain't spel
#57
Join Date: Sep 2003
Location: CLT
Programs: Choice Hotels/FFOCUS
Posts: 7,256
I can't confirm but just heard talks are staled over who's going to run the airline
#58
Join Date: Feb 2003
Location: Pittsburgh
Programs: Star Alliance Gold, SPG Plat, Hilton Gold, Marriott Silver, Avis Rock Star
Posts: 1,217
I was seated amongst a bunch of off-duty US FAs last night and we were talking about this whole thing. They all seems to feel that DoUgIe Parker would not be the one to seize the reigns of this proposed merger/acquisition.
So maybe there is a little good news.
So maybe there is a little good news.
#59
Join Date: Jan 2004
Location: DCA
Programs: AA Executive Platinum
Posts: 2,085
I'm not so sure. At the time, US was still operating something of a hub at BWI, were they not? The merger would have created dominance at all three DC area airports. Regardless, I still see a US/UA merger as being a bad thing for DC flyers.
#60
Join Date: Dec 2006
Posts: 41
I had the brainchild called Keep Delta My Delta. Last month, I offered to bring the same mentality to US Airways to unite their workforce. I even had a snazzy title for it.
Crickets from PHX.
I'm still available.