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News Alert: April 2010 US Airways/United‏ Merger Speculation

 
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Old Apr 8, 2010, 3:27 am
  #46  
 
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Interesting that Mr. Petersen reported this several weeks ago. Sorry, can't retrieve a link.
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Old Apr 8, 2010, 4:07 am
  #47  
 
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Originally Posted by 777 global mile hound
Wow that is breaking news together as one company they could have the largest Star Alliance Starnet blocking of award inventory in the world
Think of the price fixing opportunities with a monopoly like that in some markets
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
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Old Apr 8, 2010, 4:53 am
  #48  
 
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Originally Posted by stealthnc
Two key questions from my side:

1) What has changed that would compel DOJ to allow the merger over antitrust concerns this time?

2) What would happen to CLT (esp in relation to IAD)?
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.
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Old Apr 8, 2010, 4:59 am
  #49  
 
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Originally Posted by Luxor42
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.
I wouldn't lose sleep over access to your miles. DL/NW (http://www.delta.com/help/faqs/merge...=frequentflyer) & AF/KL (http://corporate.airfrance.com/uploa...program_01.pdf) have both recently integrated their programs post-merger. If the deal goes through your miles will, more likely than not, be safe. Their value, however, will not.

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.
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Old Apr 8, 2010, 5:08 am
  #50  
 
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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.
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Old Apr 8, 2010, 5:25 am
  #51  
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Originally Posted by nyc6035
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.
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?!?
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Old Apr 8, 2010, 5:32 am
  #52  
 
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Originally Posted by ITRADE
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.
well, if the delta/US LGA/DCA swap still continues, this gives delta dominance in NY and, eventually, united dominance in DC.

i think that all of this leaves CLT completely unnecessary as a hub. it goes the way of CVG and PIT...
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Old Apr 8, 2010, 5:47 am
  #53  
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Originally Posted by Firewind
I just wonder why spring is when this happens. Honestly, anyone have a theory?
In the spring, a young man's thoughts turn to love ...
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Old Apr 8, 2010, 5:57 am
  #54  
 
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Originally Posted by squatch
well, if the delta/US LGA/DCA swap still continues, this gives delta dominance in NY and, eventually, united dominance in DC.

i think that all of this leaves CLT completely unnecessary as a hub. it goes the way of CVG and PIT...

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.
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Old Apr 8, 2010, 6:57 am
  #55  
 
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Originally Posted by jbird82
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...
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Old Apr 8, 2010, 7:36 am
  #56  
 
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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.

Last edited by Wilbur; Apr 8, 2010 at 7:59 am Reason: Cain't spel
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Old Apr 8, 2010, 7:56 am
  #57  
 
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I can't confirm but just heard talks are staled over who's going to run the airline
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Old Apr 8, 2010, 8:02 am
  #58  
 
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Originally Posted by DesertFlier
Excellent!

Now Doug can ruin another airline.
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.
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Old Apr 8, 2010, 8:04 am
  #59  
 
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Originally Posted by BoeingBoy
If anything, it would be worse. It was the concentration in the Washington market that the DOJ objected to last time and that has only gotten moreso since then.

Jim
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.
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Old Apr 8, 2010, 8:46 am
  #60  
 
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Originally Posted by wr_schwab
To US:
Please finish one merger before starting another one. It's been 5+ years and you still have East/West divisions all over the place.

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.
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