News Alert: April 2010 US Airways/United Merger Speculation
Apr 7, 2010, 3:23 pm
#1
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News Alert: April 2010 US Airways/United Merger Speculation
Breaking News AlertThe New York TimesWed, April 07, 2010 -- 5:08 PM ET----- US Airways Said to Be in Talks to Buy United The UAL Corporation, the parent of United Airlines, and USAirways are in talks to merge, in a potential deal that wouldcreate one of the world's largest airlines, people briefed onthe matter said on Wednesday. The negotiations mark the latest efforts to consolidate thestruggling airline industry. Both companies have been vocalin calling for greater consolidation within the industry tohelp prop up falling revenues, with United's chief executive,Glenn F. Tilton, among the leading proponents for moremergers. United and US Airways are deep in their merger discussions,though a transaction is not expected to be announced for atleast several weeks, these people said, cautioning that talksmay still collapse. One potential hurdle could be unionopposition.
Apr 7, 2010, 3:24 pm
#2
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Apr 7, 2010, 3:24 pm
#3
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US, UA deep in merger talks: NYT
From NYTimes.com:
"The UAL Corporation, the parent of United Airlines, and US Airways are in talks to merge, in a potential deal that would create one of the world’s largest airlines, people briefed on the matter told DealBook on Wednesday.
"The negotiations mark the latest efforts to consolidate the struggling airline industry. Both companies have been vocal in calling for greater consolidation within the industry to help prop up falling revenues, with United’s chief executive, Glenn F. Tilton, among the leading proponents for more mergers."
http://dealbook.blogs.nytimes.com/20...-talks/?emc=na
"The UAL Corporation, the parent of United Airlines, and US Airways are in talks to merge, in a potential deal that would create one of the world’s largest airlines, people briefed on the matter told DealBook on Wednesday.
"The negotiations mark the latest efforts to consolidate the struggling airline industry. Both companies have been vocal in calling for greater consolidation within the industry to help prop up falling revenues, with United’s chief executive, Glenn F. Tilton, among the leading proponents for more mergers."
http://dealbook.blogs.nytimes.com/20...-talks/?emc=na
Apr 7, 2010, 3:26 pm
#4
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they are raising cash a lot lately ...
Apr 7, 2010, 3:27 pm
#5
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Apr 7, 2010, 3:28 pm
#6
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Lifetime membership in the US Airways Club may finally have some value.....
Apr 7, 2010, 3:29 pm
#7
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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.
Please finish one merger before starting another one. It's been 5+ years and you still have East/West divisions all over the place.
Apr 7, 2010, 3:30 pm
#8
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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
Think of the price fixing opportunities with a monopoly like that in some markets
Apr 7, 2010, 3:34 pm
#9
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I was at a conference years ago and a certain former CO CEO whose name rhymes with "Shmordon" was a presenter. Somebody asked him about a US/UA merger and he said, "US Airways is ranked 8th in DOT stats out of 9 airlines. UA is ranked 9th. Together, they'd be 17th."
Mike
Mike
Apr 7, 2010, 3:35 pm
#10
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As of 5:20pm the story had already been revised to remove the US Airways to buy United language. It's now characterized strictly as a merger.
Apr 7, 2010, 3:55 pm
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Is this the 3rd time they've gone down this road?? Maybe this time it will stick....
Also, this is an uninformed quote from the NYTimes link:
"or its part, US Airways has hubs in Las Vegas, Phoenix and extensive operations in the Washington area."
What "extensive" operations in the DC area is this writer referring to? The Shuttle??! Or does he consider CLT and PHL as part of the greater DC area?
Apr 7, 2010, 3:57 pm
#12
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It is hard for me to believe that a M&A will take place in this market but I am betting that the management of United will be charge after the 'merger' and most of the people in Tempe will be gone.
Apr 7, 2010, 4:06 pm
#13
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Regardless if it is a merger or an acquistion, it is either US buying UA or UA buying US. There is not going to be two corporate headquarters or two CEOs or two of that or this or whatever. At the end of the day, there will be several employees from 'duplicaated' departments like IT, FF and etc. that will be 'fired'.
It is hard for me to believe that a M&A will take place in this market but I am betting that the management of United will be charge after the 'merger' and most of the people in Tempe will be gone.
It is hard for me to believe that a M&A will take place in this market but I am betting that the management of United will be charge after the 'merger' and most of the people in Tempe will be gone.
Apr 7, 2010, 4:15 pm
#14
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As long as Parker and company aren't running the new airline, this may not be bad.....
Apr 7, 2010, 4:19 pm
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