the grapevine: US and UA are talking about something
Sep 29, 2009, 7:41 am
#61
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Sep 29, 2009, 2:07 pm
#62
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Or maybe talking about *A integration/benefits/gate consolidation in wake of Continental joining in a little over a month ? Continental cant get too close just yet, but UAL and US certainly can talk. Neither has much cash, but figuring out a way to save money certainly needs talking.
Sep 29, 2009, 5:51 pm
#63
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it is one of the routes that AA had agreed to fly in the previous US-UA merger.
Sep 29, 2009, 8:15 pm
#64
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but that was a long time ago and AA never started the route. Are there plans for them to start it up or something?
Sep 29, 2009, 9:11 pm
#65
Join Date: Sep 2007
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1) US's $137 million cash influx from their stock offering: http://www.businessweek.com/ap/finan.../D9B0IO5O2.htm
2) US's lack of fuel hedging: http://www.ft.com/cms/s/3/fde5850c-a...nclick_check=1
For example, US Airways – the most domestically focused, and with perhaps the most marginal route network – has barely any fuel hedging in place now. Should the winter prove particularly harsh, liquidation or consolidation will be the only realistic options remaining. The latter will be good for the industry, if not for the forced mergees, but only slowly and after considerably more pain.
Do these two offset each other enough to keep a US-UA merger out of play?
If so, whose stock would would be more attractive to purchase at this point? US or UA? Or neither? @:-)
Sep 30, 2009, 7:51 am
#66
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It's a seasonal change. Assuming the two airlines are still two separate airlines next Summer, UA will likely bring them back.
Sep 30, 2009, 7:52 am
#67
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Sep 30, 2009, 11:42 am
#68
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Yeah, thats too bad! They definitely have a large enough presence here at LAX to make it work, I agree. It would be nice to see them on this route...they already do well on the LAX-EWR route.
Sep 30, 2009, 12:08 pm
#69
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Sep 30, 2009, 2:26 pm
#70
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Sep 30, 2009, 2:35 pm
#71
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Wouldn't it make sense for UA and US to be talking right now, as they coordinate CO's entry into *A?
I suspect what we'll be hearing is lounge access details, any updates to earning across airlines, terminal moves, that kind of stuff. One can only dream, but maybe they'll all have to do free booze in order to stay competitive with DL. In any case, they have to do some amount of talking, and probably will be sharing some services to cut costs.
I suspect what we'll be hearing is lounge access details, any updates to earning across airlines, terminal moves, that kind of stuff. One can only dream, but maybe they'll all have to do free booze in order to stay competitive with DL. In any case, they have to do some amount of talking, and probably will be sharing some services to cut costs.
Sep 30, 2009, 4:30 pm
#72
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Sep 30, 2009, 5:23 pm
#73
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nevertheless, they will still have upwards of 200 more mainline aircraft in service than UA, which is rapidly shrinking its mainline fleet to near US-size...
Sep 30, 2009, 5:57 pm
#74
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Two pertinent things have happened, as I can tell, that lend strength to this rumor mill:
1) US's $137 million cash influx from their stock offering: http://www.businessweek.com/ap/finan.../D9B0IO5O2.htm
2) US's lack of fuel hedging: http://www.ft.com/cms/s/3/fde5850c-a...nclick_check=1
1) US's $137 million cash influx from their stock offering: http://www.businessweek.com/ap/finan.../D9B0IO5O2.htm
2) US's lack of fuel hedging: http://www.ft.com/cms/s/3/fde5850c-a...nclick_check=1
As far as the stock offerings go, I don't know the motivations. I see that UA did one today, too. But "everyone" in the industry is currently doing them. CFOs seem to like having lots of cash.
Oct 5, 2009, 1:27 am
#75
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I just saw over on the CO forum that they're now talking about merger rumors with CO and UA!