Originally Posted by
texaspilot76
Here is the latest speculation about the possible merger with United and Airways.
The word is that United is in a serious hole and may be in BK by summer. It is believed that Doug Parker of Airways is sitting back waiting for United to go into BK so he can aquire them dirt cheap. He would get more airplanes, routes, etc., all at liquidation prices. At that point, it would be a buyout, not a merger, so he would retain his super cheap labor costs he has at Airways currently. As far as jobs, it looks like it would be good for Airways, and a disaster for the United folks.
Very plausible. Parker will lose a lot of control in BK court. USAir will have to come up with a lot of $$$, although he will have leverage with the banks because none of them want anymore bad loans on the books. If the creditors feel it's more valuable to break apart and liquidate, Parker will run into a bidding war over the more valuable assets. It might not be as cheap as it sounds.