Originally Posted by
contrail67
Why would they need to order new aircraft when the merger partner CAL already has them on order...100 Boeing A/C 777,787,737's. Flame all you want, but that is what is going on.
I'm still semi-reluctant, however, I believe contrail is correct. It seems to be the calm before the CAL/UAL merger storm. Here's Delta/NWA annoucing massive expansions to include replacing some RJ routes with mainline equipment and neither CAL/UAL announcing anything. Together CAL/UAL have cut 10,000 jobs and reduced capacity by 10-12%...they made their respective airlines "MERGER READY"...their routes don't overlap, their hubs are extremely good for the most part, Continental has the 100 aircraft on order, United has the cash 3.9 Billion to CAL 2.9 billion. United's bankruptcy plan was based on $50/barrel oil (Currently $55/barrel). Both CAL/UAL will have to dehedged and take a loss because of poor fuel hedging (above $120/barrel for both), however, with the cash on hand between the two, now might be the time to support the bankruptcy model. I know there's alot more to it than just this, but...I think something is coming...JMO
WarE