Ual & Cal
 

Are there any expectations out there about an anouncement of a merger once the new pilot contracts have been finalized? CAL is currently in talks, correct? And UAL is up in December of this year, correct? Easier said than done I'm sure, but would this be the final pieces to the puzzle? CAL&UAL?

No way. If anything, CAL would let UAL die then buy the assets, sell the gate space, sell the a/c to RAH, sell it all and cash out.

Yes, expectations are high and often stated in certain UAL pilot circles that want to rewrite ALPA merger policy and therby lessen the importance of career expectations in favor of some sort of relative position formula. :)

UAL has burned the last bit of furniture with the bond sale secured by the parts inventory. I sounds to me like Tilton is in the final stages of pre-liquidation.

The contracts do not have to be settled for a merger to be announced....they can do it at anytime. Don't be surprised if the merger is announced and then the contracts settled...together.

so you issue bonds to purchase right before you liquidate?....Really? I really don't think that you know why they are raising the $175 million...but at least they have the ability to....more than some airlines have.

Gotta have some cash to pay the liquidation bonuses to himself and his fat cat execs and lawyers. Chapter 7 ain't cheap you know.

Buy it with what?

Looking at CAL's 10Q from last quarter, they're not going to be buying anyone or anything anytime soon. And the same goes for the rest of the legacy carriers.

7576,

You got it right. WIth most companies and banks in survival mode, there is very little appetite for more debt and nonsensical mergers. Mergers for the sake of doing mergers? Just like flipping houses, those days are over.

Best UAL can hope for is if they actually find themselves on the brink of failure, the administration will force a merger to save jobs just as with Chrysler/Fiat.

Other than that, there is no rescue ship in sight for United.

I'd say that about all folks.