Yes, you are correct. I guess my sarcasm dripping with irony was lost in translation on the web.

 

My humble opinion, it's pretty much worthless. Cal has debt UAL has debt, both ceo's know it. They don't care, they'll merge the companies get some short term financing for the debt, and make it someone else's problem. The big money guys will make a killing, and be gone before the combined company implodes.

 

Seriously, you are just NOW making this revelation??? Shocker, nothing new here.

Look under your nose "Uncle Glenn" (as well as other carrier's CEO's), and his BOD, have been doing that to UAL for quite sometime now. Study up.

 

Bingo! A lot of new shiny jets without a whole lot of $$$ to pay for them. Hopefully they find some. There's already enough CAL & UAL guys on the street.

 

I think Kellner was shown the door since he was so adamantly OPPOSED to the merger option. Since he didn't go along with what the BOD felt was best for us........(you know, the minister and others who are so "in the know" about airline stuff), he was kindly told to take his toys and go play in another sandbox. When Kellner said a while back he wasn't interested in merging with UAL, the whole company breathed a sigh of relief. Since he's announced his retirement, the whole company is in total disaray and everyone is scared to death. Decisions are being made that make NO sense, and no one seems to know what direction the company is going in nor do they seem to care. It'll certainly be interesting to see what drops next.............

 

Shoot, from a DC-9 guy, late model 727's qualify as new shiny jets. Keep in mind many of CALs fleet are aging. The powers to be have bet a large portion of the airline's future lift on the 787. Although they claim Boeing is paying "hush money", there has been no fore-site to convert failed 787 positions to anything that flies. Instead they say the Boeing cash is more needed in this economy.

The reality of a CAL UAL merger will have more to do with, can the underwriter's and investors make a quick payback by putting the deal together in the form of something that will survive? AND IS THERE ANYTHING TO SIPHON IMMEDIATELY. Beyond that, the current creditors may have to come to Jesus when they consider the huge cash reserves they have insisted on, not just at CAL but in the industry. With just a little relaxation and just a little recovery in pricing power and either airline could shine for the investors in 2010. Then the deal will happen if alliance is still viewed as profitable. Personally I think Mr. K. was tossed by the CAL BOD. You don't willingly leave a $10M a year job in search of some startup. He openly stood in the way of the CALUAL deal in the past and gave the financial industry reason to stop thinking M&A with CAL and UAL in the same sentence was a good thing.

 

That was the sorta the point I was trying to make, though, I think the banks that hold the debt were the ones that lit the fire under the board of directors.

Yes, it sucks to be us, but the reality is, consolidation is inevitable. Let's just hope the union leaders can work together to stake out a good position when it happens.

 

I always liked 0 and 00 on the roulette table so here goes....never. Acquisition maybe, but merger i'm gonna say not.

 

Can one of you UAL people help us understand the following verbiage in this Email that is going around:

"Such transfers could involve number levels below “fragmentation policy ” triggers (20%?)"

 

Don't think it will happen unless both UAL & Cal end up in Chapter 11.