Continental/United reportedly in merger talks
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CAL & UAL in the news AGAIN
UPDATE 2-UAL, Continental in merger talks-source | Reuters
Below is from the report -
Continental-United merger might be easier to get through
the labor unions, which can be a major force in getting a deal
approved.
Capt. John Prater, president of the Air Line PilotsAssociation (ALPA) union, told Reuters in February that aUnited-Continental merger would make more sense than otherpossible combinations. A spokesman from ALPA at United was not immediatelyavailable for comment on Thursday. A spokeswoman for Continental's pilots union said the grouphad "no reaction" after news broke Thursday. But UAL's pilotsunion said last week the pilots would not benefit from a mergerwith US Airways, adding it would "vehemently oppose" a mergerthat would not lead to a strong and viable carrier. Even after United and Continental halted merger talks in2008, their pilot groups have continued to talk up two to threetimes a week and discuss the possibility of a merger, Capt. JayPierce, head of Continental's pilot union, told Reuters in aninterview last week. They have discussed a collective bargaining agreement andtalked about a process to merge seniority lists, Pierce said. (Additional reporting by Deepa Seetharaman, Kyle Peterson andKaren Jacobs, editing by Leslie Gevirtz and Gerald E.McCormick)
Below is from the report -
Continental-United merger might be easier to get through
the labor unions, which can be a major force in getting a deal
approved.
Capt. John Prater, president of the Air Line PilotsAssociation (ALPA) union, told Reuters in February that aUnited-Continental merger would make more sense than otherpossible combinations. A spokesman from ALPA at United was not immediatelyavailable for comment on Thursday. A spokeswoman for Continental's pilots union said the grouphad "no reaction" after news broke Thursday. But UAL's pilotsunion said last week the pilots would not benefit from a mergerwith US Airways, adding it would "vehemently oppose" a mergerthat would not lead to a strong and viable carrier. Even after United and Continental halted merger talks in2008, their pilot groups have continued to talk up two to threetimes a week and discuss the possibility of a merger, Capt. JayPierce, head of Continental's pilot union, told Reuters in aninterview last week. They have discussed a collective bargaining agreement andtalked about a process to merge seniority lists, Pierce said. (Additional reporting by Deepa Seetharaman, Kyle Peterson andKaren Jacobs, editing by Leslie Gevirtz and Gerald E.McCormick)
#2
Continental/United reportedly in merger talks
Continental and United reportedly in merger talks
By Tomoeh Murakami Tse
Washington Post Staff Writer
Thursday, April 15, 2010; 4:05 PM
NEW YORK -- Continental Airlines and United Airlines are in discussions about a possible merger, according to two sources familiar with the matter.
The talks are still in the early stages and could fall apart, said the sources, who spoke on the condition of anonymity because the negotiations are private.
The discussions follow reports last week that UAL, the parent company of United, had begun merger talks with US Airways.
Continental, with a strong presence in New York and Houston, is seen as a better fit for United, and could face fewer legal hurdles, according to industry analysts, who have speculated that United's talks with US Airways were an effort to get Continental to return to the table. United had discussed a merger with Continental in 2008, but Continental ultimately rebuffed the approach, deciding it would be better off on its own.
United and US Airways control much of the turf at two of the Washington region's airports, with United the major carrier at Dulles International Airport and US Airways on top at Reagan National Airport. Because they compete to keep prices low, analysts said, a merger could lead to higher ticket prices for Washington area air travelers.
The Continental and United merger talks were first reported Thursday online by the New York Times.
By Tomoeh Murakami Tse
Washington Post Staff Writer
Thursday, April 15, 2010; 4:05 PM
NEW YORK -- Continental Airlines and United Airlines are in discussions about a possible merger, according to two sources familiar with the matter.
The talks are still in the early stages and could fall apart, said the sources, who spoke on the condition of anonymity because the negotiations are private.
The discussions follow reports last week that UAL, the parent company of United, had begun merger talks with US Airways.
Continental, with a strong presence in New York and Houston, is seen as a better fit for United, and could face fewer legal hurdles, according to industry analysts, who have speculated that United's talks with US Airways were an effort to get Continental to return to the table. United had discussed a merger with Continental in 2008, but Continental ultimately rebuffed the approach, deciding it would be better off on its own.
United and US Airways control much of the turf at two of the Washington region's airports, with United the major carrier at Dulles International Airport and US Airways on top at Reagan National Airport. Because they compete to keep prices low, analysts said, a merger could lead to higher ticket prices for Washington area air travelers.
The Continental and United merger talks were first reported Thursday online by the New York Times.
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