UAL-Continental Talks Quicken - WSJ.com

 

Please post text.

Does the WSJ really think I'm going to pay them money?

 

Its been coming for a while imho. Hopefully this will be a good opportunity for the CAL and UAL guys to get a good raise and lock down scope for good!!

 

I think its a done deal... of all the possibilities i think a UAL/CAL merger is the best fit and will have the best chances of preserving jobs. I hope it happens... so the pain will end of any future discussions on mergers.

 

I would not hope for any merger. No matter how it works out labor ends up losing in the end. Keep in mind that the whole point of this merger and its been discussed many times is to remove capacity from the system. In the USAIR/United attempt they discussed the removal of at least 10 to 12 percent of capacity to boost yields. They are talking about the same thing in this merger. Thats never good for labor.

 

You can read the article if you search around on google for it. I put the link up but it turned out the same as the link above.

 

This deal will put a lot of crj 700s and emb 170s in continental paint. Not exactly what the pilots are looking for.

 

Here it is:





BUSINESS | APRIL 23, 2010, 8:07 P.M. ET

UAL-Continental Talks Quicken, Could Yield Merger by Early May

By GINA CHON

Negotiations between UAL Corp.'s United Airlines and Continental Airlines Inc. are picking up pace, with parties believing a merger deal could be reached at the end of this month or early May, people familiar with the matter said Friday.

United Airlines would be the surviving brand if it was to merge with Continental, these people said.

If a deal goes through, the new company would be based in Chicago, where United currently has its headquarters. A tie-up between Continental, which is based in Houston, and United would create the world's largest airline by traffic.

Both parties are feeling optimistic after US Airways announced Thursday that it had ended merger talks with United, people familiar with the matter said.

But they cautioned that talks could fall apart at the last minute as they did in 2008, the last time the two airlines seriously considered a merger.

These people said a merger likely would be in the form of a stock swap. Jeff Smisek, Continental's chairman and CEO, would become CEO of the combined company, while UAL Chairman and CEO Glenn Tilton would become chairman.

UAL sports a market capitalization of $3.85 billion, while Continental has a market value of about $3 billion.

A combined United-Continental would overtake Delta as the largest airline by traffic and leave AMR Corp.'s American Airline as a relatively distant third.

Talks between United and Continental began last week, after media reports about the United-US Airways talks came out. Some Analysts think United and Continental would be a better fit.

Write to Gina Chon at [email protected]
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That was just about inspiring enough to 'almost' ask for a tissue.....Let's look strictly at the facts as they lay thus far......

Since you brought up the facet of SCOPE, let's address it when looking at a CAL/UAL merger. Looking at the separate CBA's (be it, both concessionary), "one" has a much strong stance of SCOPE protection in protecting mainline flying done by mainline pilots than the other. This mere by-product can been seen as evidence in looking first hand at the furloughed pilots numbers of one camp vs the other.....CAL's 10% (147) vs UAL's 1400+.

Let's also look at the the 'basics of negociations'......Barring ANY snap-back provisions w/in concessionary CBA's, once labor items, work rules, R&I, ect are 'given' back to the company, GOOD LUCK on getting them back ANYTIME soon....especially the topic of SCOPE!! With the domestic flying via RJ's on the UAL route structure, GOOD LUCK on ridding/drastically changing that in a 'post merger' CBA. That business plan brain child has been throughly engrained via Tilton, & is 'here to stay' in one camp's present business model.....and into any future merger. The barn door on RJ's has been opened at UAL never to be fully 're-closed' again.

Over the last 24-36 months, it is blatantly obvious that CAL's mgt wants what UAL pilots have given up.....more RJ flying w/ reduced SCOPE Clause provisions. They have asked for this on multiple occasions. The ONLY thing that has a sliver of hope in the merger, at least CAL's standing CBA/SCOPE is still/presently in place as an 'obstacle', unlike UAL's growth galore domestically with RJ's of 'all sizes & shapes'.

Looking at the facts......DAL/NWA you have a Dick Anderson who displayed 'interest' in running an airline as he (& his mgt teams) worked to make the merger 'positive' (or as much as possible in a merger scenario) for the labor groups coming together. When looking at CAL/UAL you have an M&A Attorney - "Jeffery", and a sub-par at best CEO - Glenn Tilton who has been flapping in the wind w/o showing much interest in running an airline over the last 5+ years. In evaluating the grim surface facts displayed thus far in the CAL/UAL merger possibility, I hope to heck that I am WRONG on what to expect when things 'come together'.....I hope that the "powers to be" in the CAL/UAL marriage (assuming it happens ) will decide to follow the path of proven success that Anderson has displayed, not the floundering in the "idiot ways" of Glenn Tilton's career.

Again, ALL fact up to this point. Hope for the best.....expect the worse.

 

CAL does not have 10% on furlough, it's more like 3%, So there is one fact that's not so factual!