On Thu, 08 Apr 2010 00:40:19 -0400, JF Mezei
Post by JF Mezei
Rumours about that UA and US are (once again) in merger talks.
Meanwhile, I heard that Jetblue is hopping in bed with AA where Jetblue
will act as a feeder to AA intl flights at JFK. (and AA will allow its
passenters to connect to Jetblue flighst to destinations not served by AA).
Back to UA/US: Has anything changed that would make this attempt succeed
where both previous attempts (2000 and 2008) failed ?
The two carriers continue to have a very large position in the IAD/DCA
market, and that tends to be very troubling to regulators. They are
either going to have to off load a great many DCA/IAD slots/markets,
or spin off a new Airline to serve those markets (rebirth of DC Air).
If anything the two carriers are now in worse financial condition than
they were in 2000.
The great unknown is of course Labor, and given how well the US Air
Pilots like how the integration went, and the fact that the resulting
airline will certainly end up with fewer Unionized positions than two
carriers have today, I cannot see the Labor Unions being at all
cooperative. Relations between management and the Pilot's Union for
both carriers aren't exactly friendly...
The other question is who is the surviging carrier. I suspect Tilton
just wants his Golden Parachute. United seems to be focused on
outsourcing as much of the airline as they can. The only growth at UA
in the past several years has been via contracted regional operations.
Neither carrier's management is anything to get excited about, so I
don't expect the combined management to be any real improvement.
Post by JF Mezei
Should this merger happen, wouldn't that leave Continental an eternal
bachelor without any partners with which to merge ?
Perhaps, but that isn't necessarily bad. CO has been on its own for a
very long time, and has generally done better than their competitors
on the balance sheet.
A bad merger or acquisition is worse than none at all.
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