US Airways/United Merger Announcement May Come Within Days | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 07.20.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

Airborne Hi-Def On YouTube

Airborne 07.20.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Mon, May 05, 2008

US Airways/United Merger Announcement May Come Within Days

Report Says Carriers Identified Over $1.5 Billion In Savings

United Airlines parent company UAL Corp. could be days away from announcing a merger with US Airways, according to the ever-popular unnamed sources.

The Wall Street Journal reports talks continue between the two airlines, people close to the matter say, even as the number two airline attempts to lure Continental Airlines away from its plan to remain independent, and join with United instead.

As ANN reported, Continental spurned United's advances April 27, opting to chart its own course instead of taking on the challenge of dealing with United's woes, including a staggering $537 million loss in the first quarter of 2008.

Sources say low-level talks between those two airlines are still underway... but many believe Continental will instead opt to form alliances with American Airlines and British Airways -- a partnership carrying many of the benefits of a full-on merger, but with none of the inevitable hassles.

As for a merger between United and US Airways, the question comes down to the benefits of saving money, versus potential regulatory hassles and all-but-guaranteed labor strife. The two sides reportedly identified over $1.5 billion in potential cost savings should the airlines join forces, according to the WSJ.

That number could be large enough to overshadow concerns about merging the two airlines' volatile labor forces, and ungainly route networks... particularly as both United CEO Glenn Tilton and US Airways chief Doug Parker are fierce proponents of industry consolidation, spurred on by the proposed combination of Delta Air Lines and Northwest Airlines to form what would be the world's largest airline.

The thinking is that larger carriers will be better able to survive an increasingly-competitive global market, record high oil prices, and a slumping US economy. But that plan is a tough sell for many, including pilots at United... who last week warned management against taking on the "toxic stew" of US Airways' pilot integration issues, stemming from that airline's 2005 merger with America West.

There's also the question of whether federal regulators would approve a United/US Airways merger. UAL tried once before to buy US Airways, in 2000; that effort was soundly rejected by the Department of Justice over anti-trust concerns, even after both sides set up a series of Rube Goldbergian assets selloffs to appease them. United's pilots and mechanics vehemently opposed that joining, as well... leading to crippling labor actions and operational snafus.

A United/US Airways merger could be announced within 10 days, according to sources. Brace yourselves... it could get bumpy.

FMI: www.united.com, www.usairways.com

Advertisement

More News

Airborne At OSH15 Day 2 Redux: Aspen's AOA, NTSB's Hart, New Able Flight Pilots

Also: BIG Piper Order, AEA $1000 Givewaway, Airbus A350 X-W-B, F-22 Raptor, Pelton Interview -- Part 2 In only four months since its introduction, Aspen has obtained FAA certificat>[...]

Airborne at OSH15 - 07.21.15: Aspen's AOA, NTSB's Hart, New Able Flight Pilots

Also: BIG Piper Order, AEA $1000 Givewaway, Airbus A350 X-W-B, F-22 Raptor, Pelton Interview -- Part 2 In only four months since its introduction, Aspen has obtained FAA certificat>[...]

Airborne At OSH15 Day 1 Redux: Redbird Sidekick, Pelton Upbeat, Hartzell Re-Prop

Also: Aviation Gateway Park, New Vintage Plaza, L-3 Genesys, BendixKing's KI300, Jack Pelton Interview--Part 1, Lockheed Buys Sikorsky, ANN's AirVenture Innovation Preview ROCKED! >[...]

AeroSports Update: Enthusiasm Does Not Trump Good Planning

The Story Of Bill’s Idea To Own An Airplane And Become A Sport Pilot Didn’t Work Out So Well Anxious to own a plane and become a sport pilot, Bill purchased a damaged, >[...]

AeroSports Update, FAA Emphasizes Transition Training

The FAA Has Updated Their Advisory Circular For Transitioning To Unfamiliar Aircraft The FAA released an update to an Advisory Circular (AC) on transitioning to unfamiliar aircraft>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC