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Merger/Alliance: UA & CO May Form Alliance  
User currently offlinePHXtoDCAtoMSP From United States, joined Feb 2008, 85 posts, RR: 0
Posted (3 months 2 weeks 2 days 8 hours ago) and read 8663 times:

Still looking into US merger, but will also consider anti-trust immunity with CO.

http://www.bloomberg.com/apps/news?p...601087&sid=aAWZVDnBe2IA&refer=home

87 replies: All unread, showing first 25:
 
User currently offlineConcordeBoy From United States, joined Feb 2001, 18128 posts, RR: 77
Reply 1, posted (3 months 2 weeks 2 days 7 hours ago) and read 8543 times:

That would make so much more sense than CO engaging with OneHeathroWorld, where they'd be even more redundant than they are in SkyTeam.


Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
User currently offlineSearpqx From United States, joined Jun 2000, 4274 posts, RR: 21
Reply 2, posted (3 months 2 weeks 2 days 7 hours ago) and read 8540 times:

I could see this having a much higher chance of being approved than an anti-trust request between CO & AA.


"The two most common elements in the universe are Hydrogen and stupidity"
User currently offlineEA CO AS From United States, joined Nov 2001, 9157 posts, RR: 67
Reply 3, posted (3 months 2 weeks 2 days 7 hours ago) and read 8465 times:



Quoting Searpqx (Reply 2):
I could see this having a much higher chance of being approved than an anti-trust request between CO & AA.

But since DL/NW/KL/AZ/OK/AF enjoy six-way antitrust immunity, anything's possible.


"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineDrerx7 From United States, joined Jun 2000, 2881 posts, RR: 7
Reply 4, posted (3 months 2 weeks 2 days 7 hours ago) and read 8475 times:

A United/CO alliance would probably be the best alternative for both carriers. Continental joining OneWorld is fine as well however CO and AA's route networks almost mirror each others.


72S 73S 733 735 73G 738 739 743 744 752 753 762 763 764 772 319 320 AB3 L10 L15 D10 D10-30 D10-15 D9S M88 M82 M83 M80 M8
User currently offlineCOalways From United States, joined Feb 2008, 125 posts, RR: 0
Reply 5, posted (3 months 2 weeks 2 days 7 hours ago) and read 8371 times:

If Anything i think CO would benefit more from Star then Oneworld. they have more members and member hubs in the right destination were CO would want to fly Poland, Africa, Asia , etc....

User currently offlineBoston92 From Iraq, joined Aug 2006, 3209 posts, RR: 4
Reply 6, posted (3 months 2 weeks 2 days 6 hours ago) and read 8298 times:

Perfect scenario:

1. CO and UA form alliance
2. UA gets better management to start digging...up.
3. CO joins Star.
4. US gets their ass kicked OUT of Star.


"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlineJoFMO From Germany, joined Jul 2004, 2088 posts, RR: 0
Reply 7, posted (3 months 2 weeks 2 days 6 hours ago) and read 8139 times:

That would be really great. The best news since CO stopped with UA about a full merger.I am really frightened since then that UA marries US.

I remember that LH and OS have a joint venture (anti trust) for traffic between both countries and they refer that this delivers them 80% of the cost benefits of a full merger. If UA and CO could achieve the same they would get nearly all the benefits of a merger without having to merge.
And that keeps the door open for a merger in some years time.

User currently offlineSearpqx From United States, joined Jun 2000, 4274 posts, RR: 21
Reply 8, posted (3 months 2 weeks 2 days 6 hours ago) and read 8078 times:



Quoting EA CO AS (Reply 3):
But since DL/NW/KL/AZ/OK/AF enjoy six-way antitrust immunity, anything's possible.

That's true, and in all honesty I see that precedent making it difficult to deny further reasonable requests. The counter argument to that though is the overlapping concentration for each carrier in TX and NYC, which has always been one of the key considerations.


"The two most common elements in the universe are Hydrogen and stupidity"
User currently offlineBriguy1974 From United States, joined Aug 2005, 68 posts, RR: 0
Reply 9, posted (3 months 2 weeks 2 days 4 hours ago) and read 7867 times:
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I can only hope that an agreement gets into place soon. I have said before that CO UA makes a great route and aircraft combination. I understand that the complexity of a merger between the two frightened CO away but CO in STAR is good for both carriers. AA CO does nothing for CO. IAH and DFW are just to close and the routes are almost the same. CO has a lot to offer STAR and UA and STAR has a lot to offer CO... I hope this gets put together soon.
As far as US and UA....I am just not sure if UA needs US or vise versa...I would prefer a staight aquisition and an elimination of what US has left...not much. Keep the hub in Char...and PHX and turn PHL and its dirt facilities, and LAS as focus cities.... Can UA afford this??? I do not think so.

User currently offlineUadc8contrail From United States, joined Sep 2003, 1741 posts, RR: 10
Reply 10, posted (3 months 2 weeks 2 days 2 hours ago) and read 7625 times:
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CO brings nothing to *A!!!... the CO cheerleaders are correct....go at it alone as it is their only choice now, to think that they will have equal footing in a AA/BA alliance is crazy...AA will not allow that. first pull that crazy industry consolidation web site out if it has not already been done, then concentrate on being the great airline that most in here think they are.


bus driver.......move that bus:)
User currently offlineWunalaYann From Australia, joined Mar 2005, 1672 posts, RR: 30
Reply 11, posted (3 months 2 weeks 2 days 2 hours ago) and read 7596 times:
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Quoting Searpqx (Reply 2):
I could see this having a much higher chance of being approved than an anti-trust request between CO & AA.

When we talk about two airlines seeking an alliance, do we understand it as stronger ties than actual alliances (*A, 1W or SkyT)? Otherwise, CO could simply pull out of SkyT and join *A...

I don't really understand...


Free Georgia, back off Russia.
User currently offlineWhappeh From United States, joined Mar 2006, 1128 posts, RR: 1
Reply 12, posted (3 months 2 weeks 2 days 2 hours ago) and read 7537 times:



Quoting Boston92 (Reply 6):
4. US gets their ass kicked OUT of Star.

That would be a good idea how? Are you aware that US actually does provide Star with some valuable services that are largely ignored on Anet by you Armchair CEOs. You should go to FRA and see how many Lufthansa transfer passengers are dumped off onto US for the remainder of their flights. For lack of better terms, it almost seems as if US's purpose in Star is to act like the bus to move around passengers, while UA and LH take care of the more premium customers.


-Travel now, journey infinitely.
User currently offlineJoFMO From Germany, joined Jul 2004, 2088 posts, RR: 0
Reply 13, posted (3 months 2 weeks 2 days 1 hour ago) and read 7412 times:



Quoting WunalaYann (Reply 11):
When we talk about two airlines seeking an alliance, do we understand it as stronger ties than actual alliances (*A, 1W or SkyT)? Otherwise, CO could simply pull out of SkyT and join *A...
I don't really understand...

You also need to be accepted!

US got into STAR after they had signed a large codeshare deal with UA. So letting them into Star was the price UA had to pay. but what would be the price for UA to not veto CO? Everybody needs to gain something from a new member. So without a significant codehsrae deal with UA I can't see CO in STAR.

Quoting Uadc8contrail (Reply 10):
CO brings nothing to *A!!!...

Would be more than enough to me....

CO is the leading US carrier to Mexico, has a large Central American network and it has the best east coast hub destination (EWR), not to mention the missing southern hub in IAH.
Last but not least CO would not come alone, you also get their beautiful 'doughter' COPA!

User currently offlineBoston92 From Iraq, joined Aug 2006, 3209 posts, RR: 4
Reply 14, posted (3 months 2 weeks 2 days 1 hour ago) and read 7406 times:



Quoting Whappeh (Reply 12):
it almost seems as if US's purpose in Star is to act like the bus to move around passengers, while UA and LH take care of the more premium customers.

Well, if you ask me, the Star Alliance does not need a bus. US brings the *A somewhat of a bad reputation.


"Why does a slight tax increase cost you $200 and a substantial tax cut save you 30 cents?"
User currently offlineWhappeh From United States, joined Mar 2006, 1128 posts, RR: 1
Reply 15, posted (3 months 2 weeks 2 days 1 hour ago) and read 7299 times:



Quoting Boston92 (Reply 14):
Well, if you ask me, the Star Alliance does not need a bus. US brings the *A somewhat of a bad reputation.

Which would explain why Lufthansa uses them so much? Seriously, I'm willing to bet that at least 25% of your average flights from FRA to the US on US are LH connections, mostly from India. Your opinion is one thing, but its far from the fact.


-Travel now, journey infinitely.
User currently offlineConcordeBoy From United States, joined Feb 2001, 18128 posts, RR: 77
Reply 16, posted (3 months 2 weeks 2 days ago) and read 7244 times:

Quoting JoFMO (Reply 13):
CO is the leading US carrier to Mexico,

....in terms of destinations it is. In terms of total pax, no it isn't.

[Edited 2008-05-14 22:44:56]


Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 2090 posts, RR: 1
Reply 17, posted (3 months 2 weeks 1 day 23 hours ago) and read 7060 times:
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Quoting Uadc8contrail (Reply 10):
CO brings nothing to *A!!!

I am not sure thats exactly true................three words...New York City (EWR). That is a big hole in *A's network and CO IMHO would be a welcome addition to Star. I would love to see CO flying out of T1 at LHR with all the other Star carriers across the Atlantic to EWR. Sure we would not have JFK but I think BD will cover that in due course.
I think a tie up with Star brings so much more to CO than it does with Skyteam and if it went to Oneworld, again I can see it being the poor relation. AA is not going to allow it to step on its toes thats for sure.

User currently offlineConcordeBoy From United States, joined Feb 2001, 18128 posts, RR: 77
Reply 18, posted (3 months 2 weeks 1 day 22 hours ago) and read 6985 times:



Quoting Uadc8contrail (Reply 10):
CO brings nothing to *A!!!.

That has to be the most ridiculous statement ever uttered on A.net--- and that's a tough distinction to achieve.

Star Alliance would go from being the weakest alliance (in both total pax and connections) in the largest metropolitan aviation market in the Western Hemisphere, to vying with SkyTeam as the largest... overnight... with just the addition of CO.

And then there's this little market called Texas, where Star is also astonishingly weak. Oh, and something about Mexico, where Star lacks a strong partner....


Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
User currently offlineWunalaYann From Australia, joined Mar 2005, 1672 posts, RR: 30
Reply 19, posted (3 months 2 weeks 1 day 19 hours ago) and read 6450 times:
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Quoting JoFMO (Reply 13):
You also need to be accepted!

Good point. Although considering American members of *A include UA and US, I'd say CO would at least be competitive, and, judging by a.net's general consensus on the subject, probably completely outclass both carriers in terms of service levels.

And which alliance without a dominating presence in the NYC market would be crazy enough to dismiss EWR???  Smile

Quoting ConcordeBoy (Reply 1):
That would make so much more sense than CO engaging with OneHeathroWorld, where they'd be even more redundant than they are in SkyTeam.

Because of IAH and DFW? Maybe CO's China routes would be of interest to 1W?

Just wondering...


Free Georgia, back off Russia.