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Old February 9th, 2008, 09:09 AM
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Default Continental and United to merge ???

Saw a news report this am about the possibility of Continental and United Airlines merging.

Could be bad news for those who work for Continental in the Houston area.

Wonder if they will drop the $25 second bag fee with the merge??

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Old February 9th, 2008, 01:23 PM
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Have not heard that one, the talk is still strong in Denver that United and Delta will merge. Who knows?

All I know is this: Four years ago there was a United ticket office 7 blocks from my home here in Denver. I could go up there and get any problem solved in a matter of minutes by friendly, courteous, knowledgeable personnel.

Now, you can not talk to a real person to save your life, it's all computerized messaging and Internet service that is sporadic at best. If you do finally get through to someone, it is someone in India who hasn't a clue and couldn't care less. It is horribly frustrating, and it is not just United.

They say we are in a 'service economy.' I guess that's true. What they forgot to tell us is that the service sucks and that it was vastly better ten years ago.
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Old February 9th, 2008, 04:44 PM
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Default The lates on merger

NWA CEO: 'Consolidation is highly likely'
Head of Northwestern Airlines, which has been courted by Delta and United, tells employees to prepare for some sort of merger.
February 8 2008: 1:32 PM EST


MINNEAPOLIS (AP) -- Northwest Airlines CEO Doug Steenland has told employees that "consolidation is highly likely at some point" and said doing nothing "could be our worst alternative."

Northwest Airlines (NWA, Fortune 500) and Delta Air Lines (DAL, Fortune 500) have been talking about joining the two carriers, and other combination ideas have been floated involving UAL's (UAUA, Fortune 500) United Airlines and Continental Airlines.

In the letter sent to workers on Wednesday, Steenland said executives and Northwest's board "would not move forward with any transaction that did not serve the interests of our employees, our shareholders, our customers, and the communities we serve."

He added, "doing nothing in this area could be our worst alternative. It's always preferable to be in control of our own destiny rather than have it dictated to us."

"I do believe that consolidation is highly likely at some point - particularly with the high cost of fuel and the other challenges that the industry faces."

He wrote that any deal would have to create "a more stable, financially secure airline; one that offers world-class service with an end-to-end network and competes strongly as a truly global carrier."

Delta, Northwest merger talks advance
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Old February 10th, 2008, 12:32 AM
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I googled Continental and United to merge and the only thing I could find was a bunch of articles from 2006, do you have a link to something more recent?
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Old February 10th, 2008, 04:54 PM
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Default

Quote:
Originally Posted by CM Rob
I googled Continental and United to merge and the only thing I could find was a bunch of articles from 2006, do you have a link to something more recent?
Morning broadcast on KHOU Channel 11 local to Houston, Texas.....

http://www.khou.com/blcS.sc?search=Continental

http://www.khou.com/business/stories....9ce57db3.html

http://www.khou.com/topstories/stori....a36caa15.html


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I Didn't Come here and I ain't Leaving.
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Old February 11th, 2008, 08:51 PM
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CM Rob,

Quote:
Originally Posted by You
I googled Continental and United to merge and the only thing I could find was a bunch of articles from 2006, do you have a link to something more recent?
Follow this link for the latest news and some analysis about major airlines from multiple services. The articles with "$$" before their titles require paid subscriptions to the respective services, but there's enough redundancy of content so you won't miss much by ignoring them.

Norm.
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Old February 11th, 2008, 09:13 PM
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richstacy,

Quote:
Originally Posted by You
Have not heard that one, the talk is still strong in Denver that United and Delta will merge. Who knows?

All I know is this: Four years ago there was a United ticket office 7 blocks from my home here in Denver. I could go up there and get any problem solved in a matter of minutes by friendly, courteous, knowledgeable personnel.

Now, you can not talk to a real person to save your life, it's all computerized messaging and Internet service that is sporadic at best. If you do finally get through to someone, it is someone in India who hasn't a clue and couldn't care less. It is horribly frustrating, and it is not just United.

They say we are in a 'service economy.' I guess that's true. What they forgot to tell us is that the service sucks and that it was vastly better ten years ago.
I think that a merger between United and Delta is very unlikely because United has far too many problems, and I'm sure that a merger with United would be Continental's last choice for substantially the same reasons. A merger between Delta and Northwest is not exactly ideal, either, due to disparate corporate cultures and disparate fleets, though that scenario seems to be generating the most buzz on the wire services right now.

Realistically, I think that Delta would prefer to merge with Continental, but there's one major glitch. As owner of all of the outstanding "A" shares of Continental airlines, Northwest has enough voting power to block any acquisition of Continental, which requires separate approval by the holders of each class of outstanding shares. Thus, Delta has to deal with Northwest for that scenario to play out -- and Northwest's condition for approval may well be inclusion in the deal. Of course, Continental could equally turn ownership of its "A" shares against Northwest by raising antitrust issues surrounding its inability to enter a similar merger without Northwest's approval and thus forcing Northwest to dispose of those shares before completing any merger to which Continental is not a partner.

Realistically, I think that the most likely scenario is a three way combination of Dellta, Northwest, and Continental, though one cannot fault Continental for talking with United to gain leverage in negotiations with Delta and Northwest. These three airlines already have an alliance with extensive antitrust immunity, so such a merger realistically would be no less competitive than the status quo. That probably would leave United to merge with USAirways, as those partners also already have an alliance with similar antitrust immunity. After that, the merged entities and American Airlines probably would absorb Alaska Airlines, Hawai'ian Airlines, Aloha Airlines, and Midwest Airlines in some combination.

Of course, discount airlines like Southwest, JetBlue, and Airtran could be wild cards in any consolidation scenario, either by participating or by raising antitrust issues.

So stay tuned....

Norm.
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Old February 11th, 2008, 09:15 PM
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Thanks Norm
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Old February 14th, 2008, 06:23 PM
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Default Story persists

http://hosted.ap.org/dynamic/stories...MPLATE=DEFAULT

Feb 14, 5:23 PM EST

United, Continental Deep in Deal Talks

By DAVID KOENIG
AP Business Writer

DALLAS (AP) -- United Airlines and Continental are in advanced negotiations and could complete a combination quickly if Delta and Northwest strike a deal, according to a person familiar with the negotiations
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The problem with socialism is that you eventually run out of other people's money. Margaret Thatcher

Never take an idiot travelling, you can always pick one up when you get there. Billy Connolly

I Didn't Come here and I ain't Leaving.
Willie Nelson

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2/16/2014 BC 7

Bill Murray
20 years ago we had Johnny Cash, Bob Hope and Steve Jobs. Now we have no Cash, no Hope and no Jobs. Please don't let Kevin Bacon die.
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