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NEWS UPDATES BELOW................. 05/15/2008
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Current Merger News Tilton two Timing for the Alter, all for the Exec's Bonus pay (on the backs of workers) United and
Continental Continue Talks The whispers of consolidation continue to spread throughout the airline industry. Reports circulated Thursday that Continental Airlines (nyse: CAL - news - people ) and United Airlines' parent company UAL (nasdaq: UAUA - news - people ) were in talks to form an alliance that would benefit both carriers, but not result in a merger. Continental had ended talks with United in late-April when the airline said that it was not interested in a merger, but left room for talks to continue in the form of a beneficial agreement. It has also been reported that United, the second largest carrier in the U.S.., is in talks with US Airways. The company has yet to confirm which of these options is it going to pursue, but analysts agree that the airlines do not have the choice of staying independent. "As we've said over the last few weeks, we are examining our alliance relationships as we think it's important that we be a major player in one of the three major global airlines alliances," Continental spokeswoman Mary Clark said. United spokeswoman Jean Medina declined comment to Forbes.com and said that the company is not commenting on any alliance speculation. UAL's board of directors is meeting Thursday and is expected to talk about the potential consolidation. The airlines have been forced to look at consolidation since the rising cost of oil has pushed their fuel costs to become unmanageable. The weight of fuel costs on the bottom line has caused nine smaller carriers to go out of business since Christmas. It also already forced one merger into existence. Delta and Northwest are set to merge later this year and are currently on Capital Hill trying to receive approval. Shares of Continental were up 2.5%, 47 cents, to $18.85 in later afternoon trading. UAL was also up 2.2%, or 31 cents, to $14.48.
May 1, 2008
April 22, 2008
IAM
Launches Airline ‘Merger Watch’
Thanks to a year-long campaign by a handful of airline CEO’s, a series of massive and disruptive mergers are threatening to reshape the troubled industry, culminating in a monopoly-like atmosphere for the few carriers that remain.
In addition to the recently announced merger between Delta and Northwest Airlines, which would create the world’s largest airline, there is widespread speculation that United Airlines, Continental Airlines, US Airways and American Airlines may also be forced to consider mergers to remain competitive.
To keep IAM members advised of the developments in the this latest shakedown of airline passengers and employees, the IAM created ‘Merger Watch,’ a special web page at www.goiam.org/mergers to provide news and information on the merger-related developments.
In addition to IAM updates, Merger Watch will provide links to news releases, testimony, videos and background information about proposed mergers and how they could affect IAM members, their families and their contracts.
Members are encouraged to visit www.goiam.org/mergers and speak out with your comments/opinions about airline consolidation. You can either call 1-888-369-7441 or go to this link http://www.goiam.org/speak-out.cfm?cID=12831 and send an email. Tilton getting closer to his "up-teen" Million Dollar bonus and exit from UA US Airways, United edge closer to a merger deal Combined carrier would operate out of Chicago, drop assets in D.C. market. By Julie Johnsson of the Chicago Tribune CHICAGO — United Airlines is closing in on a merger with US
Airways, sources say, after being spurned by Continental
Airlines and Delta Air Lines. But United executives aren't
expected to run the carrier,
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Flight attendants, mechanics say Delta/Northwest merger will hurt consumers
WASHINGTON — Flight attendants and mechanics told Congress on Wednesday that the planned merger of Delta Air Lines and Northwest Airlines could hurt consumers, communities and workers. But the carriers' chief executives insisted they must combine to compete effectively worldwide and deal with soaring fuel prices.
Corporate Executive look to pad their pockets while workers are
still under "give back" contracts: United Airlines: Incentive pay flap at UnitedUnion workers denounce $130 million in stock to reward top managementAnother pay controversy has erupted at
United Airlines, as the carrier prepares to set aside stock
worth about $130 million to fund a new incentive plan for
executives.
You do the Math.........UA cuts capacity, Southwest adds to capacity ?1) United to cut 5 percent of its flights out of Denver, S.F., L.A.By Chris Walsh, Rocky Mountain News (Contact)Tuesday, May 13, 2008
United Airlines will eliminate 19 flights
out of Denver as part of a previously
announced move to cut capacity across its
route network.
The reduction, which takes effect Sept. 2, amounts to nearly 5 percent of United's 410 departures at Denver International Airport. The Chicago-based airline will lower the number of daily flights it offers between Denver and two dozen cities, including Aspen, Dallas, Baltimore, Kansas City, Los Angeles and Seattle.
Many of the cuts come in
markets that have seen
an increase in
competition from
low-cost carriers such
as Frontier Airlines and
Southwest Airlines.
Frontier, for instance,
recently began serving
Aspen through its new
turboprop subsidiary.
The decisions on which cities to cut, United said, are based purely on financials. United has been reducing its capacity in Denver for years, and the latest cutbacks could shove its overall market share at DIA below 50 percent. The move is part of a larger effort to slash 1,100 jobs, reduce domestic flying and increase revenue in the face of soaring fuel costs. Aside from Denver, United is cutting 5 percent of its departures in both San Francisco and Los Angeles and 3 percent in Washington, D.C.
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