UNITED HAS BEEN TRYING TO MERGE WITH US AIR FOR THE PAST 30+ YEARS. HAVING WORKED FOR UAL FOR 31 YEARS, I SEE NO REASON TO MERGE. I GUESS THEY NEED A NEW PENSION TO ROB.
Of the airlines in the U.S., only U.S. Airways seems to be managed more poorly than United. I worked for United from 1989 to 1999. In the period, United tried to merge with U.S. Airways twice.
Wall Street is in favor of the merger, becuase they think the airlines will get a better deal when buying airplanes and fuel. The employees are always opposed. Mergers mean the unions merge seniority lists, and airlines make many personnel assignments based on seniority.
I oppose the meger because United always overbids for U.S. Airways. In the last attempt United was going to borrow and pay billions of dollars to buy U.S. Airways, and airline that was essentially worthless. U.S. Airways went bankrupt a few years later.
US Airways have declined saying they would rather stay has they are.
So up next is the merger of United and Continental...but
United Airlines and Continental Airlines disagree over the price of a potential stock-for-stock merger, according to source familiar with the situation.
Last week, sources said that the airlines were considering a stock-for-stock merger with no premium, creating a company valued at roughly USD$6.6 billion.
The companies resumed merger negotiations earlier this month, two years after walking away from similar talks.
The companies, however, have disagreed on the exact ratio of shares that United planned to pay for Continental, said the source, who declined to be named because they were not authorised to speak to the media.
The ratio affects the price United would ultimately pay for the deal.
So does this put and end to the mergers?