# Will United and Continental Be Next to Merge?



## MrFSS (Apr 25, 2008)

Sources say that United and Continental have held detailed merger discussions, as have their pilot groups, that have left the nation's second- and fourth-largest carriers, respectively, poised to respond quickly to a Delta-Northwest tie-up.

Full story is *HERE*.


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## the_traveler (Apr 25, 2008)

If they do merge, what will it mean for AGR transfers? :huh:

Previously, it was Continental, United and Midwest. Then all of a sudden, United dropped out but Continental stayed. So if the merge does go through, will it be a yes or no for transfers? :huh:


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## PRR 60 (Apr 26, 2008)

The effect of a UA-CO merger on the AGR partnership is hard to figure. Mergers are always described as a marriage of equals, but often one party is more equal than the other. In this case that appears to be UA. Whether the merged carrier woould look upon AGR as having value to them remains to be seen.

If UA and CO announce, US Airways and American would have to feel like the last two at the dance still sitting along the wall. Maybe a glance or two and they say what the heck, lets dance ourselves. I think that all the airlines feel that mergers will be easier now than after a new administration is in office, and that means all three possible administrations. If they want to get something done in 2008, they have to move now.


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## stlouielady (Apr 26, 2008)

PRR 60 said:


> ....US Airways and American would have to feel like the last two at the dance still sitting along the wall. Maybe a glance or two and they say what the heck, lets dance ourselves.



If I remember correctly, US Airways went through a merger with America West a few years ago. I wonder if they'll want to go through that again with someone else. I guess if the option is given to them, that would benefit both parties, they'd be foolish to say no to it though. HHMMM, guess we'll all just have to sit back and wait and see what happens.


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## Sealink (Apr 26, 2008)

PRR 60 said:


> If UA and CO announce, US Airways and American would have to feel like the last two at the dance still sitting along the wall. Maybe a glance or two and they say what the heck, lets dance ourselves.


My opinion is that American will look outside the US, and will again try to court their long term date, British Airways.

With KLM / Air France merging and Alitalia on the brink I think officials will look more kindly on these kind of deals. Even Ryanair own 25% of their rival, Aer Lingus. A combined BA/AA would still have access to OneWorld so it should work well.

I can foresee OneWorld and SkyTeam becoming the dominant brand names, although that assumes that each country would be OK losing their 'flag carrier'.


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## Green Maned Lion (Apr 27, 2008)

When are they going to solve my problems and reinstate an affordable and reliable trans-atlantic ferry?


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## PRR 60 (Apr 27, 2008)

It appears that United is looking at two possible merger partners: Continental and US Airways. The decision on which will be the lucky one to have earned UA's affection is expected in about two weeks. If it is US, that would be the second try for UA. An attempted UA-US merger failed about 7 years ago when regulators bawked.

Since my home airport is PHL, I am rooting for UA-US. US can use all the help it can get.


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## Green Maned Lion (Apr 27, 2008)

I'd think the major approval factor would be the lack of overlap between carriers.


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## edding (Apr 27, 2008)

PRR 60 said:


> It appears that United is looking at two possible merger partners: Continental and US Airways. The decision on which will be the lucky one to have earned UA's affection is expected in about two weeks. If it is US, that would be the second try for UA. An attempted UA-US merger failed about 7 years ago when regulators bawked.
> Since my home airport is PHL, I am rooting for UA-US. US can use all the help it can get.


And being here in PHX, I second the UA-US merger. It does way more for me than UA-CO. Now if they'd only restore train service to PHX -- Sigh( Yes, I know -- what part of "never" don't I understand).

Ed


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## the_traveler (Apr 27, 2008)

edding said:


> Now if they'd only restore train service to PHX -- Sigh (Yes, I know -- what part of "never" don't I understand).


PHX does have train service! (Oh - you mean Amtrak, not freight! :lol: )


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## PRR 60 (Apr 27, 2008)

The door for a US-UA marger just opened a little wider. CO has rejected any mergers, for now.

From the Wall Street Journal, 4/28/08:



> Continental Airlines Inc. said it wouldn't merge with another carrier at this time, removing one potential deal partner from an industry looking for answers amid soaring fuel prices and a softening U.S. economy.
> ...Continental's decision, disclosed late Sunday, was a rebuke to United Airlines parent UAL Corp. The Chicago-based carrier has been trying to interest Continental in a marriage for years and recently thought it had the inside track by holding formal merger talks, said people familiar with the matter.


The full article, requiring a WSJ subscription, is HERE.


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## jis (May 2, 2008)

PRR 60 said:


> The door for a US-UA marger just opened a little wider. CO has rejected any mergers, for now.


More interestingly, according to postings on airliners.net CO, BA and AA are now talking about some form of collaboration which raises the speculation that CO will leave Skyteam and join OneWorld.


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## Sealink (May 16, 2008)

British Airways today said ""Earlier this month we announced that we were in talks to explore opportunities for cooperation with American Airlines and Continental Airlines. These talks continue."


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