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Author Topic: United Airlines: Let's Fly Together! UAL and COA Merger  (Read 17200 times)
joeyb747
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« on: June 28, 2010, 08:08:40 PM »

"United Airlines and Continental Airlines have agreed to a merger of equals, creating the world’s leading airline featuring superior service to customers, expanded access to an unparalleled global airline network, improved long-term career prospects for employees, and a platform for improved profitability and sustainable long-term value for shareholders."

From:

http://www.unitedcontinentalmerger.com/combined-company

"HOUSTON AND CHICAGO, May 3, 2010 – Continental (NYSE: CAL) and United (NASDAQ: UAUA) today announced a definitive merger agreement, creating the world’s leading airline with superior service to customers, expanded access to an unparalleled global network serving 370 destinations around the world, enhanced long-term career prospects for employees, and a platform for improved profitability and sustainable long-term value for shareholders. The all-stock merger of equals brings together two of the world’s premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry."

From:

http://www.unitedcontinentalmerger.com/press-release

Any one have any thoughts on this?
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tyketto
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« Reply #1 on: June 28, 2010, 09:59:26 PM »


Yes. The new Livery sucks.  grin

BL.
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NAplaya16-ATC
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« Reply #2 on: June 29, 2010, 12:12:10 AM »

100% with tyketto!   livery could be a whole lot better!
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tyketto
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« Reply #3 on: June 29, 2010, 03:04:34 AM »

100% with tyketto!   livery could be a whole lot better!

Agreed. I've seen some MSFS modelers over at the POSKY forums come up with better livery designs than that.

Back on topic, though. Logistics are going to be a problem here, on 5 different fronts.

1. Hubs. CLE is now in danger of becoming the new PIT. Obviously, DEN, IAD, JFK, EWR, IAH, ORD, and SFO are all safe here, but unless they ferry all of their regional service through there, CLE will have a hard time staying as a hub/focus city. I would half expect a LCC to eat this up. TRS can take advantage of this by advertising the hell out of CAK, but I don't see another LCC wanting to start up ops or increase ops there. NKS isn't that far away at DTW, and SWA is focused on expanding at BOS. USA isn't going to touch it, especially after their flop at PIT. On the upside, this does gain UAL another hook into Australia, since CMI has a hub at GUM.

2. Regionals. This is way too much of a clusterF***, it will take 2 weeks just to get started on it. Anywho, here's the problem. Too many regionals: SKW. BTA. RAH (with CHQ, and RPA). GLA. ASQ. CJC. ASH. TCF, GJS. LOF. How this will be ironed out is anybody's guess.

3. Airlines. In the early 2000s, COA was vehement when they vowed that there will be no Airbus aircraft in their fleet. Thankfully, they got sued by the EU on that, which COA lost. Either way, there will be some MAJOR crosstraining here, as COA pilots would need to get used to flying Airbus aircraft, should they completely integrate. I don't think they will, because most of their overseas networks won't overlap. With that in mind, I do not believe UAL's recent order for A350s will be affected by this, because assuming that COA's routes remain intact, there wouldn't be any spare aircraft to replace the B772s UAL has (keep in mind that UAL was the launch customer for the B777, so theirs would be one of the first off the assembly line). I also don't think the A350 order will be affected, as they are going to be used to replace UAL's B744 service, which is currently only to Oceania (read: YMML, YSSY). However, COA already announced their inagural B787 service, while UAL's B788s are to be received after COA's start service. UAL's B788s are to replace their B762s and B772s (UAL was the launch customer for that type, so by the time they get the B788, their B772s will be shy of 20 years old).

4. Alliances. If this doesn't cement COA's entry into Star Alliance, nothing does. CMI, being a wholly owned COA Subsidiary, is going to follow. However, would BTA follow? Also, last time I checked, CMP (Copa) was 51% owned by COA. Will they follow suit and join Star Alliance, giving them a presence in S. America?

5. Most important for me. What will happen to Ch. 9?

Other than that, the livery just plain sucks. Wink

BL.
« Last Edit: June 29, 2010, 03:10:58 AM by tyketto » Logged
atcman23
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« Reply #4 on: June 29, 2010, 08:33:09 PM »

Very well put.  There are several rumors floating around CLE regarding the merger.  According to the airline, CLE will remain a hub.  While this is true, I don't think it will last long as it's not efficient and the location falls right in the middle of all of their east coast hubs.  I personally think operations at CLE will quietly wind down over time after the merger is complete and the new UAL will merely have an "origin/destination" operation at CLE.  SWA may expand there, but only slightly.  DAL will not expand there due to the proximity of DTW.  US Airways... forget it.  It may attract Jet Blue to enter CLE and compete with service to JFK and BOS, but it would likely only bring 4-6 flights daily to the airport.

Air Tran, with their large presence at CAK will stay put, along with Frontier.  American will not ramp up operations at CLE either (they reduced their operations there a LONG time ago).  That leaves no legacy carrier to fill in the void.

Only time will tell of course, however it is not efficient to run 5 of the 8 hubs east of the Mississippi and in such close proximity.  CLE will likely lost its hub status.
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Mark Spencer
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« Reply #5 on: July 01, 2010, 04:13:07 PM »

CLE has become a lil bit of a hot topic city right now!  I say that based on these two reasons...

1) This whole merger has made United really look at how they will manage their operations outta this city, will it stay a hub? or will they trim down alot of flights outta there, causing CLE to lose a decent amount of business.

and

2) This one isnt really related to the airlines, but can in some way correlate to the amount of business that CLE receives, and that is what LeBron James will do!  LeBron has brought a lot of business and attractiveness to the city through charities, endorsements, outside city fans, etc etc   and if he leaves a lot of business traffic and companies for which he represents goes with him. 
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Chananya Freedman
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« Reply #6 on: July 06, 2010, 01:08:57 PM »

Yes I do agree with everyone on this forum with the fact that we're all wondering what will happen to United's channel 9 service. If someone can get info on this we would all appreciate it.
I'm also wondering when does the actual merger takes effect?
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73's KI6YIL
Chananya Freedman
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atcman23
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« Reply #7 on: July 06, 2010, 06:48:34 PM »

The government has to approve the merger yet, which is expected sometime later this year.
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Mark Spencer
sykocus
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« Reply #8 on: July 07, 2010, 05:16:59 AM »

Yes I do agree with everyone on this forum with the fact that we're all wondering what will happen to United's channel 9 service. If someone can get info on this we would all appreciate it.
I'm also wondering when does the actual merger takes effect?

While the status of Ch 9 might be the number 1 concern for most of the users of this forum it's probably much lower on the list of priorities for the new company. They have to work out who will sit on the new board, union issues, integration reservation systems, maintenance, etc. So Ch 9 probably down there with "what to do with the old napkins".
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Yesterday I couldn't spell air traffic controller. Today I R one.
atcman23
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« Reply #9 on: July 07, 2010, 06:00:54 PM »

Old napkins might make good toilet paper in the lavatory.
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Mark Spencer
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