More Airline consolidation - UAL + Continental. AMR + US Air to follow?

[T_R_Oglodyte]

Continental and United Said to Be Closer to a Merger

United Airlines and Continental Airlines are getting closer to a merger agreement and would like to wrap up a deal by the end of next week, people with direct knowledge of the discussions said Friday.

The negotiations, which have been under way for months, accelerated after Delta Air Lines and Northwest Airlines announced a $3 billion deal on April 14 that would create the nation’s biggest air carrier.

The talks between United and Continental are in an advanced stage but are not yet complete, the people who had been briefed on them said. They requested anonymity because the talks were private.

The two airlines would like to be finished by Thursday, these people added, although the negotiations could easily run into delays. …

American Airlines in talks with Continental, US Air

NEW YORK (Reuters) - American Airlines (AMR.N) has had early-stage merger talks with US Airways (LCC.N) and is in advanced talks for an alliance with Continental Airlines (CAL.N), sources briefed on the situation said on Friday.
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News of the talks comes after Delta Air Lines' (DAL.N) and Northwest Airlines' (NWA.N) announced nearly two weeks ago they planned to merge to become the world's largest airline, seeking to counter skyrocketing fuel prices, a weak economy and a growing competitive threat from European carriers as trade barriers fall on trans-Atlantic travel.

American Airlines' talks with Continental are focused on forming an alliance that could share passengers, …

But Continental is also in advanced talks with United Airlines (UAUA.O) for a full merger, the sources said. Continental will choose either the merger or the alliance, not both, sources said.

Meanwhile, United Airlines is also in serious merger talks with US Airways, and will choose to merge with either Continental or US Airways soon, the people said.

American's talks with US Airways were not serious at this point, one person said.

Aviation consultant Bob Mann said a US Airways-American Airlines merger would not be a marquee matchup and would give American, currently the largest U.S. carrier, little extra depth overseas.

"It doesn't match Northwest-Delta and it would not match the global presence of a Continental-United, if that were going to happen," Mann said. "But I think if Delta-Northwest does happen and Continental (and United) does happen, about the only thing left on the board is US Airways."

All of the airlines declined to comment.

[dougp26364]

I suppose in the end this will in some way, shape and form be a good thing. Right now, holding a ticket on any airline seems to be akin to holding a raffle ticket. You assume you'll be flying but, you never 100% what time you'll leave, what time you'll arrive, what sort of aircraft you'll be flying on, what seats you'll have on said aircraft, if you'll be seated together or if you'll even be on the same aircraft and, finally, if you'll even be flying at all.

Years ago I was told an saying and it seems to ring truer every day. If you have time to spare, go by air.

[Icarus]

Continental Abandons Merger Talks with United

http://www.nytimes.com/2008/04/28/bu...6&ei =5087%0A

NY Times, free registration required.

Continental Airlines said Sunday that it had abandoned merger talks with United Airlines and was planning to remain an independent carrier, a blow to lengthy efforts by United to find a merger partner.

-David

[beejaybeeohio]

Living in a Continental hub city, I am glad talks re: merging with United are abandoned. Should there have been a merger, there was concern that we would lose hub status. Currently we have a direct CO flight to London and are gaining one to Paris from Cleveland.

[T_R_Oglodyte]

Originally Posted by Icarus

Continental Abandons Merger Talks with United

http://www.nytimes.com/2008/04/28/bu...6&ei =5087%0A

NY Times, free registration required.



-David

I suppose this United and USAir will start looking at consolidating. Wouldn't surprise me to see American sniffing around Alaska Airlines.

[Carolinian]

If you like higher ticket prices, fewer ff benefits, and less service, then you will love these mergers. Consumers need to do all we can to oppose them. A three airline oligopoly that would result would not be in our interests.

We have to remember that these airlines are NOT is the same boat as Skybus. They are, however, resorting to flim-flam to make it appear that they are. A good example is DL and NW's announcements of huge quarterly losses, which the media duly reported to scare regulators, politicians, and passengers. When one looked closely, however, most of these ''losses'' for both airlines were huge arbitrary writedowns of ''good will'' a non-cash balance sheet item that doesn't impact the airlines' ability to operate or their cash on hand. There is a lot more in the announced merger plan that borders on scam. One is removing Air France's role in this merger from the top of the table to under the table for political reasons.

This is probably one of the biggest monopoly/oligopoly issues for American consumers in our times.