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United and Continental to announce merger next week?

Seems like the deal might be done by next Monday, May 3rd:

* Seems like United buys Continental
* Surviving name likely to be United
* HQ in Chicago (United’s current HQ)
* Senior management largely from Continental, not United

* Would create the world’s largest airline by passenger numbers

http://www.nytimes.com/2010/04/30/business/30air.html?dbk

Andy

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By: Grey Area - 10th May 2010 at 12:49

Moderator Message

Ahem…. back on-topic please, gentlemen.

Good luck, Jon. Let’s hope your fears turn out to be unfounded.

Cheers

GA

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By: cloud_9 - 10th May 2010 at 12:42

Well I am not entirely sure that I will loose my job, there are a few options that could be available when the time comes, but I can’t do/say anything about it because even I don’t know anything yet…unfortunately thats the way these things are handled, and sadly it is often that the workers on the frontline are the last people to find out anything!

I’ll send you a PM nearer the time.;)

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By: Bristol_Rob - 9th May 2010 at 19:54

looks very much like I will be looking for a new job very soon!:(

Aw Jon mate i really Hope that doesnt happen! … Why would that be??

Rob
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By: ThreeSpool - 9th May 2010 at 18:39

Ja Worsley, with 3341 ordered aircraft, and 2568 ordered outwith North America – it makes your comment(s) look a little silly. 🙂

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By: Ja Worsley - 9th May 2010 at 18:20

Unital or Contineted

When I heard about this on the news down here I thought straight away of the impact on the market- seems like the only way Boeing could have survived was with this merger since just about everyone else is buying Airbus these days.

Boeing now support the two biggest aircraft users in the US, This super airline and the USAF (the KC-X which was to have been a version of the Airbus A330 has now been dropped by Airbus from the competition after the new findings have shown that Congress re-wrote their requirements to favour the Boeing product).

Long live Boeing, no one else wants American, America will have to have it :p

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By: Skymonster - 4th May 2010 at 15:24

What I do not understand is why is it United “buying” Continental. COA have been a much stronger airline over the recent years.

It is a merger really. But from a financial transaction point of view, United will issue more of their own stock to raise money which will in turn be used by United to buy the Continental stock. No doubt many of the people / organisations that buy the new UA stock will be the same people who have to sell their Continental stock so the combined shareholder base may well remain broadly similar to that of the two seperate companies – which ever way you cut it, the major airlines are broadly speaking fairly stable stocks that major institutions do invest in.

I suspect that its this way around (United buying Continental) because, irrespective of how they’ve traded recently, United’s market cap is currently well above that of Continental.

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By: Hand87_5 - 4th May 2010 at 13:03

Shame…United’s c/s is much better than CO’s.

I agree about the old c/s. I’m not sure about this white thing that they introduced a few years back.

If they go for a all white thing they might as well go for the CO c/s

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By: Bmused55 - 4th May 2010 at 10:20

That actualy does go together realy well.
I prefer the COA globe over the UA logo any day.

What I do not understand is why is it United “buying” Continental.
COA have been a much stronger airline over the recent years. Not without their issues, but much strong all the same.

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By: keithnewsome - 3rd May 2010 at 23:47

Nice photo ! Yes I like it !! Thank You for that Steve !

Keith.

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By: steve rowell - 3rd May 2010 at 23:40

http://i.usatoday.net/communitymanager/_photos/today-in-the-sky/2010/05/03/united-continental-planex-large.jpg

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By: ThreeSpool - 3rd May 2010 at 17:20

Surviving name to be United

Surviving colour scheme and logo to be Continental’s!!!

Hmm, not as bad as I thought. Should be quite nice to see the colour scheme on the B744/A319/A320.

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By: tenthije - 3rd May 2010 at 17:11

The Continental scheme is easier to paint, easier to clean, probably cheaper than United’s….

Makes sense.

Also, more recognisable. Nowadays most airlines in the USA have a blue belly with a (mostly) blue tail: US Airways, JetBLue, Delta, United. Continental springs out among the crowd. And in my personnal opinion looks more classy, but that is of course subjective.

I find it odd however that an airline that until very recently was making losses in the billions is able/allowed to take over an airline that was doing reasonably OK.

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By: J Boyle - 3rd May 2010 at 16:26

Shame…United’s c/s is much better than CO’s.

The Continental scheme is easier to paint, easier to clean, probably cheaper than United’s….

Makes sense.

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By: KabirT - 3rd May 2010 at 16:18

Shame…United’s c/s is much better than CO’s.

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By: Skymonster - 3rd May 2010 at 14:29

I wonder whether this merger will accelerate CO’s move from T4 to T1 at LHR?(

I’m pretty sure it will… United will want to be under one roof where ever possible, including LHR. With the new gates at the north end of the new T1 pier now in use (and a couple of gates on the inside of the new pier being cleared now with the demolishion of the old T1 international pier) I suspect T1 will soon become less gate limited

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By: Skymonster - 3rd May 2010 at 14:27

What a shame, sad to see Continental gobbled into the UAL-machine.

Surviving name to be United

Surviving colour scheme and logo to be Continental’s!!!

There’s an impression of a 787 in United’s new colours at:

http://www.unitedcontinentalmerger.com/

(damned shame really – I preferred UA’s current colours to CO’s)

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By: cloud_9 - 3rd May 2010 at 12:47

I wonder whether this merger will accelerate CO’s move from T4 to T1 at LHR?

They were already offered a chance to move, but the airline declined it as it would have meant all CO flights being parked on remote stands due to the construction work going on at T1/T2.

Either way, it looks very much like I will be looking for a new job very soon!:(

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By: FrequentFlyer - 3rd May 2010 at 11:10

From bbc news:

http://news.bbc.co.uk/1/hi/business/10095080.stm

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By: ThreeSpool - 3rd May 2010 at 10:38

What a shame, sad to see Continental gobbled into the UAL-machine.

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By: KabirT - 3rd May 2010 at 08:00

693 to be exact i believe.

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