This is a nightmare for a UA 1K with 400,000 miles in last 3 years. First of all, United is more innovative, has a much better product and better equipment. United's customer service, on board service, domestic and international service is way ahead of DAArk side. In terms of compatibility between airlines, there is almost none! Their 767s and 777s that look like common fleets share different engines (P&W on UA and RR on AA). This is the case with 757s are as well. United has huge fleet of Airbus narrow body aircraft, AA doesn't. UAL has classic 737s, AA doesn't. In terms of unions ALPA and APA are two different pilot unions. Absolutely this person doesn't know what he/she is talking about. The minute AA buys UA, they will have to park all the Airbus aircraft and that will do numbers on the values of the birds which will not go well with creditors. So, in a nutshell, there is more chance of Southwest ordering A380s than this happening. BAHA Fan of great service on United -----Original Message----- From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of Clay Wardlow Sent: Friday, August 27, 2004 7:23 AM To: AIRLINE@xxxxxxxxxxxxxxxxx Subject: AA take over UA? Someone on another list reported this (as many of you probably know): =20 http://www.speednews.com/stw/default.html#MBA =20 As one of the foremost aviation consulting firms, Morten Beyer & Agnew (mba) this week proposed the merger of United Airlines and American Airlines as the only practical solution to the financial problems of both airlines. "We propose that American take over United, as the stronger of the two carriers and the one who possesses the more successful management", said Chairman Morten Beyer. "United is burdened by its huge unfunded pension liability, continuing heavy losses despite its bankruptcy and cost reduction efforts, and has thrice been refused government loan guarantees required to fund its recovery."=20 Mr. Robert Agnew, President of MBA, pointed out that American's balance sheet is stronger than United's, with $3.853 billion in cash compared to $2.226 billion at United, and stockholder's equity only minus $122 million compared to minus $6.624 billion at United. "It is obvious that Major U.S. carriers face a dim financial future as they battle the steady growth of low cost competitors, ruinous competition among themselves, and relentless cost pressure from labor unions, rising fuel expense, and the costs of maintaining their inefficient hub-and-spoke route systems," Mr. Beyer said. "A major impediment to a merger of United and American may lie in DOT and DOJ concerns over the anti trust implication of such a combination, but we believe there is no realistic alternative if we are to avoid the liquidation of United and the resulting adverse consequences to our air transportation system," stated Mr. Agnew.=20 "We have always had the doctrine of saving failed corporations, including airlines, through merger, the most recent being American's takeover of TWA," stated Mr. Agnew. "We see the following major advantages to a merger of the two carriers:=20 1. American will become the dominant international carrier between the U.S. and all areas of the world,=20 2. The merger will save the jobs of many of United's 80,000 employees and possibly as many as 200,000 airport, servicing, and other employees,=20 3. Service will be maintained over United's extensive domestic route system and preserve competition with other Major carriers,=20 4. Wasteful competition between United and American will be eliminated in major markets and excess capacity reduced,=20 5. The investment and financing in both carriers' extensive fleets will be preserved,=20 6. As American has more employees, its unions and their better labor relations will prevail,=20 7. As American has the stronger management, progress in overcoming the merger's problems should be swift and effective,=20 8. The combination of station facilities, headquarters staff, and real estate will save hundreds of millions in unneeded duplication, and=20 9. A buy-out by American will no doubt be the best deal that United's creditors will ever get," Mr. Agnew concluded.=20 "What with the IAM suing to get the appointment of a trustee for United and the continued financial failure of the carrier, it is high time to take decisive action. We believe that the prospects of a merged company and the combined assets are sufficient to support the estimated $10.0 billion in additional equity and loans required to support the merger," Mr. Beyer concluded. =20 =20 Now, I don't think this will ever happen because the government would never let it, but it's interesting to think about. =20 Clay - SEA FAAn of AA world dominAAnce! =20 =20