Things looking grim for UAL; they plan to cut 1100 jobs

[WestIndian425]

Heard this on the news today and went to look for the link. UAL is in trouble, as the media suggests, and I suppose this would fuel the fire of CO buying/merging with United.

http://money.aol.com/news/articles/_...22131809990042

[tonyw]

Here's the thing I just don't get. It makes no sense here.

You've got two money losing businesses but combining them is supposed to make them a profitable one?

Uh, no.

[meritflyer]

Originally Posted by tonyw

Here's the thing I just don't get. It makes no sense here.

You've got two money losing businesses but combining them is supposed to make them a profitable one?

Uh, no.

The airlines INTENT is to buy out the competition rather than just combine two unprofitable companies in hopes route, cost, and other material structures will compliment each other while reducing costs.

I've actually seen several losing medical device companies merge then emerge a fierce, profitable competitor.

[WestIndian425]

Originally Posted by tonyw

Here's the thing I just don't get. It makes no sense here.

You've got two money losing businesses but combining them is supposed to make them a profitable one?

Uh, no.

Wall Street has confidence in CO's management team as far as airlines go, even though Bethune is no longer at the helm.

[jwp_145]

Originally Posted by WestIndian425

Wall Street has confidence in CO's management team as far as airlines go, even though Bethune is no longer at the helm.

I went to school with Bethune's nephew. Nice family.