UAL Head to Stay Until 2011 While Merger Rumors Swirl

United Airlines today extended the contract of its CEO, Glenn Tilton, until 2011, ending speculation about his departure (his previous contract expired next year).

Tilton joined United in September of 2002 and headed the airline during its long Chapter 11 bankruptcy process. But now that United's out of bankruptcy, Tilton is calling for 'more consolidation' in the industry - meaning mergers of some sort. "Deregulation has done its work," he told the Financial Times earlier this year. "It's time to recognise that we should compete on a grander scale. Should the opportunity present itself, we'll make sure we're in a position to take advantage."

Which airline would Tilton like to see United merge with? Most people think Continental, because the two airlines operate similar aircraft and don't generally fly the same types of routes. Continental has a strong Latin America and European presence and United's Asian route network is the best in the industry. Yet Continental's CEO, Larry Kellner, has repeatedly said that Continental wishes to remain independent.

Whether or not that happens we'll have to see, but I bet that two of the legacies will merge next year... probably a United/Continental combination

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United: Help Us Get Into China

Not to be outdone by American, United yesterday emailed its Mileage Plus members a similar plea to sign a petition to help the airline fly from Washington to Beijing (see last post). United, with the support of the governors of Virginia and Maryland and the mayor of Washington DC (as well as other economic organisations) set up a website to explain their petition.

United is petitioning the Department of Transportation to be allowed to be the first domestic carrier to have a direct route between Washington, D.C. Dulles (IAD) and Beijing, China (PEK). Right now, 28 other world capitals have this route to Beijing; Washington, D.C. deserves to be next!

We are asking our members to please add their name and support to this initiative. It will only take a few moments of your time.

Simply click here to read our petition. Then add your name and address below to the form.

Thank you in advance for your participation.

Here's the text of the petition:

The Honorable Maria Cino
Acting Secretary
U.S. Department of Transportation
400 Seventh Street, S.W.
Washington, D.C. 20590

RE: Docket 2006-25275

Dear Madam Secretary:
I am writing to express my solid support for the application by United to initiate the first nonstop capital-to-capital service between Washington, D.C. Dulles (IAD) and Beijing, China (PEK), effective March 25, 2007.

If approved, United's application would create the first capital-to-capital service between the United States and China. This would not only be the most efficient route for the residents of the Washington, D.C. area, but provide an easy connection from cities throughout the eastern half of the United States.

The capital-to-capital route serves to enhance and strengthen the economic and political relationships between our two countries, and opens a welcome, and necessary, door to China. I respectfully ask that the Department grant United's application for the Washington Dulles to Beijing route. Thank you for your attention to their application.

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American: Help Us Get Into China

It seems like American Airlines is needing a bit of help to fly into China, or so it seems from an email that they sent out to the AAdvantage members:

Two Days Left To Support Our New Gateway To China

American Airlines recently applied to the U.S. Department of Transportation for the authority to fly from Dallas/Fort Worth International Airport to Beijing, China, beginning March 2007. Three other airlines have also submitted an application for an additional China flight, but only one U.S. airline will be awarded the right to add a daily flight to and from China.

As one of our valued AAdvantage® members, you can help us open a new gateway to China. The Department of Transportation bases its decision on many factors, and one of the most important is the amount of community support. By signing your name to an online petition you can show your support.

How will you benefit if American flies to China? DFW is American's largest hub where it operates almost 800 total daily flights with service to 129 domestic destinations. Establishing a flight to China from DFW will provide you with an expanded network of exciting destinations and more ways to both earn and redeem AAdvantage miles. In addition, once in China, you can connect to 24 destinations in the country's interior through our codeshare partner China Eastern Airlines.

Please sign this petition by Friday, September 22 and help us bring this valuable service to DFW. Visit www.FlytoChinaonAA.com. You'll also find more information about American Airlines and our proposed flight to Beijing.

Sincerely,

Dan Garton
Executive Vice President, Marketing

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