USAir may chase United......

[General Lee]

U.S. Air could still take part in airline-industry consolidation, according to analysts at Bear Stearns.

"We don't think the M&A story is over," analyst David Strine wrote in a note to investors. "There are other, more willing players -- e.g. United (UAUA : ual corp-- that could also be a potential partner for [U.S. Airways]."



Thank gawd we got rid of Parker..... And Tilton seems to want to merge. So, have at it boys! (how would that work in the West? Hubs--SFO,LAX, PHX, LAS, DEN?? Yikes) Maybe Delta could buy up some of the hubs......TIC.


Bye Bye--General Lee

 

[lowecur]

U.S. Air could still take part in airline-industry consolidation, according to analysts at Bear Stearns.

"We don't think the M&A story is over," analyst David Strine wrote in a note to investors. "There are other, more willing players -- e.g. United (UAUA : ual corp-- that could also be a potential partner for [U.S. Airways]." They must be reading my mind, or my blog at flightinfo. You think these talking heads have any original thoughts?



Thank gawd we got rid of Parker..... And Tilton seems to want to merge. So, have at it boys! (how would that work in the West? Hubs--SFO,LAX, PHX, LAS, DEN?? Yikes) Maybe Delta could buy up some of the hubs......TIC. Yeah, I'm sure LAX would be glad to give DL a great deal. You think you could grab it for the same money you're paying now?

Bye Bye--General Lee

.....

imp:​

 

[Marko Ramius]

With UA's old management no doubt, but their current team seems more interested in CO and DL than US. Plus one of the hangups with the last CO proposal was supposedly that neither team wanted to give up mgt. control. Tilton isn't interested in stepping aside in a merger, and neither is Parker.

 

[General Lee]

With UA's old management no doubt, but their current team seems more interested in CO and DL than US. Plus one of the hangups with the last CO proposal was supposedly that neither team wanted to give up mgt. control. Tilton isn't interested in stepping aside in a merger, and neither is Parker.

I bet Tilton is interested in stepping aside, taking the money, and going back to the oil industry, or just retiring.


Bye Bye--General Lee

 

[Poahi]

First, Airways is rejected by Delta, then it's chasing NWA and now UAL. It looks like a jilted high school prom girl.

 

[AlbieF15]

You guys did a good job. Keep OUR Delta was a good campaign.

Now put some "US Air B GONE" tablets around the doors at ATL, SLC, and MCO and get back to making Delta great.

Way to go guys...

 

[Noserider76]

Thought this was pretty humorous.

USAirways Places $46.5B Buyout Offer for American Airlines
January 31, 2007 2:30 EST
Tempe, AZ (AP Business Wire)

In the wake of this morning's withdrawal of its bid for Delta Air Lines, USAir promptly followed up with an even larger and more ambitious $46.5 billion offer for Dallas, Texas-based American Airlines. The buyout offer, according to sources close to the deal, is composed of $23 billion in USAirways stock and $23 Billion in cash with $22.5 billion of that cash being borrowed from Wall Street investment and banking firms. The combined airline would be the largest in the world but would also be encumbered with significant levels of debt with over $65 billion in long-term debt obligations. Sources close to USAirways management have further stated that a condition to consummation of the deal is that American Airlines file for bankruptcy no later than March 1st so that the bankruptcy process can be utilized in order to take advantage of "large, advantageous and significant synergies that can only be achieved through the courts". Unnamed sources further stated that in order to achieve these synergies, approximately 400 American Airlines aircraft would be returned to lessors.

Ray Niedl, an airline analyst with Caylon Securities voiced initial skepticism about the deal. "The total debt service in the aftermath of a successful combination might prove to be burdensome. I think it has little chance of working, either from a business, investment, banking or regulatory standpoint", he said. A USAirways executive who wished to remain anonymous out of sheer embarrassment tried to address those concerns by stating, "Synergistically and maximally combined strengths will provide enhanced valuation in a dysfunctionally fragmented marketplace." He did not elaborate.

In an attempt to quell an already rising tide of opposing sentiment amongst American Airlines employees, USAirways CEO Doug Parker elected to field questions on the steps of USAirways headquarters in Tempe. "This will be a good deal for all stakeholders, including employees," said Parker. "Any employee reductions resulting from the parking of 35% of the combined fleet can be easily achieved through attrition." When asked about the contractual provisions of American's pilot contract that stipulate that all flying over 70 seats must be flown by American Airlines pilots and the fact that he's attempting to integrate a vastly larger seniority list with a so-far unsuccessfully combined America West/USAirways list Parker stated that, "We haven't looked at that yet and are taking the position that potential problems with this deal will go away if we pretend they don't exist." In a surprisingly candid comment, he elaborated on his motivation for coming up with this new deal so quickly after withdrawing his Delta bid. "The short-term hedge fund traders who stood to profit so greatly at the hands of Delta employees and who had no long-term interest in the success or failure of our proposed Delta buyout were despondent when informed of our decision this morning regarding Delta. I hastily put this deal together to further ingratiate myself with them, 'cause they're really the only people around here who like me." He also tried to address concerns from the investment community as to the balance sheet of the combined airline by saying, "The level of debt doesn't matter at all. For example, look at GE. They have over $400 Billion in debt." After it was pointed out to him that GE's debt is investment grade paper that is part of their business banking services, Parker declined to take further questions.

 

[pgcfii2002]

This is funny............

 

[Bavarian Chef]

First, Airways is rejected by Delta, then it's chasing NWA and now UAL. It looks like a jilted high school prom girl.

Or the drunk dude that hits on every pig that ain't accounted for 10 minutes before last call...

 

[Marko Ramius]

I bet Tilton is interested in stepping aside, taking the money, and going back to the oil industry, or just retiring.


Bye Bye--General Lee

I'll bet you all of your moonshine, he's more interested in a merger with a carrier like Singapore or Lufthansa than any US carrier. No need to retire then, just be the figurehead leader of the US division of the Luftwaffe-you know kind of like being president of DL Connection back in the day.

 

[F9 Driver]

Nwa?

Will US Airways Seek a New Target?

Wednesday January 31, 4:54 pm ET
By Chris Kahn, Associated Press Writer
US Airways Mum on Future Acquisition Plans, but Some See Another Try
PHOENIX (AP) -- With Delta off its plate, US Airways may go shopping again, given continuing pressure on the industry to consolidate and reduce the number of available airline seats, analysts said on Wednesday.
US Airways Group Inc. wouldn't comment about pursuing other deals, now that Delta Air Lines Inc.'s official creditors committee rejected its $9.8 billion hostile bid. US Airways promptly withdrew its buyout offer.

But analysts said CEO Doug Parker is known for aggressively snapping up bankrupt airlines and turning them around. And his recent success with his ongoing combination of America West and the bankrupt former US Airways has given him a lot of currency on Wall Street.

"US Airways wants to be a buyer rather than a seller," said Ray Neidl, an airline analyst with Calyon Securities in New York. "It's got a young, aggressive management team. They've done a good job turning around a troubled airline. They've got the confidence of the investment community. They can raise capital for an acquisition."

After announcing that US Airways had swung to a $303 million profit in 2006, Parker told reporters Tuesday that the only other viable company to buy this year would be Northwest Airlines Corp., which is set to emerge from Chapter 11 bankruptcy by June 30.

Parker said bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.

"Not until you find airlines in financial distress will you see consolidation happen," Parker said.

Northwest spokesman Roman Blahoski wouldn't comment Wednesday if the carrier has spoken to US Airways about a deal, or whether the Minneapolis-based airline would be interested in one.

On Tuesday, Northwest Chief Executive Doug Steenland said the carrier has no plans to combine with another airline before it emerges from bankruptcy. However, Northwest has hired a consulting firm to help the company deal with any potential offers.

Northwest's Association of Flight Attendants spokesman Ricky Thornton said the union would support a US Airways deal if there were promises to benefit employees, and if the combined company were in a better financial position.

"A stronger carrier provides greater security for long-term viability of jobs, employment, retirement," Thornton said Wednesday. "Those are wonderful things for our people."

Northwest's flight attendants currently are fighting a proposed 40 percent cut in pay and benefits. Thornton said they're asking an appeals court for the right to strike.

Delta's management and pilots union have widely opposed combining with US Airways. The carrier's board of directors had previously rejected an $8 billion cash-and-stock bid that US Airways made in November.

US Airways sweetened its bid by 20 percent in January in hopes of attracting Delta's unsecured creditors. But Delta's official creditors committee rejected the $9.8 billion bid Wednesday and sided with Delta management's plan.

The Atlanta-based carrier expects to be worth $9.4 billion to $12 billion when it emerges from bankruptcy by the middle of the year.

After the announcement, US Airways officials wouldn't comment about any future bids for other airlines.

In a statement, the Tempe, Ariz.-based carrier said Delta's official creditors committee would not meet its demands by the airline's established deadline of Feb. 1, 2007.

"We are disappointed that the Committee, which has been chosen to act on behalf of all Delta creditors, is ignoring its fiduciary obligation to those creditors," Parker said in a statement. "Our proposal would have provided substantially more value to Delta's unsecured creditors than the Delta stand-alone plan."

Shares of US Airways gained $2.88, or 5.4 percent, to close at $55.98 Wednesday on the New York Stock Exchange. They have traded in a 52-week range of $28.35 to $63.27.

US Airways: http://www.usairways.com

Delta Air Lines: http://www.delta.com


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[lowecur]

I'll bet you all of your moonshine, he's more interested in a merger with a carrier like Singapore or Lufthansa than any US carrier. No need to retire then, just be the figurehead leader of the US division of the Luftwaffe-you know kind of like being president of DL Connection back in the day.

Good point, but it will never happen. The only way we get foreign ownership in here is if the world economy collapses and if that's the case.......Singapore will probably be the only carrier left with $$$$.

Tilton is a rational man and is not so ego driven as to let it get in the way of what's best for UAL. He has postured for foreign ownership, but that is because US was stalking DL. My guess is things could heat up rather quickly if the mgt teams have a meeting of the minds in the next few months. Tilton knows UAL needs to partner with someone to survive the next downturn, and he knows the other legacy's are not interested at this point.....so he will dance with who's available.

imp: ​

 

[lowecur]

Parker said bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.

"Not until you find airlines in financial distress will you see consolidation happen," Parker said.

Northwest spokesman Roman Blahoski wouldn't comment Wednesday if the carrier has spoken to US Airways about a deal, or whether the Minneapolis-based airline would be interested in one.

On Tuesday, Northwest Chief Executive Doug Steenland said the carrier has no plans to combine with another airline before it emerges from bankruptcy. However, Northwest has hired a consulting firm to help the company deal with any potential offers.

Parker is an artist when it comes to springing his plans. He gets everyone looking one way then goes for the unexpected.

Parker doesn't have time to go through the same non-sense that happened with DL. It hurts the credibility that he has built up on Wall St. The next time he pulls the trigger it will be with the blessings of the mgt of the company he is seeking to merge with.

I don't think Parker trusts Steenland or the creditors committee with NWA. If they are truly interested in merging with someone, they will use Parker to get other players into a bidding war for NWA, with US Air the likely loser. Not saying it couldn't happen, but I would be surprised.

imp: ​

 

[VeeOne]

Huh oh- Airways might snag Northwest away from General Lee..........sorry Leebo........

 

[Marko Ramius]

Good point, but it will never happen. The only way we get foreign ownership in here is if the world economy collapses and if that's the case.......Singapore will probably be the only carrier left with $$$$.

Tilton is a rational man and is not so ego driven as to let it get in the way of what's best for UAL. He has postured for foreign ownership, but that is because US was stalking DL. My guess is things could heat up rather quickly if the mgt teams have a meeting of the minds in the next few months. Tilton knows UAL needs to partner with someone to survive the next downturn, and he knows the other legacy's are not interested at this point.....so he will dance with who's available.

imp: ​

Never say never, I don't want foreign ownership either but just like a small group of determined a$$es are on the verge of changing Age 60, a much larger group of determined a$$es(the ATA) will continue charging for increased foreign ownership. As far as Tilton goes, I think it's more than posturing. If you check your scorecard, he has been stumping for this essentially since he got to UAL, and definitely during the period ahead of the bk exit. That was long before HP thought about US let alone DL. I'm not in the guy's head to say that he's rational or not like you believe, but if you look at his speeches here and abroad prior to UA leaving BK his preference for a Air France-KLM style hookup has been clear for awhile. I'll bet he would have preferred that it had been part of the exit deal.

As it stands now, he doesn't need a deal and he knows that. United and UsAir have talked in recent years, but once UA changed management teams that well dried up. Lakefield tried to put a pretty face on it, but that is basically what sent him in the direction of HP. UA sits pretty comfortably as the #2 carrier and as long as they have the codeshare with US, they have no glaring holes in their structure that must be fixed this instant. There biggest problem is a lack of intl airframes and probably a few domestic too, but I bet they can get those for a decent price if need be now that they are out of bk. Sure if domestic consolidation occurs, Tilton doesn't want to be left out but I'm not sure he's in a hurry to make a move and if he does it's clear that he's much more interested in CO & DL than US.