The Next Mergers

[AceOnTheRiver]

What is the status of the UsAir and America West merger? Did they ever merge their seniority lists? What would happen if AA buys UsAir to compete against United/CAL? Opinions?

 

[boeingdriver213]

I doubt anyone wants to touch anything involving Airways employees.

 

[AceOnTheRiver]

They don't have much of an option if UAL and CAL merge this year. I guess they could look at Alaska or maybe both.

 

[Anonymous2]

The next merger: China Easter & China Southern.......wait, that already happened didn't it???

How about Southwest & AirTran? But then again, that wouldn't be a merger. It'd be an acquisition by swa.

Really though, everyone's guessing ual & cal will be gettin' cozy with each other.

 

[maxblast72]

How about Southwest & AirTran? But then again, that wouldn't be a merger. It'd be an acquisition by swa.

Why would it be considered an acquisition? Is it because Airtran made more money than Southwest in 2009?

 

[RedDogC130]

Why would it be considered an acquisition? Is it because Airtran made more money than Southwest in 2009?

2009 is pennys on the dollar compared to the last 8 years

​

Operating income (loss) [5]
$31
$86
$3
$23
$41
$138
-$87


in millions for AT
http://www.airlinefinancials.com/uploads/2008_WEBSITE_AAI.pdf

​

Operating income (loss) [5]
$341
$379
$404
$725
$934
$791
$449

in millions for SWA
http://www.airlinefinancials.com/uploads/2008_WEBSITE_LUV.pdf

 

[boeingdriver213]

USAir's DCA and LGA slots are really the only thing with any value. A slot auction would quickly take care of those. The rest could go away and be quickly filled in by other carriers. The labor issues at USAirways are not anything any airline management would be interested in taking on. Extremely senior labor, internal labor unrest, etc. Not a pretty sight.

 

[Anonymous2]

Why would it be considered an acquisition? Is it because Airtran made more money than Southwest in 2009?

Why? Because I believe that swa has the fund$ to do so, and I think tran might not actually mind participating. Keep in mind that, consolidation isn't limited in any way to just the major carriers. Little airlines are just as available/vulnerable, however you want to put it.

 

[Ty Webb]

Yawn

Why? Because I believe that swa has the fund$ to do so, and I think tran might not actually mind participating. Keep in mind that, consolidation isn't limited in any way to just the major carriers. Little airlines are just as available/vulnerable, however you want to put it.

Flame away, newbie. You're no InstructorDude or JimboRealGoodPilot, that''s for sure. Yawn.

 

[Anonymous2]

Flame away, newbie. You're no InstructorDude or JimboRealGoodPilot, that''s for sure. Yawn.

Seems like you've got a lot of newbies to deal with on here.

 

[QCappy]

They don't have much of an option if UAL and CAL merge this year. I guess they could look at Alaska or maybe both.

From a Wall Street analysis:

M&A: Often rumored but unlikely in near term ​

​

​

ALK is a theoretically attractive acquisition candidate for AMR, LUV, and DAL because of the network footprint, but we believe the likelihood of a takeout is low because of acquisition cost, an uncertain industry outlook, and ALK's current revenue structure. Of the potential acquirers, DAL likely has little near-term interest as the company is digesting its October 2008 acquisition of Northwest, AMR has other cash management priorities, and LUV has set forth stringent criteria for the carrier to pursue an acquisition.​

​

​

​

ALK derives a meaningful portion of its revenues from codeshare and interlining agreements with oneworld and SkyTeam – an acquisition would likely result in the termination of at least one of these agreements and de-value the franchise, in our view. We believe ALK would likely fight off any takeover attempt quite vigorously should the scenario present itself.​

​

​

 

[maxblast72]

2009 is pennys on the dollar compared to the last 8 years

​

Operating income (loss) [5]
$31
$86
$3
$23
$41
$138
-$87


in millions for AT
http://www.airlinefinancials.com/uploads/2008_WEBSITE_AAI.pdf

​

Operating income (loss) [5]
$341
$379
$404
$725
$934
$791
$449

in millions for SWA
http://www.airlinefinancials.com/uploads/2008_WEBSITE_LUV.pdf

I am not busting on Southwest. They have been the best run most consistently profitable airline over the last 30 years. I think the Bags Fly Free campaign is the latest good idea that being proven with good results (see SWA Q4 2009 results).

I am actually a little surprised Kelly isn't using this downturn to grow organically and grab marketshare. Is Kelly keeping SWA stagnant in preparation for a merger to grab additional marketshare?

 

[flyboyike]

The next mega merger will be between Frontier, United, Continental and Delta, with the resulting carrier to be called FUCD.

 

[FIREMAN]

The next merger: China Easter & China Southern.......wait, that already happened didn't it???

How about Southwest & AirTran? But then again, that wouldn't be a merger. It'd be an acquisition by swa.

Really though, everyone's guessing ual & cal will be gettin' cozy with each other.

Actually it will be a asset buy of the 737s and ATL gates from the post strike vote bankruptcy.

 

[AA717driver]

Simple: 49%.

TC