Merger Alert:US Airways/Alaska ( fact or fiction?)

[Lampshade]

http://thefloridanewsjournal.com/2011/07/18/u-s-airways-reportedly-in-talks-to-buy-competitor/


Unconfirmed reports say U.S. Airways is trying to buy out competitor Alaskan Airlines. After previous failed attempts to merge with United, U.S. Airways is the last of the major airlines which have not merged.
The two airlines have very little overlapping routes, and a merger could increase both airlines’ overall presence and market share.
Alaskan Airlines is based out of Seattle and operates a fleet of 117 aircraft, all Boeing. The airline has active hubs at Seattle, Portland and Anchorage and operates a secondary hub at Los Angeles International. Alaskan also won the top spot for “Traditional Carrier” for 2011.
U.S. Airways has 339 airplanes from both Airbus and Boeing and is headquartered in Tempe, Arizona. Active hubs for the airline include Phoenix, Charlotte, Philadelphia and Washington DC’s Reagan National is a focus city for the airline. The airline bought America West in 2005.
U.S. Airways had no comment when contacted.

News source is questionable.

 

[Jar Jar]

Can't be true because Delta is already tapped out providing discounts to Frontier customers. Not enough money to subsidize USAir ticket prices via an AK merger.

 

[johnsonrod]

The resulting merger paint scheme would include Sully's face instead of the eskimo's face. In the end, the original America West pilots would still be screwed...

 

[heywood jablome]

Alaskan?.......

You are a tool. Come on now.....

good F.I. post though. You got my attention!

 

[CitationLover]

Considering Alaska is twice the size of US Airways (market cap), perhaps they have the purchaser reversed...........

 

[Dan Roman]

Fiction

It's been said before but I don't think USAir merging with anyone is very realistic. Reason? They bring, courtesy of USAPA, huge legal liabilities that won't be settled anytime soon. In addition they can't be merged into any other unionized carrier without causing even more legal problems that would never end.
No healthy airline could get a USAir merger to be accepted by their Board of Directors, because it would not be in any stockholders best interest to jump into that mess.
Alaska is a very healthy carrier, why would their BOD steer them down a path of endless litigation with no chance of a smooth merger?

USAPA has made USAir pretty much UNmergable for the foreseeable future.

 

[scoreboardII]

Must have got this from Holly.

Nobody, I mean nobody at Alaska is that dumb.

 

[waveflyer]

The writer of the article is clearly very bright and well informed.

 

[Mookie]

"Alaskan" is the name of the brewery based out of Juneau.

having said that...god this would suck donkey balls.

Mookie

 

[General Lee]

Maybe the Florida News Journal doesn't know much about "AlaskaN Airlines?" And when it comes to mergers, some lawyers and M&A bankers make the big bucks most of the time, and some don't really care about the results. Same with some CEOs out there in the business world, in many industries. Who knows if it is true or not? Interesting. I think it is safe to say that there might be more airline merger attempts in the future.


Bye Bye---General Lee

 

[wscrj]

Yes General, just as it's safe to say the sun might rise tomorrow.

Nah, the HA thing is the only choice even interesting enough to consider.

 

[Lampshade]

THIS ARTICLE HAS BEEN REMOVED BY THE EDITOR

LOL, looks like they took it down. They must have got a phone call....

 

[WSurf]

Didn't Doug Parker say there employee cost were too high to merge with US??? Funny Doug that they have a higher cost, but still make more money!! Hmmmmmmm

 

[Citjok]

I'm not an expert in economy but the last time I checked Alaska Air Group stock was $65.00 and change, US Airways $7.00 and change. Not a chance.

 

[The Prussian]

Interesting...I didn't know that USAir bought America West in 2005..

 

[reepicheep]

The article was clearly a ploy by some junior Alaska pilot to get a bunch of senior pilots to commit hari kari

 

[ImbracableCrunk]

commit hari kari

Cubs win! Cubs win!

 

[Green]

I'm not an expert in economy but the last time I checked Alaska Air Group stock was $65.00 and change, US Airways $7.00 and change. Not a chance.

You sure don't sound like an expert...Microsoft has a share price of 26. Does that mean Alaska Air Group is worth more than Microsoft? Just looking at a share price doesn't tell you much. Some companies have quite a few more shares outstanding than others

 

[Dan Roman]

You are right about the share price, but I think the point is that USAir doesn't have enough cash to "buy" Alaska. It would have to be a mutually agreeable merger. Which of course cannot happen due to the bed USAPA has built. It would not be in the best interest of Alaska shareholders to take on the USAir legal problems.
Again, USAPA has made USAir pretty much unmergable.

 

[Hpilot]

Doug made a lot of money for the investors that financed the AWA/US Airways merger. If anyone could come up with the money it would be him. As for Alaska? I wish it were true, but really doubt it. Probably did cause a couple heart attacks in the over 60 crowd.

 

[Boxboy]

USAir + "Alaskan"=Airmegeddon

 

[eaglesview]

USAir + "Alaskan"=Airmegeddon

Not to worry.

East + West = Unmergable

 

[get2flyin]

USAir + "Alaskan"=Airmegeddon

Actually it's USAir + "ANYONE"=Airmegeddon (head in hands)

 

[CitationLover]

You sure don't sound like an expert...Microsoft has a share price of 26. Does that mean Alaska Air Group is worth more than Microsoft? Just looking at a share price doesn't tell you much. Some companies have quite a few more shares outstanding than others

It's called market capitalization. Alaska is worth 2x what USAir is.

 

[Metrojet]

You are right about the share price, but I think the point is that USAir doesn't have enough cash to "buy" Alaska. It would have to be a mutually agreeable merger. Which of course cannot happen due to the bed USAPA has built. It would not be in the best interest of Alaska shareholders to take on the USAir legal problems.
Again, USAPA has made USAir pretty much unmergable.

Captain Roman -

If i were you - i would just be happy flying my A330 between the island and the west coast - you have no idea what can happen on the mainland between Alaska and Arizona - and USAPA is not the deal breaker (not that I want another merger)

Metrojet

 

[Dan Roman]

Captain Roman -

If i were you - i would just be happy flying my A330 between the island and the west coast - you have no idea what can happen on the mainland between Alaska and Arizona - and USAPA is not the deal breaker (not that I want another merger)

Metrojet

Sounds like I struck a nerve. Kind of of delusional thinking that nobody should post about "other" airlines on a web board for all airlines.

Simple fact is USAir has a LOT of legal baggage that would be brought to a merger. It would be illegal for a BOD of a healthy airline to subject itself to that and OK a merger that would turn a healthy airline into a unhealthy airline. Which would happen if anyone were to merge with USAir and subject itself to the legal mess USAPA has created.

Sorry, just stating the obvious.

 

[Flybywire44]

Sounds like I struck a nerve. Kind of of delusional thinking that nobody should post about "other" airlines on a web board for all airlines.

Simple fact is USAir has a LOT of legal baggage that would be brought to a merger. It would be illegal for a BOD of a healthy airline to subject itself to that and OK a merger that would turn a healthy airline into a unhealthy airline. Which would happen if anyone were to merge with USAir and subject itself to the legal mess USAPA has created.

Sorry, just stating the obvious.

Is Alaskan ALPA? Could Alaskan not just vote out USAPA and start with a fresh Union and fresh SLI/Contract negotiations?

 

[reepicheep]

Southwest would own SEA within 5 years....no make that 3 years.

 

[Hpilot]

Is Alaskan ALPA? Could Alaskan not just vote out USAPA and start with a fresh Union and fresh SLI/Contract negotiations?

You bet. So even though it would be a good thing for US Airways ucrapa/east would f*$& it up. The bone heads got handed a winning lottery ticket with the AWA/US Airways merger and managed to f$%^ that up. Dumbest pilot group in the history of aviation.

 

[Dan Roman]

Is Alaskan ALPA? Could Alaskan not just vote out USAPA and start with a fresh Union and fresh SLI/Contract negotiations?

They are ALPA, but that wouldn't prevent the USAPA pilots, even if voted out, from bringing years of litigation with them. Which is why no BOD could accept a USAir offer without putting themselves at great legal risk for failing their obligations to their own shareholders.
They would essentially screw up a healthy airline by accepting a USAir offer.