storminpilot
Well-known member
- Joined
- Jul 6, 2003
- Posts
- 282
http://www.azcentral.com/arizonarepublic/business/articles/0430economy30.html
Air Canada has AmWest, US Airways merger ties
Dawn Gilbertson
The Arizona Republic
Apr. 30, 2005 12:00 AM
Another airline has been linked to a possible America West merger with US Airways.
The latest speculation focuses on Air Canada. The Toronto Star this week quoted a "Wall Street source" as saying the carrier may be in talks with both US Airways and America West Airlines in a deal that may see Air Canada take on international traffic while a combined US Airways-America West handles domestic U.S. traffic. It did not mention how such a deal would be structured.
Air Canada's chairman didn't rule out a possible merger for the airline on a conference call, the newspaper reported, but he seemed to be commenting on its role in industry consolidation in general. The discussion was a footnote in a story about the airline's $6 billion order for Boeing jets this week.
"Consolidation in the North American industry is inevitable," said Robert Milton, chairman of the airline's parent company. "To the extent Air Canada is or isn't part of that is yet to be determined."
The airlines are not strangers to each other.
Air Canada and US Airways are both members of the same airline alliance, the Star Alliance, a network of airlines that feed passengers to each other globally. They also have both used Seabury Group for investment banking.
On the America West side there's a Texas Pacific Group connection. The private equity firm brought America West out of bankruptcy a decade ago and, together with Air Canada, invested in Continental Airlines to bring it out of bankruptcy in 1993.
TPG still owns a controlling interest in America West and is seen as a key player in any merger. The extent of its role is unclear.
Rick Schifter, managing partner of TPG, wouldn't comment at an airline conference in Phoenix this week. But his overall comments on industry consolidation seemed to suggest that the airline is lukewarm on any further investments at this point.
He said the industry is "still sucking wind" because the success of low-cost carriers have brought about dramatic change in the rest of the industry.
"That gives us some pause as we look at the industry today," he said.
He also said the firm, a legendary bargain hunter, doesn't see a lot of steals out there because there is so much capital chasing few deals. That drives prices up.
He said they continue to keep an eye on the industry, "but we're fairly cautious at this stage."
Air Canada has AmWest, US Airways merger ties
Dawn Gilbertson
The Arizona Republic
Apr. 30, 2005 12:00 AM
Another airline has been linked to a possible America West merger with US Airways.
The latest speculation focuses on Air Canada. The Toronto Star this week quoted a "Wall Street source" as saying the carrier may be in talks with both US Airways and America West Airlines in a deal that may see Air Canada take on international traffic while a combined US Airways-America West handles domestic U.S. traffic. It did not mention how such a deal would be structured.
Air Canada's chairman didn't rule out a possible merger for the airline on a conference call, the newspaper reported, but he seemed to be commenting on its role in industry consolidation in general. The discussion was a footnote in a story about the airline's $6 billion order for Boeing jets this week.
"Consolidation in the North American industry is inevitable," said Robert Milton, chairman of the airline's parent company. "To the extent Air Canada is or isn't part of that is yet to be determined."
The airlines are not strangers to each other.
Air Canada and US Airways are both members of the same airline alliance, the Star Alliance, a network of airlines that feed passengers to each other globally. They also have both used Seabury Group for investment banking.
On the America West side there's a Texas Pacific Group connection. The private equity firm brought America West out of bankruptcy a decade ago and, together with Air Canada, invested in Continental Airlines to bring it out of bankruptcy in 1993.
TPG still owns a controlling interest in America West and is seen as a key player in any merger. The extent of its role is unclear.
Rick Schifter, managing partner of TPG, wouldn't comment at an airline conference in Phoenix this week. But his overall comments on industry consolidation seemed to suggest that the airline is lukewarm on any further investments at this point.
He said the industry is "still sucking wind" because the success of low-cost carriers have brought about dramatic change in the rest of the industry.
"That gives us some pause as we look at the industry today," he said.
He also said the firm, a legendary bargain hunter, doesn't see a lot of steals out there because there is so much capital chasing few deals. That drives prices up.
He said they continue to keep an eye on the industry, "but we're fairly cautious at this stage."
