AWA/USAir Deal Near

[ash5855]

If AWA were smart, they just pick up what they want at the U liquidation sale. It's gonna happen.

Unfortunately, I think Doug Parker believes merger is the only way to get the expansion he feels AWA needs to survive. I see his point to an extent. If U were to finally liquidate (a big if) than there would be plenty of bidders for assets. (southwest, aitran, other legacies..) They would all bid up the price to the point that the deals wouldn't be that great. That is exactly what happened with ATA.
Parker was ready to merge with them to beat out southwest and airtran. That deal just might have happened were it not for some lease rates that were too high.

Parker did have the guts to walk away from that deal. Maybe he would do the same here. If this merger does happen I sure hope Parker is seeing something we don't that will make it a success.

 

[Wiskey Driver]

Unfortunately, I think Doug Parker believes merger is the only way to get the expansion he feels AWA needs to survive. I see his point to an extent. If U were to finally liquidate (a big if) than there would be plenty of bidders for assets. (southwest, aitran, other legacies..) They would all bid up the price to the point that the deals wouldn't be that great. That is exactly what happened with ATA.
Parker was ready to merge with them to beat out southwest and airtran. That deal just might have happened were it not for some lease rates that were too high.

Parker did have the guts to walk away from that deal. Maybe he would do the same here. If this merger does happen I sure hope Parker is seeing something we don't that will make it a success.

That's the point I made on our alpa board...

WD.

 

[Cactus73]

Unfortunately, I think Doug Parker believes merger is the only way to get the expansion he feels AWA needs to survive. I see his point to an extent. If U were to finally liquidate (a big if) than there would be plenty of bidders for assets. (southwest, aitran, other legacies..) They would all bid up the price to the point that the deals wouldn't be that great. That is exactly what happened with ATA.
Parker was ready to merge with them to beat out southwest and airtran. That deal just might have happened were it not for some lease rates that were too high.

Parker did have the guts to walk away from that deal. Maybe he would do the same here. If this merger does happen I sure hope Parker is seeing something we don't that will make it a success.

You are assuming that Parker is in control. He may be along for the ride. He's also the hand picked wonder CEO of all the USAir creditors. Is it also possible that he's become intoxicated by all the gushing over his "superior" abilities and this has become personal for him?

Parker gets all the credit for walking away from ATA, but we have no idea if it was the BOD that told him to walk or if it was his own decision.

I guess by Thursday we'll be able to see what he's been up to.

 

[FLB717]

Parker stated that he walked away because AWA could not finance the deal. Now he has or can find the money for USAir, and it is 4 times ATA's size. Should be interesting.

 

[Cactus73]

Parker stated that he walked away because AWA could not finance the deal. Now he has or can find the money for USAir, and it is 4 times ATA's size. Should be interesting.

Actually, this is not true. He clearly stated that there were plenty of people willing to put money up, but the lease rates on the airplanes were just too high.

We were out bid by Continental and Asian leasing companies.