Could SWA ever purchase UAIR?

[lowecur]

Does it make sense for SWA to make a stock swap purchase of UAIR? Yes and no. If they were to leave UAIR in tact, then no it doesn’t make sense. If they were to buy UAIR and keep what they needed and sell or close off the rest, then yes it does make sense. Let’s look at how they might accomplish this:

• Stock Swap – no cash – pays off ATSB & RSA – SWA keeps all the cash
• Close PSA and cancel all regional feeds while still in BK
• Return all the Airbus’ while still in BK
• Keep 60 733s and 40 or so 734s
• Keep Shuttle running with MAA 170s. They have 22 now & expect 13 more shortly, or they could sell the shuttle with the 170s

What would they keep route wise.

• PHL – this is what they want
• LGA – Thwarts JetBlue
• CLT – close down maintenance & just make it O&D

They would probably keep the gates at all the rest of the major cities in UAIR network along with a number of peripheral mid-sized cities.

 

[SWA/FO]

What are you smoking?

 

[KeroseneSnorter]

Could SWA ever purchase USAir?

Yes..........but why would they want to?

 

[Smoking Man]

Wow, I think you have hit bottom with this one. Did you get this from Mrs. Cleo?

 

[RightBettor]

Bang bang bang...

"Open up the door it's Dave."

"Who?"

"Dave!"

"Who?!?!"

"DAVE... D-A-V-E, now would you open up the g*d-d*amned door!!!"

"Dave?"

"That's right, man, Dave!"

"Dave's not here!"

 

[Pugh]

Welcome to Airliners.net, now without the subscription fee!

 

[apdsm]

Glad he's not my insurance guy.

 

[Fly BI]

Great idea, turn a money maker with happy employees into a giant ball of hate and discontent. Just imagine the culture clash, and the influx of 55 year old F/As. Why I can't believe SWA hasn't already made their move!

 

[flint4xx]

No, the "big announcement" won't be that, if there even is a big announcement. Nice try.

 

[Triman]

lowera$$

Just go away already!!!!

 

[apdsm]

Thankfully, he's not a pilot. Could you imagine flying with him? He'd be another aeronautical genius, I'm sure...

 

[lowecur]

Feel the LUV

Does this mean I won't be invited to the annual Flightinfo.Com picnic for the Majors?

 

[FlyBoeingJets]

Lowecur,

IMHO, Mergers happen when there is fear that someone else will beat you to it. The assets, gates, or routes are desirable and in high demand.

Who else is in the market for USAir? Right now no one. IMHO, In this case it is better to grow from within.

The lingering nature of bankrupt (GE Capital controlled) carriers does alter the equation though. If the bean counters decide the debt is worth quality of the assets then it may be possible.

But...Deals like the ATA-SWA arrangement have less risk with similar reward. Much better.

Don't forget that no one has looked back on an airline merger and said, "Boy that was a really good idea!"

 

[G4G5]

Aflac Alfac

Just like a quacking duck

 

[vclean]

The insurance business must be slow for LonelyCur to have time to dream up this nonsense.

 

[apdsm]

Does this mean I won't be invited to the annual Flightinfo.Com picnic for the Majors?

Pretty much...

 

[Dave Siegel]

Yes..........but why would they want to?

Lowecur explained why.


Keep 60 733s and 40 or so 734s --Sounds OK (I think they're the old kind without the glass, so maybe not so good)

• Keep Shuttle running with MAA 170s. They have 22 now & expect 13 more shortly, or they could sell the shuttle with the 170s --SWA talked about having some RJ feed before, but I haven't heard great things about the 170s.

What would they keep route wise.

• PHL – this is what they want --ABSOLUTELY!!
• LGA – Thwarts JetBlue --Who cares. The 800 pound gorilla (DL) will squash JB
• CLT – close down maintenance & just make it O&D --I guess CLT would be nice. Seems to me the biggest missing piece for SWAs route structure is ATL. Are we (I know I don't work for SWA yet) that scared of Air Tran that we're avoiding ATL? What's the deal?

I wondered why SWA made that deal with ATA. The only thing I keep coming back to is that we wanted to stop Air Tran. It seems like AAI is becoming more and more of a problem every day. Maybe we should buy them and get our hands on their brand new 737s. Also, SWA could use AAIs 717s for RJ feed. We would have a turn key operation in ATL, which would really be a great market to get into. I don't know about Herb and Joe Leonard and how close they are, but this merger/acquisition makes sense to me. I'd love to staple these guys to the bottom of our list, but I don't see how you can justify doing that to an airline that's actually making money. I just hope I'm on the list before stuff like this happens. I don't think Lowecur is looking at the right target.

 

[FL717]

I don't know about Herb and Joe Leonard and how close they are, but this merger/acquisition makes sense to me. I'd love to staple these guys to the bottom of our list, but I don't see how you can justify doing that to an airline that's actually making money. I just hope I'm on the list before stuff like this happens.

Keep in mind that before you become employed at SWA.... they DO require a drug test.

You may want to stop smoking that crack BEFORE you submit to the wizz quiz.

 

[Metro752]

No, Because Southwest Doesnt Want No Stinky French Aeroplanes

 

[Dave Siegel]

No, Because Southwest Doesnt Want No Stinky French Aeroplanes

I agree. Thanks for making my point about SWA and AAI. The more you think about merger partners, the more AAI makes sense.