Delta and TPG looking into AMR Corp bid

[AA717driver]

JFK just isn't that big for AA.

TC

 

[ultrarunner]

Didn't NWA do something with TPG and Midwest Airlines in MKE before the DL merger?

TPG purchased MidEx outright, taking the airline private. NWA was a very small party to that transaction.

This was during the time of AAI's unsolicited offer to purchase MidEx, which forced MidEx to look elsewhere, as the AAI offer would likely have gotten shareholder approval...

And, naturally, we know what became of MidEx.

Venture capitalists at work....but in all fairness, MidEx was not going to be viable long-term in their current form at the time of all that...


Ultra

 

[On Your Six]

TPG, airline managements, they all know each other very well probably. Maybe there is a "big plan".


Godspeed!


The OYSter

 

[payton]

Excuse me while I go get some more STAPLES.

 

[Dan Roman]

Eventually the major airlines of the World will be Skyteam Airlines, One World Airlines, and Star Alliance Air. Being able to dismantle one of those now by picking apart one of the founders of one of them (AA), could be a part of the plan.

And Dan, your airline could also be a target someday. It may be really tough to stay independent, especially if you have a profitable niche.


Godspeed!


The OYSter

Perhaps, but......Hawaiian is only doing well because they are Hawaiian Airlines flying to Hawaii. We have found that we can go to a large city and fill up a widebody with people that want to go to Hawaii on Hawaiian Air. We have a niche that will always be there as long as there is a Hawaii.
As soon as you paint another name on the side and take away our local identity, we would lose a lot of our value. The argument against that would be we fly about 60% of the passengers in and out of HNL, so if someone wanted to go after market share, it would make us a target. But if anyone tried, they would get stiff opposition locally, including from the Government as the local job loss would be felt.

 

[Dan Roman]

I think the same is true for Alaska. There will be MORE opportunity for the niche carriers like SWA, AK,HAL etc, not less as the Mega carriers consolidate.

 

[Fubijaakr]

I think the same is true for Alaska. There will be MORE opportunity for the niche carriers like SWA, AK,HAL etc, not less as the Mega carriers consolidate.

I'd agree. Especially if you code share with a lot of different carriers.

 

[whatitdoing?]

Seems to me as the mega carriers consolidate, airlines Like VA. SWA, JetBlue and Spirit will find MORE opportunity, not less. The comment about RJ's kicking SWA's ass???? Correct me if I am wrong, but RJ's mostly feed mainline flights rather than compete head to head with anyone. Thinking you could use an RJ competing with a 737 or 717 seems like a stretch to me. This industry is morphing into a couple Mega carriers and leaving plenty of stones unturned in it's wake.

RJ's aren't RJ's anymore. Some are the size of small 737's. And in a lot of cases, passengers prefer to fly on those EMB190's than a 735. The new horizon involves 100+ seat RJ's as the 50-70 seaters are phased out. That's why the majors are very hard core about restricting things with scope.

 

[Angus Khan]

I just don't worry about it anymore. Nine years of furlough from AA just to come back and sit reserve in NY on a Superdedooper 80. Bring it all on. I've little to lose and am ready for anything...including another furlough (please don't throw me in that briar patch ).

 

[On Your Six]

Perhaps, but......Hawaiian is only doing well because they are Hawaiian Airlines flying to Hawaii. We have found that we can go to a large city and fill up a widebody with people that want to go to Hawaii on Hawaiian Air. We have a niche that will always be there as long as there is a Hawaii.
As soon as you paint another name on the side and take away our local identity, we would lose a lot of our value. The argument against that would be we fly about 60% of the passengers in and out of HNL, so if someone wanted to go after market share, it would make us a target. But if anyone tried, they would get stiff opposition locally, including from the Government as the local job loss would be felt.

I agree with you Dan, but you would have to convince some airline CEO and his team of investment bankers and lawyers not to do it. If you are good at something and fill planes, you are a target and buying you would take competition out of the picture. That would ultimately be the goal. Other airlines also do well flying out of Hawaii too, and those 717s could remain with a different paint job and would still be full 6 months later.



Godspeed!


The OYSter

 

[On Your Six]

I think the same is true for Alaska. There will be MORE opportunity for the niche carriers like SWA, AK,HAL etc, not less as the Mega carriers consolidate.

Not if there is a grab for those airlines too. I see AK, HAL, VA, JB, NKS, and maybe F9 as potential targets, or potential merger partners themselves. There is too much inventive for management types and M&A lawyers to make extra money with these deals. This is the beginning of the second round of consolidation, and there might be several rounds.


Godspeed!


The OYSter

 

[fam62c]

If nothing else these other interested parties will act as a spoiler to prevent AMR management from getting a sweetheart deal and coming out with more competitive advantages than are necessary. It's not in anybody's interest (the other carriers anyway) to have a reorganized, low cost AMR to compete with. We could see a deal where several carriers jointly prepare a plan to give the creditors the best deal and then split the parts among various parties. AMR has many hubs, routes, aircraft, slots and facilities some of which may be attractive to various carriers. The sum of the parts may be worth more than the whole.

 

[spitfire1500]

willing to "play ball" during a merger. I think the interest of multiple parties (there may be more) also increases the chances that AMR could be fragmented among several buyers.

"Play ball during a merger"....shouldn't AMR pilots be stapled!! That was the deal when TWA tanked!!

 

[Whataburger]

We can take some New York slots to help the reguators give yall the thumbs up. We are that nice!

 

[whatitdoing?]

Please no UsAir and United
Please no UsAir and United
Please no UsAir and United
Please no USAir and United
Please no UsAir and United
Please no UsAir and United............

 

[Hamfighter]

Delta with a DFW base? All would be right with the world again!

 

[Fubijaakr]

LCC and AA. That's the ticket for success. LOL!

 

[On Your Six]

We can take some New York slots to help the reguators give yall the thumbs up. We are that nice!

USair already divested themselves of most of their LGA ops, so they would just be re-acquiring LGA slots via AA. In that scenario, you probably wouldn't get much. Delta would not want any AA NYC assets probably, they already have it and probably couldn't get approval for more. Sorry. I don't think Delta would try for all of AA's operations. Some analysts are saying DL could be most interested in the DFW, MIA, and maybe LAX ops. All of this right now is just speculation, but it does appear there are a few interested parties.


Godspeed!


The OYSter

 

[LeeRoyJenkins]

"Play ball during a merger"....shouldn't AMR pilots be stapled!! That was the deal when TWA tanked!!

No it wasn't.

 

[Cobraair75drvr]

How were the Reno and TWA pilots integrated?