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Is US Air Looking for another Victim?

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flythere

Well-known member
Joined
Nov 11, 2002
Posts
481
So is US Air management looking to drag another airline down with them? Who’s next? Why would JetBlue or Alaska want to be associated with US Air? Just ask the folks at the former America West. What was once a strong viable company has become nothing! Parker told us back in 2004/5 this merger would make US Air strong once again! Now what??
At what point do they liquidate and try to re-build as an LCC? Anybody else?!?!

Is US Airways Targeting a Huge Merger?

Do you think there are too many airlines to choose from? Well, that might not be the case for very long. Looking at the number of proposed mergers and consolidations taking place in the airlines industry, the choices could continue to dwindle, and perhaps sooner than expected.
Last week, US Airways (NYSE: LCC ) Chief Executive Doug Parker said that his airline was the only dominant carrier left to enter a mergers-and-acquisitions deal, and added that he wasn't averse to aligning with the right partner. Parker, however, said his airline wants to remain a strong stand-alone carrier. Could more consolidation lie just around the corner?
Possible, failed, and missed M&As
Possibilities of a merger do exist. And, according to Bloomberg, the candidates with which a marriage could take place are United Continental Holdings (NYSE: UAL ) , Delta Air Lines (NYSE: DAL ) , and AMR Corp. (NYSE: AMR ) , parent of American Airlines.
On the other hand, smaller carriers such as JetBlue (Nasdaq: JBLU ) and Alaska Airlines (NYSE: ALK ) may get more realistic looks from US Airways considering their scale and unique route offerings. But, ultimately, such deals have a remote possibility -- for now, at least. Consolidations such as these would possibly lead to profit gains stemming from more efficient operations, as existing facilities would get better utilized and the deadweight ones would be removed.
This is not the first time that US Airways has been considering joining forces with a fellow airline. Back in 2006, its attempt to merge with Delta veered off course. Later in 2008 and 2010, talks of a deal with what was then United Airlines fell through. US Airways didn't taste success even as the industry witnessed a spree of consolidations. Last year, United Airways acquired Continental to become the largest carrier in the United States. In 2008, Delta acquired Northwest Airline.
Meanwhile, Southwest (NYSE: LUV ) is considering a bid for AirTran (NYSE: AAI ) . Clearly, airlines are seeing sense in joining forces in an attempt to reduce competition. Consolidation helps reduce competition and leads to greater economies of scale and lower costs. Plus with fewer competitors vying for customers, airlines theoretically have greater price control. This, in turn, leads to higher profits, which leads to happier investors.
What a consolidation would mean
Consolidation isn't an easy game though. It is a very calculated and considered affair. In the case of airlines, it could be even more intricate. While considering a takeover, a carrier must take into account the routes the other carrier operates because acquiring a company operating in different areas greatly enhances the market base.
Cost efficiency is another reason why airlines are so bullish on mergers. Aligning routes also helps get rid of crisscrossing flights leading to fewer flights.
In view of high oil prices arising out of tensions in the Middle East, and U.S. carriers being forced to implement capacity cuts following a difficult start to the year, consolidation is not the worst option.
The Foolish bottom line
A merger might benefit US Airways, as it may help it increase its revenues and profits by expanding its network of flights and enabling more efficient operations. The possibility of US Airways joining forces with another big player remains strong. While this might pinch consumers' pockets as a result of higher fares, it would also provide investors with higher returns as the company prospers. Whether a deal takes place remains to be seen.
 
Chief Executive Doug Parker said that his airline was the only dominant carrier left to enter a mergers-and-acquisitions deal,
Did I miss the part where they merged and succeded?
 
maybe they are looking to round out the compass by adding us air north and south
 
Good luck, no one want's any part of that mess. Unless it's broken up and sold off in chunks.

That's my thoughts! As an investor why would I risk capital on this company!
 
This is an old press release. Nothing to see here, well except for US air posting continued profits.
 
This is an old press release. Nothing to see here, well except for US air posting continued profits.

Is US Airways Targeting a Huge Merger?

By Sarosh Nicholas | More Articles
April 19, 2011 | Comments (4)

http://www.fool.com/investing/gener...-merger.aspx?source=isesitlnk0000001&mrr=1.00



I guess 3 days old is pretty old and stale huh!

It looks like Parker is looking to dance with someone else! I'll bet not many other labor groups would want to take on the burdon of US Airways!! Look at the mess they are in now, I know I wouldn't want my company getting anywhere near that fiasco!
 
Is US Airways Targeting a Huge Merger?

By Sarosh Nicholas | More Articles
April 19, 2011 | Comments (4)

http://www.fool.com/investing/gener...-merger.aspx?source=isesitlnk0000001&mrr=1.00



I guess 3 days old is pretty old and stale huh!

It looks like Parker is looking to dance with someone else! I'll bet not many other labor groups would want to take on the burdon of US Airways!! Look at the mess they are in now, I know I wouldn't want my company getting anywhere near that fiasco!


Move along rubbernecks, nothing to see here. Just typical Parker blah blah. Pull up any of his press releases for the past six years and it all reads the same.
 
The article is new but the message has been repeated loudly and often since 2007. Parker wants to merge with Delta, United, or AA and he'll do so as soon as he's able.

Will the east pilots want to be on top of the list and screw the AA or Delta guys?? It seems they still have problems from the last merger, the two airlines still don't fly as one! When will it end?
 
The article is new but the message has been repeated loudly and often since 2007. Parker wants to merge with Delta, United, or AA and he'll do so as soon as he's able.

Nobody will merge with that mess. The East pilots will never be trusted again, and the Delta guys also thwarted the first Parker attempt. That never appeared to be a viable merger attempt anyway, with hubs right next to each other, like ATL and CLT, and PHL next to JFK. I never understood that looking from the outside at the time.


OYS
 
Let's imagine you're the CEO of one of these merger targets. You can either raise the capital necessary to merge with US on your terms and risk it never being fully integrated, OR you can raise the same amount of capital or less and flood the US markets with bargain basement fares and weaken US to the point you can buy their assets cheap and you are still basically acquiring them on your terms, not USAPA's.

I'm no CEO, but I'm just sayin'...
 
Will the east pilots want to be on top of the list and screw the AA or Delta guys??
Of course, but what they want is irrelevant. The Bond-McKaskill law means binding arbitration -- the kind even a pilot group with no integrity will have to live with.
It seems they still have problems from the last merger, the two airlines still don't fly as one! When will it end?
The East isn't having problems, they are the problem, and there's no end in site.
 
I'd take a merger with the East anytime and give them DOH. That pilot group is so old it would not matter. Look at what the East offers vs the West. Europe, Carribean PHL, CLT and a pilot group that for the most part will no longer be here in the next 8 years. The West offers PHX and not much else. Think about it this way. As a new pilot to USair do you want to go where the movement is or do you want to play F/O for God knows how long?
 
Let's imagine you're the CEO of one of these merger targets. You can either raise the capital necessary to merge with US on your terms and risk it never being fully integrated, OR you can raise the same amount of capital or less and flood the US markets with bargain basement fares and weaken US to the point you can buy their assets cheap and you are still basically acquiring them on your terms, not USAPA's.

I'm no CEO, but I'm just sayin'...

I agree, you are no CEO.

The scenario you have proposed is implausible on so many levels I don't know where to start. Let's just say that no other airline is in the financial position to do such a thing and leave it at that.
 

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