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Merger Alert:US Airways/Alaska ( fact or fiction?)

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Lampshade

Well-known member
Joined
Feb 3, 2002
Posts
485
http://thefloridanewsjournal.com/2011/07/18/u-s-airways-reportedly-in-talks-to-buy-competitor/


Unconfirmed reports say U.S. Airways is trying to buy out competitor Alaskan Airlines. After previous failed attempts to merge with United, U.S. Airways is the last of the major airlines which have not merged.
The two airlines have very little overlapping routes, and a merger could increase both airlines’ overall presence and market share.
Alaskan Airlines is based out of Seattle and operates a fleet of 117 aircraft, all Boeing. The airline has active hubs at Seattle, Portland and Anchorage and operates a secondary hub at Los Angeles International. Alaskan also won the top spot for “Traditional Carrier” for 2011.
U.S. Airways has 339 airplanes from both Airbus and Boeing and is headquartered in Tempe, Arizona. Active hubs for the airline include Phoenix, Charlotte, Philadelphia and Washington DC’s Reagan National is a focus city for the airline. The airline bought America West in 2005.
U.S. Airways had no comment when contacted.
News source is questionable.
 
Can't be true because Delta is already tapped out providing discounts to Frontier customers. Not enough money to subsidize USAir ticket prices via an AK merger.
 
The resulting merger paint scheme would include Sully's face instead of the eskimo's face. In the end, the original America West pilots would still be screwed...
 
Considering Alaska is twice the size of US Airways (market cap), perhaps they have the purchaser reversed...........
 
Fiction

It's been said before but I don't think USAir merging with anyone is very realistic. Reason? They bring, courtesy of USAPA, huge legal liabilities that won't be settled anytime soon. In addition they can't be merged into any other unionized carrier without causing even more legal problems that would never end.
No healthy airline could get a USAir merger to be accepted by their Board of Directors, because it would not be in any stockholders best interest to jump into that mess.
Alaska is a very healthy carrier, why would their BOD steer them down a path of endless litigation with no chance of a smooth merger?

USAPA has made USAir pretty much UNmergable for the foreseeable future.
 
The writer of the article is clearly very bright and well informed.
 
"Alaskan" is the name of the brewery based out of Juneau.

having said that...god this would suck donkey balls.

Mookie
 
Maybe the Florida News Journal doesn't know much about "AlaskaN Airlines?" And when it comes to mergers, some lawyers and M&A bankers make the big bucks most of the time, and some don't really care about the results. Same with some CEOs out there in the business world, in many industries. Who knows if it is true or not? Interesting. I think it is safe to say that there might be more airline merger attempts in the future.


Bye Bye---General Lee
 
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