SWA buys ATA

[atafan]

SWA buys ATA for 300m then sells the fleet except the 737's to other buyers the 737's are traded to Alaska for the -700's. We now have their ETOPS certificates and the S. America routes.....SWA flies to S. America from Houston and to Hawaii from OAK and LAX.

That's probably what the SWA pilots and management would love to do but you forgot one thing, the ATA owners. Matlin Paterson is looking for a much bigger pay day than that. We will probably get screwed but it will cost you more than that.

 

[roughneck]

That's probably what the SWA pilots and management would love to do but you forgot one thing, the ATA owners. Matlin Paterson is looking for a much bigger pay day than that. We will probably get screwed but it will cost you more than that

$300M is probably a good price considering that ATA doesn't own much. Its all leased right?

 

[HalinTexas]

$300M? Don't think ATA is worth that much.

No Cust/Im in KHOU.

I think a SWA merger/acquisition is on hold until the mergers really start to happen around the industry and not just talked about.

 

[loewinbrau]

SWA buys ATA for 300m then sells the fleet except the 737's to other buyers the 737's are traded to Alaska for the -700's. We now have their ETOPS certificates and the S. America routes.....SWA flies to S. America from Houston and to Hawaii from OAK and LAX.

Southwest needs to have a better plan than that. A one fleet airline has served them well in the past; but the past, as they say, is dead. The future lies in the international arena, and the 737 just aint gonna get you there.

If WN isn't proactive, they may find themselves marginalized as other carriers leapfrog ahead of them in this brave new world of aviation. It's called a paradigm shift, and it is already happening. In one fell swoop, US Airways became a very large low fare carrier with substantial international route structure. Continental is quietly building their own low cost international airline. WN simply can't compete in that arena at the present time, mainly because the 737 can't do it.

The problem with being top dowg is that the chihuahuas are always nipping at your heels. The mighty fall in this industry faster than the speed of light. Cheap gas will only get you so far. Fortunately, Southwest has been blessed with good management. I hope for Southwest's sake that trend continues.

 

[Headfake14]

...I predict that WN will aquire the 797. I think it'll be a narrow body version of the 787. It'll be built with the range needed for some nearby international stuff and trans con with silly strong head winds for the winter.

The 737 can't last forever

...well, it could, but not be competative with future a/c designs...

it's a long ways away...but my .02 prediction

 

[atafan]

$300M is probably a good price considering that ATA doesn't own much. Its all leased right?

I would have to agree that ATA liquidated today is not worth much just on straight asset value. I think that M.P. is looking to make more, kinda like the show "Flip This House". I believe, maybe I should say hope, that the value in an ATA purchase is in it's potential value to an airline that can exercise the potential, like a SWA or maybe another airline looking for instant international capability.

We shall see what we shall see.

 

[FlyBoeingJets]

SWA buy ATA? Maybe.....

But then the lower paid ATA pilots get brought over to SWA and suddenly increase the cost of the operation. Would the 757 and DC10 flying be offered to SWA dudes? Training costs would skyrocket.

I predict a bigger and longer codeshare agreement. Or some other legal mumbo jumbo to keep SWA and ATA separate but very close. That way ATA can provide cheap and reliable international operations for the domestic arm, SWA.

Think about it. ATA could embark on a HUGE growth spurt and applications would come from everywhere because time to Captain would get down to 2-3 years, temporarily. Pay raises would happen too.

Another option is a purchase of ATA with a twist. A one time option of switching to international (757) for SWA dudes or domestic (737) for ATA dudes then "freezing" you into that operation. A single seniority list but with a huge fence between the operations. Pay rates would be greatly improved at ATA, of course. Newhires would have a choice of domestic or international and possibly a chance to switch after 5 years or so on the property. But this is radical thinking so it is probably unlikely.

But I only see that if a bonafide offer is made for ATA from someone other SWA. The current setup is too good for SWA.

Too many possibilities to properly evaluate. But interesting.

 

[atafan]

I predict a bigger and longer codeshare agreement. Or some other legal mumbo jumbo to keep SWA and ATA separate but very close. That way ATA can provide cheap and reliable international operations for the domestic arm, SWA.

This is probably the most accurate, I believe.