SWAPoolie
Well-known member
- Joined
- Apr 14, 2005
- Posts
- 101
US Airways/America West deal is imminent
That's according to The Philadelphia Inquirer (free registration), which says the airlines "appear to be just days away from announcing plans to merge." Neither airline would comment on the report, but several prominent industry experts say they expect an announcement by next week. The combined carrier would be the sixth-biggest U.S. airline, passing current No. 6 Southwest while providing the discount giant with a formidable new low-fare rival. But UBS Warbug analyst Robert Ashcroft says Southwest could actually try to scuttle the merger by making a bid for some of the assets of bankrupt US Airways. It was just a few months ago that Southwest rival AirTran tried to build a hub at Chicago Midway by acquiring gates from bankrupt ATA. But Southwest — flush with cash — effectively thwarted that attempt by outbidding AirTran for this gates in bankruptcy court proceedings. Another potential hang-up: Merging union seniority lists. "Pilots especially are very territorial with their seniority," said Roger King, an airline analyst with CreditSights. Posted 7:15 a.m.
That's according to The Philadelphia Inquirer (free registration), which says the airlines "appear to be just days away from announcing plans to merge." Neither airline would comment on the report, but several prominent industry experts say they expect an announcement by next week. The combined carrier would be the sixth-biggest U.S. airline, passing current No. 6 Southwest while providing the discount giant with a formidable new low-fare rival. But UBS Warbug analyst Robert Ashcroft says Southwest could actually try to scuttle the merger by making a bid for some of the assets of bankrupt US Airways. It was just a few months ago that Southwest rival AirTran tried to build a hub at Chicago Midway by acquiring gates from bankrupt ATA. But Southwest — flush with cash — effectively thwarted that attempt by outbidding AirTran for this gates in bankruptcy court proceedings. Another potential hang-up: Merging union seniority lists. "Pilots especially are very territorial with their seniority," said Roger King, an airline analyst with CreditSights. Posted 7:15 a.m.
