US Airways, America West in advanced merger talks - WSJ

[Smiliner]

Below is all I could find. Anyone know more?

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SAN FRANCISCO (MarketWatch) -- US Airways and America West Airlines are in advanced merger talks to create a national low-cost carrier rivaling Southwest Airlines in size, according to a report published late Tuesday.

A deal hasn't been completed and some obstacles remain, the Wall Street Journal reported in its online edition, citing unnamed people familiar with the matter.


With US Airways Group Inc. (UAIRQ: news, chart, profile) in Chapter 11 bankruptcy, there are additional complications, the Journal noted. A deal would need approval from a numerous parties, including the bankruptcy court; US Airways' creditors -- including its largest, General Electric Co. (GE: news, chart, profile) ; America West (AWA: news, chart, profile) shareholders; unions; and the federal government. See full Wall Street Journal story.


Together, US Airways, the nation's seventh-largest carrier, and America West, which is No 8, would form an airline that would overtake Southwest Airlines (LUV: news, chart, profile) as the sixth-largest, the Journal said, citing 2004 traffic statistics.


With America West's hubs in Phoenix and Las Vegas and US Airways' in Philadelphia and Charlotte, N.C., a combined carrier could have the distinction of offering low fares on an integrated hub-and-spoke network that would offer many route choices, the Journal said.


Representatives from US Airways or America West could not be reached to comment on the report.


Shares of US Airways ended Tuesday's session at 65 cents in the over-the-counter bulletin board market, down a penny.


American West shares shed 14 cents to close at $4.81.

 

[I.P. Freley]

At least all those Air Whiskey types now know that they'll get a seniority number at America West.

 

[grog_sit_reserv]

NNNNNNNNOOOOOOOOOOOOOOOOOOooooooooooo

 

[azpilot]

Man that would be bad. Why the hell would anyone want to deal with US Air. Nothing personal against the company but what a F--- up mess that place has been for years and still is. If I was about to upgrade at HP I would be pissed if this happens.
​

US Airways, America West in talks
Report: Merger talks could lead to new low-cost carrier http://www.marketwatch.com/1.gif By Carolyn Pritchard, MarketWatch
Last Update: 8:17 PM ET April 19, 2005
SAN FRANCISCO (MarketWatch) -- US Airways and America West Airlines are in advanced merger talks to create a national low-cost carrier rivaling Southwest Airlines in size, according to a report published late Tuesday.

A deal hasn't been completed and some obstacles remain, the Wall Street Journal reported in its online edition, citing unnamed people familiar with the matter.

With US Airways Group Inc. (UAIRQ: news, chart, profile) in Chapter 11 bankruptcy, there are additional complications, the Journal noted. A deal would need approval from a numerous parties, including the bankruptcy court; US Airways' creditors -- including its largest, General Electric Co. (GE: news, chart, profile) ; America West (AWA: news, chart, profile) shareholders; unions; and the federal government. See full Wall Street Journal story.

Together, US Airways, the nation's seventh-largest carrier, and America West, which is No 8, would form an airline that would overtake Southwest Airlines (LUV: news, chart, profile) as the sixth-largest, the Journal said, citing 2004 traffic statistics.

With America West's hubs in Phoenix and Las Vegas and US Airways' in Philadelphia and Charlotte, N.C., a combined carrier could have the distinction of offering low fares on an integrated hub-and-spoke network that would offer many route choices, the Journal said.

Representatives from US Airways or America West could not be reached to comment on the report.

Shares of US Airways ended Tuesday's session at 65 cents in the over-the-counter bulletin board market, down a penny.

American West shares shed 14 cents to close at $4.81.

 

[Empennage]

I can't believe everyone waited this long to talk about all of this. I have seen info on it for about a week now. Yes, however, today was the first I have seen press release "confirming" the talks.

Looks like a good fit honestly. Question for you Air Wis...do you think U will still need the $$$$$?

 

[Whale Rider]

At least all those Air Whiskey types now know that they'll get a seniority number at America West.

Is this why AWA has stopped all hiring and shutdown all newhire training????

 

[calfo]

USAir is just looking for more lines of credit to suck dry... HP hasn't been doing that bad lately. With all the USAir guys on the street (furlough to what... '86?) I sure wouldn't want to be on the bottom half of the seniority list at HP...

 

[TWA Dude]

Is this why AWA has stopped all hiring and shutdown all newhire training????

Reference recent threads: AWA has NOT stopped hiring, only slowed it due to no more Bus deliveries until later this year. Expecting to hire up to 80 pilots in remaining 2005.

Doug Parker just talked to our recurrent class this morning. No word on USAir whatsoever but our 1Q report comes out tomorrow. We'll report a small loss again but RASM and LF are much improved.

 

[FLB717]

The sound of tapps seems to be playing in the background for both companies if this happens.

 

[Baby Cakes]

What a lovely pilot merger process that would ensue!

This deal could stink for AWA pilots who are not yet captains.

 

[habubuaza]

How do you integrate a seniority list with USAir guys on furlough with a hire date of over 15 years ago?

 

[Crzipilot]

Three Words...



DATE OF HIRE

 

[TWA Dude]

Two more: With Fences

 

[Baby Cakes]

Date of hire didn't help the TWA pilots when American bought them, at least not those that were hired after 1990. They ended up being stapled to the bottom of the American seniority list (and were some of the first to get furloughed).

Bottom line? A merger might be good for business reasons, but would be quite complicated for the pilots. And fairly nasty.

 

[JetMonkey]

I sure wouldn't want to be on the bottom half of the seniority list at HP...

Ohh it's not that bad....At least I don't have to commute to freakin Houston anymore.

 

[Crzipilot]

Fences, sure....They can bid all the narrow body, and stay away from anything wide....

 

[fletch717]

The article says Us Air and AWA are going to merge and create a "Low cost" type airline... And in other news A man is about to unveil his new invention it's called a "wheel".

 

[AA717driver]

Two more words: Asset Acquisition. Bet you wish you'd paid more attention to what was happening with the TWA merger, huh? TC

 

[TWA Dude]

TC: you manage to stir-up an already boiling pot like no other. FWIW AWA doesn't have any money for an asset acquisition. Should this montrosity come to pass it'll be a very complicated financial thing. Good thing I start to pay my $500 Merger Fund assessment next month.

 

[Baby Cakes]

Two more words: Asset Acquisition. Bet you wish you'd paid more attention to what was happening with the TWA merger, huh? TC

I noticed that despite being "acquired" by a superior airline (financially), ALL pre-1990 TWA captains got slid into the American seniority list as captains.

A USAirways/AWA pilot merger would be highly contentious, with lots lingering hostility and anger. Count on it.