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Who Gets Pushed Out by Mesa? AWA/U

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storminpilot

Well-known member
Joined
Jul 6, 2003
Posts
282
Someone is going to lose (loose) RJ flying in an AmWest/USAirways merger (AirWis, Republic, TranStates, PSA,........). You simply don't need all those RJs for feed. Rumor has it Mesa is the "sugar daddy" funneling cash to AmWest to pursue U.

JO is not going to "loan" money without getting some assurances that he can control a lot of the flying once the merger is complete. If AmWest is the surviving entity, which would make sense since U is in bankruptcy and you would just be buying the assets you want into AmWest, then Mesa is the preferred carrier of AmWest.

The "Clash of the RJ Titans" is about to begin. Question is who has the chair when the music stops?




US Airways, America West in Merger Talks
Wednesday April 20, 12:01 am ET


NEW YORK (Reuters) - US Airways Group Inc. and America West Holdings Corp. are in advanced merger talks to create what would be the nation's sixth-largest airline, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The deal has not been completed and some obstacles remain, particularly since US Airways, the No. 7 U.S. airline, remains in Chapter 11 bankruptcy protection, the newspaper said on its Web site.

America West spokesman Phil Gee, reached by Reuters, called the merger report a "market rumor" and declined to comment further. America West is the eighth-largest U.S. carrier.

US Airways could not immediately be reached for comment but has said previously it would not confirm any talks it might have with other airlines or potential investors about acquiring a stake.

"Strategically on the map, the two are a very logical fit," said Ray Neidl, an analyst with Calyon Securities.

But he said a merger would be "a can of worms" in the short-term because of the complications of integrating the two companies' workforces and fleets.

In February, America West Chief Executive Doug Parker said he expected a wave of mergers to sweep U.S. low cost carriers and that he saw his company participating.

The paper said the combined company would create a low-cost airline with many more route choices. America West has hubs in Phoenix and Las Vegas in the Western United States, and US Airways has hubs in Philadelphia and Charlotte, N.C., in the East.

A merger would be a plus for the beleaguered U.S. airline industry overall, cutting some of the excess capacity that has made it tough for airlines to raise fares even as energy prices touch record highs.

Still, financing a merger would be a challenge for America West, which had $419 million in cash at the end of last year.

"In this environment, airlines have to husband their cash," Neidl said.

SHORT OF MERGER

Other recent reports have said the two airlines could enter into a deal short of a full merger, under which America West would make a limited investment in US Airways and the two would coordinate flights through a "code sharing" agreement.

Such a deal would bring "about 80 percent of the benefits of a merger without the risks," Neidl said.

A merger would require approval from parties including the bankruptcy judge and US Airways' top creditor, General Electric Co. America West shareholders, unions and the federal government would also need to sign off on it, the newspaper said.

Under terms of its bankruptcy financing deal with Republic Airways Holdings Inc., US Airways must find a third partner willing to invest at least $100 million. Republic and Air Wisconsin have both agreed to put up $125 million.

Some industry observers have suggested that another infusion of cash -- necessary to protect against the bottom-line impact of soaring fuel prices and low fares -- would be crucial to the success of any merger.

US Airways has until May 31 to file a reorganization plan with the bankruptcy court in Alexandria, Virginia. It hopes to emerge from Chapter 11 by the end of August.
 
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One again class...

IT IS "LOSE" NOT "LOOSE"!!!!




As you were.





 
If I hear any more JO speculation about what Mesa is doing without actual documentation, I am going to call these boards on shenanigans.
 
Try this link. I'm too stupid to figure out how reproduce the entire article here for everyone, but the important part is, that it will be operated under the USAir namebrand when the merger/takeover is complete.

http://www.usatoday.com/travel/flights/2005-04-19-usair-americawest_x.htm

If it doesn't work, again my apologies, just go to the usatoday website, and you'll easily be able to find it. And for the phantom monies being funneled in to AMwest; a source please kids, a source. Somewhere/ somehow I can verify your speculation, please. If you work on that, I'll work on my computer skills.
 
homerjdispatch said:
IT IS "LOSE" NOT "LOOSE"!!!!




As you were.






And in your subject it is "ONCE AGAIN" and not "ONE AGAIN" :D :D :D

Buck


 
GLASS HOUSES
 
It's OK, the pilots in favor of raising the retirement age are very grateful for the large type I'm sure;)
 
GUILTY AS CHARGED!!!!


Although, technically speaking, you cannot prove i meant to say once instead of one.



SO THERE!!! :) :) :)
 
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