Who will be Southwest's merger partner?

[Lear70]

Well, that depends on the investor, doesn't it?

Southwest may have poor stock performance for the shareholders, but I'm quite certain the credit lending institutions are quite happy with Southwest's performance, seeing as they pay their bills on time as far as I can tell.

Don't think Southwest is going to have problems finding lenders anytime soon.

 

[ultrarunner]

Well, that depends on the investor, doesn't it?

Southwest may have poor stock performance for the shareholders, but I'm quite certain the credit lending institutions are quite happy with Southwest's performance, seeing as they pay their bills on time as far as I can tell.

Don't think Southwest is going to have problems finding lenders anytime soon.

I suppose Lear, but ultimately, the consistent eroding of shareholder value ultimately results in bad things happening at the corporate level.

At some point, T Rowe, Manning-Napier and Primcap are not going to tolerate the dismal performance....

And then folks will start bailing off the mutual fund side as well...

It's sure interesting to watch....

 

[atpcliff]

Hi!

The CEO of SWA said that SWA WILL merge with someone IF any mergers occur. The CEO said that SWA is too small on their own, IF any mergers go through.

cliff
YIP

 

[ultrarunner]

Well ATP, that may be the thinking...and it's real easy to say that stuff. My take is that IF SWA does team up with someone, SWA must be thinking of a drastic change in their philosophy....which maybe they'll do.

 

[General Lee]

Unlikely.

You're talking about the fragmentation of the airline and the shareholders would want a LOT more money than SWA is likely to pony up to sign off on that kind of a deal.

We're not one of the companies that's worth more in pieces than as a whole...

Nice try, though... I know you'd like to eliminate your biggest competitor in Atlanta, but you'll have to do better than that.

How would that eliminate our biggest competitior? It would allow SWA into ATL. I never said they would sell every ATL gate? They just might not want the 717s.


Bye Bye--General Lee

 

[Lear70]

How would that eliminate our biggest competitior? It would allow SWA into ATL. I never said they would sell every ATL gate? They just might not want the 717s.


Bye Bye--General Lee

Because WE are your biggest competitor in and out of ATL,,,

Although, you'd also get to go head-to-head with Southwest, which I'm certain wouldn't thrill senior DAL management.

I'm certain no one wants our 717's... it's probably what kept someone from coming after us before. The problem is selling them to someone who wants what we owe on them.

The only way you're getting airTran's 737's by themselves is if the company liquidated or, for some reason, agreed to sell off ALL the 737's and keep operating as AAI with just the 717's (unlikely).

Otherwise, you've got to sell them and take a BIG loss. Southwest isn't exactly in the habit of doing that, historically-speaking.

 

[crj410]

At the rate at which the airline industry is going with various airlines failing, I don't think that WN needs to merge with anyone. Cheaper to pick up gates and A/C at fire sales than to go through a merger. With the price of Oil going up, it's better to stand on the side lines and watch. If anyone has the cash to aquire someone quick it would be WN. Better to be a little cautious than to be hasty and waste valuable resources.

 

[Cooperd0g]

Alaska is my hugely uneducated guess. More west coast presence, especially the northwest. Mostly 737 fleet.

 

[ofacegangsta]

I thought Mr. Kelly said "acquire", not merge. That would make a pretty big difference.

 

[climb2slow]

I predict Frontier! Or maybe that's wishful thinking...ssshhhhh....