Who will be Southwest's merger partner?

[DesertFalcon]

Maybe, Southwest should get aggressive and buy US Airways, before United gets them? That would lock out United and they have to go with Alaska and AirTran.

This might actually be better for the industry in the long run?

More balance.

 

[Green Banana]

Biggest problem with Alaska is that they are profitable and most importantly not for sale. Most of the members of the board of directors are very successful in other jobs and love the idea of being on the board of a major airline. They don't need or want the buy out.

 

[DesertFalcon]

Biggest problem with Alaska is that they are profitable and most importantly not for sale. Most of the members of the board of directors are very successful in other jobs and love the idea of being on the board of a major airline. They don't need or want the buy out.

Could they fend off and "Hostile Takeover" if SWA wanted them?

 

[PCL_128]

I doubt SWA would be interested in a hostile takeover. Doesn't really fit with their culture.

 

[FatesPawn]

Your point about being unionized is well taken, but I'm guessing that you'd have a tough time finding a Morris Air pilot who isn't tickled pink by the way things turned out.

You'd be surprised. Not that they aren't happy about their job today.... just still carrying a grudge about past actions. Not the majority, but a vocal few.

 

[FatesPawn]

That's an interesting take on it, and I think that works when dealing with distressed smaller airlines like ATA, but when dealing with an airline the size of AirTran, Alaska, etc..., those sorts of agreements aren't really workable. Unless we are in distress and in bankruptcy, the shareholders would never accept a deal that allows the gradual destruction of their airline in favor of the new codeshare partner.

Good points. However, as in the Muse/Transtar deal, SWAPA has a history of being, shall we say, malleable when it comes to alter-ego language. Picture a scenario, where SWA buys alter-ego X for a %+ of the stock value. Share holders at alter-ego X are pleased with the nice return. But the new company is take private.

Now, SWA and alter-ego X codeshare while SWA slowly moves into routes it likes and pulls down routes it doesn't want carrier X flying. Then when they are pleased with the result, they spin off the alter ego - airplanes and all ala-Air Wisconsin back when UAL gutted them and keep the new gates, routes and new hires that came along as SWA expanded.

The What-if's are innumerable, but the potential is still there.

Whatever happens, SWA will be the tortoise in the race.

-fate

 

[Esprit]

Fatespawn, I know about a dozen ATA Pilots that tried to ride on Southwest this weekend to attend the Jetblue seminar in Orlando, all denied cabin seats. Don't know if it was a gate agent thing or a new policy thing, either way there were a bunch of us that didn't make it. Guess I was naive to think that all those years bending over backwards to get you guys back and forth from work and to Hawaii would pay off. As far as the America West deal, it came after Airtran's offer. It was almost a done deal until SWA stepped in and screwed it up. Unfortunately none of the employee groups got a say in the matter.

Personally, I don't know how any of the ******************************bags in ATA or WN management can sleep at nite.


ESPRIT

 

[alaskaplt]

Alaska is going to be mostly 737-800's. Isn't swa more about more flights on the smaller 700's. Not that that is a huge deal, but just curious.

 

[Whataburger]

HA! I'm no money expert, that's for sure, and yes, SWA has a stock buy-back program in place. Find a shareholder and ask what that's done for them the last several years!

I bought LUV after Sept 11, 2001, at $11/share. Sold at $22. Bought a couple of months ago at $11.11, made 15% so far. Got lucky I suppose, but would rather be lucky than good. However, does anyone want my 600 shares of "U?"

 

[328dude]

I actually think Alaska would be too expensive to aquire or merge with in my humble opinion. Lot's of baggage.