Nw And F9

[Bigsky]

Beyond all of the negativity surrounding the AMFA situation, a rumor that has popped a few times is a merger between NW and F9. Seems far fetched but does make sense in that it would give NW a more western hub. Also as the DC9s are being phased out, it would give NWA 50 plus A319/A318s which would have obviously airframe and engine commonality with NW's A319/A320 fleet. Has anyone else heard this rumor? Does it make sense for NWA?

bigsky

 

[C54Capt]

I have heard this rumor several times as well. Of course there are several rumors going around, including an F9 merger with TED after UAL spins them off. As to the NWA rumor, I think that there is some merit to it. There is the fleet and engine commonality, but I think with the B-787 orders, DEN could be used for some point to point service to Asia using F9 feed.

 

[AAviator]

I have heard this rumor several times as well. Of course there are several rumors going around, including an F9 merger with TED after UAL spins them off. As to the NWA rumor, I think that there is some merit to it. There is the fleet and engine commonality, but I think with the B-787 orders, DEN could be used for some point to point service to Asia using F9 feed.

[post="273281"][/post]​

Slicing off a lower cost portion of UAL does nothing for UAL. F9 and NW doesn't sound too bad.

 

[Busdrvr]

Let's think about this. why would NWA buy an airline that's currently losing money at payrates below NWA's, that would cost them approx 600 million to "buy" 250 in shareholder equity, to assume a bunch of overpriced leases (the joys of sale/leaseback transactions), for a MINORITY position at a VERY high cost hub, with most of the gates locked up, and who's marketing revolves around being the "hometown" airline? And then they'd get to integrate the seniority lists that has the conundrum of FRNT hiring for the last few years vs NWA having people hired 5 years ago still furloughed.

That's not how NWA does business. They are successful because the DOMINATE their hubs. S curve economics at it's finest. NOT dominating it's hubs enough is UAL's biggest problem (compare AMR yields at DFW vs AMR and UAL's at ORD). NWA would come out much better by just going out and purchasing some new buses and trying to "muscle in" somewhere.

 

[C54Capt]

Busdrvr,

I think bigsky was trying to bait you and you bit. I've heard the rumor, although I've heard rumors about mergers with AA and all the others as well. F9 wants to stay autonomous but who knows if they will be successful in that quest with the upcoming and inevitable round of consolidation facing the industry.

 

[Bigsky]

No baiting here. Busdriver right. Not NWA's style. Have heard several other rumor scenarios as well but none, as this one was, are worth mentioning.