USA320Pilot
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- May 18, 2003
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US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover
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US Airways Confirms It Has Hired M&A Advisors For Possible AMR Takeover
Click here to read the story.
Is it me or is it odd that Doug would ever ever admit this unless...unless talks are further along than we think? It is EXTREMELY rare that a CEO would acknowlege a possible takeover over another company. I dont get it! There must me a high level of confidence here?
While it's too early to tell what the market shares will be - none of the new DL flights have started yet - as far as slots the percentage is quite a bit more lopsided than that. And for the 12 months through last November DL mainline already had a bigger market share than AA mainline by 5 percentage points. I suspect that once all the new slots DL gets are utilized, it will have at least twice the market share of AA, with US having a 5-6% share thanks to the Shuttle.A merged AA/US will now have an equal present with DL in LGA. About 25% of the market each.
Personally I think it is an issue of class vs. confidence. Wolf had enough class to wear a coat and tie, knew how to handle his liquor, and kept quiet about the United merger.
"He announced the news in an attempt to head off questions on the call" - "he" being Parker and "the call" being the earnings conference call.Is it me or is it odd that Doug would ever ever admit this unless...unless talks are further along than we think?
"He announced the news in an attempt to head off questions on the call" - "he" being Parker and "the call" being the earnings conference call.
Sounds logical to me - Parker had to know that the analyst's were going to ask since all the rumors are floating around so why not say up front what he could about the subject?
Jim
I recently saw a chart (can't find it right now) showing that, after the slot swap and divestitures to jetBlue and Westjet, DL holds about 47% of LGA slots, AA holds about 21% and US holds about 16% (shuttle and flights to eastern hubs). If those numbers are accurate, DL would still hold a big lead on a combined US-AA (at about 37% of LGA slots).While it's too early to tell what the market shares will be - none of the new DL flights have started yet - as far as slots the percentage is quite a bit more lopsided than that. And for the 12 months through last November DL mainline already had a bigger market share than AA mainline by 5 percentage points. I suspect that once all the new slots DL gets are utilized, it will have at least twice the market share of AA, with US having a 5-6% share thanks to the Shuttle.
In other words, a US/AA merger would give the merged carrier about the same share at LGA as DL has before the swapped slots are utilized - still a distant 2nd.