4 Way Merger?

[Columbia blue]

Merger rumor mill: Some rumors going around suggest that the merger being discussed would be a 4 way merger. US/AWA/Indy/Mesa. Mesa would likely put money up rather than actually merge with the others, however they would certainly be involved (you would think). Since AWA/US account for about...80% or so of Mesa's flying, they would be taking a long walk off a short plank if they were to be left out in the cold here.

As far as Independence is concerned, certainly UA would not like it if they were added to the merged entity ( and the DOJ may not like it either). It may make sense for GECAS to prop up both DH and US and (at least) potentially solve two headaches at once.

At this point just thought I'd toss this out there to discuss.

 

[funguy2]

Highly unlikely for DH to be involved.

1. US DOJ blocked US-UA merger on the anti-trust grounds, based on having multiple hubs in the DC region. I would think the same might apply to any combination of DH and US.

2. DH has improving fortunes... or at least they managed to fill a respectable number of seats in March. I think DH will want to continue to be "independent" for now.

3. GE does not have the control over DH that it has over US, because DH is not yet in BK Court protection (which gives large creditors like GE a lot more leverage).

4. Any combination of DH and YV is likely to be fought by DH management, just like the last go-around.

However, as you (and many others) have pointed out, it stands to reason that YV would be involved in any US-HP deal.

 

[coolflyingfool]

DH has no money to spare, so what are they doing in the mix? I could see a 3-way with no DH involvement. The ONLY thing that DH has are slots. Just my thoughts.......

 

[luvn737s]

If Mesa puts the money in, you can guarantee that they will write a Karibu-type agreement that ensures they get a juicy contract for regional flying which will siphon off all profits before HP/US ever see them. Just like Icahn made money at TWA's expense, Orenstein will likely do the same there. Let him stay on the sidelines where he can do less damage.

 

[skyflyr69]

Your all on the right track but this is bigger than we all know. look what Bush said to Amtrak: "no more money" he is willing to let MAJOR companies go. Focus on RSA Gecas/Gees and other IB's and follow the money.
UAL on the verge of liquidation/asset sales, Delta not far behind.
those failures many have been talking about could be OTHER than smaller legacy carriers................ My hunch is on the turtle....not the Hare.

 

[usfliboi]

I think we are all in for some surprises and innovative thinking

 

[AA191]

Yes we are in for some unique thinking - and that thinking will be coming from Tempe and not Crystal City.

 

[whlinder]

The ONLY thing that DH has are slots.

[post="263864"][/post]​

Where? They don't fly to LGA. They don't fly to DCA. JFK slots? I thought JFK was not slotted except during the afternoon peak?

I don't know what DH actually owns instead of leases, if there is anything. Maybe those pickups are owned....

 

[us0004us]

Yes we are in for some unique thinking - and that thinking will be coming from Tempe and not Crystal City.

[post="264764"][/post]​

just what is needed!

and not a moment too soon!


the west is best!

 

[Rico]

Actually, the better rumor is not Indy, but Air Canada as one of the partners...

 

[usfliboi]

Yes we are in for some unique thinking - and that thinking will be coming from Tempe and not Crystal City.

[post="264764"][/post]​

Oh time will tell.