Airline Merger Appears Imminent

[Justme]

Excerpts from the Charlotte Observer:

Posted on Thu, May. 19, 2005
Airline merger appears imminent
US Airways chair says America West talks unlikely to fail now
TONY MECIA AND STAN CHOE
Staff Writers


TEMPE, Ariz. - US Airways Chairman David Bronner said Wednesday that merger talks with America West Airlines are far enough along that a collapse "is not really an option."

"I think you'll have some kind of announcement, one way or another, by the end of this week, or if not, by early next week," Bronner said in an interview with Bloomberg News in Montgomery, Ala. He serves as chief of the state's pension fund, which is US Airways' largest shareholder.

Many workers at both airlines are expecting an announcement today, though Bronner said Wednesday the merger "hasn't been approved by enough people to do it tomorrow."[
A source told the Observer that staff for the federal board backing big loans to both airlines were briefed on the merger plans Tuesday and told that an announcement should come today. The source also said that panel, the Air Transportation Stabilization Board, is scheduled to meet Friday to begin considering the deal. An ATSB spokeswoman declined comment.

The planned merger, which would require regulatory and court approval, is projected to save the companies at least $600 million a year, according to two people who have seen the plan and spoke to the Observer on the condition of anonymity. The savings would come from cutting overlapping management jobs and unprofitable flying.

Planes would likely figure prominently in the deal. People who have seen the plan say it calls for US Airways to eliminate 60 of its roughly 260 planes through the bankruptcy proceedings, which would result in an undetermined number of job cuts and create savings for the companies. Other cost savings would come from reducing overlapping management and duplicate vendors, such as software providers.

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The Story

 

[skyflyr69]

marketwatch basically says the same.

 

[longing4piedmont]

"US Airways Chairman David Bronner said Wednesday that merger talks with America West Airlines are far enough along that a collapse "is not really an option."

He's got the right. If this does not go thru it will be curtains. The man is desperate at this point. That can not be good for the employees of US. Whatcha wanna bet the team does ok though?

 

[cltflyguy]

60 airplanes??? Greeeeeeeeeeeeeeeeeeeat!! The news here in charlotte said this morning that the combined airlines would make it bigger than southwest.
How is that? Usair would be at 200 a/c and hp has around 138 a/c.

 

[bluetoad]

Whats the CASM going to be?

 

[calibrator]

That can not be good for the employees of US. Whatcha wanna bet the team does ok though?

[post="270894"][/post]​

AMEN! Brother Jones

 

[Hopeful]

As an AA employee, I wish you folks well with the proposed merger. But being employeed at AA where they PURCHASED TWA, the seniority ruling by an arbitrator has everlasting effects on us.

As the USAIR folks are fully aware of, mergers are not all peaches and cream. Consider the merger with Piedmont.


Good luck to all.

 

[BoeingBoy]

The second article with the "I" word in the headline:

US Airways merger imminent

(save your time, there's nothing new in the article)

Isn't it about time for someone to say "Who first ...."

Jim

 

[whlinder]

Whats the CASM going to be?

[post="270900"][/post]​

Way too high.

 

[a320av8r]

60 airplanes??? Greeeeeeeeeeeeeeeeeeeat!! The news here in charlotte said this morning that the combined airlines would make it bigger than southwest.
How is that? Usair would be at 200 a/c and hp has around 138 a/c.

[post="270897"][/post]​

We know that the media is always right but, maybe they are refering to the aircraft that are already and slated to be parked.
Let's see the plan before panicking. :blink:

 

[Bluestreak]

I read on another forum that the big anouncement will be at 1:00pm Phoenix time. Are they in Mountain or Pacific time this time of year? Arizona is one of those goofy states that doesn't do daylight savings. The time of the announcement was mentioned in a local TV news piece. U execs are in the air on the way to PHX as I type this...at least according to an internet rumor.

 

[BoeingBoy]

I read on another forum that the big anouncement will be at 1:00pm Phoenix time.

[post="270955"][/post]​

That would be 4:00 PM EDT - when the markets close....

Jim

 

[Phantom Fixer]

That would be 4:00 PM EDT - when the markets close....

Jim

[post="270964"][/post]​

Jim,

That's exactly what I'm hearing from my local CBS affiliate. They also mentioned Bruce Lakefield by name as being bound for PHX for a possible announcement at the time you mentioned..or shortly there after.

Regardless of the announcement coming today tomorrow or a week from now...the issues are for us to keep doing what we always have done...and that's basically making it work , regardless of who / whom is pulling the strings or signing the checks?

 

[BoeingBoy]

"Industry analysts suggest several complications still exist should America West Airlines and US Airways announce a merger this week."

AmWest, US Airways deal doable

"I don’t see any hurdles at all in getting the deal done, but I would caution not to have a premature celebration because the poker game has just started," said Mo Garfinkle, an airline consultant at Virginia-based GCW Consulting. "I would just say let’s not count our chickens before they’re hatched."

Jim

 

[usjacket]

http://us.rd.yahoo.com/finance/industry/ne...ootix&referrer= Heres another fer ya!