America West Looking To Buy?

[Flying Titan]

America West To Seek Buys As Industry Shrinks

By Elizabeth Souder
Of DOW JONES NEWSWIRES
PHOENIX -- America West Holdings Corp. (AWA) Chief Executive Doug Parker said he will "look aggressively" at every opportunity to acquire a rival carrier.

During a press conference Thursday, Parker said he expects the number of low-cost U.S. carriers to winnow down from seven or eight to around two or three. The process will be part of the industry's way of addressing overcapacity, he said.

"We believe we will be one of those, and we will participate in that consolidation," said Parker, who has led the Phoenix carrier since 2001. "We plan to look aggressively at all opportunities that come up."

Parker said acquisitions that would add new routes to America West's network, particularly on the East Coast, might be most appealing to him.

See WSJ article - subscription required


Wow! What position is AWA in to go out and buy other carriers? ATA was one thing - small and cheap - but this sounds like something much bigger. Last I checked, AWA still didn't have much cash and is still trying to work its way back to health. Seems like Parker is looking to bite off more than AWA can chew.

 

[savyinvestor]

USAIRWAYS???????????????????????????????? If so, is it a good match? Savy

 

[US1YFARE]

USAIRWAYS???????????????????????????????? If so, is it a good match? Savy

[post="247226"][/post]​

East Coast = US

very interesting

 

[whlinder]

Could be FlyI. Are the Airbuses compatible?

CRJs to HP's buddy Mesa, HP gets the Airbuses.

How expensive could that paper airline be?

 

[coolflyingfool]

It would need to be a stock buy out. AWA would need a loan from someone if it was a cash buy out. Sadly, B6 is in a better palce for a buy out of someone, and they have only been around for 5 years. I could see B6 taking a run at HP. Just my thoughts.........

 

[mweiss]

I think B6 acquiring HP is a horrible idea. The two airlines have completely different philosophies, from top to bottom. I could imagine a B6/F9 merger, though.

HP/US remains an interesting idea, but I don't see how it could work fiscally.

 

[justaumechanic]

JetBlue has no intention of buying US Airways or AmericaWest.

Oppotunities.. Thats what JetBlue is looking at.. Opportunities to add
to he existing structure.. Not placing an anchor around its neck so
it can sink to the bottom fast.

The smart money is on US Airways being sold off in pieces and the
players like HP, B6 and WN buying the parts.

No airlines wants to buy into the mess that exists at US Airways.. Best to
buy the pieces and make it work from within.

 

[coolflyingfool]

I agree that if US fails, it will be pieced out by many. No one wants the cash drain if it were bought as one piece. What if Alaska bought HP?

 

[motnot]

The problem with other airlines buying HP is that very few airlines (like WN and B6) have cost structures low enough to make money in LAS and PHX, which are lower-yielding cities. (And it's a question how long B6 will be in that camp.)

As for HP buying, I think FLYI is the most likely target, just because of their current difficulties. Even if FLYI gets some its lessors to restructure leases, take back planes etc., it still would need to significantly lower the cost of running its IAD hub. The best way would be to use many fewer 50-seat RJs, and that's where a merger with HP could help. Any deal with FLYI, I think, is still more likely to happen with the bankrupcty courts involved than not.

HP CEO Parker also said his airline would not participate in consolidation with legacy carriers. That would seem to include US, but I think it only means a merger. HP has said it would look to buy OAL assets if opportunities arose. Now he's sort of adding acquisitions to the mix.

 

[N305AS]

I agree that if US fails, it will be pieced out by many. No one wants the cash drain if it were bought as one piece. What if Alaska bought HP?

[post="247412"][/post]​

Personally, I think it would be a winner - but not as an outright merger. I'd like to see Alaska Air Group purchase HP, operating it as a wholly-owned subsidiary (just like they do with Horizon Air) - harmonizing schedules, frequencies, and operating as one big carrier even though they're separate entities.

Such a combination would be a west coast juggernaut, with lucrative transcon and Mexico service.

If it were a buyout by AS, I'd see the Airbus equipment going up for sale, with 737-800s being purchased to fill the void, and perhaps a few more 757s to a fleet total of 20 of this type.

 

[wings396]

Why not give a US/HP merger a shot. We all know what happened when US/PI merged, and they were BOTH Profitable carriers. Two winners combined in 1989 to make the biggest loser of all time.

 

[coolflyingfool]

No way would UAL let AWA step in and buy up US without a big fight. Look what SWA did to the AAI/ATA merger, killed it. UAL would try to do the same to an AWA/US merger. DL would certainly look for more slots from US in any sale, and NWA also. Just my thoughts.........

 

[bwipilot]

I agree that many airlines would try to confront a HP/U merger I don't thing many could do a darn thing about it. UAL is bankrupt. NWA and DL are conserving cash to avoid the same. Few OALs the cash to do anything to stop it. Those who do would probably just try to affect the deal--like stripping gates at PHL, LGA, and DCA. Still, U is in bankruptcy and if HP could get enough cash to be the sole aquirer and take on all the debt, HP could do. Then again, ask AA what it's like to add that much debt to the balance sheet.

 

[skyflyr69]

FLYI is probably the ONLY one they are looking at.

 

[AAmech]

Then again, ask AA what it's like to add that much debt to the balance sheet.

[post="249516"][/post]​

If your refering to TWA's debt your mistaken. AA purchased the ASSETS of Trans World Airlines Inc, thereby avoiding having to take on TWA's debt.