America West Looking To Buy?

[Bizman]

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

[post="247305"][/post]​

This would be the quickest way for both of them to exit the system. I don't see anyone trying to form a merger, more likely they will wait until assets become available and grow that direction, ala CO and the purchses of the 757-300 from Boeing that were to go to ATA.

 

[aafsc]

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.

[post="250221"][/post]​

AA did assume some of TWA's debts. In addition to the cash paid they assumed over $700 million in TWA medical retiree obligations, over $100 million in other long term debt and assumed renegotiated aircraft leases. It is in AA's annual report for the year it occurred. AA purchased the assets by paying cash and assuming some (but not all) debt.

MCI, if you read this, I'm not knocking TWA. I am just pointing out to AAmech that AA did assume some of TWA's debts in the transaction.

 

[Rob]

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.

[post="247152"][/post]​

AWA is controlled by the Texas Pacific Group, which can probably afford to buy out anybody but LUV without straining their finances. How interested TPG is in building up AWA is always the question. None of the analysts ever asks and Parker (of AWA) never says.

 

[motnot]

It certainly is debatable about how interested Texas Pacific is in its HP stake.

It would seem that if HP wanted to buy some fairly expensive assets, such as some belonging to US, then Texas Pacific would be a handy source of funds.

On the other hand, it was almost a year ago when HP filed its shelf registration with the SEC, a move that seemingly could allow HP to issue more stock and thus dilute Texas Pacific right out of its controlling stake.

And when HP was looking to buy TZ, the financing it had arranged was not coming from Texas Pacific. So the recent track record suggests Texas Pacific is happy to let HP do its own thing. But you never know.

I still maintain Independence Air (DH?) would be a fantastic opportunity for HP, if done right.