another merger

[airportman]

US Airways CEO Doug Parker, speaking to Merrill Lynch analysts Wednesday,
>said the company has already achieved $175 million in cost savings from the
>merger and is well on its way to beating the $250 million per year savings
>he estimated would result when all the system conversions -- human and
>technical -- are completed.
>
>Kirby hopes the merger and all the big and little details will be a done
>deal by late 2007. Right on schedule.
>
>"We said it would take two years," he said.
>
>But by then the company may be taking on new challenges.
>
>In the session with the Merrill Lynch analysts, Parker would not rule out
>another merger. Two airlines -- Delta and Northwest -- are currently
>operating in bankruptcy.
>
>"We're interested," Parker said. "We think there's an enormous value in
>consolidation. We're staying focused on what's on our plate, but we're not
>letting opportunities go by that may not show up again."

 

[DCAflyer]

Please post a link to the complete article.

 

[Diamondbacks2004]

possibility of a US Airways/Alaska merger

if not then jetBlue, Frontier (may be a good fit for all Airbus A318, A319 and A320 narrowbody fleets)and Embraer 190 too.

 

[EricLv2Fish]

Please post a link to the complete article.

http://www.tmcnet.com/usubmit/-early-us-ai.../18/1685717.htm

Very interesting. The strongest statement issued about the possiblity of another merger to date.

 

[Mike]

http://www.tmcnet.com/usubmit/-early-us-ai.../18/1685717.htm

Very interesting. The strongest statement issued about the possiblity of another merger to date.

Three mergers in one lifetime have been far to many. Lord help us! :blink:

 

[PHL]

Every airline CEO will tell you that mergers are likely to happen in the US industry over the next few years. It's the only way to bring their costs and pricing power back. They, like Doug, will also tell you "never say never", which doesn't really mean a lot.

 

[whlinder]

NW would make some sense, but I don't think AA would let NW get away.

Maybe it would be a combined buy-out, AA taking the Asian routes (which is all they want) with US taking on the domestic/European portion of NW. A330s, plus plenty of planes to replace NW's DC 9s. PIT would be downsized even more. US would get some hubs more conducive to east-west connecting traffic.

 

[Diamondbacks2004]

I don't think if US Airways CEO Doug Parker really want to merge with Northwest Airlines because he spent four years experience from 1991 to 1995 with Northwest Airlines as vice president and assistant treasurer, and vice president of financial planning and analysis. From 1986 to 1991, he held a number of financial management positions with American Airlines. Before he joined America West in June 1995.

Which one of them become US Airways or Northwest Airlines or to create new name of airline?

What do you think?

 

[delldude]

Three mergers in one lifetime have been far to many. Lord help us! :blink:

aw what the heck...throw in another BK for good measure....

 

[SoftLanding]

US Airways CEO Doug Parker, speaking to Merrill Lynch analysts Wednesday,
>said the company has already achieved $175 million in cost savings from the
>merger and is well on its way to beating the $250 million per year savings
>he estimated would result when all the system conversions -- human and
>technical -- are completed.
>
>Kirby hopes the merger and all the big and little details will be a done
>deal by late 2007. Right on schedule.
>
>"We said it would take two years," he said.
>
>But by then the company may be taking on new challenges.
>
>In the session with the Merrill Lynch analysts, Parker would not rule out
>another merger. Two airlines -- Delta and Northwest -- are currently
>operating in bankruptcy.
>
>"We're interested," Parker said. "We think there's an enormous value in
>consolidation. We're staying focused on what's on our plate, but we're not
>letting opportunities go by that may not show up again."

Look at the crowd Parker is talking to, why wouldn't he say something positive about future mergers?

This also gives the analysts an excuse to upgrade the sector, or certain carriers within the sector.

Money talks...and we all know what walks?!

Still, I would thing Alaska (ALK) would be a nice fit for US Airways.

Frontier (FRNT)...forgetaboutit...JetBlue could be a very nice addition to United (UAUA), but American (AMR)/Continental (CAL) will probably try to be a spoiler...AirTran (AAI), what do they have to offer?...

Delta and Northwest...might be interesting. The Far East routes is very valuable, the rest not so much, except London Gatwick, because of slot restriction.

I sure don't see any merger between any of the other legacy carriers, DOJ/Bush Adm. will most likely be against this, as higher fares will start to come in focus sooner or later...

SoftLanding

 

[pilot]

Notice the stock price after the comments. This is about getting the stock price as high as possible, rewarding everyone who has a piece of the pie.

Merger? Hell, with our labor costs he has no reason for a merger. Even the C11 guys now have higher labor costs not to mention every other carrier of any matter. Another merger would derail what he has going here.

Namely, the lowest labor costs in existence that subsidize high fuel/low ticket factors enabling his crack team to show meager profits raising the stock price.

pilot

 

[sharktooth]

Look at the crowd Parker is talking to, why wouldn't he say something positive about future mergers?

This also gives the analysts an excuse to upgrade the sector, or certain carriers within the sector.

Money talks...and we all know what walks?!

Why rule out UAL, the original ATA sponsered merger? Now that the EU has crawled out from under their lawsuit, the plan can continue.

Why do you think UAL is reducing their presence in South America and AAA is talking about South America? Is that one of the items the DOJ highlighted as overlap and therefore a deal-breaker?

The unions are idiots to think they can do "slotting" with A&W. Such a history will really play well for UAL pilots (and not so well for AAA pilots) when that happens.

 

[PITbull]

Why rule out UAL, the original ATA sponsered merger? Now that the EU has crawled out from under their lawsuit, the plan can continue.

Why do you think UAL is reducing their presence in South America and AAA is talking about South America? Is that one of the items the DOJ highlighted as overlap and therefore a deal-breaker?

The unions are idiots to think they can do "slotting" with A&W. Such a history will really play well for UAL pilots (and not so well for AAA pilots) when that happens.

UAL labor wages are higher, and UAL is no longer in BK. There was very little overlap routes with AWA and U wages and workrules were in line with AWA before the announcement last year. AWA was a much smaller carrier and had synergies that were similar to PSA merger back in 1988. If U wanted or was going to merge with UAL, they would have done it while UAL was in BK and on the cheap....

They don't need USAirways.

 

[RowUnderDCA]

NW would make some sense, but I don't think AA would let NW get away.

Maybe it would be a combined buy-out, AA taking the Asian routes (which is all they want) with US taking on the domestic/European portion of NW. A330s, plus plenty of planes to replace NW's DC 9s. PIT would be downsized even more. US would get some hubs more conducive to east-west connecting traffic.

This is my theory of choice, as well. However, JAL is joining oneworld, and I think that AMR is really mostly interested in China. So it may want less of NWA than we think. Certainly, AMR would like to take as little of NWA as possible to avoid labor issues and to have to simply shut down or sell of NWA's domestic system. Could a deal be brokered by which AMR just takes NWA's 74s and what ever DC-10s NWA operates with China authority? Then AMR can keep its relationship with JAL and oneworld.

I think that NWA's domestic system is most vulnerable to LCC attack in the future. It has hub operations in smallish markets. This makes it's strategy going forward most compatible with U's recent past experience.

Seriously, I can't imagine any other US carrier really wanting NWA's domestic system.

 

[markkus757]

I will go on record AGAIN and say that US will bid for NW sometime early next year if not late this year. Perfect matching once NW guts their contracts.