Could AA buy AS?

[robbedagain]

an article on www.yahoo.com with a news link (I believe) to barrons has an interesting article in regards  with AA could buy AS
 
"KAL could very possibly move to oneworld"
 
AS could also move closer to AA and oneworld
 
KAL and AS don't have the best of the best relations with one airline    Very very interesting article

 

[IORFA]

For the love of God, I hope so! Then I would let WT out of his "ignore" jail so I could see him implode all over this site. That would be real entertainment.

 

[robbedagain]

agree IORFA  and btw  I love your slogan  2015   that's nice 

 

[swamt]

Only my opinion, but, AA and AS will not merge.  It could get into a bidding war for AS with other carriers. robbed is correct, this will get very interesting...

 

[WorldTraveler]

"could" as in a meteor "could" slam in Centerpork.'

but highly unlikely, because just like most of the above "Could" things, they may not be permitted by the DOJ, and/or accomplishes nothing of any strategic value for AA, and/or is not in the interests of the carriers that are involved in the other end of the deal, and/or might not even be contractually possible, and/or are motivated solely by a desire by most internet fankids to try to harm DL, strategies which never accomplish their tasks in the real world.

 

[jcw]

Under different adminstrations it's very possible - today's adminstration hates business - the companies that employee people

 

[WorldTraveler]

that may or may not be true but there is no doubt that AA's higher costs than AS' only mean that significant portions of AS' network would become unprofitable under AA's cost structure.

anyone can see that AS would simply be dismantled at significant impact to AS' employees and communities.

and the same is just as true of any other of the big 4.

btw, AS mgmt. said they see consolidation in the industry but indicate it is more likely to happen with the 2nd tier of carriers. not surprisingly, AS and B6 have much closer costs than do AS or any other legacy. both AS and B6 also have large codeshare operations that operate under the principle of Swiss neutrality (or whoredom with the highest bidder)

 

[FrugalFlyerv2.0]

"could" as in a meteor "could" slam in Centerpork.'

but highly unlikely, because just like most of the above "Could" things, they may not be permitted by the DOJ, and/or accomplishes nothing of any strategic value for AA, and/or is not in the interests of the carriers that are involved in the other end of the deal, and/or might not even be contractually possible, and/or are motivated solely by a desire by most internet fankids to try to harm DL, strategies which never accomplish their tasks in the real world.

 
While I won't comment on either the odds or the pros/cons of an AA/AS merger, I can't help but chuckle at the statement by World Fraudster that "AS accomplishes nothing of any strategic value for AA".  It's amazing how he can, on one hand preach about how AA has handcuffed itself by codesharing with AS on the west coast and that it would be best for AA to operate a lot of the routes themselves (i.e. AA is doomed because on the west coast because it basically doesn't have the hubs/network such as those of AS).  Now on this thread, when it the possibility that AA-AS merger is mentioned, all of a sudden this network has no benefit for AA whatsoever. 
 
Either this guy has spewed so many posts that he cannot keep up / remember what he has posted, or more likely, the obsession and the need to try to validate the DL rules the world narrative drives him to type such drivel. 
 
Oh well, if it wasn't for double standards, World Fraudster would have no standards.

 

[WorldTraveler]

the reason why an AA/AS merger accomplishes nothing is because 1. AS has virtually no impact on AA's growth in the LAX-Asia market (but would allow AA to fly LAX to PDX, SEA, and other PNW markets) but more importantly 2. would require that huge parts of AS' network be dismantled because of AA's higher costs.

yes, AA would gain a few things but the far larger impact would be negative overall.

AA/AS would be seen as nothing but shutting down major portions of a carrier with whom AA cannot fully cooperate now (because US law does not permit ATI or JVs between domestic carriers).

further, buying AS would likely result in gates being freed up at SEA as the hub is shut down (a PNW domestic hub makes no geographic sense anyway) which would only help DL, regardless of who buys AS.

these repeated wet dreams about anyone buying AS make no sense.

the only scenario that is even close to being likely is a MERGER of AS with another low cost carrier - likely B6 - that would result in little impact to AS but the creation of a much larger carrier with a two coast hub focus, that even without mid-con hubs or widebody int'l operations would be better prepared to compete with the big 4.

 

[jcw]

I don't think anyone is having those type of dreams except you when it comes to DL
 
In a scale business more scale helps so buying AS would provide good scale to anyone who purchased them - however don't let the facts get in the way of spin

 

[Glenn Quagmire]

http://blogs.barrons.com/stockstowatchtoday/2015/03/06/could-american-airlines-buy-alaska-air/

"Fact: American Airlines and Delta Air Lines both have Asian growth ambitions

Fact: American Airlines is now doing more business with two key Delta Air Lines partners

Fact: Both American Airlines and Delta Air Lines plan on growing a lot out of LAX

Opinion: The Korean Air and Delta Air Lines relationship is worsening

Opinion: The Alaska Air and Delta Air Lines relationship is not great these days

Opinion: We see Korean Air potentially leaving SkyTeam

Opinion: American Airlines might pursue a three-way JV with JAL and Korean Air …which would be a potential ‘check mate’ for oneworld in Asia

Opinion: We see Alaska Air and Delta Air Lines terminating their codeshare in time

Opinion: Alaska Air could join oneworld soon thereafter

Result: American Airlines fortifies its grip on Asia & west coast U.S. by buying Alaska Air"

 

[WorldTraveler]

I am not the one posting about AA buying AS or DL buying anyone else

your scale argument doesn't match the reality that AS' much lower costs mean that much of its network would not be viable under AA's cost structure.

The government and AS employees and cities know that and it is highly unlikely they would support a merger that would result in their own dismantling.

WN made the same arguments with the FL merger and it resulted in more than a dozen cities closed and WN's own network strengthened at great cost to FL's network

no one is going to fall for that argument again.

what is the point you are trying to make? the opinions which are made are all based on flawed or faulty information and it takes believing multiple wrong assumptions in order to come to the conclusion. tell us how the article characterizes those opinions and conclusions. It is stated

 

[jcw]

no one said they were buying AS - it was a thread about the possibility - once again your struggling understanding things - you know the stuff you accuse everyone else of doing on this site

 

[LD3]

I'm surprised someone didn't predict a lawsuit would be filed.... Just a side note since nothing stays on topic any way, I've had 3 posts disappear, I wonder who could be banging the report button?

 

[WorldTraveler]

no one said they were buying AS - it was a thread about the possibility - once again your struggling understanding things - you know the stuff you accuse everyone else of doing on this site

and if it is a possibility, then it is fair to say why or why not it makes sense from a whole lot more perspectives than people here are willing to consider.

I still believe it is more likely that AS will merge with a low cost carrier than it will be with a legacy network carrier.