Could Wn Visit U Bankruptcy

[mrman]

From USA today:

There are still numerous hurdles that must be cleared before the marriage between US Airways and America West becomes official. One of the more intriguing possibilities is whether Southwest will opt to try and become the fly in US Airways' ointment. Some think the USA's current discount giant (yes, that's Southwest) may submit a bid with US Airways' bankruptcy court in an attempt to buy at least part of the bankrupt airline.

http://www.usatoday.com/travel/flights/today/sky.htm#us

Speculate on what assets Wn would be interested in? Gates? I would suspect there are no unleveraged 737's

 

[RowUnderDCA]

Well, I cant see WN wanting to either grow THAT fast in the east or wanting to take U's 73's or U's employees into WNs network. But what about WN combining parts of U into ATA's network? Could they do that?

 

[etops1]

wn needs to just chill and stop being so gd greedy.

 

[AtlanticBeach]

wn needs to just chill and stop being so gd greedy.

[post="272202"][/post]​

Actually, WN involvement could be productive for them in four ways.

1. Cherry-pick US' assets that they want.

2. Decrease the value of the residual US.

3. Create a greater long-term competitive advantage.

4. Cause a short-term disruption by requiring corporate response which might also delay exit from bankruptcy and completion of the sale.

That being said, there does not appear to be much that can exceed the value of current proposed framework with regards to creditors. Judge Mitchell would need to see a lot of cash money being offered in an alternate plan to void the US/HP sale agreement.

 

[700UW]

Southwest is not greedy, they are a succesful company who have the highest % of unionized employees and they are the highest compensated. And they respect their employees and have made a profit for over 30 years straight.

 

[mrman]

Can WN buy the NE Shuttle gates, maybe some planes, slots, and not get people? WN could limit their plane to just the shuttle routes, thereby avoiding congested airport delays affecting the rest of the system. Maybe expand to Midway and BWI for connections

 

[Winglet]

Can WN buy the NE Shuttle gates, maybe some planes, slots, and not get people? WN could limit their plane to just the shuttle routes, thereby avoiding congested airport delays affecting the rest of the system. Maybe expand to Midway and BWI for connections

[post="272228"][/post]​

I don't think there's any fragmentation language anymore. In any case, maybe WN will just sit tight and let the boatanchor called U sink AWAs leaky boat.

 

[savyinvestor]

I don't think there's any fragmentation language anymore. In any case, maybe WN will just sit tight and let the boatanchor called U sink AWAs leaky boat.

[post="272232"][/post]​

Sothwest is a well run organization. If they can disrupt the merger and cherry pick assets without the employees don't be surprised. Savy

 

[robbedagain]

Could it be a possibility that may be swa could do an ATA style thing with U and then cherry pick the routes, planes, possibly employees and go from there? and what is USA320Pilot's take on this situation?

 

[pitguy]

They can at least try to run the price up.

 

[wnbubbleboy]

That being said, there does not appear to be much that can exceed the value of current proposed framework with regards to creditors. Judge Mitchell would need to see a lot of cash money being offered in an alternate plan to void the US/HP sale agreement.

[post="272215"][/post]​

I doubt WN will interfere with the merger but for the PHL gates. From what I remember though the company still has 2 billion in cash reserves it keeps after 9-11 as just in case money, and access to 575 million unrestricted credit.

No where near GE money though. If I am wrong about the cash on hand or the credit I am sure I will be corrected.

Finally, if Gary's willing to sign a check it may prove productive for everyone involved.

 

[skyflyr69]

No one will back WN in that venture. And i doubt WN would put up their own money. in the halls of congress i hear "Employees go with assets"
So WN, you better be careful what you wish for.

 

[coolflyingfool]

SW could certainly force the cost of the merger up. They could argue that with 60 less mainline a/c that there will be less flights in PHL and CLT. They could place a bid on 7 gates in PHL and 5 gates in CLT. They could also lease say 20 of the B737s that will leave the US fleet and have them flying in about 2 to 3 months. They can make a bid but have just the thought of costing HP more with no intent on actually getting anything and if they do, good for them. Just my thoughts.............

 

[1ab]

Well the only way WN can have a bite of U apple at BK is if creditors dont like the deal and want to liquidate in other word CH7 .
If Judge Mitchell approves the merger as U reorganiztion to exit BK there will be no assets sale.
Actually i cant imagine what creditor will not be for this merger.....
Because the merger suits everyones best interest.

I see only one ATSB ...

Who else GE involved in the deal ...
anyone else wont see a dime because I doubt anything will be left after ATSB, RSA, GE and who else get their piece........

Or something like that

 

[luvn737s]

In any case, maybe WN will just sit tight and let the boatanchor called U sink AWAs leaky boat.

[post="272232"][/post]​

Keep bailing your own boat. AWA is far from swamped.