Merger Activity And Usairways ?

gso-crew

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Jul 23, 2004
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More signs that a USAirwys merger may happen.....

"The risk of multiple, simultaneous bankruptcies in the U.S. airline industry is growing, according to credit ratings agency Standard & Poor's, and could be triggered by renewed terrorism, a spike in fuel prices or pension liabilities."

"The balance sheets of the legacy carriers "are a mess," he said, adding that the government will likely have to change its antitrust stand to allow more partnerships between the bigger players"

"In announcing its rating review, S&P also cited concerns about the continued court wrangling between UAL Corp.'s United Air Lines Inc. unit and a group of its creditors regarding their right -- and the right of lessors -- to repossess aircraft in United's bankruptcy case, now more than two years old.

United is challenging the right of the Chapman Group of creditors, which controls 175 of United's planes, to repossess 14 aircraft that have been used as collateral to back debt, alleging they are colluding with a broader group of aircraft creditors in violation of antitrust law."

STORY ---> http://biz.yahoo.com/ap/050224/airline_credit_ratings_2.html
 
The saga continues....

gso-crew said:
More signs that a USAirwys merger may happen.....

"The risk of multiple, simultaneous bankruptcies in the U.S. airline industry is growing, according to credit ratings agency Standard & Poor's, and could be triggered by renewed terrorism, a spike in fuel prices or pension liabilities."

"The balance sheets of the legacy carriers "are a mess," he said, adding that the government will likely have to change its antitrust stand to allow more partnerships between the bigger players"

"In announcing its rating review, S&P also cited concerns about the continued court wrangling between UAL Corp.'s United Air Lines Inc. unit and a group of its creditors regarding their right -- and the right of lessors -- to repossess aircraft in United's bankruptcy case, now more than two years old.

United is challenging the right of the Chapman Group of creditors, which controls 175 of United's planes, to repossess 14 aircraft that have been used as collateral to back debt, alleging they are colluding with a broader group of aircraft creditors in violation of antitrust law."

STORY ---> http://biz.yahoo.com/ap/050224/airline_credit_ratings_2.html
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Ehh...just take all the legacies...put em in a jar, shake it up a bit, and then reregulate everything. Problem solved. Okay maybe not, but the industry 5 years from now will definitely be interesting to compare to today.
 
Just my speculation, but unless you're talking about the government forcing mergers, ala the Postmaster General in the early days of airmail, you have to have a buying carrier - just having a carrier willing to be bought isn't enough.

Given the cost, headaches, and just general grief that the acquiring carrier would go through, who would that acquiring carrier be? They'd have to have the money, and you can see what two analysts (who even USA320Pilot says should be believed) said about airline balance sheets in the article.

One airline has the money - WN. But what would they want with all of US? I could possibly (though just barely) envision them doing something like they did with ATA - invest some money. What would they want in exchange? Maybe something like the ATA deal also - gates. What would be the response if they said they'd give us $150 - $200 million in exchange for some stock, C concourse in PHL, and B concourse in CLT? Maybe even codeshare rights on European flights from PHL/CLT and Carribbean flights from FLL/CLT/PHL?

Jim