Mergers coming soon....

[EastUS]

It wasn't my idea. I've heard this idea tossed around by several people.

Well....that settles it all then.

There seems precious little use for futher debate.

 

[nycbusdriver]

It wasn't my idea. I've heard this idea tossed around by several people.

Well....that settles it all then.

There seems precious little use for futher debate.

Yep! Point, set, match. It's over.

 

[brokenwrench]

Calls for U.S. airline consolidation get louder

Delta's Chief Financial Officer Edward Bastian said Delta remains confident in its future as a stand-alone company, but the current economic environment poses unforeseen threats that make the airline consider alternatives.

"We want consolidation to happen sooner rather than later, and we think that doing something now and getting it done in this administration is a good thing," Brace said.

 

[bigbusboy]

Interesting how all the majors had their "big wigs" in NYC this week at the same time. They are also saying the same thing publicly. I think for now all of the merger plans have been set behind closed doors. They are either just waiting for someone to make the first move or finalizing investor support. Either way its not going to happen fast and furiously but rather all at once....I'll bet.

 

[luvn737s]

Why all the javelin catching? Wouldn't it make more sense to see who doesn't make it through the next downturn and buy up the pieces rather than try to pull off a merger with all it's associated headaches? The airline business is a cash game and you'd be foolish to buy in when the cash is beginning to dry up.

 

[brokenwrench]

I think that was the plan with US (the smaller older east version).
It certainly looks like a couple of the other legacy carriers were expecting US to go CH 7 followed by independence air. The latter happened and pricing quickly went up. If US had not merged with HP the pricing power on the east cost would have increased even more after there CH 7.

 

[bigbusboy]

Why all the javelin catching? Wouldn't it make more sense to see who doesn't make it through the next downturn and buy up the pieces rather than try to pull off a merger with all it's associated headaches? The airline business is a cash game and you'd be foolish to buy in when the cash is beginning to dry up.

In the past this would've been the case. Buy assets/pieces to grow existing networks. But today industry economics are different. The driving force behind all of this is to reduce capacity--overlapping flights, which in turn improves revenues for everyone. It's a way of generating new revenue to combat high fuel costs.

 

[CynicalResAgent]

Just theoretically speaking.... say US were to try and merge with a carrier other than one of the legacy carriers like say B6? Could their JFK terminal accomodate widebodies? Is their pilots union or nonunion? Could US try and move some of their international ops to JFK? people have been speculating that B6 could be a takeover target and they've lost some of their top people lately and they have virtually no unions to integrate and have a pretty nice terminal in JFK and 320's and E190's.

 

[brokenwrench]

Do not quote me, but I do not think the way B6 is setting up the terminal that it can accomodate widebodies. That does not mean the gates can not be moved around to do so. There pilots are non union. And you can check out the great new terminal that DL and AA are drewling over here.
See the latest on Terminal 5 at JFK

 

[jets_2573]

Friday, November 30, 2007 - 2:15 PM EST
US Airways execs ink compensation pacts
The Business Journal of the Greater Triad Area
US Airways Group Inc. Chief Executive Doug Parker and other senior executives have signed new compensation agreements with the airline to provide benefits in the event of a takeover or a merger that involves more than 50 percent of the voting power of the company.
Under the agreements, top executives of the Tempe, Ariz.-based airline (NYSE:LCC) are entitled to payments equal to at least twice their annual base salaries, or 200 percent for President Scott Kirby and Chief Operating Officer Robert Isom, according to a filing with the Securities and Exchange Commission.
Several executives previously had change-of-control pacts with the company.
US Airways has its largest hub at Charlotte/Douglas International Airport.

 

[Be Careful What You Wish For.]

Why all the javelin catching? Wouldn't it make more sense to see who doesn't make it through the next downturn and buy up the pieces rather than try to pull off a merger with all it's associated headaches? The airline business is a cash game and you'd be foolish to buy in when the cash is beginning to dry up.

Depending who you work for, that could be us-again.

 

[beachboy]

It looks like after all is said and done we will be left in the dust with mergers. <_< I hear Tempe is looking at approaching NASA to acquire the Space Shuttle in 2009 when it retires. CLT training has done a walk through and deems it fit for our China service because with our crappy product it will only have 5-7 people. Once it glides back to Earth the USAirways Orbital China Shuttle will be repositioned to PHL with it's famous swoosh on a UAL 747. Sorry, crews there will be no hazard pay as they feel the reserves will be willing take the 1 day trip without risking a blockholders health.
View attachment 6851
All she needs is a repaint and some restraining straps on the Envoy seats! 😱 Will the helmets have the flag?

 

[dariencc]

Even LOA 93 allows the East fleet to shrink.....down to under 200 airplanes IIRC.

Jim

Where does it say that, Jim? This quote is from the "Minimum Aircraft" section of LOA 93:

<<<... and the number of minimum aircraft will be reestablished one year after the implementation of a confirmed plan of reorganization in such Chapter 11 case at the lesser of: (x) 279 total aircraft (excluding SJs), or (y) the number of total aircraft then operated by the company (excluding SJs) less ten percent (10%), rounded to the nearest aircraft.>>>

What numbers, or applicable contract section, are you using that would take us below 200?

 

[EastUS]

It looks like after all is said and done we will be left in the dust with mergers. <_< I hear Tempe is looking at approaching NASA to acquire the Space Shuttle in 2009 when it retires. CLT training has done a walk through and deems it fit for our China service because with our crappy product it will only have 5-7 people. Once it glides back to Earth the USAirways Orbital China Shuttle will be repositioned to PHL with it's famous swoosh on a UAL 747. Sorry, crews there will be no hazard pay as they feel the reserves will be willing take the 1 day trip without risking a blockholders health.
View attachment 6851
All she needs is a repaint and some restraining straps on the Envoy seats! 😱 Will the helmets have the flag?

Looks like a winner to me.

1) NASA's had it's share of "employee issues" lately = good fit there.

2) Few, if any competing airlines are likely to forward high bids for antique shuttles.

3) Contracted communist maintenance done in I Ching's Chop Shop, somewhere lost in southern Manchuria, could easilly be used to save some bucks....Lead paint?...who cares? 😉

4) The shuttle technology's decades old, and would likely integrate well with current IT notions and software.

5) There'd be some actual room for coat closets and even leg stretch space with no more than 7 pax = a considerable product enhancement.

6) It'd at least be good for grins 😉 Heck...I'd bid it if I was still around.

 

[BoeingBoy]

the lesser of........or (y) the number of total aircraft then operated by the company (excluding SJs) less ten percent (10%), rounded to the nearest aircraft.

Right there is where it says it. As I recall, East had about 220 airplance in the fleet at the 1 year anniversary of the POR being approved. A 10% reduction would be 22 airplanes, leaving the minimum per LOA 93 at 198 (+/- 10% of any variance from the 220).

Jim