Southwest would buy assets off US Air/Delta

[MiAAmi]

Southwest would buy assets off US Air/Delta -WSJ



NEW YORK, Nov 20 (Reuters) - Low-cost carrier Southwest Airlines has told Delta Air Lines and US Airways Group it would buy any assets they sell if they merged, according to a report on Monday.

US Airways made an unwanted $8 billion bid for Delta last week. Delta, which has operated under bankruptcy protection since September 2005, said it aims to emerge from Chapter 11 as a standalone airline.

Southwest assumes a deal has a "decent chance of actually happening," according to a report on the Wall Street Journal's Web site.

Southwest Chief Executive Gary Kelly said if the bid were to proceed, US Airways and Delta would have to sell some assets to address antitrust concerns, according to the report.

Southwest wants to buy any aircraft and airport gates put up for sale, especially on the U.S. East Coast, and it has told Delta and US Airways of its interest, the report said.

"We can certainly understand the interest in Delta's assets," Delta spokeswoman Betsy Talton told Reuters. "However, there are no Delta assets for sale."

Southwest and US Airways could not be immediately reached for comment.

 

[whlinder]

DCA? LGA?

ATL or JFK gates?

I can probably see all of those happening except for LGA.

Would WN make a bid for the shuttle?

 

[wnbubbleboy]

Any cash WN pays for Delta assests can only aid in the financing of the merger, thus making it an advantagous deal for everyone. Where's the negative?

One final observation. Is Delta putting up a fight to start a bidding war on assests to see what the potential market price will be?

 

[markkus757]

my opinion only, but I'd bet large sums of money that WN would have check and pen in hand to get any of the 3 DL gates at PVD. DL's gates are right next to WN's and with 6 gates, I'd assume DL would consolidate into the PVD US gates...

...IF the merger even happens that is!

 

[wnbubbleboy]

Southwest Airlines to expand
Richmond Times-Dispatch
Tuesday, November 21, 2006


Southwest Airlines is eying expansion on the East Coast, but officials at the Dallas-based carrier were cautious today about reviving old plans for the low-cost carrier to serve Richmond.

Richmond "definitely is not a city that we've ruled out by any means, but it's too early to tell" where Southwest's growth plan will take them, said spokeswoman Whitney Eichinger.

She confirmed an Associated Press report yesterday that Southwest officials view US Airways' $8 billion hostile merger bid for Delta airlines as an opportunity to make inroads on the East Coast. A different Southwest spokeswoman said yesterday that the East Coast was the airline's least-developed region.

Southwest's plans depend on a variety of things, Eichenger said, from terminal gates they might acquire to aircraft the carrier could pick up.

"Those are the kinds of opportunities we're looking at," she said. -- Chip Jones

Here's another story

DALLAS — Southwest Airlines officials see US Airways' $8 billion hostile merger bid for Delta as an opportunity for the Dallas-based airline to make inroads on the East Coast.

Southwest Airlines Co. founder and board chairman Herb Kelleher has called the CEOs of both airlines to express interest in any assets that might become available, Southwest spokeswoman Edna Ruano said Monday.

Merging airlines typically have to get rid of assets such as routes, gates and aircraft to allay antitrust concerns.

"We're definitely a company continuing to grow and looking for opportunities to grow and increase revenue," Ruano said. "The greatest overlap of the contemplated merger would be the East Coast. That's our least-developed region."




http://www.chron.com/disp/story.mpl/ap/fn/4350015.html

 

[groundcontrol]

phl

 

[Flying Photog]

DCA? LGA?

ATL or JFK gates?

Would WN make a bid for the shuttle?

Yes, yes, and yes. I could see all those happening, in addition new service to CLT.

 

[FA Mikey]

SWA on the NE shuttle might just be the shake up the service there needs.

 

[wnbubbleboy]

Southwest envisions the possibility of a day when Delta and US Airways might be required to divest assets to satisfy regulatory requirements, Harbin said. "The greatest overlap of these two companies is on the East Coast, and that is our least developed region, because it's really difficult to get in there," she said.

"There's no list," Harbin said, but New York's La Guardia and Charlotte are both places Southwest might choose to serve. Currently, Delta and US Airways both operate Northeast shuttles based at LaGuardia. US Airways CEO Doug Parker has said that one would be divested in a merger.

http://www.thestreet.com/_googlen/newsanal...n/10323715.html

 

[Nor'Easta]

SWA on the NE shuttle might just be the shake up the service there needs.

SWA is not going to go for the shuttle. They're all about super fast turn times and the delays at LGA would kill the operation.

I think SWA would be stupid to fly in/out of LGA.

 

[ralphcramden]

They're flying into Philly, aren't they?

 

[skyguy25]

If you think about it SWA already has a shuttle of sorts in the intra TX and CA flights. I am sure that with regard to the "northeast shuttle" they would devote a number of A/C that would not deviate from those routes as not to effect the whole system, with only a limited number of flights that connect to the main system. But then again, PHL and LAX do quite well. I think that NYC would pack those planes...subway in the sky...maybe SWA could get special exemptions and allow standing room flights and create a codeshare with NYCtransit! ha! Whatever SWA does, it will be in a grand scale- and be profitable at it.

 

[JS]

...I think that NYC would pack those planes...subway in the sky...maybe SWA could get special exemptions and allow standing room flights and create a codeshare with NYCtransit! ha! Whatever SWA does, it will be in a grand scale- and be profitable at it.

Gosh that's so funny... Were you aware that the Delta Shuttle is all-coach, no seat assignments?