US Airways CEO hints more airline consolidation may be ahead

[USA320Pilot]

US Airways CEO hints more airline consolidation may be ahead

United, Mr. Boyd said, is the only carrier actively looking for a partner, now that it is out of bankruptcy. Senior management "is trying to shop the company," he said.

Click here for the story

Best regards,

USA320Pilot

 

[Diamondbacks2004]

Could US Airways boss Doug Parker be thinking about a merger -- again?

Fresh from creating the nation's fifth-largest carrier last fall with the union of the old US Airways and America West Airlines, the boyish-looking chief executive officer admitted in an interview yesterday that the subject of consolidation is still on his mind. And he hinted that the most attractive combinations for US Airways could involve the country's third- or fourth-largest carriers, Delta Air Lines and Northwest Airlines.

Both of those carriers are still in bankruptcy, and as US Airways learned in 2003 and 2005, both will be able to drastically reduce costs by giving unneeded airplanes back to lenders or renegotiating labor contracts -- making either company more attractive to potential partners.

 

[700UW]

There you go again.

This is a US Airways thread, if you want to point out and stir the pot about United, post it over there.

I see you never change.

 

[USA320Pilot]

700UW:

The comment came from the article titled "US Airways CEO hints more airline consolidation may be ahead", which started this topic.

My point is that United is still trying to look for a merger partner. Why? In my opinion, the company still has not fixed itself and needs to find a way to further cut costs and boost revenue.

All I did was post information in an article about US Airways on this board with an exact comment drom the article.

Do you get up in the morning always trying to be argumentative or just on this message board?

Best regards,

USA320Pilot

 

[twicefurloughed]

There you go again.

This is a US Airways thread, if you want to point out and stir the pot about United, post it over there.

I see you never change.

700UW:
If you read the article, it is mostly about US Airways and Doug Parker and his vision perhaps of merging with other airlines. It really isn't about United.

Did you read the article?

 

[USA320Pilot]

Some key ALPA officials believe US Airways will be involved in another merger or maybe an increasing posibility a fragmentation of another airline. An option is a "Pan Am" type of deal.

With the bankruptcy court yesterday permitting Northwest to abrogate its Flight Attendant contract and the union threatening a strike, which could occur in about 15 days a major confrontation could erupt for the Eagan-based company accelerating conslidation.

See Story

I know US Airways is approaching $3 billion in cash, it's stock price is attractive for M&A activity, and the company has access to loans.

It could be another interesting time for airline industry M&A activity because if something brews between US Airways and Northwest, this would place United in a difficult position losing virtually all of its domestic code share revenue and place even more competition into the Pacific rim.

Best regards,

USA320Pilot

 

[UseYourHead]

I would imagine that if possible (finance wise) UAL would attempt to once snatch-up LCC to prevent that from happening.

It will be interesting to see how the entire industry evolves from here...it is a good thing that we continue to be a part of it allowing us to participate.

Some key ALPA officials believe US Airways will be involved in another merger or maybe an increasing posibility a fragmentation of another airline. An option is a "Pan Am" type of deal.

With the bankruptcy court yesterday permitting Northwest to abrogate its Flight Attendant contract and the union threatening a strike, which could occur in about 15 days a major confrontation could erupt for the Eagan-based company accelerating conslidation.

See Story

I know US Airways is approaching $3 billion in cash, it's stock price is attractive for M&A activity, and the company has access to loans.

It could be another interesting time for airline industry M&A activity because if something brews between US Airways and Northwest, this would place United in a difficult position losing virtually all of its domestic code share revenue and place even more competition into the Pacific rim.

Best regards,

USA320Pilot

 

[USCREW]

700UW:
If you read the article, it is mostly about US Airways and Doug Parker and his vision perhaps of merging with other airlines. It really isn't about United.

Did you read the article?

It's obvious that 700 did not read it prior to posting.
USA320, thanks for the article. Very interesting. So the US/UA deal may not be totally dead after all. If it happens, it will be the MOTHER of all mergers.

 

[BoeingBoy]

700UW:
If you read the article, it is mostly about US Airways and Doug Parker and his vision perhaps of merging with other airlines. It really isn't about United.

Did you read the article?

Apparently barbeetantrums did when he/she posted the same article here about 6 hours earlier in an existing thread about mergers.

Jim

 

[barbeetantrums]

Apparently barbeetantrums did when he/she posted the same article here about 6 hours earlier in an existing thread about mergers.

Jim

He. I'm a manly man.

 

[robbedagain]

although I believe that airline consolidation is bound to continue,but I dont believe that UAL will try to buy US. I think may be US could get a deal with either NWA or Alaska. not sure which one is the better of the two.

 

[robbedagain]

Thank you USA320 for the article. It is interesting. But I must say, the one airline consultant said that Delta isnt interestedin looking for a merger. But it seems as bad as Delta is doing, wouldnt a merger be at least near the top of the list?

 

[RowUnderDCA]

both

 

[RowUnderDCA]

Yes, but how on earth could U and Delta be considered a 'good fit?'

I'd suggest that it might be one of the few combinations to which Justice might say 'no.'

 

[USA320Pilot]

In my opinion from discussions with informed sources, "Project Minnow" did not proceed (where David Bronner and Dave Siegel tried to buy all or part of United with RSA funding) due to ego's, primarily that of Glenn Tilton and more importantly Jake Brace.

Furthermore, I understand Doug Parker wants to be a survivor, which makes a deal with United less likely because costs cannot be easily cut with the Chicago-based company now out of its formal reorganization.

Airline consultant Darryl Jenkins who is widely respected throughout the country in airline "executive suites" is convinced that Mr. Parker wants to build the nation's largest airline -- through mergers -- and that the union of US Airway and America West was just the first step. "He definitely wants to make himself bigger," he said of Mr. Parker. Mr. Parker did the US Airways deal because "he wanted to be ahead of the power curve. He has always made it clear this is what he wants," according to the Post-Gazette.

I believe this too and because Parker believes bankrupt airlines are "able to drastically reduce costs by giving unneeded airplanes back to lenders or renegotiating labor contracts -- making either company more attractive to potential partners,", which again the Post-Gazzete recognized.

In my opinion, the leading candidate is Northwest for another corporate transaction although there are certainly more possibilities.

Regards,

USA320Pilot