USAirways/America West Merger Talks -WSJ

[tadjr]

I still think National and the SunKing need to make a reappearance. Not too many will be familiar with the "National" from Vegas in the East and not too many anywhere will remember the SunKing on Southeasts planes. Would make a nice fresh start for everyone especially with the right mix of logo and colors and no matter who ends up in charge, would take away some of the "Its my airline surviving" feel that was shared in recent mergers.

 

[TomBascom]

Unfortunately Deelmakur doesn't post here anymore but I thought this posting from FlyerTalk was insightful:

There's a lot of velocity here. Bronner is flushed. The government is screwed, and most airlines have a balance sheet that looks like the economy of Bangladesh. No normal person would loan anything like this a dime, yet GE, which makes most of its profit from its financial activity, and is no slouch, is acting like a moonstruck kid. Everybody in this deal is looking for a way out, and if it accidentally pays out, so much the better. These outside money guys are calling the shots. Meantime, you have regionals trying to buy their future revenue, like Air Wis, you have Branson floating around, paying people while he tries to find an operating certificate (read domestic partner). I'm a broken recored on this, but JetBlue, and some of the other LCC's must have stained their undies when SWA figured out how to come into markets they thought were insulated. There's value here, all of a sudden. It's just like Adelphia Cable. The owners looted the joint, it bankrupted, the bonds went upside down, but smart guys bought them up cheap, realizing the value of the franchise. Next thing you see are the lenders, and investors, saying they're going to keep the place, but mysteriously, almost every day, there's a story in the Journal or Times about somebody ready to buy them. Finally, somebody floats Cablevision's name. Most people think they are poor operators, but they also frequently overpay for things. In this case, stupidity becomes a positive, since anything you put in print about an outfit like that is believable, and thus scares the other players. That deal finally came down when one night, the papers said Cablevision was making a big offer, and by next morning a consortium of Time Warner Cable and Comcast had paid a huge premium to just take the thing off the table. If you recall the original Proposed UA/US merger, it hit like a ton of bricks,with no warning. If a deal needs to be kept secret on Wall Street, it is. They know how to be quiet. This is better than a miniseries, Make no mistake, they are leaking it. For one thing, if someone at the business papers gets wind of it, you can generally get them to sit on it, by promising them an exclusive, with all the facts, when it is timely. They will trust you, until you screw them, but smart deal people don't do that. No way this stuff is out there if the wiseguys don't want it to be. Stay tuned.

 

[funguy2]

Hehe... I know Bear96

I am surprised that there hasn't been some kind of West=Success in airline naming strategies... Maybe it would be a good thing for your potential customers to "confuse" your new LCC with Southwest!

 

[USA320Pilot]

The AP reported, America West chief executive Douglas Parker refused to comment specifically on discussions with US Airways. But in a conference call with analysts on Wednesday after the company announced a $33.6 million first quarter profit, Parker said he believes airline consolidation is "inevitable," that the company would consider a merger and that he believes the regulatory environment is favorable given the industry's precarious financial condition.

"One way for airlines to help themselves is to come together," Parker said.

See Story

Regards,

USA320Pilot

 

[WestCoastGuy]

And let's all hope there's enough cash in the deal for our dear group of Exec's, so that when they all run out the back door, they will be well compensated, so they can continue to live the lifestyle to which they've all become accustomed... <_< . The Country Club and Green Fee's are expensive!

 

[OldGuyinPA]

AmericaWest...ways....


or just Amways...

Would you like a seat or a container of soap ?????

 

[USA320Pilot]

US Airways, America West in talks - Merger would create low-cost rival to Southwest

WASHINGTON (USA Today) - US Airways, which is in bankruptcy protection, and cash-poor America West are in merger talks that have hit a critical stage as they search for an investor or investors willing to inject $500 million in equity into the combined enterprise.

The talks are aimed at creating a low-cost carrier with market strength on both the East and West coasts.

See Story

Regards,

USA320Pilot

 

[whlinder]

New paint scheme...I always liked this one that I ran into at http://www.cardatabase.net/modifiedairlinerphotos/. I would still keep the same tail as the current scheme...but the design change on the rest works.

[post="263329"][/post]​

That is awfully similar to BD, but I do like it.

 

[hp_fa]

It is pretty, but it will fry in the desert in the summer. You know, the days when the APU is on MEL and the ground air is broken.

 

[Rico]

Geeze, The whole SWA thing gets so old after awhile on here. One thing about AWA, is that they have made a profit and turned their operation around with Southwest breathing down their necks the whole time.

Meaning that it can be done. There are plenty of people out there that are willing to fly when the tickets are a good value, and the product is decent enough, for both carriers to do well...

 

[EyeInTheSky]

The AP reported, America West chief executive Douglas Parker refused to comment specifically on discussions with US Airways. But in a conference call with analysts on Wednesday after the company announced a $33.6 million first quarter profit, Parker said he believes airline consolidation is "inevitable," that the company would consider a merger and that he believes the regulatory environment is favorable given the industry's precarious financial condition.

"One way for airlines to help themselves is to come together," Parker said.

See Story

Regards,

USA320Pilot

[post="263446"][/post]​

USA320Pilot, I listened to the entire call. One of the analysts asked Parker if America West would put up some cash for a merger deal. Parker stated he would not use America West cash for any deal. Both companies need about 800 million to pull this off. No one entity is going to put up that much cash...or are they?

 

[Walmartgreeter]

It is pretty, but it will fry in the desert in the summer. You know, the days when the APU is on MEL and the ground air is broken.

[post="263472"][/post]​

I thought the same thing about 7 years ago, with the intro of the dark top U planes...but it is an urban myth. The U 73's are hot because the APU's are crap, and the U 757, 767, and AB are cool because they have good APUs (and the AB have expecially good cooling systems, in general.) I wish it was as easy as a paint job, I really do. ANY airplane is hot with no apu and bad or no ground air. Just the opinion of a guy who has sweated in all of them. Best, Greeter.

 

[autofixer]

Yeap, the white Piedmont F-28s were hot, even with the APUs operating.

 

[USA320Pilot]

I do not know if a deal between US & HP will be consumated. Here's what I do know:

-- David Bronner told the AP in an interview merger talks were in an "advanced stage".

-- Doug Parker said in today's analyst call that he believes airline consolidation is "inevitable," that the company would consider a merger and that he believes the regulatory environment is favorable given the industry's precarious financial condition.

-- Bruce Lakefield told employees in a Special Bulletin today you should assume that as we work to finalize a new business plan and related Plan of Reorganization to exit Chapter 11 – and most importantly, seek to raise new capital through a substantial equity investment – that we have been in discussions with a number of interested parties over the past several months.

-- The Wall Street Journal reported though most big airlines currently lack the cash to do deals and share prices are depressed, some industry analysts believe hedge funds and private equity firms, moving into the industry as investors, will eventually force restructuring, especially if more big carriers file for Chapter 11.

-- In addition, the Journal said one person familiar with the matter said US Airways has talked to several other airlines over the past two years about a potential merger. If an agreement is reached, the initial plan would be to fly under the "US Airways" brand immediately but to keep the operations separate for a time, linking the network through code-sharing, while integration of fleet and personnel is phased in.

Regards,

USA320Pilot

 

[Dog Wonder]

"AmericaWest...ways....


or just Amways..."

A perfect name for a company where the masses work to make the people on top wealthy.

All you have to do is believe.