Who's Next?

[motnot]

HPearlyretiree,

I understand where you're coming from, but to borrow from Lloyd Bentsen, Doug Parker is no Ed Beauvais or Mike Conway.

It wasn't the 747s themselves that were a dumb move, it was getting them before they had good places to fly them. Then AWA was stuck with the planes. And it was fuel that killed the company then.

Parker, on the other hand, is quoted in the most recent Business Week as saying AWA is planning for $45 oil because they can't assume it's going to be lower than it is. And he's well on the record in saying that AWA won't do anything that will endanger the airline. And he proved it by walking away from the ATA deal.

I don't know what opportunities AWA might potentially be interested in, but I was suggesting some possibilities. I am quite sure that Parker won't go for any that are unduly risky.

 

[Rob]

Regarding the ATSB loan, the enabling legislation states that industry consolidation is a valid reason for the loan. So, HP's use of their cash for an acquisition would be appropriate.

I'm not saying they SHOULD - just that doing so is in keeping with legislative intent.

 

[coolflyingfool]

I can't see AWA coming up with $120MM like SWA did, so I think AWA will have to wait until someone has a real gone out of business sale. USAirways has said that the middle of January was their target to liquidate if the labor deals were not done. That is only 30 days away. This should reallly be a barn-burner. I would think AWA is watching very, very closely.