USA320Pilot
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Will US Airways Seek a New Target?
- Thread starter USA320Pilot
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I would imagine if there was any chance of merging with NW, that we would have been doing our homework for some time, in case the DL deal fell through. I have to think if we were that interested in DL, why wouldn't we be equally interested in NW? I wouldn't look for any KNWMNW buttons though, they may be more willing.
USA320Pilot
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In my opinion, US Airways will not attempt a hostile merger with Northwest.
However, after the dust settles I would not be surpirsed at all to see Doug Parker call Doug Steenland to test the waters to see if there is mutual interest in exploring a deal.
Even though Northwest has indicated it would emerge from bankrutpcy standalone (what else could they say?), the carrier did hire Evercore as consultant to help management explore strategic alternatives, M&A activity, and any potential offers.
As the AP article above indicated, Parker said bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.
Thus, there is only one large legacy carrier left in bankruptcy for US Airways to merge with, and as we know, that company is Northwest Airlines.
It will be interesting to see if the two companies look to merge. If they do and Delta emerges from their formal reorganization standalone, then only two companies can merge and have a tremendous cost benefit -- somebody and Northwest. I believe it remains important to note that Parker said in the column to start this topic, bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.
Would it not be too funny to see the proposed "New Delta" have the opportunity to be the most profitable airline in the world to becoming the weakest legacy airline after their effort to stop the hostile takeover caused them to become financially weak? 😛
I have no idea what is going on in the minds of US Airways' "exeuctive suite" regarding M&A activity, but I do know one thing for sure...this senior management team does not like to lose and I believe there is still more in store in M&A activity for the Tempe-based airline.
Regards,
USA320Pilot
However, after the dust settles I would not be surpirsed at all to see Doug Parker call Doug Steenland to test the waters to see if there is mutual interest in exploring a deal.
Even though Northwest has indicated it would emerge from bankrutpcy standalone (what else could they say?), the carrier did hire Evercore as consultant to help management explore strategic alternatives, M&A activity, and any potential offers.
As the AP article above indicated, Parker said bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.
Thus, there is only one large legacy carrier left in bankruptcy for US Airways to merge with, and as we know, that company is Northwest Airlines.
It will be interesting to see if the two companies look to merge. If they do and Delta emerges from their formal reorganization standalone, then only two companies can merge and have a tremendous cost benefit -- somebody and Northwest. I believe it remains important to note that Parker said in the column to start this topic, bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts.
Would it not be too funny to see the proposed "New Delta" have the opportunity to be the most profitable airline in the world to becoming the weakest legacy airline after their effort to stop the hostile takeover caused them to become financially weak? 😛
I have no idea what is going on in the minds of US Airways' "exeuctive suite" regarding M&A activity, but I do know one thing for sure...this senior management team does not like to lose and I believe there is still more in store in M&A activity for the Tempe-based airline.
Regards,
USA320Pilot
TheLarkAscending
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In a word, no.
USA320Pilot
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Delta's crafty CEO outflies US Airways
While there are analysts who believe Mr. Parker will pursue other carriers now that the Delta deal is dead (Northwest Airlines, also in bankruptcy, being one possibility and United Airlines, which has expressed an interest in consolidation, being another), Mr. Parker this week said he would not seek out another merger if the Delta proposal failed.
"I see Parker as always being in front on things," longtime Virginia airline consultant Darryl Jenkins said. "It is just his personality. He does things with an almost religious zeal about him; he believes the industry will consolidate. You know he will be out there looking for another partner."
See Story
US Airways drops bid for Delta
US Airways Group might scout for another merger partner down the road, analysts say, after it dropped a hostile bid for bankrupt Delta Air Lines on Wednesday when creditors spurned the deal.
"US Airways is going to do another one. (CEO) Doug Parker is a true believer in airline consolidation," said Darryl Jenkins, a veteran airline consultant in Northern Virginia.
"As a fall-back position, they might chase Northwest," which is in bankruptcy, said aviation analyst Craig Conroy, Conroy Research Group, Penn Hills. "It sounds like they want to get married and may not care to whom."
Parker has the stomach -- and US Airways has the financial muscle -- for another deal, analysts said. "I'm sure Parker will lick his wounds for a day and then come back for someone else, but I have no idea whom," said Jenkins. "Parker once told me mergers were inevitable and that he wanted to be atop the power curve."
See Story
Regards,
USA320Pilot
While there are analysts who believe Mr. Parker will pursue other carriers now that the Delta deal is dead (Northwest Airlines, also in bankruptcy, being one possibility and United Airlines, which has expressed an interest in consolidation, being another), Mr. Parker this week said he would not seek out another merger if the Delta proposal failed.
"I see Parker as always being in front on things," longtime Virginia airline consultant Darryl Jenkins said. "It is just his personality. He does things with an almost religious zeal about him; he believes the industry will consolidate. You know he will be out there looking for another partner."
See Story
US Airways drops bid for Delta
US Airways Group might scout for another merger partner down the road, analysts say, after it dropped a hostile bid for bankrupt Delta Air Lines on Wednesday when creditors spurned the deal.
"US Airways is going to do another one. (CEO) Doug Parker is a true believer in airline consolidation," said Darryl Jenkins, a veteran airline consultant in Northern Virginia.
"As a fall-back position, they might chase Northwest," which is in bankruptcy, said aviation analyst Craig Conroy, Conroy Research Group, Penn Hills. "It sounds like they want to get married and may not care to whom."
Parker has the stomach -- and US Airways has the financial muscle -- for another deal, analysts said. "I'm sure Parker will lick his wounds for a day and then come back for someone else, but I have no idea whom," said Jenkins. "Parker once told me mergers were inevitable and that he wanted to be atop the power curve."
See Story
Regards,
USA320Pilot
ClueByFour
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I think I mentioned somewhere that Parker had no leverage to get this deal done.
320 is right, however, in that it's NW or nobody: Parker can't manage, and NW is the only target left in BK.
320 is right, however, in that it's NW or nobody: Parker can't manage, and NW is the only target left in BK.
And if no NW, US is done, huh? That's it? Throw in the towel? Last call? Shows over? Goodness gracious, why did it have to end ths way? 🙁 We could have been something beautiful...... 🙁 Looks like our days are numbered, you read it here........Thanks for breaking it gently, Clue.
We'll always have Paris....... sigh....
Won't be the end of LCC if no merger happens.
It will be the end of Parker and his merry band of BK profiteers. Because he and his boys cannot run an operation without the advantage of BK.
Which makes it essential for Parker to pursue NWA. Or he cannot succeed in his BK scenario based plans.
pilot
It will be the end of Parker and his merry band of BK profiteers. Because he and his boys cannot run an operation without the advantage of BK.
Which makes it essential for Parker to pursue NWA. Or he cannot succeed in his BK scenario based plans.
pilot
NYCDelta
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USA320Pilot,
Your continued effort is "admirable" (for lack of a better term).
There aren't many people who would continue to post drivel on a public forum after being wrong so many times in the past.
A quick search on this board, the UAL board, and the Delta board shows you about 0 for 100 in your predictions (with apparent "insider" knowledge.)
Abe
Good luck to all LCC employees...especially the one who has to pull gear for this guy.
EyeInTheSky
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Doogie should just give the middle finger to everyone and place a huge Airbus order. Homegrown or bust, that's my thoughts..😉
Later,
Eye
Later,
Eye
PHLfa88
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nycbusdriver
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Redbone
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"It is just his personality. He does things with an almost religious zeal about him"
Really? Could've fooled me. I thought there was a merger still PENDING between HP/US. Maybe he could use some of that "zeal" on the US employee's contracts, and US/HP operations.
Re: article mentioned above and NW. Suffice it to say that the spokeperson for NWA AFA won't be making anymore commments about a merger between NW and US.
NW will remain an independant airline...at least till after BK.
Really? Could've fooled me. I thought there was a merger still PENDING between HP/US. Maybe he could use some of that "zeal" on the US employee's contracts, and US/HP operations.
Re: article mentioned above and NW. Suffice it to say that the spokeperson for NWA AFA won't be making anymore commments about a merger between NW and US.
NW will remain an independant airline...at least till after BK.
