AA and US?

[Hi-C-Camp]

Oh but they will.
Every airline they purchased was stapled to the bottom (reno, twa). I don't recall them ever "merging" with another airline, does anyone know whether they have merged with another airline, and if so how did it go?

No they won't, no one is in BK and it will be a stock swap deal not a purchase like TWA, are you guys just completely in the woods or what.. AMR can't just say "oh were going to buy you and do so." If you go over to the AMR board you will see that they are talking like they can just go in and "Offer to pay more" for NWA, however, what the small people don't realize , is that NWA isn't for sale. It is a stock swap, similar what will be done in any deal going forward.. Just, for the record, if anyone thinks that Douggie will do a deal and just be gone, must sleep under a rock... NHBB, I would say that if CAL chooses AMR to codeshare with, I will laugh my arse off!!! US and UAL will merge and have one up with the new DAL and AMR will be stuck in the mud along with CAL, b/c they will not merge...

 

[flybynite]

I think it would be far smarter for US to sit this round of consolidations out. See how things flush out. After all, there are no guarantees that the DOJ will approve any of these mega mergers.

We might be able to pick up the slack where the others are going to be cutting capacity and grounding a/c. Maybe pick up some 777's or 767's.

Just my opinion.

 

[Elevation]

The MAIN reason I think it WILL happen, is the Value of LCC assets ..vs...the amount of (AA) money spent to acquire them. (LCC DOES have assets, as you LCCers already know)

AA is sitting on $4.9Billion.
Lets "say" AA acquires LCC for $900Million(AA still sitting on $4Billion, PLUS any $$ LCC brings to the deal)

$900 million? A forced buy out would go north of $3 billion.

 

[FA Mikey]

No they won't, no one is in BK and it will be a stock swap deal not a purchase like TWA, are you guys just completely in the woods or what.. AMR can't just say "oh were going to buy you and do so."

Hear that? Its a tree falling in the woods and you can hear it too.

AA could offer cash or cash and stock for NWA if they wanted to. The board would be required to review and get the best deal for the stockholders.

 

[FA Mikey]

I think it would be far smarter for US to sit this round of consolidations out. See how things flush out. After all, there are no guarantees that the DOJ will approve any of these mega mergers.

We might be able to pick up the slack where the others are going to be cutting capacity and grounding a/c. Maybe pick up some 777's or 767's.

Just my opinion.

LCC needs to get its own house in order, before trying to take on expect to be taken on by someone else. Picking up uncommon AC is not a smart thing to to. Stick to similar AC types and engines.

 

[NewHampshire Black Bears]

Again I say...................." BUCKLE up(very tightly) .......our Radar is showing HEAVY TURBULANCE(ahead), and there is NO Way that we can fly.........above, below or around it"

"Flight attendants.........Please take you seats IMMEDIATELY" !!!!

 

[StewGuy86]

As you LCCers know well, despite the many problems, PHL makes money on O+D traffic !

It's always pointed out that PHL makes a ton of money simply from O&D traffic and there's obviously truth to that. So, what I've wondered for years is why US doesn't just focus on the O&D side of PHL and not make it such a connecting hub, like CLT is and PIT once was. Why does it need to be a traditional "hub" when it apparently doesn't have to depend on connecting passengers to be profitable? Wouldn't that make for much less congestion and delays there, and make it more efficient in the process?

Maybe I'm oversimplifying it and someone with more business/financial acumen can explain that better.

 

[flybynite]

It's always pointed out that PHL makes a ton of money simply from O&D traffic and there's obviously truth to that. So, what I've wondered for years is why US doesn't just focus on the O&D side of PHL and not make it such a connecting hub, like CLT is and PIT once was. Why does it need to be a traditional "hub" when it apparently doesn't have to depend on connecting passengers to be profitable? Wouldn't that make for much less congestion and delays there, and make it more efficient in the process?

Maybe I'm oversimplifying it and someone with more business/financial acumen can explain that better.

Hmm..well, we have moved domestic 757 time to CLT and it wouldn't surprise me if all the E190 flying time gets shifted to CLT, too. That should help take the pressure off PHL.

 

[StewGuy86]

Hmm..well, we have moved domestic 757 time to CLT and it wouldn't surprise me if all the E190 flying time gets shifted to CLT, too. That should help take the pressure off PHL.

Right, but that's just flying time for the crew base. I'm talking about making PHL not a hub strictly from an operational standpoint. Take away the massive number of flights that are only there to serve as connections and concentrate more on the O&D passengers.

 

[wings396]

LCC needs to get its own house in order, before trying to take on expect to be taken on by someone else. Picking up uncommon AC is not a smart thing to to. Stick to similar AC types and engines.

It is obvious that LCC can't get it's own house in order, and they need someone to get it done for them. These idiots at the helm of LCC are lost, and begging for someone to take control of thier ship. What we need is for someone who knows and wants to really run an Airline to take charge of LCC's operation and employees to make it work like we all know it can if handled properly.

 

[BoeingBoy]

Take away the massive number of flights that are only there to serve as connections and concentrate more on the O&D passengers.

The problem is that if you take away that connecting traffic upwards of half the N/S domestic flights become money losers because there's not enough O&D to make them all profitable. Cut 1/3 - 1/2 of the N/S flights in an attempt to make the remainder profitable and lose a good chunk of the O&D traffic. It becomes a downward spiral of cutting unprofitable N/S flights, losing O&D, more N/S flights become unprofitable. Repeat until you have another PIT, just somewhat larger.

Jim

 

[spanglish]

The problem is that if you take away that connecting traffic upwards of half the N/S domestic flights become money losers because there's not enough O&D to make them all profitable. Cut 1/3 - 1/2 of the N/S flights in an attempt to make the remainder profitable and lose a good chunk of the O&D traffic. It becomes a downward spiral of cutting unprofitable N/S flights, losing O&D, more N/S flights become unprofitable. Repeat until you have another PIT, just somewhat larger.

Jim

huh?

 

[Ignacio]

huh?

Connecting passengers helps US Airways funnel passengers on their higher yielding/profitable routes.


For example. Not many people from Philadelphia are going to pay $500 one way ticket to Elmira NY when they could just drive; However, connecting passengers help US Airways provide these higher yielding routes.

 

[FWAAA]

$900 million? A forced buy out would go north of $3 billion.

I don't think AA's gonna initiate a hostile takeover of LCC but $3 billion? Pass me some of that.

LCC's market cap was about $658 million on Friday afternoon, and that followed a big bounce on Thursday. A takeover might bring a 50% premium, or just shy of a billion dollars, so I'd have to agree with NH/BBs on the price. $900 million is in the ballpark. $3 billion? Time for a random test.

 

[jimntx]

Again I say...................." BUCKLE up(very tightly) .......our Radar is showing HEAVY TURBULANCE(ahead), and there is NO Way that we can fly.........above, below or around it"

"Flight attendants.........Please take you seats IMMEDIATELY" !!!!

NHBB, didn't your Mama ever say to you, "Oh, and if everyone else was jumping off a cliff, does that mean you would need to do it, too?