Ac Looking At Merged Us

[USA320Pilot]

Air Canada has AmWest, US Airways merger ties

TPG still owns a controlling interest in America West and is seen as a key player in any merger. The extent of its role is unclear.

Rick Schifter, managing partner of TPG, wouldn't comment at an airline conference in Phoenix this week. But his overall comments on industry consolidation seemed to suggest that the airline is lukewarm on any further investments at this point.

He said the industry is "still sucking wind" because the success of low-cost carriers have brought about dramatic change in the rest of the industry.

"That gives us some pause as we look at the industry today," he said.

He also said the firm, a legendary bargain hunter, doesn't see a lot of steals out there because there is so much capital chasing few deals. That drives prices up.

He said they continue to keep an eye on the industry, "but we're fairly cautious at this stage."

USA32Pilot comments: It appears from the column above that TPG may not be interested in investing in industry consolidation at this time.

Of particular interest was Schifter's comment that there is so much capital out there that it would drive prices up, which is consistent with US Airways' comments that the airline is holding talks on an equity investment with a number of interested parties. I am becoming even more optimistic about US Airways' future and I will write more on this and why tonight.

Regards,

USA320Pilot

 

[700UW]

A foreign company can only own 25% of the stock in a US based carrier.

And to the mods, this thread is dupilicate.

Ac Looking At Merged Us

 

[Reservation Agent]

I don't believe a merger with Air Canada will happen...Too much red tape involving 2 governments...I believe their would be some political hostility in Canada....

I believe neither of the three entities is very strong, with high fuel prices, the low market pricing, the labour organizations and the possible fears that US companies want to "take control" of a Canadian company...I don't see a great benefit to Air Canada...I don't think Canadians would want to see that happen...It might be a different story if USAIRWAYS or America West was robust financially,... making big profits....

Plus, alot of US travellers will not want to fly all the way up to Canada, deal with the crowds and lines they have there in Toronto & Montreal to fly internationally...

In fact, if you would fly back into Toronto from London, you would have to go thru BOTH Canadian Customs and Immigration AND US Customs & Immigration (pre-clearance)...You now have double the clearance lines...instead of 1 clearing point in the USA...

And flying into Canada " to" Europe from the US would be the same.....involve clearing Canadian Customs Immigration in Canada & European Customs and Immigration in Europe...double the added time and waits....

So you would have to be cleared twice going and comming...Ugh!

And how about the weather in Canada in the winter, eh?...Might be nice financially for the hotels, around Toronto & Montreal...

If somebody from Atlanta wants to fly to Rome, will they want to fly to Charlotte then fly to Toronto, if they can get a nonstop to Toronto, and then fly to Rome? I bet that would add and extra 12 hours to their trip....

America West also competes with Air Canada in and out of Toronto...USAIRWAYS overlaps on routes with Air Canada in and out of Toronto, Montreal & Ottawa....A merger would stiffle competition for Canadian-US or US-Canadian bound customers...I don't think the Canadian government would approve of that...

It doesn't really make sense for USAIRWAYS to drop International routes that USAIRWAYS has, because it is about the best money maker they have....

Unless USAIRWAYS is destined to be an East Coast regional carrier only as part of the mix...

I don't see Air Canada as a player in this....

USAIRWAYS couldn't get a merger thru with United...a 3 way merger looks near impossible, I am guessing...Unless you can wait 5 years for the decison...