Arizona's worst-case merger scenario: Pittsburgh
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snapthis
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- Dec 23, 2009
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I think a lot of the off airport offices, accounting, baggage resolution, customers service will fare much better and while the airport may seem some flight reductions it also will not be anything close to PIT. PHX is the 5th largest city, 11th largest O&D airport and still has a huge growth curb ahead in its future not a dying rust belt city.
Real tired
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<p>
Funny, I don't see PHX listed here: http://www.marketpla...iveable-city-us or even here: http://www.forbes.co...ime-income.html Dying rust belt city? Prepare your resume, loser.
Funny, I don't see PHX listed here: http://www.marketpla...iveable-city-us or even here: http://www.forbes.co...ime-income.html Dying rust belt city? Prepare your resume, loser.
PHX is actually the sixth most populous city behind PHL, HOU, CHI, LA and NYC, but it is a large metro area (14th, just behind DET) with very good O&D. Too bad it's WN's 4th largest station with 173 daily departures (about equal to US' mainline departures). That helps keep the PHX hub a lot smaller than it would otherwise be.
Growth "curb?" I think you meant growth curve. Hilarious typo - who wants to hit a growth curb?
I don't know how Phoenix can be compared to Pittsburgh. It is high on the OD list for US Airports and the growth is beginning again. Parker said Phx would be the western hub just as he promised the other US AIrways hubs they would be included in the new American. It's all gonna play out soon so let's calm down.
http://en.wikipedia.org/wiki/List_of_the_busiest_airports_in_the_United_States
I guess if we want to imagine what Sky Harbor will be like if they do pull it down we can look at other cities on the list with similiar O&D figures.
http://en.wikipedia.org/wiki/List_of_the_busiest_airports_in_the_United_States
I guess if we want to imagine what Sky Harbor will be like if they do pull it down we can look at other cities on the list with similiar O&D figures.
ChockJockey
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- Dec 18, 2008
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I don't see PHX getting PITted, or LASsed for that matter. In my thinking what happens to PHX depends largely on what happens in LAX; the two could complement one another in that LAX could in the course of re-optimizing itself for more lucrative traffic shift some flying through PHX. The merger would solidify AA's position as the #1 carrier at LAX and changes would have to be made there if AA is going to be serious about serving and competing in the Pacific.
US has a solid international operation out of PHX, and, afaik, it makes money. While a lot of East-West connecting traffic could better go through DFW but PHX is better positioned to connect travelers from the West Coast to destinations in Mexico. If anything, PHX could allow the new AA to reinforce market dominance in Latin America...unless they simply want to hand PHX's international capacity over to WN. Another variable is the addition of PHX as a OneWorld hub, though I don't know how much that really changes the dynamics.
I also suspect that PHX will retain a lot of if not see an increase in Express traffic as well.
US has a solid international operation out of PHX, and, afaik, it makes money. While a lot of East-West connecting traffic could better go through DFW but PHX is better positioned to connect travelers from the West Coast to destinations in Mexico. If anything, PHX could allow the new AA to reinforce market dominance in Latin America...unless they simply want to hand PHX's international capacity over to WN. Another variable is the addition of PHX as a OneWorld hub, though I don't know how much that really changes the dynamics.
I also suspect that PHX will retain a lot of if not see an increase in Express traffic as well.
OP
snapthis
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AMR near $11 billion merger, deal seen within week : sources
February 11, 2013 12:28 AM ET
By Soyoung Kim
NEW YORK (Reuters) - US Airways Group Inc and AMR Corp are nearing an $11 billion merger that would create the world's largest airline and could announce a deal within a week, after resolving key differences on valuation and management structure, people familiar with the matter said.
Under terms of a deal that are still being finalized, US Airways Chief Executive Doug Parker would become CEO, while AMR's Tom Horton would serve as non-executive chairman of the board until spring of 2014, when the combined company holds its first annual meeting, the sources said.
The deal would come more than 14 months after the parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers.
The all-stock merger is expected to value the combined carrier at between $10.5 billion and $11 billion, and would give AMR creditors 72 percent of the ownership in the new company and US Airways shareholders the rest, they said.
The board of each airline is expected to meet in the middle of the coming week to vote on the proposed deal, and an announcement would likely come in the latter part of the week, the sources said, asking not to be named because the matter is not public.
Negotiations are continuing and could still be delayed or fall apart, they cautioned.
The companies had initially tried to schedule board meetings for Monday, the day that AMR's creditors committee planned to convene, and had aimed to announce a deal as soon as Tuesday, sources told Reuters previously.
But AMR needed more time to finalize details and the boards of the two airlines are now not expected to gather until around Wednesday, the sources said.
The AMR creditors committee is still meeting on Monday in New York, as initially scheduled, and will continue discussions as the airlines finalize negotiations, they added.
A lawyer for the creditors committee declined to comment. Representatives for AMR and US Airways declined to comment.
A combination with US Airways would create the world's top airline by passenger traffic and help the two carriers better compete with rivals United Continental Holdings and Delta Air Lines Inc .
A near-$11 billion valuation of the combined American-US Airways compares to some $12.4 billion market capitalization for Delta, and $8.7 billion for United Continental.
The currently planned equity split ratio between AMR creditors and US Airways shareholders implies a roughly $3 billion valuation for US Airways and some $7.5 billion to $8 billion valuation for AMR.
NEW AMERICAN AIRLINES
US Airways will follow through on its agreement with AMR labor unions last year that the combined carrier would be branded American Airlines and be based in Fort Worth, Texas, where AMR is currently based, sources said. US Airways has its headquarters in Tempe, Arizona.
As part of the merger, US Airways will also leave the Star Alliance to join the oneworld global airline alliance, of which American Airlines is an anchor member along with British Airways, the people familiar with the matter said.
The airlines are estimating that a merger will bring about $1 billion in revenue and cost benefits, they said.
Horton rebuffed an aggressive takeover push from US Airways early in the bankruptcy process, saying the airline preferred to exit court protection on its own and consider a deal later. But after several months of talks with its own creditors as well as with US Airways, Horton has softened his approach and agreed to consider all options.
A combined American-US Airways would provide the scale to match bigger rivals that are upgrading service and expanding international routes. The merged company would have revenue of $38.69 billion based on 2012 figures, ahead of United Continental which had revenue of $37.15 billion last year.
The new American would have a solid presence on the important U.S. East and West coasts and on North Atlantic routes, given American's revenue-sharing joint venture with British Airways and Iberia.
(Reporting by Soyoung Kim in New York, additional reporting by Nick Brown and Karen Jacobs; Editing by Sandra Maler)
(c) Copyright Thomson Reuters 2013. Check for restrictions at: http://about.reuters.com/fulllegal.asp
February 11, 2013 12:28 AM ET
By Soyoung Kim
NEW YORK (Reuters) - US Airways Group Inc and AMR Corp are nearing an $11 billion merger that would create the world's largest airline and could announce a deal within a week, after resolving key differences on valuation and management structure, people familiar with the matter said.
Under terms of a deal that are still being finalized, US Airways Chief Executive Doug Parker would become CEO, while AMR's Tom Horton would serve as non-executive chairman of the board until spring of 2014, when the combined company holds its first annual meeting, the sources said.
The deal would come more than 14 months after the parent of American Airlines filed for bankruptcy in November 2011, and would mark the last combination of legacy U.S. carriers, following the Delta-Northwest and United-Continental mergers.
The all-stock merger is expected to value the combined carrier at between $10.5 billion and $11 billion, and would give AMR creditors 72 percent of the ownership in the new company and US Airways shareholders the rest, they said.
The board of each airline is expected to meet in the middle of the coming week to vote on the proposed deal, and an announcement would likely come in the latter part of the week, the sources said, asking not to be named because the matter is not public.
Negotiations are continuing and could still be delayed or fall apart, they cautioned.
The companies had initially tried to schedule board meetings for Monday, the day that AMR's creditors committee planned to convene, and had aimed to announce a deal as soon as Tuesday, sources told Reuters previously.
But AMR needed more time to finalize details and the boards of the two airlines are now not expected to gather until around Wednesday, the sources said.
The AMR creditors committee is still meeting on Monday in New York, as initially scheduled, and will continue discussions as the airlines finalize negotiations, they added.
A lawyer for the creditors committee declined to comment. Representatives for AMR and US Airways declined to comment.
A combination with US Airways would create the world's top airline by passenger traffic and help the two carriers better compete with rivals United Continental Holdings and Delta Air Lines Inc .
A near-$11 billion valuation of the combined American-US Airways compares to some $12.4 billion market capitalization for Delta, and $8.7 billion for United Continental.
The currently planned equity split ratio between AMR creditors and US Airways shareholders implies a roughly $3 billion valuation for US Airways and some $7.5 billion to $8 billion valuation for AMR.
NEW AMERICAN AIRLINES
US Airways will follow through on its agreement with AMR labor unions last year that the combined carrier would be branded American Airlines and be based in Fort Worth, Texas, where AMR is currently based, sources said. US Airways has its headquarters in Tempe, Arizona.
As part of the merger, US Airways will also leave the Star Alliance to join the oneworld global airline alliance, of which American Airlines is an anchor member along with British Airways, the people familiar with the matter said.
The airlines are estimating that a merger will bring about $1 billion in revenue and cost benefits, they said.
Horton rebuffed an aggressive takeover push from US Airways early in the bankruptcy process, saying the airline preferred to exit court protection on its own and consider a deal later. But after several months of talks with its own creditors as well as with US Airways, Horton has softened his approach and agreed to consider all options.
A combined American-US Airways would provide the scale to match bigger rivals that are upgrading service and expanding international routes. The merged company would have revenue of $38.69 billion based on 2012 figures, ahead of United Continental which had revenue of $37.15 billion last year.
The new American would have a solid presence on the important U.S. East and West coasts and on North Atlantic routes, given American's revenue-sharing joint venture with British Airways and Iberia.
(Reporting by Soyoung Kim in New York, additional reporting by Nick Brown and Karen Jacobs; Editing by Sandra Maler)
(c) Copyright Thomson Reuters 2013. Check for restrictions at: http://about.reuters.com/fulllegal.asp
From a factsheet about PHX on the US website:
10 international destinations - I'd guess most in Canada/Mexico.
nycbusdriver
Veteran
Ten.
Wow. That IS definitely, undoubtedly solid.
Of course, US would never put anything on their website that wasn't true.
And Parker doubles as a French model. I saw it on a website, so it must be true.
signals
Veteran
Lets face it, PIT was a, well, Money PIT for US in so many ways. You could argue the high fees and costs of the authorities, but you need to add the non rev workforce out of PIT. When planes take off and land with only employees, it's a disaster in the making, because who pays the fuel, the fees and the overall maintenance of the aircrafts????
Now if the employees at PHX all commute then bye-bye PHX!
Now if the employees at PHX all commute then bye-bye PHX!
The problem for PHX is going to be connecting traffic. With PHX beign right in between DFW and LAX the question is going to be which hub will go? I think it's a guarantee that LAX or PHX will not be a hub in five years. I tthink one could make a good argument for either, though I'd put the money on PHX simply because LAX is more... prestigous. Weather isn't a factor as that can go either way, though the summer heat might be a negative for PHX. Something tells me the density altitude in PHX in July and August is several thousand feet higher then in LAX, and that's got to do awful things to long haul flights like to NRT.
PHX will certianly continue to have service of course, but the quetion is how much. If PHX were dumped as a hub, how much cuts to mainline flying would there be? There would be no more flights to all those cities there are now, with the exception of the hubs. Then modify the connecting passengers that will be lost due to all these cuts (including the express flights) and just how many flights will be needed there? It will be EXACTLY like in LAS.
Of course, it's also quite possible that LAX will be the victim, and if so, it would play out the same way there. I just think there are far more arguments for killing PHX then LAX.
PHX will certianly continue to have service of course, but the quetion is how much. If PHX were dumped as a hub, how much cuts to mainline flying would there be? There would be no more flights to all those cities there are now, with the exception of the hubs. Then modify the connecting passengers that will be lost due to all these cuts (including the express flights) and just how many flights will be needed there? It will be EXACTLY like in LAS.
Of course, it's also quite possible that LAX will be the victim, and if so, it would play out the same way there. I just think there are far more arguments for killing PHX then LAX.
robbedagain
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- Oct 13, 2003
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What if PHX was to be turned into a DCA type of place would that be feasible
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