M & A in the industry?

[CynicalResAgent]

With the annonced then not announced possible merger of UA and DL could WN get involved in some merger activity? Just wondering if anyone would chime in?

Stranger things have happened. WN has merged before with a LCC specifically with Morris Air. I believe Morris Air was sold to WN in the early 90's and they operated separate for about a year before integrating into WN.

Could WN possibly look at a low cost rival say like FL, and operate for a while as a separate entity and get rid of the 717's and then integrate into WN the 737's. It would give WN a foothold into some major business markets like LGA, DCA, MSP, BOS and CLT just off the top of my head.

YX could probably take some 717's to expand.

 

[KCFlyer]

Why would they want to? There has been what...ONE fairly decent merger in the history of the airlines?

 

[does this plane go to paris]

WN has the time, money and management to CAREFULLY look at any M/A's in the business. The new clink in the armour is that CEO Gary is willing to look at all options. Up until the past few years, it was a rare day that WN did not play within the Low Cost, High Frequency play book. They did try out a few 727's in the late 70's, they merged/bought Muse Air, etc. But when things didn't pan out, WN had the foresight and good sense to cut the loss and run.

Post 9/11 is a totally different animal. Instead of every airline trying to be a one stop travel shop being able to whisk Customer's from Rapid City South Dakota to Berlin Germany and fly them on 3 different types of Aircraft, the CEO's of the other airlines have finally woken up and and realized that the underlying COSTS are imperative to compete in the US market where WN is the largest airline in terms of boarded Customer's. Every major legacy either went into BK or threatned BK to force wage cuts, reduce fleet types, cut overpriced lease's. The fruits of their labor has proven somewhat successful and airlines are sitting on cash.

WallStreet wants to advise these corporations and are so willing to advise them how to merge and get a nice consulting fee. If a hedge fund wants a deal, they will get one. Look at that god awful merger between US/HP. Who is more unhappier, the Employee's that have to #### to the Customer's or the Customer's who have to fly on them.

Last year when the new US was looking at DL, WN CEO Gary certainly annointed the deal by publicly stating that WN would be interested in parts. So while the rest of Legacy's wonder whether it's going to be US/DL going up against a AA/CO with NW/US etc, the government regulators are going to insist on certain parts split up and sold. That is where the likes of Southwest, Frontier, Jetblue are going to get in and find something.

IF all of these merger's do go thru, then the next couple of years will be just as exciting as the last. There will be unhappy employee's, failed computer migrations and stranded unhappy Customers. OH, I just described USAIRWAYS.

 

[CynicalResAgent]

The reason why I brought it up was specifically because I remembered that the proposed US/DL merger had the posibility of WN buying parts of the carrier so they've shown an interest before when a merger was mentioned.

 

[KCFlyer]

The reason why I brought it up was specifically because I remembered that the proposed US/DL merger had the posibility of WN buying parts of the carrier so they've shown an interest before when a merger was mentioned.

I guess there's a difference between buying 'parts' you want and not taking on the things you don't want, as a merger pretty much does.

 

[CynicalResAgent]

I think they'd be interested in a way to get into New York for one, if it allowed them to operate in a way that would be of a scale that they are used (as opposed to the handful of slots ATA could have transfered to WN). Also if they were able to get a large number of gates in ATL I think they'd be more than interested. A city that large could easily justify an operation that would at least rival PHL in size and scale but I think could justify something as large as the ops in MDW or BWI but not as long as either FL or DL both have a hub in ATL.

With WN entering places like SFO,PHL DEN and IAD it shows that they are not shy of entering large fortress hubs anymore. I also think that if consolidation happens that alot of people believe that AA is the 800lbs gorrilla that would suddenly be spurred to action if other airline announce a merger and that they are sitting on loads of money and will buy out another carrier just to stay the largest and I think WN might suprise some people and get involved in some fashion.

 

[QA4Jet-A]

I think they'd be interested in a way to get into New York for one, if it allowed them to operate in a way that would be of a scale that they are used (as opposed to the handful of slots ATA could have transfered to WN). Also if they were able to get a large number of gates in ATL I think they'd be more than interested. A city that large could easily justify an operation that would at least rival PHL in size and scale but I think could justify something as large as the ops in MDW or BWI but not as long as either FL or DL both have a hub in ATL.

With WN entering places like SFO,PHL DEN and IAD it shows that they are not shy of entering large fortress hubs anymore. I also think that if consolidation happens that alot of people believe that AA is the 800lbs gorrilla that would suddenly be spurred to action if other airline announce a merger and that they are sitting on loads of money and will buy out another carrier just to stay the largest and I think WN might suprise some people and get involved in some fashion.

Also if they were able to get a large number of gates in ATL I think they'd be more than interested.

I'd have to wonder about that as there are not many gates to get. FL grabs them up as soon as available if allowed.
ATL doesn't need WN there and WN doesn't need ATL, IMO. It's crazy enough there already!