Southwest Mulling Bid

[FWAAA]

If i am correct AA was not receiving any assets in the US/UA deal.  A new airline was going to be created named DC Air, they were supposed to get some assets namely the DCA operation. 

WN is one of the few airlines actually receiving aircraft and quite a few of them in the next year or two.  If anyone is ready to fill the void quickly in PHL it is WN, not any other carrier.

[post="276151"][/post]​

Actually, for $1.2 billion, AA was going to buy all of US' F100s and RR-powered 757s, and gates and slots to operate half of the shuttle (UAL the other half). AA would then lease the F100s to the new DC Air and take a 49% ownership interest in that as well. From AMR's 10-K:

Secondly, the Company announced that it has agreed to acquire from United Airlines, Inc. (United) certain key strategic assets (slots, gates and aircraft) of US Airways, Inc. (US Airways) upon the consummation of the previously announced merger between United and US Airways. In addition to the acquisition of these assets, American will lease a number of slots and gates from United so that American may operate half of the northeast Shuttle (New York/Washington DC/Boston). United will operate the other half of the Shuttle. For these assets, American will pay approximately $1.2 billion in cash to United and assume approximately $300 million in aircraft operating leases. The consummation of these transactions is contingent upon the closing of the proposed United/US Airways merger. Also, the acquisition of aircraft is generally dependent upon a certain number of US Airways' Boeing 757 cockpit crew members transferring to American's payroll.

Finally, American has agreed to acquire a 49 percent stake in, and to enter into an exclusive marketing agreement with, DC Air LLC (DC Air). American has agreed to pay $82 million in cash for its ownership stake. American will have a right of first refusal on the acquisition of the remaining 51 percent stake in DC Air. American will also lease to DC Air a certain number of Fokker 100 aircraft with necessary crews (known in the industry as a "wet lease"). These wet leased aircraft will be used by DC Air in its operations. DC Air is the first significant new entrant at Ronald Reagan Washington National Airport (DCA) in over a decade. DC Air will acquire the assets needed to begin its DCA operations from United/US Airways upon the consummation of the merger between the two carriers. American's investment in DC Air and the other arrangements described above are contingent upon the consummation of the merger between United and US Airways.

http://www.shareholder.com/aa/EdgarDetail....-2483&SID=01-00 (page 2)

 

[skyguy25]

Are you all forgetting about CLT? PHL is nice but CLT is even better. Southwest has the cash and the sense to put a real big damper on this whole dumbell merger...watch for them to build up STL, MCI, and OKC rapidly in the event that US/HP tries a pseudo-hub there. What does WN have close to 2 billion just sitting around? Everyone forgets about ATA and their gates in DCA, LGA, ect. ect. this 'codeshare' might sound non-threatening, but i am watching it very very closly...especially when teh Wright is lifted...

 

[N924PS]

Are you all forgetting about CLT? PHL is nice but CLT is even better. Southwest has the cash and the sense to put a real big damper on this whole dumbell merger...watch for them to build up STL, MCI, and OKC rapidly in the event that US/HP tries a pseudo-hub there. What does WN have close to 2 billion just sitting around? Everyone forgets about ATA and their gates in DCA, LGA, ect. ect. this 'codeshare' might sound non-threatening, but i am watching it very very closly...especially when teh Wright is lifted...

[post="276200"][/post]​

If the Wright Amendment is lifted watch for AA to come to Love Field in a BIG WAY.

It is unlikely though, that the amendment will be repealed

 

[700UW]

CLT is a connecting hub, it does not have the O&D that WNwould want to start major operations there.

The only reason CLT is so big is that it is a connecting hub.

 

[etops1]

If the Wright Amendment is lifted watch for AA to come to Love Field in a BIG WAY.

It is unlikely though, that the amendment will be repealed

[post="276213"][/post]​

actually ashby was on my flt from sfo-clt then connecting on to iad on june 2nd . i was wondering where he was coming from. we did not talk since he was asleep the whole flt. he was in 2A. tall guy.

 

[RowUnderDCA]

Hmm didn't take a UAL nonstop? Do the have P.S. service yet.. a tall guy would probably like that.

 

[700UW]

Probably from the Star Alliance meetings in Japan.

 

[skyguy25]

CLT is big enough for WN.. wasn't PVD or MHT? At least it will change the cost structure in CLT forever....The Wright WILL go away....congressional leaders will have no choice....

 

[skyguy25]

WN would be stupid not to plump up its MidWest operations ASAP...then where would US/HP go?

 

[MrAeroMan]

Yes CLT is a connecting hub but it's population would definitely support a SWA type operation. There are an enormous amount of people that drive to other nearby airports to escape the "premium" that UAIR charges for it's non-stop flights. If those people were enticed back to to CLT with a LCC type of operation you'd see huge increases in traffic. The population within CLT and the surrounding area within 1-1/2 hrs is close to 8 million I believe. That would be more than enough to support a LCC operation.

 

[700UW]

The population within CLT and the surrounding area within 1-1/2 hrs is close to 8 million I believe.

[post="276222"][/post]​

Your figures are a bit off.

North Carolina's whole state population in 2003 was estimated at 8,407,248.

US Census Bureau

In the year 2000 Charlotte's population was 540,828.

So I seriously doubt 8 million people are within a 1 1/2 hours drive to CLT when the whole states population is in the 8 million range.

Mecklenberg county had a population of 752,366 in the year 2003.

Iredell had a population of 133,387 in the year 2003.

Gaston had a population of 193,097 in the year 2003.

And Union county had a population of 145,986 in the year 2003.

So I don't think that adds up to 8 million.

 

[MrAeroMan]

CLT is on the border of NC and SC so you would have to add in SC population down to the middle of the state from Columbia on up to include GSP. As for the numbers I read them in a publication somewhere but can't find it as we speak. Those estimates from the US Census are 2 years old so take them for what it's worth.
For comparisons PIT's population was 206,000 less than CLT's in the same 2003 time frame and SWA went there.
I say there is far and beyond enough people to support a LCC operation especially given the costs associated with CLT airport.

 

[700UW]

Why don't you include the whole east coast?

The population of SC in 2000 was slighty over 4 million.

Columbia only had a population of 114,000 in 2003.

Spartenburg had a population of 39,673.

Greenville had a population of 56,002 in 2003.

Rock Hill had a population of 49,765 in 2003.

York County has a population 178,070 in 2003.

Even if you add up NC and SC there is no where near 8 million people in 1 1/2 hours drive of CLT.

So in two years the population of the surronding CLT are of a little over a 1 million went to 8 Million when the whole state's population is in the 8 million range.

 

[etops1]

ual only does the p.s service from lax&sfo to jfk. i guess it was easier for him to go through clt then to iad. although he had a tight connection. since we arrived a few minutes late at the b concourse and he was going out of the d concourse.

 

[autofixer]

You are forgetting South Carolina...CLT sits on the border of North & South. Guilford, Forsyth, Rockingham, Yadkin, Alamance, Burke, Buncome, all counties in North Carolina are well within 1 1/2 drive to CLT...probably about half of North Carolina's 100 counties are within an hour and a half to two hours drive of CLT. Then there is South Carolina. The CLT MSA and the AVL, GSO-INT, CAE and Greenville, SC MSAs all Merge, however, they are all around 1 1/2 drive from each other. Statistics can be misleading. If you simply look up the CLT MSA, you only get a fraction of the real picture. It is only a 4 hour drive to ATL from CLT, so it is not inconceivable to draw from Northern Georgia. The same could be said for Southwestern Virginia and Eastern Tennessee...U has pilots who drive to CLT from the locations every day.