Standard & Poor's Sees 'Window of Opportunity'

[USA320Pilot]

Standard & Poor's Sees 'Window of Opportunity' for Airline Industry Consolidation

NEW YORK (AP) - The airline industry faces a "window of opportunity" to consolidate after years of financial struggles, according to a Standard & Poor's analyst.

Following US Airways Group Inc.'s hostile bid for bankrupt Delta Air Lines Inc., S&P analyst Philip Baggaley said he expects to see a series of mergers at some point, likely in the next year or two.

In a note to clients, he points to the success of the US Airways' combination with America West as an example of how acquiring a bankrupt company that has reorganized can provide more synergies. (America West bought US Airways in a reverse merger last year and kept the latter's name.)

He also noted that some airlines may view the current Department of Justice, which reviews mergers, as more willing to approve big combinations than would a future DOJ under a different administration.

"Lastly, the present industry environment is relatively favorable, so that acquiring airlines are in better financial shape to undertake a merger than has been the case since the late 1990s," Baggaley wrote.

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Regards,

USA320Pilot

 

[delta777]

Don't flatter yourself USA320Pilot. I've only been on this forum a short while, and i can say without hesitation that the US Airways/America West merger has been anything but smooth. Nor is it even close to finished, as per your fellow employees.

The way i see it, you had a 3rd tier airline (America West)
buy a floundering 2nd tier airline (you know who) that was on life support. For pete's sake, you only have a handful of widebodies!!! I saw your worldwide route map for the first time today, pathetic with a capital P!

Its plain to see why LCC wants Delta, we're a much larger, superior airline, your but a gnat compared to us. And judging from the recent plunge in your stock price, perhaps the debtors/creditors have seen the light as well.

Face it, we don't want you, nor do we need you.

Where's your alter-ego ralphcramden been lately?

 

[dariencc]

Where's your alter-ego ralphcramden been lately?

For your reading pleasure.


http://www.usaviation.com/forums/index.php?showtopic=32453


I also liked this quote from USA320Pilot's fine Dec. 15 Delta Merger Update so I'll paste it for your benefit.

We like the news because Delta is in some ways the weakest of the carriers right now, and US Air has considerably strengthened.â€￾ - Ronald Fiedling, SVP, Rochester Investment Team at OppenheimerFunds, Reuters, Nov. 15

 

[USA320Pilot]

Delta777:

With all due respect, I believe your comments are inaccurate. There is no doubt that Delta is a great airline with great employees, but many influential people believe by combining the two companies Doug Parker can create a very, very strong competitor. Furthermore, I believe that the Delta employees will be better off merging with US Airways because another potential scenario being discussed is a break up of the Atlanta-based airline. By the way, you might want to consider Evecore's roll in this...

Here are a couple of comments by some people looking at the proposed merger who are not affiliated with US Airways or Delta:

- We like the news because Delta is in some ways the weakest of the carriers right now, and US Air has considerably strengthened.â€￾ - Ronald Fiedling, SVP, Rochester Investment Team at OppenheimerFunds, Reuters, Nov. 15

Here are a couple of comments from airline analysts from two of the three credit rating agencies:

- “This is a pretty lucrative offer for unsecured debtors.â€￾ - William Warlick, industry expert, Fitch Ratings, Ltd., The Philadelphia Inquirer, Nov. 16

- “As far as US Airways is concerned, I think that obviously Doug Parker and Scott Kirby have shown that they can do this with America West. They have done a great job for the shareholders of US Airways already, and I think that this deal would be greatly accretive, and would be good for not only US Airways and Delta, but for the entire industry in terms of capacity reduction.â€￾ - Jim Corridore, airline analyst, Standard & Poor’s, CNBC’s Morning Call, Nov. 15

Delta777, people like you and I have no say on whether or not US Airways' bid to takeover Delta will proceed. Who will? Delta's creditors and the bankruptcy court.

In regard to US Airways' recent stock price could the price action be affected by the energy markets?

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Best regards,

USA320Pilot

 

[EyeInTheSky]

Don't flatter yourself USA320Pilot. I've only been on this forum a short while, and i can say without hesitation that the US Airways/America West merger has been anything but smooth. Nor is it even close to finished, as per your fellow employees.

The way i see it, you had a 3rd tier airline (America West)
buy a floundering 2nd tier airline (you know who) that was on life support. For pete's sake, you only have a handful of widebodies!!! I saw your worldwide route map for the first time today, pathetic with a capital P!

Its plain to see why LCC wants Delta, we're a much larger, superior airline, your but a gnat compared to us. And judging from the recent plunge in your stock price, perhaps the debtors/creditors have seen the light as well.

Face it, we don't want you, nor do we need you.

Where's your alter-ego ralphcramden been lately?

delta777,
Hmmm...let me see. If a 3rd-tier airline buys a 2nd-tier airline that makes Delta a 5th-tier airline. Why? Because your "superior" airline is bankrupt. So sorry. No soup for you.

Later,
Eye

P.S. Ignore USA320Pilot he was an abused child.

 

[Harry Callahan]

Don't flatter yourself USA320Pilot. I've only been on this forum a short while, and i can say without hesitation that the US Airways/America West merger has been anything but smooth. Nor is it even close to finished, as per your fellow employees.

The way i see it, you had a 3rd tier airline (America West)
buy a floundering 2nd tier airline (you know who) that was on life support. For pete's sake, you only have a handful of widebodies!!! I saw your worldwide route map for the first time today, pathetic with a capital P!

Its plain to see why LCC wants Delta, we're a much larger, superior airline, your but a gnat compared to us. And judging from the recent plunge in your stock price, perhaps the debtors/creditors have seen the light as well.

Face it, we don't want you, nor do we need you.

Where's your alter-ego ralphcramden been lately?

Delta777 not to worry, eyes just roll at the mention of his name....

 

[lynyrdskynyrd]

The way I see it, Delta777's initials have got to be RC. I personally don't want you and your first tier ego either, it goes both ways.