US Airways CEO calls for more consolidation

[Dont call me Shirley]

While AA is a indeed fine airline, they have a record of taking over carriers ony to dismantle them. How much is left of the Air Cal, Reno Air, and TWA route networks.

 

[nycbusdriver]

While AA is a indeed fine airline, they have a record of taking over carriers ony to dismantle them. How much is left of the Air Cal, Reno Air, and TWA route networks.

How much is left of the original PSA network?

How much is left of the Empire network?

Where are the Dayton and Baltimore hubs of the original Piedmont days? The focus cities of Roanoke? Tri-Cities? Etc.?

More recently....how's the Las Vegas hub doing?

American Airlines is not the only carrier with that reputation. For decades during CAB regulation, PanAm BEGGED for domestic routes to feed the international service which the CAB said was their only role. Then, when deregulation hit, PanAm bought Northeast Airlines getting those much sought after domestic routes. The Northeast Airlines system was gone within about a year as PanAm found out that the domestic routes were NOT the panacea they sought, and it was their own rotten management that was responsible for their fate.

 

[wings396]

How much is left of the original PSA network?

How much is left of the Empire network?

Where are the Dayton and Baltimore hubs of the original Piedmont days? The focus cities of Roanoke? Tri-Cities? Etc.?

More recently....how's the Las Vegas hub doing?

American Airlines is not the only carrier with that reputation. For decades during CAB regulation, PanAm BEGGED for domestic routes to feed the international service which the CAB said was their only role. Then, when deregulation hit, PanAm bought Northeast Airlines getting those much sought after domestic routes. The Northeast Airlines system was gone within about a year as PanAm found out that the domestic routes were NOT the panacea they sought, and it was their own rotten management that was responsible for their fate.

Just wanted to say that Northeast was purchased by Delta in 1972. You are thinking of National as the one that Pan Am purchased for domestic feed.

 

[FWAAA]

While AA is a indeed fine airline, they have a record of taking over carriers ony to dismantle them. How much is left of the Air Cal, Reno Air, and TWA route networks.

Not only is nycbusdriver correct (USAir has a long history of downsizing its acquisitions), but some might say that AA has done the rest of the industry a favor by eliminating excess capacity by buying it and shutting it down.

That said, AA won't be combining with US. Not a chance.

 

[Harry Callahan]

That said, AA won't be combining with US. Not a chance.

For that I'm thankful. I only hope you are right.

 

[john john]

(USAir has a long history of downsizing its acquisitions), but some might say that AA has done the rest of the industry a favor by eliminating excess capacity by buying it and shutting it down.

That said, AA won't be combining with US. Not a chance.

But in US case US bought and gave it to WN.among others

 

[wings396]

Not only is nycbusdriver correct (USAir has a long history of downsizing its acquisitions), but some might say that AA has done the rest of the industry a favor by eliminating excess capacity by buying it and shutting it down.

That said, AA won't be combining with US. Not a chance.

Unless you are sitting in a high-ranking seat at HDQ, you can't say anyting for certain. None of us at PI ever saw US coming until it was announced either. Although the US/DL offfer never came to be, none of us would have ever guessed that was being presented as well. Most M&A discussion and activity are kept quiet for several reasons until the companies involved are ready to go public with the news.

 

[FA Mikey]

I really dont understand the constant pining of U employees wanting to be bought or to buy another carrier. No where else on this board do you see thread after thread on this subject except to say please God dont let it happen.

Also, who is going to loan the dollars needed to one money losing airline, so they can buy another money losing airline? UAL just borrowed money and had to pay a huge premium on it to close the deal.

 

[Travelpro72]

Wings396 you are absolutely correct. Nobody on here has any knowledge as to what may happen. The only thing certain is that Doug Parker is big on consolidation. First of all, never say never to anything in the airline business and second believe half of what you read or hear. All of this posturing from people of other airlines including US just cracks me up. Management of US and every other airline out there will do what THEY want to do. We are but a blip on their radar as employees. So when IS that "next big announcement" that was heard from the sisters best friends cousin of the station managers brothers ex who works in a cubicle? AAAAHAHAHA

 

[safety stud]

UAL just borrowed money and had to pay a huge premium on it to close the deal.

And guess what that money is going to be used for. Come on... Take a guess... Give up...

IT'S THE FINANCING TO PUT UP THE MERGER WITH LCC...

Both UAL and LCC will announce a merger by the end of the summer. DP will control it and provide the majority of the financing, and the name will remain USAirways. AA will be buying the west assets in combo with CAL. The East assets will remain in place with future F/A only bases. A split with the pilots will happen by the end of the year. Oh yea, and a new east contract to boot.

Dreaming... Maybe
Possibe... You betcha...
Probable... The writing is on the walls...

Just my opinion...

 

[FA Mikey]

And guess what that money is going to be used for. Come on... Take a guess... Give up...

IT'S THE FINANCING TO PUT UP THE MERGER WITH LCC...

LIQUIDITY CONCERNS

Concerns that UAL's liquidity could come under pressure have increased as the outlook for travel demand remains bleak
and the risk of a renewed surge in fuel prices remains a risk.

Credit default swaps on UAL's debt are reflecting a high bankruptcy concern at 59 percent the sum insured as an upfront
cost, or $5.9 million to insure $10 million for five years, in addition to annual payments of $500,000, according to data by
Market.

Fitch Ratings this month cut UAL's issuer credit rating two notches to CCC, eight steps below investment grade and a deeply
speculative grade.

United could report substantially negative free cash flow for the final three quarters of 2009, and the airline has $655
million of debt and capital leases maturing in the last three quarters of the year, Fitch said.

"Even if revenue trends stabilize late in the year, the airline faces over $1 billion in scheduled debt and capital
lease principal payments next year, raising the probability of a deepening liquidity crisis," Fitch added.

"United may have difficulty raising a large amount of new capital over the near term as credit market conditions remain
very tight," Fitch said.

full article here

I realize its the dream of al the U employees and management. But no one has the money or wants to take on the drama of a previous merger that has yet to be worked out.

 

[FWAAA]

And guess what that money is going to be used for. Come on... Take a guess... Give up...

IT'S THE FINANCING TO PUT UP THE MERGER WITH LCC...

UA raised only $175 million in the recent financing:

http://finance.yahoo.com/news/United-Annou...ml?x=0&.v=1

It's gonna take a lot more money than a mere $175 million to fund this mega-merger between UA and US.

AA raised a mere $154 million in new cash today with its latest financing. Both UA and AA are raising cash for survival, not to provide widebody seats to airbus captains.

 

[BoeingBoy]

Maybe this is the next "savior" of US....

Republic still in the market for acquisitions

"Republic Airways, the US regional airline which last week moved to buy troubled peers Frontier Airlines and Midwest Airlines, is still in the market for other acquisitions."

Jim

 

[Art at ISP]

As I said before, Dougie is dreaming if he thinks US will be the surviving carrier, or that he would be in charge--that would be a disaster for employees and customers.

US can't even finance aircraft or aircraft seats without difficulty, they aren't getting capital for an acquisition. IF this were to happen UA would be the surviving carrier, and they would go outside both companies for a CEO--in my humble opinion the best move.

I think UA-CO will become a merger, with Larry Kellner in charge, and they will pick what they want from US. What happens to the rest is anyone's guess.

Just my opinion...but it is a somewhat educated one.

 

[wings396]

No matter who US merges with, the US name will be gone. This was made clear when the DL deal was on the table, and still is. While the image of US is slightly better than it was years ago, it can't compare to those such as UA or AA. Both are better known name brands than US is, so it only makes sense to use them instead.
On a side note here, I'm by no means a merger expert, but can't 2 companies merge together without one purchasing the other? Can they just combine forces to better each of their positions and to make a more viable company?