RowUnderDCA
Veteran
- Oct 6, 2002
- 2,123
- 1
Network Synergies
If the creditors think that the value of a larger network that would result from a combination is greater than the cost, and a willing partner emerges, wouldn't any creditor's committee consider this added value?
My impression is that the industry still considers the value of an expanded network to be significant, considering the perceived success of UA/CO and DL/NW. But each deal is different. Both AA and US are significantly smaller than their competitors.
I haven't heard of discussions of network synergies this time. Maybe it's just a phrase that any proponent of a combination would use and any detractor would not use.
When we start hearing that, then maybe something is in the works.
If the creditors think that the value of a larger network that would result from a combination is greater than the cost, and a willing partner emerges, wouldn't any creditor's committee consider this added value?
My impression is that the industry still considers the value of an expanded network to be significant, considering the perceived success of UA/CO and DL/NW. But each deal is different. Both AA and US are significantly smaller than their competitors.
I haven't heard of discussions of network synergies this time. Maybe it's just a phrase that any proponent of a combination would use and any detractor would not use.
When we start hearing that, then maybe something is in the works.