US AIRWAYS Sells Headquarters

[Tim Nelson]

Phoenix Headquarters is sold
read here

 

[psa8979]

When the INC. starts to sell the Real Estate that is the beginning of the end for LCC at PHX. History shows that unprofitable HUBS/Corporate Offices are slowly right sized and closed. PHX/Tempe will be no different with AMR Group. My bet is LUV is looking for some additional commercial R/E in AZ.

 

[Tim Nelson]

The GAO report that came out today by the government suggested that hub closures are very real. The US AIRWAYS time line of mergers trends this to be the case 100% of the time.

Empire: SYR gone
Piedmont: DAY, BWI gone
PSA, LAX, SAN gone
America West: LAS, PIT gone

Not sure if any other merger has exceptions, it does take time though.

Delta is closing MEM a couple years after the NW merger.
Maybe CLE goes in the United/Continental merger [showed its hand with last IAM TA that didn't protect CLE]
My guess is PHX is toast in a US AIRWAYS/AMR merger. Hopefully, it, PHL, and CLT hang around.
Southwest/AirTran: ATL is downsizing for AirTran

At any rate, MIA and DFW seem strong. Maybe ORD is strong as well for the AMR/US merger.

 

[nycbusdriver]

My bet is LUV is looking for some additional commercial R/E in AZ.

I'll take that bet in a NY second.

For the life of me, why, oh why, would LUV be interested in an office building in Tempe, AZ?

 

[BungeeJumper]

US Airways didn't sell the building. Here's what US had to say about it in their daily email to staff:
US Airways CHQ Building Ownership Changes Hands
You may have seen reports yesterday that our CHQ Building on Rio Salado Parkway in Tempe, Ariz. was sold. US Airways Group, Inc. is a co-owner of this building and our share is approximately 25 percent. The other 75 percent was previously owned by a commercial real estate firm called W.P. Carey. US Airways Group, Inc. maintains its 25 percent share, and neither Group nor any other US Airways entity was a party to the transaction between W.P. Carey and Parkway. That firm recently sold its share (75 percent) to Parkway Properties, which also owns the building next door to CHQ. Additionally, the transaction was not in any way related to the pending merger between US Airways and American Airlines, nor does it affect US Airways lease of CHQ, which goes through 2016.

 

[700UW]

DL is not closing mem, they are going from around 90 flights a day to around 60 or so.

 

[Just Another BK]

DL is not closing mem, they are going from around 90 flights a day to around 60 or so.

So its a slow death like Pit.

 

[jimntx]

I'll take that bet in a NY second.

For the life of me, why, oh why, would LUV be interested in an office building in Tempe, AZ?

Amen! Dallas is quite hot enough in July and August. There is no need to move to Tempe to be miserable. Plus we have unseasonably cold winters some times. That almost never happens in Tempe.

 

[dariencc]

DL is not closing mem, they are going from around 90 flights a day to around 60 or so.

Tim Nelson was clearly referring to the Memphis hub being closed, not the Memphis station. And that is exactly what Delta announced.

http://www.usatoday.com/story/todayinthesky/2013/06/04/delta-air-lines-to-pull-plug-on-memphis-hub/2390515/

Don't let the facts get in your way.