USAirways/America West Merger Talks -WSJ
- Thread starter phillyguy
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TransatlanticFlyGuy
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Well it looks offical according to the Wall Street Journal online tonight. They are reporting that US and HP are in advanced merge talks. Dont know how to post the link here. I know its on Yahoo Aviation News. Good luck to us all!
longing4piedmont
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The US Airways-America West talks are known as "Project Barbell" because US Airways is big on the East Coast and America West on the West Coast, with a modest number of transcontinental flights between them, said people close to the matter......
....One person familiar with the matter said US Airways has talked to several other airlines over the past two years about a potential merger. But the discussions with America West Holdings Corp., the airline's parent company, have gained momentum recently. In recent days, it had been expected that the two airlines could announce an agreement in principle to merge as soon as next week, but that timetable is in question.....
....If an agreement is reached, the initial plan would be to fly under the "US Airways" brand immediately but to keep the operations separate for a time, linking the network through code-sharing, while integration of fleet and personnel is phased in....
....One person familiar with the matter said US Airways has talked to several other airlines over the past two years about a potential merger. But the discussions with America West Holdings Corp., the airline's parent company, have gained momentum recently. In recent days, it had been expected that the two airlines could announce an agreement in principle to merge as soon as next week, but that timetable is in question.....
....If an agreement is reached, the initial plan would be to fly under the "US Airways" brand immediately but to keep the operations separate for a time, linking the network through code-sharing, while integration of fleet and personnel is phased in....
I'll bet "merger" isn't the right word. It would probably look more like an asset sale after HP got rid of about half of the U fleet. I have a hard time thinking that HP would want to commit corporate suicide like that. A man in a leaky boat doesn't need a boat anchor.
longing4piedmont
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Rather than posting the whole article you can read it here....
http://flyertalk.com/forum/showpost.php?p=...825&postcount=2
Sounds like this may be serious.
http://flyertalk.com/forum/showpost.php?p=...825&postcount=2
Sounds like this may be serious.
KCFlyer
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longing4piedmont said:
Sounds like if any airline is fool enough to merge with a bankrupt carrier instead of allowing them to fold and expanding without the headaches of labor contracts and debt, then it may well result in, if not consolidation, a reduction in carriers, since I'd bet a dollar to a donut that if this goes thru, America West will be facing another bankruptcy and most likely fold as well.
longing4piedmont
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Well there you are folks. Our resident expert on US and HP has spoken. Just remember you read it here firstKCFlyer said:
Dont call me Shirley
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longing4piedmont said:
Umm....wasn't that the whole idea behind the PSA merger?!
Actually, it might not be such a bad idea. One can but hope it will run by the PHX people rather than the wizards in CCY!
KCFlyer
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longing4piedmont said:
Okay l4p - what does the merger of a near bankrupt and fully bankrupt carrier get you? AA was in a lot stronger financial position when they "saved" TWA. Look at the lovely labor relations problem they had integrating workforces there. Look at how AA got precariously close to bankruptcy - granted 9/11 played a role, but AA was strong enough to keep going. Please identify how merging these two today would be better than letting US fail and cherry picking employees, airports, aircraft and routes. Of course, in the former, your holy grail of the DM program would be salvaged. IMHO, if this really happens, look for AWA to fail within a 2 year period.
justaumechanic
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- Dec 15, 2003
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This is the classic "Two wrongs do not make a right"!!
Remember folks.. AmWest farms out all of its work. That would be the
end of PIT.
Remember folks.. AmWest farms out all of its work. That would be the
end of PIT.
oldiebutgoody
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- Aug 23, 2002
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When it's being forced and financed by GE, one of, if not the largest corporations in America, who knows what will happen. I just wonder where Untied fits into this picture. Hmmm. It's obvious that GE is NOT going to let any of these carriers fail until it gets what it wants. I just don't know exactly what that is, but you can bet it involves a bunch of leased aircraft and engines.KCFlyer said:
longing4piedmont
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Hey, I was giving you a tremendous amount of credit here. I think you may have taken offense to my post. I assure you none was intended. No doubt your vast powers of discernment have enabled you to know the financial terms of this deal and the third party players involved from reading an article in the WSJ. Your limitless knowledge of the two companies involved has been exhibited here time and time again. I was just trying to alert all here that there was no need to even wait for the deal, much less the details, to go through as you had provided a glimpse of the futureKCFlyer said:
If this deal is gonna get done.... the employees of both companies won't have a say.... Just follow the money... GE, TPG, RSA, ATSB... need I say more.
And once it did all mesh together.. however hellish it's gonna be for the employees.... That's gonna be a big B&#^H to rival SWA. Couldn't be any worse than shacking up with UAL right now.
And once it did all mesh together.. however hellish it's gonna be for the employees.... That's gonna be a big B&#^H to rival SWA. Couldn't be any worse than shacking up with UAL right now.
