Wednesday, February 01, 2012

Allegheny Airlines Watch

There was a time when every hiccup at USAir was a major news story here.  How far have we come? I find it curious that there is news virtually everywhere in the world over the buzz that US Airways will wind up a cog in the post-bankruptcy frenzy following the news of AMR's Chapter 11 filing. Yet not so much coverage here as yet?

Washington Post on the potential for Delta to buy US Airways: Delta Said to Weigh US Airways Bid in Review of M&A Options

Philadelphia Inquirer on potential US Airways merger with Delta: US Airways confirms it may try to merge with American

Philadelphia Inquirer on all fo the above: Merger Mania: US with AA? AA with DL?

and a writeup worth reading in the UK's Independent: British airways key to US merger mania. Remember when British Airways was going to acquire most of US Air in an alliance that began in 1993?? only to dissolve rather painfully in 1996.  Could have made for a different history here for sure if it had worked out differently.

Even Minnesota Public Radio: Rumors of airline merger, acquisition take to the skies

See.. I can post something without mentioning the 'a' word. 


Anonymous BrianTH said...

You said "the 'a' word". I think that counts.

Anyway, Delta/USAir would be an antitrust nightmare. AA/USAir in contrast makes a lot more sense.

But of course one person's antitrust nightmare is another person's cost savings and improved profitability, if you can just get those darn regulators to back off. Heck, it may even depend on what happens this November.

Wednesday, February 01, 2012 9:42:00 PM  
Blogger Vannevar said...

Whether it's Delta or American, the loser would be (now redundant) Charlotte NC, the next loser of hub city / airline musical chairs. And, of course, all the people who just got semi-adjusted to being based in CLT.

Wednesday, February 01, 2012 10:20:00 PM  
Blogger Vannevar said...

And inevitably we see here that American is doing what it thinks best to make itself an attractive purchase - gutting the retirement liability, shedding employees, etc.

Wednesday, February 01, 2012 10:26:00 PM  
Blogger C. Briem said...

20,000 shares of Blue Star at 15 1/8th, 3/8ths top, and don't screw it up Sport!

Wednesday, February 01, 2012 10:32:00 PM  
Anonymous johnnyg said...

American's management wants to stay independent. That's why American is in this pickle of only filing Chapter 11 now and not sooner. Creditors might have a different idea, though. Funny thing about Chapter 11 is that, unless you're doing a pre-pack, management can lose control of the business. That's probably part of why management waited as long to file as they did.

A merger with Delta might shrink CLT. I'm not so sure about a merger with American hurting CLT. My guess is a merger with American hurts our friends in PHL more. American already has significant domestic and international operations in NYC at LGA and JFK. They don't need duplication at PHL, especially on the international side of the ledger. Whereas American has bumpkus between NYC and MIA (where the operations really are Pan Am's old Latin American routes more than domestic routes), and a lot of people live in those still fast-growing southeastern states.

One thing I haven't seen discussed yet is a deal that carves up American. The Miami hub to United, the Dallas hub to Delta, the NYC and LA operations to USAir, etc. The possibilities are endless. And that might get the most money for the creditors.

Thursday, February 02, 2012 9:38:00 AM  
Anonymous burgher said...

C. Briem said...
20,000 shares of Blue Star at 15 1/8th, 3/8ths top, and don't screw it up Sport!


800 pound gorilla in the room is what will become of the 500 or so person strong US Airways Global Flight Control Center they completed just about half a decade ago and all those jobs!

Sunday, February 05, 2012 1:55:00 AM  

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