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Old 01-26-2012, 08:12 AM
 
Location: Rocky Mountain Xplorer
956 posts, read 1,250,422 times
Reputation: 684

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DALLAS — US Airways Group, the smallest full-service domestic carrier, on Wednesday confirmed its interest in exploring a deal with American Airlines parent AMR Corp. in bankruptcy.
Millstein & Co., Barclays and the law firm of Latham & Watkins have been hired to help Tempe, Ariz.-based US Airways evaluate options, Chief Executive Officer Doug Parker said on a conference call with analysts and investors.
His comments marked the first acknowledgment of any AMR-related interest, after US Airways declined to respond last week when two people familiar with the matter said a potential merger was under study. With the industry shrinking in tie-ups in the past four years, further contraction is possible while “no longer imperative,” Parker said Wednesday.
“We can now decide whether it’s best to operate as a standalone or to participate in further consolidation over time,” Parker said. US Airways is “always interested in studying value-enhancing opportunities,” he said.
US Airways looks at deal with American *| ajc.com
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US Airways CEO Doug Parker is sounding more and more like he'd like to work out a combo with American ? That combination wouldn't appear to be as impressive as Delta/Northwest or United/Continental, but you gotta think that Parker is drooling at that thought of having a carrier with those big DFW and Miami hubs in his network ?
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Old 01-26-2012, 08:58 AM
 
27,604 posts, read 45,080,155 times
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also saw article that group is working with BAC and maybe JAL to consider merger with AA
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Old 01-27-2012, 02:39 PM
 
63 posts, read 177,067 times
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Quote:
Originally Posted by loves2read View Post
also saw article that group is working with BAC and maybe JAL to consider merger with AA
British Airways and American have tried this in the past and unfortunately it can't work. JAL and International Airlines Group are foreign companies and US law prohibits foreign entities from owning more than 25% of a US airline.

Pretty big hurdle, even though it would make more sense and would allow AA to grow.
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Old 01-28-2012, 10:42 AM
 
Location: Rocky Mountain Xplorer
956 posts, read 1,250,422 times
Reputation: 684
Delta Airlines is signaling that the consolidation of the United States airline industry is not over.
Delta, based in Atlanta, is exploring a possible bid to purchase US Airways, a person with knowledge of the matter said on Friday. Delta has not yet approached its smaller rival, said the person, who was not authorized to speak publicly about the matter. And an offer is not certain, the person said.
But Delta’s interest in US Airways comes a few days after both airlines separately began exploring a possible tie-up with American Airlines, which filed for bankruptcy protection in November. The conversations, all at an extremely early stage, demonstrate that the nation’s skies are still ripe for more consolidation.
Delta Explores Possible Bid for US Airways - NYTimes.com
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Very provocative story here as it seems that Delta may indeed be in the hunt for an acquisition target, but not necessarily American.
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Old 01-28-2012, 02:47 PM
 
Location: Willowbend/Houston
13,403 posts, read 20,334,523 times
Reputation: 10183
Quote:
Originally Posted by JimBaker488 View Post
Delta Airlines is signaling that the consolidation of the United States airline industry is not over.
Delta, based in Atlanta, is exploring a possible bid to purchase US Airways, a person with knowledge of the matter said on Friday. Delta has not yet approached its smaller rival, said the person, who was not authorized to speak publicly about the matter. And an offer is not certain, the person said.
But Delta’s interest in US Airways comes a few days after both airlines separately began exploring a possible tie-up with American Airlines, which filed for bankruptcy protection in November. The conversations, all at an extremely early stage, demonstrate that the nation’s skies are still ripe for more consolidation.
Delta Explores Possible Bid for US Airways - NYTimes.com
*************
Very provocative story here as it seems that Delta may indeed be in the hunt for an acquisition target, but not necessarily American.
There is more to this than meets the eye. Think about it this way, what does US have that Delta would want?

Not Charlotte, they have Atlanta
Not Philly, their New York hubs are already larger internationally
Not Phoenix, US margins there are some of the lowest in the industry.

The only thing DL might potentially want is their operation in DC. But much of that would get forced out in concessions if this happened.

This revelation coming out from Delta makes me even more sure of my original theory. Delta isnt trying to merge with anyone. They are trying to stir the pot for two reasons:

1) Drive the prices for AA or US up and make it more complicated for those two to merge if they choose. Plus it also makes AA more unsure about being alone.

2) In the shake up, there is a chance an asset or two might pop loose and DL would be well prepared to grab it.

Personally, I think its a brilliant move by Delta, but US and AA probably also see through it. Even then, there isnt anything wrong with exploring possibilities. However, DL knows they have nothing to loose. At the very least, they have just made it more complicated for AA and US.

Another thing to put into perspective is that given the amount of cash AA has on hand, it would be virtually impossible for AA to be unwantedly taken over. Not to mention AA is vastly important for British Airways. They will stop at nothing to help AA with whatever it needs. Then there is TPG who has a working relationship with AA. To be perfectly frank, DL has no chance with AA unless AA lets it.

Personally, I see US, TPG, and BA potentially working together. US has sent representatives to London to pitch to BA why US would be a good match for AA. That means two things:

1) US would leave the Star Alliance at the drop of a hat to merge with AA
2) US is appealing to the best of AA's friends so their intentions are somewhat friendly.

All in all, Delta has nothing to loose. US and AA have everything to gain. A US/AA merger would be a very strong airline and the largest in the world. If I were Delta, I would be trying to muddy the waters too.
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Old 01-28-2012, 03:11 PM
 
Location: Washington D.C. By way of Texas
18,253 posts, read 25,967,238 times
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So is this basically a ploy to get US/AA to show their hands and that those two (US/AA) are indeed in conversations to actually merge and Delta is trying to stop it?
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Old 01-28-2012, 03:48 PM
 
Location: Willowbend/Houston
13,403 posts, read 20,334,523 times
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Quote:
Originally Posted by Spade View Post
So is this basically a ploy to get US/AA to show their hands and that those two (US/AA) are indeed in conversations to actually merge and Delta is trying to stop it?
In my opinion, this is a ploy to get AA and US to show their hands and it seems to be working. US has scrambled to let the world know that they are interested in AA. US sent representatives to meet with AA at their meeting last Wednesday in Fort Worth. Ive been in South America and I have not had a chance to ask anyone who was there how it went. As I mentioned, US is also appealing to IAG (the group that owns BA and IB) to why a merger would be a good move. And this latest revelation seems to be aimed at getting US off guard.

AA has a long road a head of them without any distractions, but when you throw unwanted takeover offers in the way, it makes things harder. DL knows this. Then in the chaos there is a remote chance an asset might pop loose and DL will be there to grab it if it does.

Ill throw this thought in there as well: If Delta was interested in US, why wait until now to try to get them? Not to mention US tried to merge with Delta 6 years ago and Delta didnt want any of it. The bottom line is that I highly doubt Delta actually wants anything to do with US.
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Old 01-28-2012, 05:54 PM
 
Location: Funky Town, Texas
4,020 posts, read 6,940,873 times
Reputation: 1961
Quote:
Originally Posted by justme02 View Post
In my opinion, this is a ploy to get AA and US to show their hands and it seems to be working. US has scrambled to let the world know that they are interested in AA. US sent representatives to meet with AA at their meeting last Wednesday in Fort Worth. Ive been in South America and I have not had a chance to ask anyone who was there how it went. As I mentioned, US is also appealing to IAG (the group that owns BA and IB) to why a merger would be a good move. And this latest revelation seems to be aimed at getting US off guard.

AA has a long road a head of them without any distractions, but when you throw unwanted takeover offers in the way, it makes things harder. DL knows this. Then in the chaos there is a remote chance an asset might pop loose and DL will be there to grab it if it does.

Ill throw this thought in there as well: If Delta was interested in US, why wait until now to try to get them? Not to mention US tried to merge with Delta 6 years ago and Delta didnt want any of it. The bottom line is that I highly doubt Delta actually wants anything to do with US.
Justme...Can you try to get info on where the headquarters will be if the two merge....I just don't see the headquarters remaining in Arizonia...
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Old 01-28-2012, 06:18 PM
 
Location: Willowbend/Houston
13,403 posts, read 20,334,523 times
Reputation: 10183
Quote:
Originally Posted by kdogg817 View Post
Justme...Can you try to get info on where the headquarters will be if the two merge....I just don't see the headquarters remaining in Arizonia...
I can tell you with a pretty good certainty the HQ will be in Fort Worth.

Ive been to both facilities and the Fort Worth facilities are leaps and bounds larger and further ahead of the Phoenix facilities. I have spoken with a couple of people close to the matter and even the US Airways middle management is under the impression that should a merger come about the HQ will be in Fort Worth. Ive also spoken with some people at AA who say that should a merger come about the American name must remain the HQ must be in Fort Worth.

Doug Parker (the current CEO of US Airways) actually came from American before joining America West (which became US Airways). Also its important to note that when US was courting Delta during their Chapter 11 he stated several times that the HQ would be in Atlanta. So he is very open to the HQ not being in Arizona.
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Old 01-30-2012, 01:11 PM
 
Location: Dallas, TX
5,681 posts, read 9,687,425 times
Reputation: 1889
Quote:
Originally Posted by justme02 View Post
There is more to this than meets the eye. Think about it this way, what does US have that Delta would want?

Not Charlotte, they have Atlanta
Not Philly, their New York hubs are already larger internationally
Not Phoenix, US margins there are some of the lowest in the industry.

The only thing DL might potentially want is their operation in DC. But much of that would get forced out in concessions if this happened.

This revelation coming out from Delta makes me even more sure of my original theory. Delta isnt trying to merge with anyone. They are trying to stir the pot for two reasons:

1) Drive the prices for AA or US up and make it more complicated for those two to merge if they choose. Plus it also makes AA more unsure about being alone.

2) In the shake up, there is a chance an asset or two might pop loose and DL would be well prepared to grab it.

Personally, I think its a brilliant move by Delta, but US and AA probably also see through it. Even then, there isnt anything wrong with exploring possibilities. However, DL knows they have nothing to loose. At the very least, they have just made it more complicated for AA and US.

Another thing to put into perspective is that given the amount of cash AA has on hand, it would be virtually impossible for AA to be unwantedly taken over. Not to mention AA is vastly important for British Airways. They will stop at nothing to help AA with whatever it needs. Then there is TPG who has a working relationship with AA. To be perfectly frank, DL has no chance with AA unless AA lets it.

Personally, I see US, TPG, and BA potentially working together. US has sent representatives to London to pitch to BA why US would be a good match for AA. That means two things:

1) US would leave the Star Alliance at the drop of a hat to merge with AA
2) US is appealing to the best of AA's friends so their intentions are somewhat friendly.

All in all, Delta has nothing to loose. US and AA have everything to gain. A US/AA merger would be a very strong airline and the largest in the world. If I were Delta, I would be trying to muddy the waters too.
Wow.... Just, wow....
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