Merger between US Airways and America West.
- Thread starter Cachon
- Start date
I_Money
Moderator
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If USAir and AWA are going to merge, it'll be in the next two weeks. Anything longer than that, it's just a dumass analysts pipedream.
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Nothing in the investment banking realm is ever done in under 2 weeks. Heck where I work, it takes 2 weeks to get the CFO to sign of in hiring a new employee - then 2 weeks for the training department to prepare themselves for these new employees, then 2 weeks of training, etc!
Alot of due diligence, has, is, is going to be done - that will determine the feasibility. Just organizing the outlook which the bank does will take a long time (heck it takes us 90-120 days and we only deal with small companies).
If USAir and AWA are going to merge, it'll be in the next two weeks. Anything longer than that, it's just a dumass analysts pipedream.
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Nothing in the investment banking realm is ever done in under 2 weeks. Heck where I work, it takes 2 weeks to get the CFO to sign of in hiring a new employee - then 2 weeks for the training department to prepare themselves for these new employees, then 2 weeks of training, etc!
Alot of due diligence, has, is, is going to be done - that will determine the feasibility. Just organizing the outlook which the bank does will take a long time (heck it takes us 90-120 days and we only deal with small companies).
Err, I know it takes more than two weeks, but most people that I know that have been thru mergers/acquisitions said, from their perspective, it pretty much came overnight without a lot of warning.
The ex-"Yellowbird" flight attendant figured that they had probably been working on it for a year or so, details couldn't be worked out so all of the publicity is to kind of show where all of the money and effort went on the balance sheet.
But you know what they say about flight attendants and opinions! (I kid, I kid!)
The ex-"Yellowbird" flight attendant figured that they had probably been working on it for a year or so, details couldn't be worked out so all of the publicity is to kind of show where all of the money and effort went on the balance sheet.
But you know what they say about flight attendants and opinions! (I kid, I kid!)
Maximilian_Jenius
Super User
In the paper today (Arizona Republic) they stated that if the two airlines merged. The America West brand name would disapear.
Furthermore the combined company headquarters would stay here in Tempe AZ.
Lastly everyone is wondering where the two airlines are going to get the money to seal the deal.
America West posted a profit of $335 million but they need that money just to stay alive the paper said with todays high cost of crude.
Mesa has chimed in saying that they will do anything and everything to get this deal done.
Mesa apparently is sitting on large reserves of cash and definately has a vested interest in the merger.
Apparently if the deal does through this wouldn't be the first time Mesa has floated America West money.
-Matthew
Furthermore the combined company headquarters would stay here in Tempe AZ.
Lastly everyone is wondering where the two airlines are going to get the money to seal the deal.
America West posted a profit of $335 million but they need that money just to stay alive the paper said with todays high cost of crude.
Mesa has chimed in saying that they will do anything and everything to get this deal done.
Mesa apparently is sitting on large reserves of cash and definately has a vested interest in the merger.
Apparently if the deal does through this wouldn't be the first time Mesa has floated America West money.
-Matthew
That sucks. Hopefully this won't just be more money USAir blows and goes bankrupt again. They really need a new name, less aircraft types, and new colors. Southwest is profitable because they fly only 737s, Jetblue is profitable because they only fly A320s (for now at least). All these profitable airlines usually have one or two types of aircraft.
Bog
New Member
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Apparently if the deal does through this wouldn't be the first time Mesa has floated America West money.
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It'd be the 3rd or 4th time.
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HP has plenty of Airbusi with more on order. U has plenty of Airbusi as well. Both operate the 737-300 and 757. Sounds like a good matchup to me.
Apparently if the deal does through this wouldn't be the first time Mesa has floated America West money.
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It'd be the 3rd or 4th time.
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HP has plenty of Airbusi with more on order. U has plenty of Airbusi as well. Both operate the 737-300 and 757. Sounds like a good matchup to me.
Maximilian_Jenius
Super User
I think that profitability when it comes to airlines is multi faceted issue and has less to do with only flying a certain type of aircraft.
Understanding what your customer core base/niche want and servicing thoses markets effectively.
That and having a competent management team and being adaptable in hard times.
Treating your employee with respect and rewarding them for there service. Amongst many other things.
Flying only one aircraft type does keep cost down which does affect the overall health of an airline when it comes to profitablility.
But I'm sure there are airlines that have only flown one aircraft type that have gone under.
-Matthew
-Matthew
Understanding what your customer core base/niche want and servicing thoses markets effectively.
That and having a competent management team and being adaptable in hard times.
Treating your employee with respect and rewarding them for there service. Amongst many other things.
Flying only one aircraft type does keep cost down which does affect the overall health of an airline when it comes to profitablility.
But I'm sure there are airlines that have only flown one aircraft type that have gone under.
-Matthew
-Matthew
Maximilian_Jenius
Super User
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HP has plenty of Airbus with more on order. U has plenty of Airbus as well. Both operate the 737-300 and 757. Sounds like a good matchup to me.
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I agree on paper but will it work in the real world? I vote yes and lets see where the chips fall.
-Matthew
HP has plenty of Airbus with more on order. U has plenty of Airbus as well. Both operate the 737-300 and 757. Sounds like a good matchup to me.
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I agree on paper but will it work in the real world? I vote yes and lets see where the chips fall.
-Matthew
Maximilian_Jenius
Super User
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Didn't Kiwi just fly 727s, Brian?
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Well they weren't efficient as today's 737s and A320s.
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And didn't SWA just retire there last 737-200's to the desert and they have remained in the black for their entire existance.
So your point is moot!
-Matthew
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Didn't Kiwi just fly 727s, Brian?
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Well they weren't efficient as today's 737s and A320s.
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And didn't SWA just retire there last 737-200's to the desert and they have remained in the black for their entire existance.
So your point is moot!
-Matthew
mpenguin1
Well-Known Member
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In the paper today (Arizona Republic) they stated that if the two airlines merged. The America West brand name would disapear.
Furthermore the combined company headquarters would stay here in Tempe AZ.
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That would make sense, US Air is more of a brand name than American West.
In the paper today (Arizona Republic) they stated that if the two airlines merged. The America West brand name would disapear.
Furthermore the combined company headquarters would stay here in Tempe AZ.
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That would make sense, US Air is more of a brand name than American West.
kellwolf
Piece of Trash
I could see them using the US Air name over America West, too. Brand recognition is gold when you're looking for airline tickets on-line. I've lived in two cities HP flew into, and everytime I was looking at ticket prices, I totally forgot about them. Funny thing is, they're often cheaper than SWA from MCO-LAS.
As far as Mesa, I'm sure JO is creaming on himself over this deal. Mesa does a LOT of flying for HP (um, I THINK they might do ALL of the regional flying for HP, Bog?), and they'd love to keep their planes in the US Air system instead of parking them and losing money. Wouldn't surprise me in the least to see Mesa throw money to get the deal sealed. Not sure if they have enough money on their own to lock it up, though. Maybe call GE since they seem to be handing out airline bail-outs like candy.
As far as Mesa, I'm sure JO is creaming on himself over this deal. Mesa does a LOT of flying for HP (um, I THINK they might do ALL of the regional flying for HP, Bog?), and they'd love to keep their planes in the US Air system instead of parking them and losing money. Wouldn't surprise me in the least to see Mesa throw money to get the deal sealed. Not sure if they have enough money on their own to lock it up, though. Maybe call GE since they seem to be handing out airline bail-outs like candy.
Phil2016
Well-Known Member
May actually become a reality... Airline merger almost all set: Announcement expected today by US Airways
Seems like good news for US employees and iffy news for HP employees. Hopefully consolidation, while painful at first, will ultimately lead to better things for the industry.
Seems like good news for US employees and iffy news for HP employees. Hopefully consolidation, while painful at first, will ultimately lead to better things for the industry.
I wouldn't wish a merger on even my worst enemies.
Looks fine and dandy on the outside looking in, but working at an airline which is a result of acquisitions, mergers and such, there are wounds that never heal.
Then you'll hear some yahoos say "Yeah, but you have a job!" -- we've got Pan Am pilots who are still pissed off.
Mergers generally do not benefit the average employees, but it's really much more of a benefit for the board of directors and upper management.
Looks fine and dandy on the outside looking in, but working at an airline which is a result of acquisitions, mergers and such, there are wounds that never heal.
Then you'll hear some yahoos say "Yeah, but you have a job!" -- we've got Pan Am pilots who are still pissed off.
Mergers generally do not benefit the average employees, but it's really much more of a benefit for the board of directors and upper management.