ClueByFour
Apr 19, 05, 11:56 pm
http://www.washingtonpost.com/wp-dyn/articles/A3222-2005Apr19.html
Little bit of a different perspective. I'll pull some choice quotes:
The talks were focusing more on the two carriers striking an agreement under which America West would infuse millions of dollars into Arlington-based US Airways in exchange for an equity stake, according to the sources, who spoke on condition of anonymity because of the sensitivity of the negotiations.
Rumors of merger talks between the two carriers have swirled on Wall Street for weeks. Sources familiar with the talks said it was unlikely that America West, the nation's eighth-largest airline, would acquire US Airways outright, because an acquisition could pose a major financial burden.
"I could see America West making an investment, but a merger would bring that airline down," said Michael Boyd, an aviation expert at the Boyd Group. Boyd said the industry's high fuel costs and financial difficulties, along with US Airways' higher labor costs and complex route system, could make an acquisition costly.
Little bit of a different perspective. I'll pull some choice quotes:
The talks were focusing more on the two carriers striking an agreement under which America West would infuse millions of dollars into Arlington-based US Airways in exchange for an equity stake, according to the sources, who spoke on condition of anonymity because of the sensitivity of the negotiations.
Rumors of merger talks between the two carriers have swirled on Wall Street for weeks. Sources familiar with the talks said it was unlikely that America West, the nation's eighth-largest airline, would acquire US Airways outright, because an acquisition could pose a major financial burden.
"I could see America West making an investment, but a merger would bring that airline down," said Michael Boyd, an aviation expert at the Boyd Group. Boyd said the industry's high fuel costs and financial difficulties, along with US Airways' higher labor costs and complex route system, could make an acquisition costly.