US Airways Dividend Miles (Pre-FlightFund Merger) - MERGER: Analyst reports possible America West/US Airways deal

See this thread (http://www.flyertalk.com/forum/showthread.php?p=3916703#post3916703post3916703) in the America West forum for the story.

I read this in the paper today...no real news, just the sort of nothing that fills papers and inflames discussions.

Having said that AW seems like a rational partner at least as far as routes go.

Someone will correct me if I'm wrong, but I believe they're also a better merger partner than UA was when considering Airbus engine types.

That said, this isn't necessarily a good idea, and might damage the UA partnership.

The HP Airbii have the IAE engines, same as United--therefore the same compatibility issues exist.

One interesting idea floated about on another board was a 3 way combination of US UA and HP---now wouldn't that be interesting?????

I doubt something like that could happen, even it today's regulatory environment...

That said, this isn't necessarily a good idea, and might damage the UA partnership.

Does US' *A membership depend on a relationship with UA?

Does US' *A membership depend on a relationship with UA?
Not to my knowledge. US and UA (as well as LH and perhaps NH) had marketing relationships before US joined Star. I can't find a press release to back this up at the moment, but I seem to recall it was LH (possibly co-sponsored by UA) that actually sponsored the US Star membership.

That said, UA might perceive an HP/US merger as a competitive threat, as HP's PHX and LAS hubs aren't far from LAX and SFO. Then again, if the resulting entity remained a Star member, maybe UA would welcome it. UA doesn't seem to have been too happy with the recent Air Wisconsin investment in US though, given their court objections and the fact that Air Whisky won't be flying for UX before long.

I like Art234's idea of a three-way merger. I think it could actually happen this time around, though, particularly if HP were to go into or be close to bankruptcy. Perhaps you'd see all three go through some prepackaged BK-merger, perhaps orchestrated by a third party.

Although I doubt a merger is coming, from route network it'd be exciting combo- PHX, LAS-west; PHL, CLT-east! Then add DCA, LGA, PIT, FLL by US and a few (struggling) transcon and more mexico routes by HP- cool airline from the route perspective! (Oh yeah, links to route maps at www.freewebs.com/flyingisfun ) I have no clue about the financial terms though. Ahh rumors...

The route network would be an exciting combo.

I think a deal with Alaska would be even better though. If you think about it, the route networks of the two airlines are practically mirror images of each other. AS serves up down and all around the West and hits a few major cities in the East, while US serves up down an all around the East and hit a few major cities in the West.

It's a pipe dream though, seeing as AS is completely in bed with AA.

The route network would be an exciting combo.

I think a deal with Alaska would be even better though. If you think about it, the route networks of the two airlines are practically mirror images of each other. AS serves up down and all around the West and hits a few major cities in the East, while US serves up down an all around the East and hit a few major cities in the West.

It's a pipe dream though, seeing as AS is completely in bed with AA.

US and AA were completely in bed with each other at a time too. So were BA and US. And DL and UA.....things change.

. . . AS is completely in bed with AA.

I don't think AS is in bed with AA or anyone for that matter. They try to be "Switzerland" and remain neutral. They have partnerships with AA, BA, CO, DL, NW, and others. They are not in any of the large alliances.

This would have a favorable impact on our US Airways Club lounge memberships. :)

See US/UA lounge agreement ending? (Post #187)
http://www.flyertalk.com/forum/showpost.php?p=3920925&postcount=187

Or US Airways Club life memberships could be terminated after three years, as AA did to TW life members. :eek:

I wonder how many US Airways Club life members there are.

I don't think AS is in bed with AA or anyone for that matter. They try to be "Switzerland" and remain neutral. They have partnerships with AA, BA, CO, DL, NW, and others. They are not in any of the large alliances.

AS is everyone's whore. Kinda like JL. ;)

It's a pipe dream though, seeing as AS is completely in bed with AA.

More precisely, I would say AS is in bed with OW. They partner with every OW member except for IB and Finnair. If AS had to jump into an alliance, I seriously doubt it would be with *A or SkyTeam.

More precisely, I would say AS is in bed with OW. They partner with every OW member except for IB and Finnair. If AS had to jump into an alliance, I seriously doubt it would be with *A or SkyTeam.

They have a very tight relationship with NW as well - not OW.

US and AA were completely in bed with each other at a time too. So were BA and US. And DL and UA.....things change.

The UA/DL agreement was never as tight as the US/UA one, IIRC. You only got miles on DL mainline flights as a UA member (and presumably vice-versa for DL SkyMiles fliers), didn't earn status miles, etc. All I got out of it was booking more DL tickets on United.com to places in the southeast, which I use US for now ;)

They have a very tight relationship with NW as well - not OW.

Yes, but NW's network is nowhere near as robust as the combined networks of CX/AA/BA/LA/QF. Forget about NW to Australia, or Africa. Between AA & LA, you can't get much better coverage in South America.

AS may be close to NW, but there's no way in hell they're going to drop their OW codeshares for SkyTeam or *A.

They have a very tight relationship with NW as well - not OW.
AS' relationship with AA is at least as close as with NW, if not closer.

In their current partnership setup, I don't think AS will ever end up as a full fledged member of an alliance. If NW for some reason bolts SkyTeam for OW, I could see them joining OW.

See also http://www.post-gazette.com/pg/05102/486688.stm

Courtesy of carl92103.

See New Article on a Possible US/America West Merger (4/12/05)
http://www.flyertalk.com/forum/showthread.php?t=420860

Us Merger Speculation Ramping Up Internally
http://www.flyertalk.com/forum/showthread.php?t=423174

There has been some speculation that the increased seniority of US workers compared to those of HP (which is only 23 years old) would be an insurmountable obstacle to a merger, as opposed to an asset sale, particularly as there are common unions involved.

However, given the option of having no job at all, I expect some dovetailing and diminished seniority credit for certain purposes could be worked out.

Likewise, it is in the best interests of the customers if loyalty programs, such as miles and lounge membership, are carried over to the new airline, which would not be the case in a pure asset sale. If loyalty programs have any financial value to the airline, then that is another argument against a simple asset sale.

See also Wall Street Journal reporting U/Am West Merger
http://www.flyertalk.com/forum/showthread.php?t=423653

We seem to have a proliferation of threads on the subject of this original topic. :)

In Post #67 (http://www.flyertalk.com/forum/showpost.php?p=3976347&postcount=67) of one the duplicate threads (started 9 days after this one), deelmakur suggests that the whole "rumor" was leaked to spur competition for a deal to save US, and make one happen faster, but that this effort has fallen flat.

It looks like this analyst knew what he was talking about.

See WSJ-Merger to Be Annoucned This Week--Airbus to Supply Financing
http://www.flyertalk.com/forum/showthread.php?t=432967

This seems to be the original thread on this topic in this forum. @:-)