SWA's FAs Ponder CEO Gary Kelly's Next Move
#16
Join Date: Oct 2001
Programs: LTP, PP
Posts: 8,690
I'm not sure the board disagreed with my analysis.
The fact that the offer was above market price and took away risk of future economic uncertainty was in their favor. I think the Airtran Board did the right thing for their shareholders. I'm not sure Gary Kelly did the right thing for his.
Without a doubt Airtran customers suffered.
The fact that the offer was above market price and took away risk of future economic uncertainty was in their favor. I think the Airtran Board did the right thing for their shareholders. I'm not sure Gary Kelly did the right thing for his.
Without a doubt Airtran customers suffered.
#17
Join Date: Oct 2010
Programs: My opinions are my own and not that of my employer(s)
Posts: 1,411
Nothing here IMO.
#19
Join Date: Jul 2013
Posts: 5,813
#20
Join Date: Oct 2010
Programs: My opinions are my own and not that of my employer(s)
Posts: 1,411
WestJet OTOH would open up Canada and a ton of Carribean destinations with little duplication.
Yes they have an RJ operation but it's WestJet held which creates boundaries for Pilots. Not outsourced in any way.
And they apparently operate three 767s... Which those alone could fly HI and fly a lot more air freight
But I to admit I haven't been following currency between Canadian Loonies vs USD. If it's not favorable that increases the cost.
Last edited by traveller001; Jul 30, 2015 at 10:30 pm
#21
Join Date: Jan 2012
Location: IND
Programs: Avianca Brazil Diamond, Etihad Gold, Southwest CC Pass, HH Diamond, SPG Gold
Posts: 315
Interesting but some duplication of routes.
WestJet OTOH would open up Canada and a ton of Carribean destinations with little duplication.
Yes they have an RJ operation but it's WestJet held which creates boundaries for Pilots. Not outsourced in any way.
And they apparently operate three 767s... Which those alone could fly HI and fly a lot more air freight
But I to admit I haven't been following currency between Canadian Loonies vs USD. If it's not favorable that increases the cost.
WestJet OTOH would open up Canada and a ton of Carribean destinations with little duplication.
Yes they have an RJ operation but it's WestJet held which creates boundaries for Pilots. Not outsourced in any way.
And they apparently operate three 767s... Which those alone could fly HI and fly a lot more air freight
But I to admit I haven't been following currency between Canadian Loonies vs USD. If it's not favorable that increases the cost.
#22
Join Date: Jul 2013
Posts: 5,813
I don't think duplication would matter. What would matter is the ability to fly to more International destinations and the 21 737-700s and -800s
The Current Owner if a counter-top company, owned by a dairy products company, sort of odd bedfellows.
There is also a long running labor negotiation with the Pilots and the current management.
Back in May:
Seems like a sale to Southwest would solve all of these problems. Southwest would get more planes and more pilots. The pilots would get more money under the current Southwest CBA and the current owner could make a nice profit.
The Current Owner if a counter-top company, owned by a dairy products company, sort of odd bedfellows.
In July 2011, Cambria purchased Sun Country Airlines out of bankruptcy for $34 million after the collapse of the Ponzi scheme of Tom Petters and Petters Group Worldwide, the former owner of the airline.
Back in May:
The board of directors of Sun Country Airlines (SY, Minneapolis/St. Paul) has told its pilot union that the airline is heading for its 'ultimate shut-down' after neither party was able to reach a consensus regarding a revised Collective Labour Agreement (CLA).
#23
Join Date: May 2006
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#24
Join Date: Oct 2010
Location: San Diego, Ca
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A better (but not likely) explanation for not agreeing to competitive contracts is if Kelly is trying to SELL LUV - make the numbers look as attractive as possible to extract maximum value. Perhaps Branson has several billion burning a hole in his pocket, partnership with DL has not work as he hoped, VA is not growing fast enough for him. I consider AS to be a better run, more customer friendly carrier than WN, would rather see Tilden send Kelly sailing in to the sunset on his golden parachute.
#25
Join Date: Oct 2010
Location: San Diego, Ca
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With the DOJ on an airline antitrust witch hunt, the LAST thing they will allow is another airline merger. Any such talk will have to wait until the next economic downturn, when airline CEOs can plead poverty, "too big to fail".
#26
Join Date: Aug 2013
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Labor cooperation is essential for any merger - it helped Parker steal AA during Chapter 11 proceedings, continues to cause all kinds of grief for Smisek, forcing pmUA and pmCO to continue operating as separate entities. Like Parker, Kelly would have to play Santa Claus to make everyone happy.
A better (but not likely) explanation for not agreeing to competitive contracts is if Kelly is trying to SELL LUV - make the numbers look as attractive as possible to extract maximum value. Perhaps Branson has several billion burning a hole in his pocket, partnership with DL has not work as he hoped, VA is not growing fast enough for him. I consider AS to be a better run, more customer friendly carrier than WN, would rather see Tilden send Kelly sailing in to the sunset on his golden parachute.
A better (but not likely) explanation for not agreeing to competitive contracts is if Kelly is trying to SELL LUV - make the numbers look as attractive as possible to extract maximum value. Perhaps Branson has several billion burning a hole in his pocket, partnership with DL has not work as he hoped, VA is not growing fast enough for him. I consider AS to be a better run, more customer friendly carrier than WN, would rather see Tilden send Kelly sailing in to the sunset on his golden parachute.
#27
Join Date: Jul 2013
Posts: 5,813
Labor cooperation is essential for any merger - it helped Parker steal AA during Chapter 11 proceedings, continues to cause all kinds of grief for Smisek, forcing pmUA and pmCO to continue operating as separate entities. Like Parker, Kelly would have to play Santa Claus to make everyone happy.
A better (but not likely) explanation for not agreeing to competitive contracts is if Kelly is trying to SELL LUV - make the numbers look as attractive as possible to extract maximum value. Perhaps Branson has several billion burning a hole in his pocket, partnership with DL has not work as he hoped, VA is not growing fast enough for him. I consider AS to be a better run, more customer friendly carrier than WN, would rather see Tilden send Kelly sailing in to the sunset on his golden parachute.
A better (but not likely) explanation for not agreeing to competitive contracts is if Kelly is trying to SELL LUV - make the numbers look as attractive as possible to extract maximum value. Perhaps Branson has several billion burning a hole in his pocket, partnership with DL has not work as he hoped, VA is not growing fast enough for him. I consider AS to be a better run, more customer friendly carrier than WN, would rather see Tilden send Kelly sailing in to the sunset on his golden parachute.
#28
Join Date: Jul 2013
Posts: 5,813
I doubt even DoJ could make much of a case that Southwest with nearly 700 planes would affect the market much by buying an airline with 21.
#29
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#30
Join Date: Oct 2010
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Posts: 3,490
Congress, general public believe the 4 major airlines (which includes WN) are gouging the public, further acquisitions will play in to this narrative.