Dallas Business Journal:Southwest Airlines pilot union leader resigns -- merger next?
Nov 11, 2015, 7:25 pm
#1
Original Poster
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Dallas Business Journal:Southwest Airlines pilot union leader resigns -- merger next?
http://www.bizjournals.com/dallas/ne...r-resigns.html
This is the first I have heard of a possible merger. Why am I not thrilled...
This is the first I have heard of a possible merger. Why am I not thrilled...
Nov 11, 2015, 7:33 pm
#2
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Southwest Merger?
Southwest finally finished their purchase of AirTran. JetBlue and Frontier are not good fits from an operational standpoint. What would be the benefit of buying either of them?
Nov 11, 2015, 7:36 pm
#3
Join Date: Feb 2015
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A couple months ago there was a thread about a WN merger the linked article had Alaska, Hawaiian or JetBlue as the targets. Alaska would make the most sense imho-they've got the all 737 fleet, access to Hawaii(which I think WN has been trying to get into for a bit now) so there's one major and one minor thing that could be good for WN in that type of merger. Unless they ran JetBlue as its own brand, I don't think they would do it-when they bought AirTran, they dumped all the 717's and kept the 737's. B6 has all E190's and A320's so that would be an integration nightmare for a full merger.
Nov 12, 2015, 5:38 am
#5
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The guys over on airliners really seem to be in love with the idea of WN + B6.
IMO this would be a terrible idea and I'm sure WN would find a way to screw it all up by throwing out everything B6 has done and trying to WN everything. Obviously I like WN but I don't see them maintaining stuff like Mint or being a Carribean powerhouse like B6 is. Why not do it the old fashioned way and start off with something like a partnership or codeshare* instead of jumping straight into the deep end of the pool. Just because they can doesn't mean they should.
* - I realize WN has their hands tied on codeshares because of pilot contract right now but they're still trying to work out a new contract.
IMO this would be a terrible idea and I'm sure WN would find a way to screw it all up by throwing out everything B6 has done and trying to WN everything. Obviously I like WN but I don't see them maintaining stuff like Mint or being a Carribean powerhouse like B6 is. Why not do it the old fashioned way and start off with something like a partnership or codeshare* instead of jumping straight into the deep end of the pool. Just because they can doesn't mean they should.
* - I realize WN has their hands tied on codeshares because of pilot contract right now but they're still trying to work out a new contract.
Nov 12, 2015, 6:58 am
#7
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As one of the best performing stocks recently, WN has a fairly cheap currency to burn.
I'd prefer they merge/codeshare with some airline that goes to Europe. Icelandic?
I'd prefer they merge/codeshare with some airline that goes to Europe. Icelandic?
Nov 12, 2015, 7:32 am
#8
Join Date: Sep 2015
Posts: 366
Southwest buying JetBlue would eliminate somewhat a large enough LCC carrier in the US, that it wouldn't be positive for consumers. But the DOJ might actually approve it given the favoritism towards Southwest and LCCs, over the AA DL and UA.
JetBlue aside, could Southwest purchase Sun Country, or have interest to do so? It would be peanuts relative to JetBlue, and maybe easy from a regulatory approval angle, and integration would be easy. The benefits wouldn't be as big but there would be MSP gates and marketshare, the MSP-DCA flights. Would the LAX and maybe SFO gates be valuable too?
Nov 12, 2015, 7:36 am
#9
Join Date: Mar 2011
Posts: 1,832
Don't think the resignation has anything to do with a possible merger. It was the president and his negotiating team that negotiated the deal, presented it to the pilots, supported it, and then pilots resoundingly said no. It's typical for folks to step down at that point. Why the FA union president hasn't done so yet is beyond me.
As to the rumors, as others have said, Alaska makes more sense than any of the other possible candidates.
As to the rumors, as others have said, Alaska makes more sense than any of the other possible candidates.
Nov 12, 2015, 8:06 am
#10
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JetBlue aside, could Southwest purchase Sun Country, or have interest to do so? It would be peanuts relative to JetBlue, and maybe easy from a regulatory approval angle, and integration would be easy. The benefits wouldn't be as big but there would be MSP gates and marketshare,
Nov 12, 2015, 8:10 am
#11
Join Date: Feb 2015
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The guys over on airliners really seem to be in love with the idea of WN + B6.
IMO this would be a terrible idea and I'm sure WN would find a way to screw it all up by throwing out everything B6 has done and trying to WN everything. Obviously I like WN but I don't see them maintaining stuff like Mint or being a Carribean powerhouse like B6 is. Why not do it the old fashioned way and start off with something like a partnership or codeshare* instead of jumping straight into the deep end of the pool. Just because they can doesn't mean they should.
* - I realize WN has their hands tied on codeshares because of pilot contract right now but they're still trying to work out a new contract.
IMO this would be a terrible idea and I'm sure WN would find a way to screw it all up by throwing out everything B6 has done and trying to WN everything. Obviously I like WN but I don't see them maintaining stuff like Mint or being a Carribean powerhouse like B6 is. Why not do it the old fashioned way and start off with something like a partnership or codeshare* instead of jumping straight into the deep end of the pool. Just because they can doesn't mean they should.
* - I realize WN has their hands tied on codeshares because of pilot contract right now but they're still trying to work out a new contract.
Nov 12, 2015, 9:32 am
#13
Join Date: Sep 2015
Posts: 366
AS has a higher market cap than B6, so WN might need to pay even more a premium to acquire it. AS fits better with 737 fleet, but with network, I think with DL growing in SEA and using it as a hub challenges the gains of WN acquiring AS for SEA.
I do think either acquisition of the two would be challenging.
From my viewpoint, I don't think Southwest views transcon flying very integral part of it's business. I counted 8 r/t transcons next may over 5 different route pairs on Southwest, all through WAS:
BWI-SEA (1x), BWI-OAK (1x), BWI-LAX (3x), BWI-SAN (2x) and IAD-SAN(1x).
That's pretty a low percentage relative to WN's entire network, and likely to what B6 does and maybe AS. B6 has about 8x daily on just one route pair (JFK-SFO). Would WN's level of service designed more for mid-hauls, work on those transcons, or WN slowly pull out of those markets giving it to competitors? The gains in BOS, like routes such as BOS-RDU, might be challenged by AA, DL or UA, and ULCCs also especially on BOS-BWI. The Carribean and Florida might be most easily integrated, although Southwest fares can't be purchased on OTAs.
I do think either acquisition of the two would be challenging.
From my viewpoint, I don't think Southwest views transcon flying very integral part of it's business. I counted 8 r/t transcons next may over 5 different route pairs on Southwest, all through WAS:
BWI-SEA (1x), BWI-OAK (1x), BWI-LAX (3x), BWI-SAN (2x) and IAD-SAN(1x).
That's pretty a low percentage relative to WN's entire network, and likely to what B6 does and maybe AS. B6 has about 8x daily on just one route pair (JFK-SFO). Would WN's level of service designed more for mid-hauls, work on those transcons, or WN slowly pull out of those markets giving it to competitors? The gains in BOS, like routes such as BOS-RDU, might be challenged by AA, DL or UA, and ULCCs also especially on BOS-BWI. The Carribean and Florida might be most easily integrated, although Southwest fares can't be purchased on OTAs.
Last edited by beyondhere; Nov 12, 2015 at 9:39 am
Nov 12, 2015, 11:30 am
#14
Join Date: Jan 2004
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I really want it to be Sun Country. MSP quietly got BWI added in the last schedule and there are still holes in the WN route map (Texas, California, and maybe Vegas).
However I don't believe the union leadership resignation is a precursor to this. That seems to be standard practice when the membership rejects a contract.
However I don't believe the union leadership resignation is a precursor to this. That seems to be standard practice when the membership rejects a contract.