warreng24

Correct. I believe that VX will become absorbed into AS similarly to how WN assimilated FL.

The A320's will soldier on for some time, when they are sold off or returned to lessors and replaced with 737's. They'll be some consolidation (most likely below the wing services and ground staff), but I can see the VX pilots and FA's being absorbed into AS. The VX hard and soft product will go away, replaced gradually with AS standards.

missamo80

Looks like WSJ was wrong when they said it was a $2.5B cash offer.

It is $2.6B.

Neil

eponymous_coward

All cash. Well, it's obvious that SRB etc. are all about cashing out on this one. LOL

Paella747

I just got that email too.....

someotherguy

Shame they couldn't hire an editor.

From WordNet: The adjective complimentary has 2 senses

1. complimentary -- (conveying or resembling a compliment; "a complimentary remark")
2. complimentary, costless, free, gratis, gratuitous -- (costing nothing; "complimentary tickets"; "free admission")

The adjective complementary has 2 senses

1. complementary -- (of words or propositions so related that each is the negation of the other; "`male' and `female' are complementary terms")
2. complemental, complementary, completing -- (acting as or providing a complement (something that completes the whole))

baliktad

Why assume they made a mistake? Perhaps the plan is to make all flights within the west coast free?

rustykettel

New Alaska Blog post this morning too. The merger website referenced in the post wasn't working yet when I got up this morning. Hot off the presses.

I'm still standing by my tail prediction, for now, and adding Alaska's service improvement will be unbuckling and closing the First-Coach curtain and redirecting coach pax to the rear lavs.

channa

I don't know about that.

Virgin, sure. But AS? No pillows, no blankets, no pre-departs in F? DL can do all that. The updated look and food options at the DL SkyClubs blow the AS BRs away. And no PTVs on any aircraft on AS?

From a product perspective, AS may not necessarily even threaten UA. This could get very ugly very quickly if AS doesn't do some serious introspection and understand its competitive position with its product now that they've decided to play ball in SFO and LAX. The customer mindset in SFO and LAX cannot be any further than the SEA mindset that AS is accustomed to.


That would be smart, though I don't see that happening. This is a clear acquisition.

berliner5000

What are they going to do with the Airbuses? That's what I keep wondering

channa

The presentation suggests they're keeping them.

thegingninj

thanks for the complementary grammar lesson.

sfozrhfco

Completely agree. Being isolated in the PWN, AS may look great but in the rest of the world there is very little special about AS and I would never even think of connecting in SEA/PDX to go pretty much anywhere except Vancouver from SFO--and even then I would rather endure AC/UA non-stop rather than wasting time connecting.

The DCA/LGA within perimeter slots would be best sold to a competitor as neither AS nor VX have any strength at all within the Eastern half of the US. This may help AS get a little of their overpayment back but also strengthens their competitors who already have a more diversified network. Offering a mediocre product in SFO non-stop to a few destinations and then having to connect in SEA for the rest makes WN/UA and even DL/AA a lot more compelling. If you are not going to get anything special, you may as well at least gain access to a decent network. AS also just can not compete against B6's Mint product either--on price point, food, inflight entertainment or service. Without Red, good quality food, and the better seat which VX provides, they are in an even weaker position in premium transcon markets.

Seems AS's management has acted out of fear rather than rationality and ended up paying a ton of money which benefited all of those of us that had VX stock and sold out today, but they better think quickly about how they are going to start to pay down the huge debt they are going to be incurring. Offering the AS cabin experience and a still weak network to most of the world is just not going to be a money making proposition and will drain resources from their fight against DL in SEA.

The economies in SEA/PDX/SFO are doing great now but as many of us seen, tech goes through booms and busts just like the airlines and having all of AS's eggs in the West may very well prove to be a very big mistake. It took VX nearly its whole existence to start making money and that came during a crash in oil prices. Things won't be too pretty when the next bust comes and the "diversification" to add yet another West Coast hub may not seem too smart. They could have used their cash to invest in Apple a few months again and had a very large cushion rather than flush money down the drain.

California does gain a tax windfall though for the huge gains made in the short 17 months since the IPO. Small consolation prize.

woodford02A

Lots of questions and few answers so far on the following items:

-How does AS compete in product-rich transcons full of established players with much deeper pockets and market tenure (ie. DL).

-Does the VX brand continue on the Airbus flying? Sounds like it won't but I cannot imagine the Alaska brand being a good for for NY-LA, NY-SF, NY-Florida flying

-How does AS convert VX loyalists who love the on-board experience and brand who will risk being forced to fly a more basic product?

diver858

The merged entity will have the largest share of flights between Hawaii and the West Coast. At what point will regulators, activists start to raise concerns?

SJC ORD LDR

Why? UA still has SFO/LAX to all the islands, DL and AA fly LAX to all the islands and DL still has SFO - HNL, and HA flies a lot of routes to the mainland to some other cities.