beckoa

Heard something about this over the radio on AM750 KFQD ANC

Did a quick google and came across this new news story:

eastwest

The article says what AS management has been saying all along, which essentially is, "this is a business and as such, we are obligated to do what is best for our shareholders, but right now, we think that is to remain independent."

eponymous_coward

Yeah, this is very much a "sun rises in the east; publicly traded company can't rule out a merger that would be very beneficial return for stockholders" sort of story.

That being said, if DL ever buys AS, I suspect there will be champagne corks popping at Love Field. Every time an East Coast carrier flying E-W to the West Coast has bought out a West Coast regional, it's worked out much better for WN's market share than for the purchasing carrier (DL, AA 2x). The only legacy carrier I think would have a prayer of working well with AS would be CO.

3Cforme

It's not exactly west coast, but DL's purchase of Western is held up the the most successful airline merger of the last thirty years in the U.S.A.

USAF1

As much as I like DL, this is bad. AS will lose a lot of business...

eponymous_coward

http://www.airtimes.com/cgat/usc/wes...apwa850904.jpg

Funny, isn't it, that 20+ years after taking over an airline that provided nonstop service on routes like LAX-MX, SEA-ANC, ANC-HNL... DL has to partner with an airline that provides service to all those destinations?

(Also, for a bunch of those routes, WN provides a bunch of seats, too.)

Basically, what's left of WA's route network (as far as DL is concerned) is the SLC hub. Everything else got eaten by better, more nimble airlines.

sxf24

WA had pretty much retrenched to SLC prior to the merger. DL did cut routes at LAX later, but what was acquired was much smaller then at WA's peak.

jiburi

Me thinks this speculation is fueling the high stock value.

There are many reasons why AS has been successful, it's hard to see how AS out performs WN and legacy (International) carriers on stock values other than the fact that "AS can be a desirable addition to many airlines".

Jiburi

dave1013

Independent Alaska Air can't rule out merger

EXECUTIVES: They say a combination is not on their radar screen right now.

By HARRY R. WEBER
The Associated Press

ATLANTA -- Alaska Air Group Inc., operator of Alaska Airlines and Horizon Air and a partner of Delta Air Lines Inc., would consider a combination with another carrier if the right deal was proposed, but for now is committed to its independence and isn't thinking about a merger, executives said this week.

In a series of wide-ranging interviews with The Associated Press, several senior executives would not say if the Seattle airline operator has had merger discussions with Delta or anyone else.

But they all said a combination is not on their radar screen right now.

"Every year there's been a rumor about who is going to buy Alaska, and here we are doing well as an independent company," said Bill Ayer, chief executive of the parent company.

That media and investor buzz heated up after Atlanta-based Delta, the world's biggest airline operator, and Alaska Air Group announced in November an expanded marketing alliance. Delta and Alaska Air said they would offer customers connecting service to more than 50 destinations to and from Los Angeles, more than 70 destinations to and from Seattle, more than 30 destinations to and from Portland, Ore., and nearly 20 destinations to and from San Francisco.

When fully phased in, Delta and its international partners are expected to be the main provider to Alaska Air customers of international service to and from those four U.S. cities.

Delta's chief, Richard Anderson, said at the time that he had not talked to Ayer about a combination. Delta has not elaborated on the issue since then.

Ayer would not say Wednesday whether there has been interest from any airline in buying Alaska Air Group. He did say that the airline can't close the door on the idea of a merger if one was proposed that was the right fit for Alaska Air Group. Ayer said his company's key focus is on its employees, its customers and its investors.

"No company can rule that out," Ayer said. "You don't know where the world is headed."

Ayer said that Alaska Air Group enjoys being an independent carrier. "If there is a better alternative, we will look at that alternative," he said.

Brad Tilden, president of Alaska Airlines, said the airline industry is in a state of significant flux with demand for air travel eroding as the U.S. economic downturn has worsened. He said his airline needs to continue to change with the industry.

"I believe we will do that, and there is no reason at all we can't do wonderfully as an independent entity," Tilden said.

Ben Minicucci, who handles day-to-day operations at Alaska Airlines as its chief operating officer, said he couldn't predict what will happen to his carrier in the future.

But, he said, "If we run the company the way we're supposed to, we'll remain independent."

Credit Suisse analyst Daniel McKenzie said in a research note in October that his firm had not ruled out the possibility of further merger and acquisition activity for Delta in the future. Delta acquired Northwest Airlines in October. He said in October that Alaska Air Group or New York-based JetBlue Airways Corp. "remain appealing targets, both with attractive assets and strategic positioning that would enable DAL/NWA to better compete with what we consider is an inevitable CAL/UAUA (Continental/United) combination sometime down the road."

The buzz about Alaska Air Group is not surprising considering its strong stock performance relative to many other airlines. Alaska Air Group's stock is currently trading near its 52-week high. A spokeswoman said the company also has posted an annual profit on an adjusted basis for the last five fiscal years, while several bigger carriers posted big losses.

Executives said Wednesday that Alaska Air Group is focused on several customer service initiatives and is using technology to improve the customer experience. Like other airlines, it also has been cutting capacity to weather the economic downturn, though it has not cut as much capacity as some other carriers.

Tilden said that despite the economic downturn, Alaska Airlines will be increasing its advertising budget in 2009 to try to lure in customers.

He also said that while fees for services that were once free have become an important way for his airline to generate revenue, Alaska Airlines has been looking for the right balance.

"Our thinking is, we want to charge for services that make sense for our customers," Tilden said. "Clearly, there would be some things that would be off limits, but I don't think I want to talk about specifics right now."

SEA_Tigger

I imagine all the partnerships AS has to ferry customers around the West Coast for airlines like CO, DL/NW and AA help though with CO joining STAR, that takes them out of the picture down the road.