Other Potential US Merger Partners?
Aug 13, 2013, 7:39 pm
#1
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Location: Lehighton, PA, USA,HH Gold, US Plat
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Other Potential US Merger Partners?
If the US DOJ gets its way and the US-AA merger falls apart, where does that leave US?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
Aug 13, 2013, 7:51 pm
#2
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If the US DOJ gets its way and the US-AA merger falls apart, where does that leave US?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
Aug 13, 2013, 9:31 pm
#3
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Join Date: Feb 2005
Posts: 10,952
If the US DOJ gets its way and the US-AA merger falls apart, where does that leave US?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
As the smallest of five network domestic airline, what merger partners could US merge with to grow and fill out their network to stay competitive.
AS is an easy pick with its financials, but would it still be profitable with US's overhead? HA would give US some Asian exposure, but not really add much. B6 would add to NY and rebuild Boston, but again no inclination to merge--would a hostile takeover work? Frontier? Nah. Virgin. Nah.
Is the DOJ decision a prelude to a slow final US death by 1000's cuts? The beginning of the end?
Aug 13, 2013, 9:37 pm
#4
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^^
And the best businesses in the world are the ones that grew organically...not the ones that go through huge mergers. Granted, for US Airways, today's airline is the result of multiple mergers already, but still, I'm glad the DOJ did this.
And the best businesses in the world are the ones that grew organically...not the ones that go through huge mergers. Granted, for US Airways, today's airline is the result of multiple mergers already, but still, I'm glad the DOJ did this.
Aug 13, 2013, 10:54 pm
#5
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No one, except maybe F9, would merge with US. I don't think AS would even take their call. US tried this with UA twice -- remember they were the uglier dance partner compared with CO-- and once with DL. This was their last hope. And there is no way US can grow organically in any significant manner. In fact, they'll probably end up shedding some routes and retire aircraft sooner than expected.
Aug 14, 2013, 1:36 am
#6
Join Date: Nov 2004
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Is US losing money? If not, why can't it survive & possibly grow on its own?
LAX
LAX
Aug 14, 2013, 4:13 am
#7
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US doesn't need a merger. They have lucrative hubs in key business markets.
The *A gives them access to & revenue from every other market.
There is nothing wrong with being the 5th largest domestic carrier.
They aren't missing anything. It's a place to stay profitable.
An airline can't be all things to all people, and they need to stop trying.
The *A gives them access to & revenue from every other market.
There is nothing wrong with being the 5th largest domestic carrier.
They aren't missing anything. It's a place to stay profitable.
An airline can't be all things to all people, and they need to stop trying.
Aug 14, 2013, 6:07 am
#8
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There are none. Its prom night, and the limos have already begun to show up.
US should consider growing for a change via internal growth rather than via M&A.
There are lots of places to grow and to fill holes: Asia for one.
They have opportunities on the left coast - just gotta look at a map to find one. I personally think you could easily set up a DCA style hub at SJC if you can get the SJC airport people to build the terminal extension. There is a potential for 16 to 20 gates there (gate consolidation and new build out).
Would be a nice alternative to SFO and could give you a jump point for Asia fights (NRT, ICN, PVG).
US should consider growing for a change via internal growth rather than via M&A.
There are lots of places to grow and to fill holes: Asia for one.
They have opportunities on the left coast - just gotta look at a map to find one. I personally think you could easily set up a DCA style hub at SJC if you can get the SJC airport people to build the terminal extension. There is a potential for 16 to 20 gates there (gate consolidation and new build out).
Would be a nice alternative to SFO and could give you a jump point for Asia fights (NRT, ICN, PVG).
Aug 14, 2013, 7:24 am
#9
Join Date: Feb 2005
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Start by filling the gaps in the existing network. PHL-TUS? CLT-ABQ? City pairs that require 2 stops for many travelers if they want to stay on US. Probably not huge money makers, but currently they're not competitive on these routes at all. I'm reluctant to fly PBI-CLT-PHX-ABQ when I can fly on UA with only one stop.
Personally I'd like to see a small northwest hub, so US could poach from AS and their DL and AA relationships. Where that would be, I have no idea
Personally I'd like to see a small northwest hub, so US could poach from AS and their DL and AA relationships. Where that would be, I have no idea
Aug 14, 2013, 8:04 am
#10
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I would agree - US in the east coast if solid. Once I get West of the Mississippi it gets a little dicey.
A solid NW hub would be nice -
A solid NW hub would be nice -
Aug 14, 2013, 8:28 am
#11
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Aug 14, 2013, 8:28 am
#12
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Aug 14, 2013, 8:37 am
#13
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I think if you look at today's US Airways route map and compare it to the 1993 and 2003 route maps you would be quite surprised. There have been some small markets and one hub that US has dropped for being unprofitable but the new destinations are bigger and better and today's network is far more comprehensive.
Aug 14, 2013, 8:51 am
#14
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US can still be effective by moving to OneWorld and codesharing with AA (and BA, etc.), then make a strategic investment in AA as part of a consortium to take it out of bankruptcy.
Aug 14, 2013, 8:53 am
#15
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I think if you look at today's US Airways route map and compare it to the 1993 and 2003 route maps you would be quite surprised. There have been some small markets and one hub that US has dropped for being unprofitable but the new destinations are bigger and better and today's network is far more comprehensive.
PIT (obviously)
BWI
DAY
LAS
LAX