Author Topic: Delta to Buy AA???  (Read 2362 times)

Offline Dan

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Re: Delta to Buy AA???
« Reply #15 on: January 13, 2012, 12:47:17 PM »
Isn't that exactly what I said?
Yup, just +1'ing in more words.
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Offline westman812

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Re: Delta to Buy AA???
« Reply #16 on: January 13, 2012, 12:53:50 PM »
What about CO/UA.
Supposedly US is also in the mix

I think US airways is in the best position( and wouldn't surprised if TPG, which is looking into the takeover as well, was working with Us air)..
They have virtually no crossover on routes(both have 5 domestic hubs, none are the same) US air isn't as strong int'l as AA is, and the combination would have a better shot past regulatory agencies than delta-american....

Only 2 issues in my mind 1) One world vs star alliance; where would the combination go? 2) Us air is a big airbus airline, while AA is a big Boeing airline, so from that standpoint, it may not save too much money in maintenance.

Offline Dan

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Re: Delta to Buy AA???
« Reply #17 on: January 13, 2012, 12:57:23 PM »
US-AA would be a very dumb merger.

-US still hasn't come close to fully merging with America West from nearly a decade ago.
-Their route networks are not complimentary.  They are both way too heavy on no-profit domestic flying.  AA is very weak in Europe/Asia/Middle East/Africa and US is even weaker.
-US doesn't have enough cash reserves.
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Offline westman812

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Re: Delta to Buy AA???
« Reply #18 on: January 13, 2012, 01:10:00 PM »
US-AA would be a very dumb merger.

-US still hasn't come close to fully merging with America West from nearly a decade ago.
-Their route networks are not complimentary.  They are both way too heavy on no-profit domestic flying.  AA is very weak in Europe/Asia/Middle East/Africa and US is even weaker.
-US doesn't have enough cash reserves.
http://online.wsj.com/article/SB10001424052970204542404577156842920091500.html?KEYWORDS=american+airlines

That's why TPG would handle most of the purchase and would leave the combined entity with plenty of cash(AA has a lot of cash).

As stated in the article, it may not be the perfect time for US air, but there may not be a better opp out there....

Offline Dan

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Re: Delta to Buy AA???
« Reply #19 on: January 13, 2012, 01:16:59 PM »
My first 2 points still stand.  Their merged route networks would gain next to nothing.
They would have a bunch of useless domestic hubs to shut down with no major international (read: profitable) presence.

Now a BA-AA merger, that would make more sense, although it would be tough to structure legally.
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Offline westman812

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Re: Delta to Buy AA???
« Reply #20 on: January 13, 2012, 01:25:05 PM »
My first 2 points still stand.  Their merged route networks would gain next to nothing.
They would have a bunch of useless domestic hubs to shut down with no major international (read: profitable) presence.

Now a BA-AA merger, that would make more sense, although it would be tough to structure legally.

Issues will exist with any merger.....I just think US air makes more sense than Delta...plus AA is major in South america(not that I think that means too much)

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Re: Delta to Buy AA???
« Reply #21 on: January 13, 2012, 01:26:53 PM »
Neither merger makes sense.
A merger has to make sense for both sides.
DL and NW, CO and UA, WN and FL, all of these recent mergers were because both sides had something to offer the other.
DL and AA is too big to get approved and US gives nothing of value to AA.
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Offline aussiebochur

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Re: Delta to Buy AA???
« Reply #22 on: January 15, 2012, 03:46:12 PM »
-US doesn't have enough cash reserves.
A couple more TIB promos should do it ;)