Kieso From United States of America, joined Apr 2004, 34 posts, RR: 0 Posted (11 years 2 months 1 week 2 days 8 hours ago) and read 3536 times:
I was just wondering if there’s a chance a big airline like Delta would buy a low fare airline like America West? At one time there was a lot of talk about this happening. Now I never hear about it anymore.
I believe there should be less airlines but that’s just my opinion
ScottB From United States of America, joined Jul 2000, 7056 posts, RR: 31
Reply 1, posted (11 years 2 months 1 week 2 days 8 hours ago) and read 3514 times:
It has happened before; AMR bought Reno Air and USAir bought PSA and Piedmont. It's not likely in the current environment, given that most of the network majors can't afford the outlay of cash these days. In the case of America West specifically, I can't see anyone at all being interested in buying them. While they're doing reasonably well with the business as they've restructured it, the fact remains that their two hubs are also Southwest's two largest operations -- and AWA only manages as well as it does by paying its employees less than Southwest pays its employees. None of the other network majors could make their cost structures work at the PHX and LAS hubs.
Kieso From United States of America, joined Apr 2004, 34 posts, RR: 0
Reply 3, posted (11 years 2 months 1 week 2 days 7 hours ago) and read 3469 times:
If WN did try to buy another airline I believe they would fail. They're costs need to stay low in order to make the money they're making. Really, WN can't make hardly any moves because they have to stay cheap to make it. That's why I think they're holding off on any plans for PTV's.
I guess we'll all see what happens and who will win (low fare vs. Major) in the next few years. I can't wait to see what's in the future for them!
Doug_Or From United States of America, joined Mar 2000, 3481 posts, RR: 3
Reply 4, posted (11 years 2 months 1 week 2 days 7 hours ago) and read 3454 times:
just a couple things. Wn did actauly buy Morris air a few years back. I don't know that Piedmont was really a low fare airline. At anyrate, you can add AA buying Aircal to the list, in addition to the people's express purchase by continental (although that, like everything lorenzo did, was complicated). what did all these aquisition have in common? Pointless wastes of money followed by trouble intigrating senority lists and a/c. weeeeeeee, fun.
Access-Air From United States of America, joined Sep 2000, 1940 posts, RR: 12
Reply 6, posted (11 years 2 months 1 week 2 days ago) and read 3332 times:
I think Ther thing with USair and Piedmont was justa merger but I am confident that of the two if it was abuyout Piedmont would have been buying USAir as from what I rememebr Piedmont was always in much better financial shape.
PSA and Air Cal (Origininally Air California) were NOT low cost carriers....they started their lives as INTRA-STATE Carriers long ago. They had their special niches but they both grey into forces to be reckoned with...then in the 80s AA and US decied that they wwere some kind of threat bought them out and well we all knwo whats left of those fine companies...NOTHING.
And as stated AA did the same thing to Reno Air and most mercilessly TWA!!!!
Richardw From United Kingdom, joined May 2001, 3781 posts, RR: 0
Reply 7, posted (11 years 2 months 1 week 2 days ago) and read 3321 times:
BA did not sell Go Fly to easyJet. BA sold it to a consortium of Go Fly's management and funder 3i. 3i then got a good offer from easyJet and eventually it was sold to easyJet.
Full story is in the book 'Go an Airline Adventure' by Barbara Cassani with Kenny Kemp. I've read it and it is a very good read.
easyJet bought an airline, no aircraft were included.
DesertJets From United States of America, joined Feb 2000, 7843 posts, RR: 14
Reply 8, posted (11 years 2 months 1 week 2 days ago) and read 3297 times:
As many have argued before the costs of buying another airline (LCC or otherwise) generally far outweight the benefits. Could Delta be able to buy America West and maintain its low cost structure (its competitive advantage), probably not. If an airline has a wad of cash burning a hole in its pocket, it can probably better spend it by expanding rather than buying.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
Lauda777 From Australia, joined Nov 2003, 165 posts, RR: 0
Reply 9, posted (11 years 2 months 1 week 1 day 23 hours ago) and read 3282 times:
I think the trend these days is leaning more towards the big airlines starting their own LCC's Like United - Ted, Qantas - Jetstar it works out cheaper for them to start from scratch than to buy an established LCC, and if it doesnt work they can always pull the plug before it gets too big and return the AC to the lessors.
If you can't buy em..... Join em!
We remind passengers all flights are non smoking, if you are caught smoking you will be asked to sit outside on the wing
EAL757 From , joined Dec 1969, posts, RR:
Reply 12, posted (11 years 2 months 1 week 22 hours ago) and read 3107 times:
Any lowcost carrier willing to be bought out by a larger deserves to go under, given the current financial state.
I might vouch for Continental swallowing up America West or Spirit or something, but if JetBlue, AirTran, Frontier or Southwest approved any kind of buyout, I'd say they deserve to go under (which will ultimately happen)