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Could A Big Airline Buy A Low Fare Airline?  
User currently offlineKieso From United States of America, joined Apr 2004, 34 posts, RR: 0
Posted (10 years 5 months 4 weeks 1 day 4 hours ago) and read 3207 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



Me is Kieso_I love to fly and it shows! YA
12 replies: All unread, jump to last
 
User currently offlineScottB From United States of America, joined Jul 2000, 6793 posts, RR: 32
Reply 1, posted (10 years 5 months 4 weeks 1 day 4 hours ago) and read 3185 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.

User currently offlineSccutler From United States of America, joined Jan 2000, 5555 posts, RR: 28
Reply 2, posted (10 years 5 months 4 weeks 1 day 4 hours ago) and read 3158 times:

Well, if you look at market capitalization, Southwest is worth more than...

...well, not just more than any other airline...

...but, more than the whole rest of the airline industry. Combined.

So there is no airline which could manage to buy WN, and WN could buy pretty much anyone they wanted to.

Not that they would.



...three miles from BRONS, clear for the ILS one five approach...
User currently offlineKieso From United States of America, joined Apr 2004, 34 posts, RR: 0
Reply 3, posted (10 years 5 months 4 weeks 1 day 4 hours ago) and read 3140 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!



Me is Kieso_I love to fly and it shows! YA
User currently offlineDoug_Or From United States of America, joined Mar 2000, 3421 posts, RR: 3
Reply 4, posted (10 years 5 months 4 weeks 1 day 4 hours ago) and read 3125 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.


When in doubt, one B pump off
User currently offlineA3192021 From United Kingdom, joined Apr 2004, 20 posts, RR: 0
Reply 5, posted (10 years 5 months 4 weeks 21 hours ago) and read 3060 times:

British Airways used to own start-up LCC, Go. They eventually sold it to easyJet.

User currently offlineAccess-Air From United States of America, joined Sep 2000, 1939 posts, RR: 13
Reply 6, posted (10 years 5 months 4 weeks 21 hours ago) and read 3003 times:

Actually,
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!!!!
Oh well..

Access-Air



Remember, Wherever you go, there you are!!!!
User currently offlineRichardw From United Kingdom, joined May 2001, 3755 posts, RR: 0
Reply 7, posted (10 years 5 months 4 weeks 20 hours ago) and read 2992 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.


User currently offlineDesertJets From United States of America, joined Feb 2000, 7786 posts, RR: 16
Reply 8, posted (10 years 5 months 4 weeks 20 hours ago) and read 2968 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
User currently offlineLauda777 From Australia, joined Nov 2003, 165 posts, RR: 0
Reply 9, posted (10 years 5 months 4 weeks 20 hours ago) and read 2953 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
User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 10, posted (10 years 5 months 4 weeks 20 hours ago) and read 2902 times:

Ive heard endless rumors about NW trying aquire AA for some dumb reason, but those rumors were 1997-1999.


A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 11, posted (10 years 5 months 3 weeks 6 days 21 hours ago) and read 2806 times:

Ive heard endless rumors about NW trying aquire AA for some dumb reason, but those rumors were 1997-1999.

Let me correct myself: NW was TRYING to aquire AS, not AA. My mistake....



A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineEAL757 From , joined Dec 1969, posts, RR:
Reply 12, posted (10 years 5 months 3 weeks 6 days 19 hours ago) and read 2778 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)



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