NWAFA From United States of America, joined Dec 2003, 1893 posts, RR: 15 Posted (9 years 9 months 4 weeks 13 hours ago) and read 5348 times:
America West Declines Opportunity to Submit Bid for ATA Assets
Thursday December 9, 3:00 pm ET
PHOENIX, Dec. 9 /PRNewswire-FirstCall/ -- America West Holdings Corporation (NYSE: AWA - News), parent company of America West Airlines, Inc., today announced it does not plan to submit a bid to the U.S. Bankruptcy Court to purchase ATA Holdings Corp. (OTC: ATAHQ - News). America West had previously announced it was considering acquiring ATA through that airline's Chapter 11 restructuring process.
America West Chairman and Chief Executive Officer Doug Parker said, "We have stated from the beginning of this process that we would not proceed with any transaction that would put undue risk on America West's employees, customers or stockholders. While we believe there is some value in a combined America West/ATA operation, we do not believe the potential value justifies the anticipated cost.
"Our interest in ATA encompassed acquiring the entire company as opposed to only a few select assets, which meant we needed most of the aircraft and employees to stay with the company. During this process we found we were able to attract sufficient capital to support a competitive bid and we are grateful to our partners for their offers of support. We particularly appreciate the support we received from the employees of ATA. We are hopeful that whoever ends up owning ATA will recognize the value of this dedicated and experienced workforce. Unfortunately, we were unable to come to acceptable lease terms on enough aircraft with ATA's existing aircraft lessors.
"We feel very good about the decision to refrain from this bidding process. As the nation's second largest low cost carrier we are well positioned for long-term success in a rapidly evolving airline environment. Because our current aircraft orders satisfy our near-term growth plans, we are not compelled to stretch to find places to fly. We feel confident there will be future growth and acquisition opportunities for America West as our industry evolves. While we have chosen to pass on this particular transaction, we look forward to playing a role in the continued consolidation of the airline industry."
America West Airlines is the nation's second largest low cost airline and the only carrier formed since deregulation to achieve major airline status. America West's 13,000 employees serve nearly 55,000 customers a day in 96 destinations in the U.S., Canada, Mexico and Costa Rica.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the future of the airline industry, growth plans and our prospects for success. These statements involve risks and uncertainties that could cause our actual results and financial position to differ materially from these statements, including, but are not limited to, the duration and extent of the current soft economic conditions; the impact of global instability including the continuing impact of the continued military presence in Iraq and Afghanistan and the terrorist attacks of Sept. 11, 2001 and the potential impact of future hostilities, terrorist attacks, infectious disease outbreaks or other global events; limitations on our ability to obtain additional financing due to high levels of debt and the financial and other covenants in our debt instruments; changes in federal and state laws and regulations; changes in prevailing interest rates and the availability of and terms of financing to fund our business; the ability to attract and retain qualified personnel; the cyclical nature of the airline industry; competitive practices in the industry; the impact of changes in fuel prices; relations with unionized employees generally and the impact and outcome of the labor negotiations and other factors described from time to time in our publicly available SEC reports. We caution you that these risks may not be exhaustive. We operate in a continually changing business environment, and new risks emerge from time to time. We undertake no obligation to publicly update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.
THANK YOU FOR FLYING NORTHWEST AIRLINES, WE TRULY APPRECIATE YOUR BUSINESS!
PanAm747 From United States of America, joined Feb 2004, 4242 posts, RR: 8
Reply 5, posted (9 years 9 months 4 weeks 12 hours ago) and read 5166 times:
I suppose somewhere someone is writing a textbook on airline acquisition. One chapter (that HP is obviously previewing) will be called "Don't Let This Happen To You", with examples of Pan Am/National and USAir/the zillions they took over.
HP realized, smartly, that this would not have been a good match. Maybe the 757's, but that's about it. It's easier to pick the carcass than assume the debt and try and integrate. Sad, but true.
Pan Am:The World's Most Experienced Airline - P(oor) S(ailor's) A(irline): San Diego's Hometown Airline-Catch Our Smile!
Wjcandee From United States of America, joined Jun 2000, 5198 posts, RR: 22
Reply 8, posted (9 years 9 months 4 weeks 12 hours ago) and read 5066 times:
HP would have needed substantial working capital to take the losses until they could realize whatever synergies they saw. Frankly, I saw few.
I'm not persuaded that Airtran's offer necessarily succeeds now, although I suppose its chances have increased. Did anyone see the idiotic New York Times article this morning that said that Southwest's bid was "the best" "from a financial perspective"? I think the idiot author meant that Southwest had the strongest balance sheet, but that's not what she said. (She also stupidly said that Southwest is the only airline that will have a profit this year. Uh...hello? The *other one* is *Airtran*!!!!) Obviously, an offer that only takes over some gates and lets the airline otherwise die is not "the best from a financial perspective". Gosh, I hate the Times. And reporters who write about stuff they don't understand without making the slightest effort to understand it. I noticed that the same article, when reprinted in the Indy paper, had the offending passage removed.
Quickmover From United States of America, joined Mar 2004, 2494 posts, RR: 0
Reply 10, posted (9 years 9 months 4 weeks 12 hours ago) and read 5056 times:
I've always thought the serious opposition to FL would come from WN. They have been talking alot lately about how MDW is their #1 priority and adding flights to look serious. I'm convinced WN will propose something, but who knows what?
Okie From United States of America, joined Jul 2003, 3065 posts, RR: 3
Reply 12, posted (9 years 9 months 4 weeks 11 hours ago) and read 4967 times:
we were unable to come to acceptable lease terms on enough aircraft with ATA's existing aircraft leesors.
Whoever is carrying the leases on the aircraft obviously carrying a big stick and have a preferred customer in mind for the aircraft or an operator that they would prefer to operate some of TZ's old routes.
Travatl From United States of America, joined Mar 2001, 2173 posts, RR: 7
Reply 15, posted (9 years 9 months 4 weeks 10 hours ago) and read 4732 times:
LIke I said on the other post -
The simple reality is that, if you like it or not, the AirTran deal is a TOUGH deal to beat. A cash infusion, the holding company remains alive and independent, all of the MDW gates are spoken for, and ATA gets and receives traffic feed through a strong codeshare. The only realistic counter bid is one of the SAME deal for more money. That's it...
It's not the best for the employees, agreed, but when has corporate America ever cared about the employees? AirTran has been SHREWD in this deal - and I predict they will EASILY win...
YVR2SAN From United States of America, joined Nov 2004, 62 posts, RR: 0
Reply 19, posted (9 years 9 months 4 weeks 8 hours ago) and read 4519 times:
According to the article in reply 18 it did atleast appear that the ATSB gave HP its support in the bid for ATA but it came down to Asian carriers wanting the 737 aircraft and pushing the price up to a price HP did not want to pay.
Any ideas as to who these Asian carriers could be?
CactusHP From United States of America, joined May 2004, 348 posts, RR: 2
Reply 20, posted (9 years 9 months 4 weeks 8 hours ago) and read 4509 times:
I knew and that this whole thing could've been possible with HP placing a bid instead the other way around. But HP still has tons of loans to pay off and buying ATA, HP would have to put up with those too. Although if HP would've bought ATA, is would probaly look good in short-term, but, if HP wanted to stay in for the long run, it would've been suicide. Good move for America West.
AZjetgeek From United States of America, joined Jul 2004, 235 posts, RR: 2
Reply 21, posted (9 years 9 months 4 weeks 8 hours ago) and read 4461 times:
Very wise decision by Mr. Parker and HP. I really don't see WN making a bonafide offer for ATA. They would have to unload the 757's and any other aircraft aside from their 737's. Too much hassle.
FL might be the more logical choice in this instance. It would further expand their Midwest base as well as possible give them an entrance into some of the markets in the West, including PHX. I just hope AirTran doesn't bite off more than it can chew.
I think one possibility might be for Frontier to make an offer. It would give F9 a foothold in the Midwest.