Brief fair use excerpt from The Wall Street Journal:
Southwest Aims to Buy Assets If US Air-Delta Deal Gets Done
Southwest Airlines Chief Executive Gary Kelly said he would be "very interested" in acquiring assets sold by US Airways Group Inc. or Delta Air Lines if the companies were to merge, potentially intensifying the bidding over coveted East Coast routes.
US Airways has said it likely would have to sell off some assets to quell antitrust concerns if its $8.7 billion hostile cash-and-stock bid for Delta succeeds. US Airways CEO Doug Parker said East Coast concerns could be addressed by selling one of the companies' overlapping Eastern shuttle services, which connect Boston, New York and Washington.
No other airline has signaled interest since the offer was announced, but analysts speculate that AMR Corp.'s American Airlines, Northwest Airlines or UAL Corp.'s United Airlines might be interested.
"We consider this [bid for Delta] a serious offer and a very substantial one, and one that we're assuming has a decent chance of actually happening," Mr. Kelly said in an interview late yesterday.
Mr. Kelly said Southwest Airlines co-founder and Chairman Herb Kelleher on Friday called executives at US Airways and Delta to let each airline know of Southwest's interest. "Assets could include aircraft, gates at airports, slots at slot-controlled airports," said Mr. Kelly, "but this is all very preliminary and who knows what twists and turns the deal will take. We just want to have an opportunity to grow on the East Coast."
FlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 8, posted (7 years 9 months 1 week 5 days 23 hours ago) and read 14533 times:
Quoting AirTranTUS (Reply 4): unless WN wants some 738's, but they have so far indicated the opposite.
If the price is right, why not?
Quoting N328KF (Reply 7): It's got assets. Specifically, it has ex-PanAm assets (routes/slots). Sort of ironic that US Airways et. al. would be jumping on Delta for the same reason that Delta jumped on Pan Am.
You mean some of the most consistently profitable routes in commercial aviation? Pan-Am got in on the ground floor and built a very solid transatlantic operation. Those routes, DL's ex pan-am transatlantic routes, are golden.
"Let the world change you, and you can change the world"
DfwRevolution From United States of America, joined Jan 2010, 968 posts, RR: 51
Reply 9, posted (7 years 9 months 1 week 5 days 22 hours ago) and read 14509 times:
Quoting AirTranTUS (Reply 4): I can understand gates at some airports, but the aircraft strike me as odd. They have no aircraft in common, unless WN wants some 738's, but they have so far indicated the opposite.
If the two carriers were to merge, the "game plan" over at WN would have to change, so we may yet see the 738 reconsidered. The logistic issues regarding a 737-800 fleet are not all together difficult as was discussed in 2004 when WN considered a bid for the TZ 738 fleet.
DL also holds about 50 737NG delivery slots IIRC, so WN may perhaps purchase the purchase rights to new jets
DLPMMM From United States of America, joined Apr 2005, 3591 posts, RR: 10
Reply 11, posted (7 years 9 months 1 week 5 days 15 hours ago) and read 14013 times:
Quoting FlyDreamliner (Reply 8): You mean some of the most consistently profitable routes in commercial aviation? Pan-Am got in on the ground floor and built a very solid transatlantic operation. Those routes, DL's ex pan-am transatlantic routes, are golden
Except for LHR, there are no "golden" transatlantic routes since open skies agreements went into effect with most European countries. WN's interest is clearly in the Shuttle operations, as mentioned in the cited article. I would also assume that WN would be interested in any DCA or LGA slots that might also become available.
This would make alot of sense for WN, as this fits perfectly into their business model of domestic short haul point to point service between major metropolitan areas. They know how to run an hourly bus service.
AvConsultant From United States of America, joined Feb 2006, 1360 posts, RR: 3
Reply 13, posted (7 years 9 months 1 week 5 days 14 hours ago) and read 13942 times:
Quoting FlyDreamliner (Reply 8): Pan-Am got in on the ground floor and built a very solid transatlantic operation. Those routes, DL's ex pan-am transatlantic routes, are golden
Those routes were golden prior to the "open Skies Agreement", remember after DL soon discovered after purchasing the PanAm transatlantic network they overpaid. A lot of the PanAm routes were abandoned after 9/11. DL has now returned to focusing on the Atlantic from JFK. Unfortunately when DAL scaled back in 2001 and 2002, AA and CO seized the opportunity from BOS and EWR.
DL and USAirways both operate "The Shuttle". I can see SW showing interest. Also, I wonder if SW is banking on JFK consolidating the PHL and wanting to expand PHL?
TPAnx From United States of America, joined Aug 2005, 1021 posts, RR: 0
Reply 18, posted (7 years 9 months 1 week 5 days 14 hours ago) and read 13842 times:
Interesting. Recently read an article in one of the local papers headlined:
"What if they flew internationally?" It noted that SW flew more people
domestically than AA flew domestically and internationally. I'm not a fan of SW, but you have to admire the business model.
STT757 From United States of America, joined Mar 2000, 16860 posts, RR: 51
Reply 19, posted (7 years 9 months 1 week 5 days 14 hours ago) and read 13800 times:
Quoting AvConsultant (Reply 13): Also, I wonder if SW is banking on JFK consolidating the PHL and wanting to expand PHL?
WN would be interested in slots/gates at LGA, DCA, BOS and PHL.
There's also the possibility of US moving most if not all of DL's JFK operations to PHL, that would give WN a place to build a large operation in the NYC area.
LTBEWR From United States of America, joined Jan 2004, 13078 posts, RR: 12
Reply 20, posted (7 years 9 months 1 week 5 days 14 hours ago) and read 13786 times:
Perhaps WN would buy one of the LGA-BOS-DCA shuttles. That would fit into their general way of ops, of fast turnaround and the like. Clearly they could use 737's on those routes, so no problem there, and could run it with non-WN models for a while due to their route specificity. If as part of a deal they added gates from DL or US to their ATA gates, especially at LGA they already have, then they they could get a good foothold into all three markets at primary airports. It may also push some price competition into those markets on key routes, especially the shuttle.
SLCUT2777 From United States of America, joined Dec 2005, 4050 posts, RR: 11
Reply 23, posted (7 years 9 months 1 week 5 days 13 hours ago) and read 13369 times:
Quoting BigOrange (Reply 21): They could also take over the Marine terminal at LGA which would give them an advantage for the short turnarounds.
LGA & DCA are the New York and Washington area airports WN covets getting slots into, and since US would have to divest more than just one or the other east coast shuttles, some of these slots would be $$$ for Doug Parker to gain back from Gary Kelly.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!