AirlineReporter From United States of America, joined Jun 2010, 78 posts, RR: 0 Posted (3 years 7 months 3 weeks 6 days 20 hours ago) and read 11088 times:
I have been hearing rumors of a possible Alaska Airlines purchase in the next few years and wondering what others might think. It seems to me a purchase by Southwest Airlines or Delta Air Lines might make sense.
Delta currently works closely with Alaska to feed their international Asian flights from the west coast and they codeshare flights as well.
Southwest just took over AirTran and maybe they will be looking to take other airlines once AirTran is fully absorbed. Alaska has flights to Alaska, down the west coast and to Hawaii that Southwest doesn't currently have.
Jan 1st Horizon (which is owned by the Alaska Air Group) will start fully flying fully CPA. That would seem to make it easier to sell with Alaska, separately to another company or to just dissolve the airline completely.
rgreenftm From United States of America, joined Jan 2008, 299 posts, RR: 0
Reply 2, posted (3 years 7 months 3 weeks 6 days 19 hours ago) and read 11050 times:
Is someone really going to bring this up again? I wish they would just develop a script that would close and delete any thread that dicusses Alaska being purchased by another airline. Every month for years now it seems, someone has to bring this up. Really a tired topic IMO.
KC135TopBoom From United States of America, joined Jan 2005, 12134 posts, RR: 51
Reply 5, posted (3 years 7 months 3 weeks 6 days 19 hours ago) and read 10914 times:
Quoting rgreenftm (Reply 4): they heard about AS merging or buying HA/DL/AA/VX/B6/WN or US.
What I heard was AS was buying CA, BA, AC, AF/KL, LH, NH, QF, SQ, and KE, as well as picking up the now defunct MX and was going to go head to head against EK and their A-380s with nothing but B-737NGs.
A friend of mine who works for AA and has a second cousin at DL, who said it was confirmed through a former girlfriend at UA who got it straight from the mouth of a baggage handler at US.
sxf24 From United States of America, joined Aug 2007, 1259 posts, RR: 0
Reply 6, posted (3 years 7 months 3 weeks 6 days 19 hours ago) and read 10912 times:
If an airline has ~$3.0B laying around to purchase AS and a plan to see a decent return on the purchase, they'd have already bought them.
Fortunately, neither AA or DL has cash to spare or any chance of successfully integrating AS.
AS has the 2nd strongest (by far) financial position after WN, according to the credit rating agencies. It less leveraged, has more cash (as a % of revenue) and has generally been more profitable than any other carrier outside of WN and Allegiant.
PlanesNTrains From United States of America, joined Feb 2005, 5495 posts, RR: 29
Reply 7, posted (3 years 7 months 3 weeks 6 days 19 hours ago) and read 10880 times:
Sadly, if and when that day finally does come, you can be sure that there will be a rush here to be the first to say "I called it!" Nevermind that people have been calling it for....well, forever. I remember being close to buying some stock around the beginning of 2000 on strong rumors that Delta was gonna make a bid. Then 261 happened and everything changed. Glad I didn't move forward on that rumor.
Plainplane From United States of America, joined Mar 2008, 837 posts, RR: 1
Reply 10, posted (3 years 7 months 3 weeks 6 days 18 hours ago) and read 10584 times:
Quoting EA CO AS (Reply 9): As has been pointed out already, AS is financially VERY strong and could actually be in the position of an acquirer in the future, as they have no interest in being purchased.
One of my coworkers was discussing the possibility of AS actually taking over B6. Is this actually feasible?
jeb94 From United States of America, joined Oct 2004, 598 posts, RR: 5
Reply 12, posted (3 years 7 months 3 weeks 6 days 17 hours ago) and read 10485 times:
Quoting Plainplane (Reply 10): One of my coworkers was discussing the possibility of AS actually taking over B6. Is this actually feasible?
The question you should ask yourself is why? Why would AS attempt a purchase of B6? Does such a thing fit in with the current business model and plans of AS? Just from what I've seen I have to say no. Culturally they are very different. They operate differently from each other. They have different philosophies. Some of these differences are to the point of being totally opposite. Yes they are both airlines but from that point they tend to take different paths.
SuperDash From United States of America, joined Sep 2003, 574 posts, RR: 0
Reply 14, posted (3 years 7 months 3 weeks 6 days 14 hours ago) and read 9722 times:
Will Delta or American pay a premium?....Yes
Will an acquisition solidify an Alliance?....Yes - both SkyTeam or OneWorld.
Do either Delta or American have a big enough ego to acquire vs play together and share Alaska?....Yes, both have the Ego to take out the other
Is there an Alliance War going on?.....Yes
Prediction....Alaska will either be acquired after SkyTeam announces at least 2 new international routes from Seattle... OR... Alaska will be forced to join an Alliance and dump the other major partner.
roadrunner165 From United States of America, joined Oct 2000, 874 posts, RR: 9
Reply 15, posted (3 years 7 months 3 weeks 6 days 14 hours ago) and read 9685 times:
I think another hurdle for any carrier that might consider buy AS is their Alaska operations. I'd guess a big portion of AS's profits are made flying intra-Alaska flights and flying Alaskans to and from the lower 48. For a big carrier like Delta or America is might just be too much hassle to put such a large emphasis and focus on the Alaska market which is a very hard place to operate in. Anchorage and Alaska is not like any other hub in the USA.
Airport From , joined Dec 1969, posts, RR:
Reply 16, posted (3 years 7 months 3 weeks 6 days 14 hours ago) and read 9540 times:
Here we go again! The weekly thread talking about who's going to buy AS. It's hilarious how so many members here see AS as this weak little carrier who has zero control over their destiny, just trying to stay afloat while these other carriers are circling them waiting to jump as if they are easy prey. This topic has been discussed to death and I'm done debating. Unless something absolutely drastic changes that no one could have possibly predicted, it's not going to happen.
dl767captain From United States of America, joined Mar 2007, 2539 posts, RR: 0
Reply 17, posted (3 years 7 months 3 weeks 6 days 14 hours ago) and read 9358 times:
Alaska kind of sells itself out to a lot of airlines which seems to work pretty well. I think the best match would be DL just with the amount DL would get out of them. I'm sure WN might take a look at them if they weren't busy with Air Tran. But I just don't think Alaska is up for sale, they are kind of in a weird position which just works for them
707lvr From United States of America, joined Jun 2004, 583 posts, RR: 2
Reply 21, posted (3 years 7 months 3 weeks 6 days 12 hours ago) and read 8684 times:
Well, Airline Reporter, now you know what happens when you bring up a topic that the old hands have seen before. They don't have to open and read it, but they do. They don't have to post a condescending comment, but they take the time to do so. Take heart, next time somebody brings up Alaska Airlines being sold, you can jump on them too! While I'm at it, the reason so many ridiculous, wasteful, destructive and narcissistic mergers happen is that too many companies have three people (Chmn, CEO, COO) as "boss" with nothing better to do. As for AS, there are always one or two successful airlines around that can be made worse by merging with somebody that will never make any money.
As has been pointed out already, AS is financially VERY strong and could actually be in the position of an acquirer in the future, as they have no interest in being purchased.
It might be an HP/US-style merger, though. If AS has expansion in its mind, then they have a branding problem. You can't be Alaska Airlines when Alaska is only a minor (and peripheral) part of your route network. As it is, they are running on brand recognition. So if they bought, say US, they might rebrand as US. If they bought AA they'd rebrand as AA.
Problems: 1) Doing so would mean that they would lose their traffic from DL, which is no small thing. 2) Of the airlines in the US that are "up for grabs" from a legal/regulatory standpoint, the only two left are AA and US. DL and UA have recently merged and regulators would balk if either one were to try to merge with AS. Both of these airlines are currently either in management or labor hell right now and nobody at AS wants the headaches.
But SEA is an interesting hub. AS basically serves as a primarily domestic/Canada feeder to a Seattle hub. Their code-share and interline agreements feed operations at two legacies, including international flights. In that market, neither legacy needs to operate very much in the name of regional/feeder flights. It's an interesting arrangement and I'm a bit surprised it hasn't popped up in other places yet. In a way, it's a swing back to the "way it used to be" where there was a combination of huge international carriers (PA, TW, etc.) and then domestic carriers (UA, CO, etc.).