wilax
Posts: 448
Joined: Tue Jun 18, 2002 2:39 pm

Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 1:04 pm

Has any airline ever bought out a larger airline and absorbed it into itself?
 
WesternA318
Posts: 4573
Joined: Sun Oct 17, 2004 11:55 am

RE: Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 1:22 pm

Texas international bought out Continental Airlines (Texas Int'l was something like 12-13 times smaller than CO at the time.) We all know how that turned out....
 
isp
Posts: 94
Joined: Wed Sep 22, 2004 2:40 pm

RE: Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 3:28 pm

US Air bought Piedmont
 
727200er
Posts: 301
Joined: Tue Mar 09, 2004 5:18 pm

RE: Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 3:51 pm

PWA bought CPAir and created Canadian

RIP ProudWings
"they who dream by day are cognizant of many things which escape those who dream only at night" - Edgar Allen Poe
 
Azul320
Posts: 257
Joined: Tue Jun 22, 2004 10:49 am

RE: Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 4:03 pm

Sounds like a topic for Sex in the City...
Many carriers have swallowed up other airlines. NONE of which are making money I might add. So size must not matter, it's the motion in the ocean...but it takes a long time to get to England in a row boat.
Excuse me, while I kiss the sky
 
tbanger
Posts: 253
Joined: Tue Jul 27, 2004 6:11 pm

RE: Airline Mergers; Does Size Matter?

Wed Oct 27, 2004 5:57 pm

Ansett was bought by Air New Zealand and look how that turned out. No offence ANZ or Ansett fans, BUT ANZ was quite small and extremely efficient in it's operation and Ansett was the bleeding giant. It was doomed from the start. Unfortuneately for me, I was with them when it all went pair shaped.

No hard feelings though........life goes on.  Big thumbs up
 
ewr767
Posts: 85
Joined: Thu Oct 28, 2004 2:01 am

RE: Airline Mergers; Does Size Matter?

Thu Oct 28, 2004 2:18 am

We just a leter from gordon stating that he would like to merge co with ua. But that ua wasnt interested. Here is party of an email i recieved.


he has had talks with UA about a merger but, so far, they aren't
>interested. he said they are still in deep denial about their situation and
>that they would have to face reality and do what needs to be done before we
>would be interested. he said their staffing is bad and that they have 3
>pilots when they only need 2 or 2.5. he said if things worked out (about
>20% chance) a combined CO/UA would crush everyone else. his drift was that
>we would come in at the very last moment as a "white knight" and put it
>together.
 
goingboeing
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: Airline Mergers; Does Size Matter?

Thu Oct 28, 2004 3:51 am

Delta and Western

AA and TWA

TWA and Ozark

Northwest and Republic

As far as CO and UA....I really don't see Gordon going in and taking on the burden of becoming a "white knight" for anybody. That's not to say he wouldn't be the first at the doors of the fire sale. How would he handle the seniority issues? He'd either have a bunch of pissed of "new" employees from UA, or a bunch of pissed off "old" employees at CO. And that's just for starters. I don't think he'd be willing to put CO deep in debt by taking on the debts and obligations of United. If he does....then his legacy as one of the greatest CEO's ever would be greatly diminished. But....the man does have an ego...so the question is...would the ego outweigh common sense.
 
wilax
Posts: 448
Joined: Tue Jun 18, 2002 2:39 pm

RE: Airline Mergers; Does Size Matter?

Thu Oct 28, 2004 1:35 pm

I guess I should clarify;

Has a small airline ever bought a larger airline, and the larger one took the smaller's name?

for example: Airtran buys United and becomes one huge Airtran.
 
WesternA318
Posts: 4573
Joined: Sun Oct 17, 2004 11:55 am

RE: Airline Mergers; Does Size Matter?

Thu Oct 28, 2004 1:43 pm

So far really, the only ones have been, Texas Int'l and Conitnental.

Delta was almost the same size, albeit a tad bigger that Western when the merger happened.

AA was already the biggest airline in the world when it bought out TWA.

TWA was several times larger than Ozark when they tied the knot.

Northwest and republic were virtually the same size (albeit NW was MUCH more int'l than domestic, and vice versa for Republic).

IMHO, CO buying out UA would not seem possible, seeing as to how Gordon has already just meshed things out at CO due to a merger almost that size (Remember, CO bought Peoplexpress, New York Air, PBA and Fronter and merged them all in one day.) Gordo would have his hands extremely full, and it would just be a repeat of the CO/Texas Air disaster.
 
SHUPirate1
Posts: 3428
Joined: Sat Sep 20, 2003 2:53 pm

RE: Airline Mergers; Does Size Matter?

Thu Oct 28, 2004 2:48 pm

WesternA318-I'm pretty sure that, when American bought TWA, that United was bigger than them, and United would have regained that spot if they had completed their ill-fated acquisition attempt of US Airways...
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
WesternA318
Posts: 4573
Joined: Sun Oct 17, 2004 11:55 am

RE: Airline Mergers; Does Size Matter?

Fri Oct 29, 2004 4:47 pm

United lost its claim back in 1998 and failed to regain it as of yet.
 
SNBA
Posts: 201
Joined: Thu Oct 07, 2004 6:28 pm

RE: Airline Mergers; Does Size Matter?

Fri Oct 29, 2004 6:33 pm

And what about SN Brussels Airlines & Virgin Express (about the same sizes...)?

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