SHUPirate1
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US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 7:49 am

Phoenix, June 23, 2005 - America West Holdings Corp. (NYSE: AWA) and US Airways Group Inc. (UAIRQ:OB) today confirmed that the airlines have been informed by the U.S. Department of Justice that the Department has completed its review of the proposed merger of the two airlines and that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 will expire at midnight tonight without a formal request from the Department for additional information (commonly referred to as a "second request").

On May 19, 2005, America West and US Airways announced an agreement to merge and create the first full-service nationwide airline, with a consumer-friendly pricing structure offering a network of low-fare service to more than 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include a robust frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airlines will operate under the US Airways brand.

When completed, the merger will be anchored by $500 million in new equity investment that has already been announced, as well as other potential equity and financing sources still under negotiation, and participation by suppliers and business partners that will provide the company with more than $1.5 billion in cash at the time of the transactions closing.

The merger remains subject to other approvals, including America West shareholders, US Airways creditors and the U.S. Bankruptcy Court, the Securities and Exchange Commission, the U.S. Department of Transportation and the Air Transportation Stabilization Board.

The two companies said today in a joint statement that they remain on track to secure all necessary regulatory approvals this summer, with the goal of closing on transaction by early fall.

FORWARD-LOOKING STATEMENTS

Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be identified by words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" and similar terms used in connection with statements regarding the companies' outlook, expected fuel costs, the RASM environment, and the companies' respective expected 2005 financial performance. Such statements include, but are not limited to, statements about the benefits of the business combination transaction involving America West Holdings Corporation ("America West") and US Airways Group, Inc. ("US Airways" and, together with America West, the "companies"), including future financial and operating results, the companies' plans, objectives, expectations and intentions and other statements that are not historical facts. Such
statements are based upon the current beliefs and expectations of America West and US Airways' management and are subject to significant risks and uncertainties that could cause the companies' actual results and financial position to differ materially from these statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the companies to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing, in the case of US Airways, or other financing; the ability of the companies to maintain adequate liquidity; 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; changes in prevailing interest
rates; the ability to attract and retain qualified personnel; the ability of the companies to attract and retain customers; the cyclical nature of the airline industry; competitive practices in the industry, including significant fare restructuring activities by major airlines; the impact of changes in fuel prices; economic conditions; labor costs; security-related and insurance costs; weather conditions; government legislation and regulation; relations with unionized employees generally and the impact and outcome of the labor negotiations; US Airways ability to continue as a going concern; US Airways' ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time; the ability of US Airways to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the
exclusivity period for US Airways to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of US Airways to obtain and maintain normal terms with vendors and service providers; US Airways' ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on US Airways' liquidity or results of operations; the ability of US Airways to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of US Airways to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; and other risks and uncertainties listed from time to time in the companies' reports to the SEC. There may be other factors not identified above of which the companies are not currently aware that may affect matters discussed in the
forward-looking statements, and may also cause actual results to differ materially from those discussed. The companies assume no obligation to publicly update any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Similarly, these and other factors, including the terms of any reorganization plan of US Airways ultimately confirmed, can affect the value of the US Airways' various prepetition liabilities, common stock and/or other equity securities. Accordingly, the companies urge that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. Additional factors that may affect the future results of America West and US Airways are set forth in their respective filings with the SEC, which are available at http://www.shareholder.com/americawest/edgar.cfm and http://investor.usairways.com/edgar.cfm,
respectively.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the proposed transaction, a registration statement, including a proxy statement of America West, and other materials will be filed with the SEC. WE URGE INVESTORS TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT AND THESE OTHER MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors will be able to obtain free copies of the registration statement and proxy statement (when available) as well as other filed documents containing information about US Airways and America West at http://www.sec.gov, the SEC's website. Free copies of America West's SEC filings are also available on America West's website at http://www.shareholder.com/americawest/edgar.cfm, or by request to Investor Relations, America West Airlines 111 West Rio Salado Pkwy, Tempe, Arizona 85281. Free copies of US Airways' SEC filings are also available on US Airways' website at
http://investor.usairways.com/edgar.cfm or by request to Investor Relations, US Airways Group, Inc., 2345 Crystal Drive, Arlington, VA 22224.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

PARTICIPANTS IN THE SOLICITATION

America West, US Airways and their respective executive officers and directors may be deemed, under SEC rules, to be participants in the solicitation of proxies from America West's stockholders with respect to the proposed transaction. Information regarding the officers and directors of America West is included in its definitive proxy statement for its 2005 Annual Meetings filed with the SEC on April 15, 2005. Information regarding the officers and directors of US Airways is included in its 2004 Annual Report filed with the SEC on Form 10-K on March 2, 2005. More detailed information regarding the identity of potential participants, and their interests in the solicitation, will be set forth in the registration statement and proxy statement and other materials to be filed with the SEC in connection with the proposed transaction.

Please note that the press release was sent to me in full via e-mail, and as such, I do not have a link.
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
srbmod
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 7:51 am

That was quick, wasn't it? Now will the rest of the merger issues go as smoothly as this?
 
UnitedTristar
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 8:20 am

Quoting SHUPirate1 (Thread starter):
The merger remains subject to other approvals, including America West shareholders, US Airways creditors and the U.S. Bankruptcy Court, the Securities and Exchange Commission, the U.S. Department of Transportation and the Air Transportation Stabilization Board.

This approval usually comes quickly. It is the DOT they have to worry about. But word on that is they are going to be OK. The DOJ just makes sure nothing illegal is going on.

-m

 airplane 
 
gigneil
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 8:22 am

I dunno. Here in the US the DOJ is the big one. The DOT is a breeze.

UA/US got the approval of everyone but the DOJ. The DOJ is the one that enforces competitiveness laws.

N
 
SHUPirate1
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 8:22 am

Quoting UnitedTristar (Reply 2):
This approval usually comes quickly. It is the DOT they have to worry about. But word on that is they are going to be OK. The DOJ just makes sure nothing illegal is going on.

The Department of Justice, if I recall correctly, was not so quick to approve the United takeover of US Airways (although, as fate would have it, rightfully so)
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
UnitedTristar
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 8:33 am

Quoting Gigneil (Reply 3):
UA/US got the approval of everyone but the DOJ. The DOJ is the one that enforces competitiveness laws.



Quoting SHUPirate1 (Reply 4):
The Department of Justice, if I recall correctly, was not so quick to approve the United takeover of US Airways

I thought it was the DOT. My BAD!  Smile

-m

 airplane 
 
B744F
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:00 am

Not sure how this was approved so quickly. Unless they had friends in high places, the DOJ takes their time.
 
gigneil
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:04 am

I think this was a pretty clearcut case. The networks had practically no overlap. A merger was clearly procompetitive.

N
 
echster
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:06 am

I think now is the time for mergers in the US airline industry. The market conditions for the majors are so horrible, I can't really see government intervention in preventing them as in previous years.
 
1MillionFlyer
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:08 am

My friends that are FO's for HP are so screwed
Golf Foxtrot you are cleared for departure
 
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alberchico
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:10 am

Wow that was quick. But as was said on an earlier post, because of the state of U.S airlines, the goverment will approve just about any merger.

One quick question, will the new airline be called U.S Airways , America West or adopt a whole new identity?
short summary of every jewish holiday: they tried to kill us ,we won , lets eat !
 
commavia
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:13 am

Quoting Echster (Reply 8):
I think now is the time for mergers in the US airline industry.

I agree. I think this is probably why DOJ basically took five minutes (hyperbole, of course) to approve the HP-US merger, compared with their examination of the UA-US, AA-TW, and even NW-CO (yes, yes, I know, not a real merger, but still) tie-ups.

The DOJ recognizes the consolidation is naturally going to happen to the industry because of how beat up it has been over the last few years and they are now much more open to it. Now, I'm not saying that DOJ would just let AA and UA merge with nothing to say about it, but I think that in general the DOJ is probably much more open to the proposition of airline mergers today than pre-9/11 because there is almost no major market in the U.S. that does not have access to low fares through WN, B6, FL, F9, NK, etc.
 
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alberchico
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:32 am

Quoting Commavia (Reply 11):
no major market in the U.S. that does not have access to low fares through WN, B6, FL, F9, NK, etc.

What about the NorthWest area?
short summary of every jewish holiday: they tried to kill us ,we won , lets eat !
 
phoenixX2
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:36 am

It is still in the 30 day "counter bid" faze. This was just one of the hurdles. It was a little quicker than anybody thought, but the DOJ must be starting their 4th early. This is probably proof that even Washington is pushing this through. Rgds
 
yul332LX
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:41 am

E volavo, volavo felice più in alto del sole, e ancora più su mentre il mondo pian piano spariva lontano laggiù ...
 
commavia
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:45 am

Quoting Alberchico (Reply 12):
What about the NorthWest area?

I said no major market. The largest markets in the Pacific Northwest region, SEA, PDX, GEG and BOI, all do have low-fare service via WN.
 
phoenixX2
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 9:46 am

Quoting PhoenixX2 (Reply 13):
It is still in the 30 day "counter bid" faze

My bad. This is what I get for going to a meeting (on my day off) for this very thing. Between their and here things do change. Thanks
 
cltguy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 10:37 am

I can't wait for this to go through...so I can take my trip to ANC all the way on "US Airways"
 
HPRamper
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:06 am

Quoting Commavia (Reply 15):
I said no major market. The largest markets in the Pacific Northwest region, SEA, PDX, GEG and BOI, all do have low-fare service via WN.

No "major" market? If Seattle isn't a major market, I don't know what is. All my references show Seattle as the 15th largest metropolitan center in the country, ranked higher than Baltimore, Orlando, St. Louis, Pittsburgh, Columbus, Indianapolis, Las Vegas and Tampa Bay.

B6 now services PDX and SEA. HP also services SEA, PDX, GEG, BOI, EUG and MFR. WN goes to PDX, SEA, GEG and BOI. F9 serves the big two, PDX and SEA.
SEA is also served by Independence Air, and not sure if they are an LCC but Sun Country from Minneapolis.
 
commavia
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:10 am

Quoting HPRamper (Reply 18):
No "major" market? If Seattle isn't a major market, I don't know what is. All my references show Seattle as the 15th largest metropolitan center in the country, ranked higher than Baltimore, Orlando, St. Louis, Pittsburgh, Columbus, Indianapolis, Las Vegas and Tampa Bay.

Huh?

My original words in reply 11:

there is almost no major market in the U.S. that does not have access to low fares through WN, B6, FL, F9, NK, etc.

Alberchico then asked:

What about the NorthWest area?

To which I then answered:

I said no major market. The largest markets in the Pacific Northwest region, SEA, PDX, GEG and BOI, all do have low-fare service via WN,

meaning that the four largest markets in the Pacific Northwest, and yes, those are them -- SEA, PDX, GEG and BOI -- all have access to low-fare service via Southwest Airlines. Who on earth would ever dispute that SEA is not a "major" market? Of course it is, and I never said anything to the contrary.
 
wilax
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:17 am

What is to happen to US Airways' Star Alliance membership? I would doubt that it would carry over to HP, but could US handle the pullout of UA's feed and codesharing?
 
ltbewr
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:41 am

This is good for all parties. As noted above, the Hall-Scott-Rodino DOJ clearance is more of a formality under the Bush administration, but is still needed to prevent too much concentration of critical business in a few companies. As noted above, as little route overlap, the problems with airlines today, sufficient competition and with the possible death of US if this didn't go thorugh all helped it 'breeze' through.
I have assisted in the physical filings for these clearances in DC with the FTC and DOJ to speed up the filings and return of clearances (and got some US/DL FF miles too!).
 
avek00
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:58 am

Quoting PhoenixX2 (Reply 13):
This is probably proof that even Washington is pushing this through.

Not necessarily - there simply isn't much that would raise antitrust concerns, so the DOJ was able to approve the merger quickly. DOT will likely take more time and raise concerns over DCA and CLT (though the merger will likely be approved under the failing firm doctrine).
Live life to the fullest.
 
panam330
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 12:04 pm

Quoting Alberchico (Reply 10):
One quick question, will the new airline be called U.S Airways , America West or adopt a whole new identity?

The new entity will carry the US Airways nameplate, but will apparently be based in Tempe, AZ.

Quoting Wilax (Reply 20):
What is to happen to US Airways' Star Alliance membership? I would doubt that it would carry over to HP, but could US handle the pullout of UA's feed and codesharing?

It won't carry over to HP, because HP won't exist. US will remain in Star Alliance.


Excellent news, I think. Can't wait for all the new west coast airports to open up thanks to HP!
 
ANCFlyer
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 12:15 pm

Quoting Cltguy (Reply 17):
I can't wait for this to go through...so I can take my trip to ANC all the way on "US Airways"

And I can FINALLY use my US Airways miles on somethnig besides Untied . . . out of ANC  Smile
FOR THOSE THAT FOUGHT FOR IT, FREEDOM HAS A FLAVOR THE PROTECTED WILL NEVER KNOW OR UNDERSTAND
 
727LOVER
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 12:20 pm

Quoting Alberchico (Reply 10):
Wow that was quick. But as was said on an earlier post, because of the state of U.S airlines, the goverment will approve just about any merger.

Ummmm no....u think they'd allow AA and UA to merge?

US/HP has hardly any overlap. If DOJ doesn't approve this one, they wouldn't approve ANY merger.
Love Trumps Hate
 
avek00
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 12:29 pm

Quoting PanAm330 (Reply 23):
US will remain in Star Alliance.

Not so fast - US' continued participation in the Star Alliance requires United's approval on a modification to the terms of the UA/US codesharing arrangement. Given that United stands to lost hundreds of millions if the US/HP merger goes through, it should not be assumed that it will grant the necessary mod that keeps US in the alliance.
Live life to the fullest.
 
DCA-ROCguy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 12:54 pm

No surprise here. These two airlines' networks have almost no overlap, and together they'll represent under 10 percent of seat capacity in the United States. In 2000, UA-US would have put United up to almost 30 percent, and there was substantial city-pair overlap between the UA IAD hub and US's hubs, not to mention massive dominance in the DC area with IAD and DCA. (Did anyone really believe that "DC Air" would have been anything other than a UA puppet?)

I'm not convinced that DOJ would allow two of the other five network carriers to merge. UA, AA, and DL are still too big--well over 10 percent of USA seat capacity apiece--to allow any of them to get much bigger, without substantial divestitures. NW and CO might be allowed to join, but even that's uncertain. Any pairing among network carriers would probably require divestitures.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
Indy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 1:00 pm

Good news for US/HP. I hope this works out well for them.
Indy = Indianapolis and not Independence Air
 
commavia
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 1:02 pm

Quoting DCA-ROCguy (Reply 27):
I'm not convinced that DOJ would allow two of the other five network carriers to merge. UA, AA, and DL are still too big--well over 10 percent of USA seat capacity apiece--to allow any of them to get much bigger, without substantial divestitures.

I agree. While the DOJ, IMO, is more open to mergers, they still probably wouldn't allow any of the big five (w/o US) to merge with each other without huge concessions. I don't even think a NW-CO merger would get the greenlight, particularly given the fact that NW, CO and DL are already codesharing extensively as we speak. I think there are still merger/takeover targets and opportunities in the U.S., though, AS/QX being most attractive.
 
SHUPirate1
Topic Author
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 1:02 pm

Quoting DCA-ROCguy (Reply 27):
Did anyone really believe that "DC Air" would have been anything other than a UA puppet?

Yes, considering that DC Air would have been 49% owned by American Airlines!
Burma's constitutional referendum options: A. Yes, B. Go to Insein Prison!
 
flyingbronco05
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 1:04 pm

I learned in my aviation administration class that mergers GENERALLY = death.

Bye bye to both USAirways and America West!
Never Trust Your Fuel Gauge
 
commavia
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 1:07 pm

Quoting SHUPirate1 (Reply 30):
Yes, considering that DC Air would have been 49% owned by American Airlines!

Beat me to it. Per the terms of the UA-AA-US deal, AA was going to wet-lease ex-US F100s to DCAir and DCAir was going to assume virtually all of US' slots at DC to operate flights from their to most of the regional airports in the northeast. UA was completely cut out of the DC Air deal -- it was between AA and Robert Johnson, Chairman and founder of BET.
 
phoenixX2
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 10:18 pm

Quoting Flyingbronco05 (Reply 31):
I learned in my aviation administration class that mergers GENERALLY = death

That is why our educational system is in turmoil. This will rewrite the books on Mergers. Your professor will have to read the book.

Rdgs  bigthumbsup 
 
DCA-ROCguy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:24 pm

Beat me to it. Per the terms of the UA-AA-US deal, AA was going to wet-lease ex-US F100s to DCAir and DCAir was going to assume virtually all of US' slots at DC to operate flights from their to most of the regional airports in the northeast. UA was completely cut out of the DC Air deal -- it was between AA and Robert Johnson, Chairman and founder of BET.

Yes and no. I pulled out my UA-US file out of the cabinet, and found out why I thought UA would have essentially wound up controlling DC Air.

UA-US was announced in May 2000. UA-US did *not* originally get American involved in the DC Air project. It was not a "UA-AA-US deal" at all until UA-US ran into a buzz saw of political opposition. UA-US brought in AA in January 2001, after the deal was already in trouble, in hopes of appeasing the Justice Dept. (See Washington Post, "American Airlines Plans to Buy TWA, Carrier Also Reaches Deal for 49% Share of DC Air", January 8, 2001, page A1).

According to Aviation Week ("UAL-US Airways Deal Triggers Shock Waves," May 29, 2000, p. 22) AA didn't have any direct role in UA-US when it was announced, and was concerned about mounting "aggressive countermoves."

But as we know, bringing AA into the DC Air transaction didn't appease DOJ, and UA-US was later nixed.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
cltguy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:35 pm

The real story is that United didn't want the deal to go through when they realized they had paid too much for USAirways (remember the days when they were $60/ share?) and so United asked the DOJ off the record to not approve the deal so that they could get out of the merger w/o paying US millions of dollars.
 
RL757PVD
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:48 pm

Quoting Flyingbronco05 (Reply 31):
learned in my aviation administration class that mergers GENERALLY = death.

Thats the exact opposite I learned. In a class I took with Darryl Jenkins, a widely respected industry analyst he used the following quote referring to the airline industry

"Innovate, consolidate or liquidate, the pain is just beginning!"

I agree with him that it basically sums up the airlines choices.... Innovate a new product (Song, B6, F9), merge (HP, US), or close up shop!
Experience is what you get when what you thought would work out didn't!
 
DCA-ROCguy
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RE: US Department Of Justice Approves HP-US Merger!

Fri Jun 24, 2005 11:59 pm

Thats the exact opposite I learned. In a class I took with Darryl Jenkins, a widely respected industry analyst he used the following quote referring to the airline industry "Innovate, consolidate or liquidate, the pain is just beginning!"

The 1987 round of consolidation didn't "mean death" for the six network carriers that emerged from it. On one hand, they collectively dominated the industry and set fare and cost expectations for much of the country for over a decade. On the other hand, however, put off until after 9/11 the serious restructuring that they all needed, and left themselves vulnerable to the emergence of well-managed, high-quality LCC's.

If Doug Parker manages a merged HP-US as well as he's managed post 9/11 HP, US may well have a chance for long-term survival on its merits rather than on government coddling.

Jim
Need a new airline paint scheme? Better call Saul! (Bass that is)
 
slider
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RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 12:09 am

Quoting PhoenixX2 (Reply 33):
This will rewrite the books on Mergers.

LMAO!

This is going to be fun to watch.
 
jdwfloyd
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RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 12:26 am

My question is when will I get to use my term pass benefits on HP?
 
goingboeing
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RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 12:38 am

Gosh...I hate to be the thrower of cold water, but remember when AA and TWA merged? It might have worked had 9/11 not happened. When HP and US decided to merge, oil was at $50 a barrel, and, IMHO, the costs to take this on were already high enough to make it risky...but with oil predicted to hit $70 a barrell, and no hedging by either entity, makes me feel that this merger is doomed to fail.
 
HPRamper
Posts: 4595
Joined: Sat May 14, 2005 4:22 am

RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 1:40 am

Quoting Commavia (Reply 19):
I said no major market. The largest markets in the Pacific Northwest region, SEA, PDX, GEG and BOI, all do have low-fare service via WN,

meaning that the four largest markets in the Pacific Northwest, and yes, those are them -- SEA, PDX, GEG and BOI -- all have access to low-fare service via Southwest Airlines. Who on earth would ever dispute that SEA is not a "major" market? Of course it is, and I never said anything to the contrary.

My mistake was all in my interpretation. Two ways to take that sentence...
"I said no MAJOR market."
"I said NO major market."

Thus the breaks of writing things in a bulletin forum.
 
gigneil
Posts: 14133
Joined: Fri Nov 08, 2002 10:25 am

RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 2:01 am

Quoting Goingboeing (Reply 40):
but with oil predicted to hit $70 a barrell, and no hedging by either entity, makes me feel that this merger is doomed to fail.

One airline capable of profit at $50 is better with oil at $70 than two airlines that can't presently make money at all.

N
 
ouboy79
Posts: 4111
Joined: Sun Nov 18, 2001 1:48 pm

RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 2:42 am

Quoting Flyingbronco05 (Reply 31):
I learned in my aviation administration class that mergers GENERALLY = death.

Bye bye to both USAirways and America West!

And one thing you'll learn when you get out from behind the books, is 90% of what is taught in the classroom is worthless in the real world.

Quoting Cltguy (Reply 35):
The real story is that United didn't want the deal to go through when they realized they had paid too much for USAirways (remember the days when they were $60/ share?) and so United asked the DOJ off the record to not approve the deal so that they could get out of the merger w/o paying US millions of dollars.

It's a shame UAL still had to pay US Airways millions in a breakup fee.
 
John
Posts: 1253
Joined: Sat Sep 18, 1999 10:47 am

RE: US Department Of Justice Approves HP-US Merger!

Sat Jun 25, 2005 3:35 am

UA paid 50 million to be exact...pocket change in the world of big business my friend!
 
phoenixX2
Posts: 99
Joined: Thu Apr 28, 2005 3:47 pm

RE: US Department Of Justice Approves HP-US Merger!

Tue Jun 28, 2005 2:01 pm

http://www.post-gazette.com/pg/05179/529389.stm

Quoting PhoenixX2 (Reply 13):
It is still in the 30 day "counter bid" faze. This was just one of the hurdles. It was a little quicker than anybody thought, but the DOJ must be starting their 4th early. This is probably proof that even Washington is pushing this through. Rgds

This is going to be interesting, but we will see within the next four days.

Rgds