Here is some more news on the United Airlines merger with America West Airline that might happen.
My opionion is that United Airlines won't buy or merge with America West Airlines. No doubt United Airlines has the money to do it but it just doesn't make sense to buy America West Airlines with the Denver and San Francisco hub being so close to America West Las Vegas and Phoenix hubs. Also United Airlines already has the biggest west coast presense with Shuttle By United and United Express (SkyWest). But the new Airbus A319 and A320 aircraft America West is getting could go really good in United Airlines fleet also America West 757-200's. United Airlines already has a fleet of 98 757-200 aircraft. They are saying the A320 and A319's will be used for the Washington-Dulles expansion.
I think if there is an airline that would buy or merge with America West it is Continental Airlines because the two airlines already have a strong partnership and Continental Airlines doesn't really have a west coast presense. Also there is still word going around American and U.S Airways is looking at Alaska Airlines.
But I think Northwest Airlines, Alaska Airlines, Horizon Air, Continental Airlines and America West Airlines would make a good team together.
NEW YORK (CNNfn) - UAL Corp. reportedly has made a bid for America West Holdings Corp. in a move that could trigger a bidding war with rival Continental Airlines.
The No. 1 U.S. carrier made an undisclosed conditional cash offer for all of Phoenix-based America West (AWA), whose market capitalization is roughly $800 million, the Wall Street Journal reported Friday. A UAL spokesman declined comment.
The acquisition would bolster United's already high market share on the West Coast and add five hubs west of the Mississippi, but it could face substantial regulatory hurdles.
UAL (UAL) is just one of several companies looking at America West, the country's ninth- largest airline. Continental Airlines, which holds the right of first refusal to acquire a controlling stake in America West, likely will exercise that option, the Journal said.
Atlanta-based Delta Airlines also recently expressed interest in America West but, according to the paper, has "quietly" backed off.
"This is a small consolidation movement in the industry driven by two forces," said Julius Maldutis, an airline analyst with CIBC Oppenheimer. "One, as a defensive measure to protect your principal hub; Delta's purchase of Atlantic Southeast is a defensive measure to protect its hub in Atlanta. Second, it's a defensive measure to obtain traffic growth and flows, [such as] American's acquisition of Reno Air."
The deadline for bids to buy the airline reportedly expired Wednesday.
The battle for the carrier is complicated by demands from the investment group that owns a controlling stake in America West that the buyer purchase the company in its entirety, not just its Class A shares, which carry a 49 percent vote, the paper said.
That could result in a price tag of more than $1 billion, according to the Journal, and could take Continental (CAI.A) out of the running. However, Houston-based Continental may consider taking control of America West and operating the smaller airline as a separate unit, avoiding the costs of an acquisition and simultaneously boosting its revenue, the paper said.
Continental currently owns an 8 percent stake in America West and the two carriers have a marketing alliance.
"I think it's a risky maneuver," said Steven Lewins, an analyst with Gruntal &Co., "primarily because United does not have a presence in the southern tier and Phoenix is dominated by Southwest Airlines. I would suggest that United think long and hard about having a secondary hub so close to Denver, which is a big hub for them, although a tough one."