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Guest

Who Should Merge/buyout Eastwind In Your Opinion?

Sat Aug 21, 1999 11:24 am

Eastwind, now for sale(10 million is the price tag), has had its final days. Now, who should buy them? I place my money on Midway. It makes sense: They gain 737-700s(the 737-200 have been disposed of their fleet), new destinations to GSO, Trenton, and Pittsburg. Add'l slots to LGA, BOS, TPA, FLL, and MCO. Anther option is Continetal: They regain GSO, and get add'l 73Gs.

What do you think?
 
Ciro
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Sat Aug 21, 1999 12:10 pm

I think you are right! Midway has a growing network in the East Coast and it has made a good job re-using AA's idea of a Raleigh-Durham hub.

It comes down to economics again. Midway may analyse if it can reach economies of scale and debt-cover advantages in the case of merger . If the overall result is positive and profitable, it should take advantage of it?

Question: Does Midway have 10 million to invest now?

Cheers
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
Guest

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Sat Aug 21, 1999 1:01 pm

Probably not. They are so busy investing profits in new aircraft.
 
Cody
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Joined: Tue May 18, 1999 12:16 pm

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Sun Aug 22, 1999 12:16 am

I think Eastwind will most likely just fold up. I don't think anyone will buy them. Midway maybe, but why would they want Greensboro when it is so close to RDU? I also doubt Continental will be interseted because I believe they just want to build on HOU, EWR, and CLE. I could be wrong, but if I were a betting man, I'd say they will just go the way of Eastern and Air South.
 
Guest

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Sun Aug 22, 1999 12:51 am

How come Eastwind is for sale for $10 million when their fleet adds up to much more than that?

Jack
 
flyf15
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Joined: Tue May 18, 1999 11:10 am

JWM Airtrans

Sun Aug 22, 1999 1:31 am

All of their aircraft are leased.
 
Guest

Midway + Eastwind

Sun Aug 22, 1999 7:21 pm

I can think of a good reason for Midway to buy Eastwind:

Southwest flying into Raleigh/Durham.. plus MetroJet, etc...

One way for Midway to avoid all their competition is to develop a network based on a few East Coast points. Can you imagine how Midway could develop a hub at Trenton with Canadair RJs? They could also make GSO work a lot better too - and what better way to get back at US Airways than to start a mini-hub at Philadelphia? Sounds like a great idea to me!
 
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varsity
Posts: 441
Joined: Sat Aug 14, 1999 4:51 pm

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Mon Aug 23, 1999 11:43 am

Because they don't own the planes?
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BryanG
Posts: 956
Joined: Tue May 18, 1999 2:59 am

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Mon Aug 23, 1999 6:17 pm

The local news mill here in GSO reports that there are four airlines currently talking to UM Holdings Co. (their current owner) about buying out Eastwind for the planes and routes. It didn't mention any names. Interestingly, it reported that one of the airlines was a "foreign carrier".

Branson?

It's true that all five of Eastwind's planes are leased, but I have to suspect that the three 737-200s in the fleet are now worthless. They are surrently sitting on a side ramp at GSO airport with the Eastwind markings blanked out. The engine cowlings are pulled apart on two of them, as if they've already been junked. I'm not sure if Eastiwnd still has the rights to the planes or if they have already reverted back to the respective lessors. Whichever is the case, they aren't going to fly anywhere anytime soon.


I'll get in touch with my buddy who *used to* work for Eastwind and see if he has any insider informantion. If so I'll make an update.
 
wolfpacker
Posts: 343
Joined: Tue Jun 29, 1999 2:35 am

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Mon Aug 23, 1999 11:24 pm

I don't think Midway should purchase Eastwind. The death of any small airline would be expanding too fast. They have enough on their plate at RDU.
 
LH423
Posts: 5924
Joined: Sun Jul 11, 1999 6:27 am

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Wed Aug 25, 1999 12:23 am

I think Midway would be the most prospective buyer since their two fleets are to be complimentary. I think that Midway has been expanding at the right pace that they have been building up their profits. Plus they are disposing of their F100 (which I'm sorry to hear since i think that the F100 is a good plane and a dying breed). I see Midways future as being a bright one. But you also must realise that $10 million is a great deal.
« On ne voit bien qu'avec le cœur. L'essentiel est invisible pour les yeux » Antoine de Saint-Exupéry
 
AirT85
Posts: 1241
Joined: Wed Aug 25, 1999 12:36 am

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Wed Aug 25, 1999 12:39 am

I agree that Midway Airlines should buy out Eastwind Airlines. MIdway already has a strong hold on the east coast and this buy out would only strengthen that. Also new cities would be gained and/or more flights could be added to present cities that both serve. Also Eastwind flies the B-737-700 and Midway is going to be replacing there F-100 fleet with the B-737-700 so it would only add more of the aircraft to Midway's fleet.
Why would God make us all so different, if He wanted us to be the same?
 
wolfpacker
Posts: 343
Joined: Tue Jun 29, 1999 2:35 am

RE: Who Should Merge/buyout Eastwind In Your Opinion?

Wed Aug 25, 1999 2:01 am

Here is a interesting article about Midway.

http://fnews.yahoo.com/fool/99/08/24/trouble_990824.htm

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