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Delta777Jet
Topic Author
Posts: 1537
Joined: Tue Jun 13, 2000 6:19 am

Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 8:54 am

I have a bad feeling that American Airlines is interested in buying Alaska Airlines! They do codesharing flights now. AA had Codesharing flights with all airlines before buying them out (PSA, Reno Air, TWA, Midway etc.).
Even the fleet of MD-80`s and B-737 would fit in the AA fleet and the Network would fit as well. I do hate the thought about AA taking over AS as AS is a very fine airline and should not be merging with (stupid) AA !
Hated to see my favorite QQ and TW disappear:"AA leave AS alone!"
 
LMP737
Posts: 6352
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RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:00 am

Considering AA's experience with the TWA merger It will be a cold day in hell before a merger with Alaska happens. Besides, it's not like AA has the money right now. AA has codesharing with Hawaiian, does this mean they are getting ready to buy them?
 
MSYtristar
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RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:00 am

For the record, AA did not buy Midway out. Midway went out of business.

And as far as AA buying AS....you're joking right? Not going to happen.


Stephen/New Orleans
 
StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:03 am

Given that AA's current financial condition is one step (or maybe two) ahead of Ch. 11, I don't see how they could even contemplate such a merger at this time, since there are many costs associated with such a transaction.

Like UA/US, I would reasonable expect the current code-sharing relationship to continue as-is for the foreseeable future.

 
frntman
Posts: 205
Joined: Thu Jul 10, 2003 10:23 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:04 am

AS has their niche and they have it going well. This rumor has been out there for quite some time.

As far as I know, AA doesn't have the financial resources for such a move. I don't think the AS stockholders would be too thrilled with the idea either.

 
desertjets
Posts: 7693
Joined: Fri Feb 18, 2000 3:12 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:05 am

Alaska is a codeshare whore. They currently have codeshare agreements with AA, NW, CO and probably a few others I am forgetting. So a codehsare agreement is not a prelude to a buyout.
 
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jetjack74
Posts: 6650
Joined: Sun Jul 27, 2003 6:35 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:09 am

AA didn't buy PSA either, USAir did. And AS codeshares with NW as well. I think you need to look a little more closely at AA financial shape. I don't think any airlines are going to merge anytime soon.
 
FlyGuyClt
Posts: 1579
Joined: Tue Aug 02, 2005 10:23 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:10 am

AS also has a big code share deal with NW and CO. Probably soon to be with DL as well. So it is cheaper for a code share deal rather than a merger. Plus who can afford to buy anyone anytime soon? I think your AS with stay just that AS. I have flown them as well from PHX to PVR. What a great airline.

Happy Flying  Smile
 
AA777MIA
Posts: 671
Joined: Thu Aug 07, 2003 10:30 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:13 am

This speculation has been going on for about 5 years now, I highly doubt that AA is interested in merging with anyone, or buying anything right now...
 
N766UA
Posts: 8694
Joined: Thu Jul 29, 1999 3:50 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:14 am

You have bad feeling that they want to....so you posted about it almost like it was fact? American probably has ZERO interest in Alaska. Moving on......
 
FedExHeavy
Posts: 220
Joined: Sun Aug 20, 2000 6:50 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:18 am

PSA was bought and dismantled by USAir. As far as mergers are concerned I don't see it, AA has less than a stunning financial situation right now and mergers create problems with unions and trying to interstate Alaska's people in with AA if they choose to do so and American simply does have the money to do this. So I wouldn't worry, expect the Eskimo on the tail to continue flying high for a long time, go AS!
Have a nice day Smile/happy/getting dizzy
FedExHeavy
 
searpqx
Posts: 4173
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RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:20 am

This is a rumor that will not die. I remember once in 1987 - PRIOR to the AirCal buyout, the news was all over SeaTac that Bob Crandall would be in town the next day for an "important" announcement. Of course we all "knew" that it was to announce the purchase of AS.

I learned a long time ago to never say never in this industry, but bottom line, as others have said, AA is in no financial shape to buy another carrier. Add to that, two failed attempts to build a North South presence on the west coast, there recent draw down of SEA service, and I just don't see it happening.

Rgds
Duane
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:40 am

Hey, AA codeshares with BA, Gulf Air, and LanChile too -- maybe they'll buy them out as well! After all, AA is just flush with cash at the moment.

Also, AA did not codeshare with TWA before it bought them out. It kept TWA running for a while after the buyout, but that's it. Like Flyguyclt said, it is cheaper to codeshare than to merge or acquire, that's why airlines do it. Codesharing is almost always used as a substitute for mergers, not a precursor.

Everyone else also brought up the most valid point, however -- there is no way in hell AA could get the financing to buy Alaska, US Airways, JetBlue, AirTran, Joe's Crop Dusting Service or any other airline that's been rumored on this board. It simply won't happen anytime in the near future.

 
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keesje
Posts: 15156
Joined: Thu Apr 12, 2001 2:08 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 9:45 am

How about NWA taking a share in Alaska ? they do a lot of code sharing with them & use them as a feeder for flights out of SEA.

Cash reserves seem to be relative healthy & traffic is assured by partners Co and KLM. Probably DL and AF coming in soon.

It would strenghten their presence in the NorthWest and put pressure to the south on their old "friends" UAL at LAX and SFO.
 
jeffrey1970
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RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 10:02 am

I wonder how well that would go over in Alaska
 
SunValley
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Joined: Mon Sep 08, 2003 6:51 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 10:59 am

AA bought AirCal, and I don't think there is much left of their route structure at AA. They bought Reno Air, and there isn't anything left of that route structure now, and they are now chopping TWA's route structure out of their system. Can't imagine that they would want AS, since they run essentially the same routes (albeit not as broad) as what AirCal and Reno Air did.
 
L-188
Posts: 29881
Joined: Wed Jul 07, 1999 11:27 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 11:02 am

Yeah, Codeshare Whore is an apt way to describe Alaska Airlines.

This rumor has been off again on again for at least 20 if not 25 years already.

If AA was going to make a move on AS they are sure taking their time about it.
 
AA7573E
Posts: 468
Joined: Wed Nov 05, 2003 11:34 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 11:03 am

Simply put, why buy the cow when you can get the mild for a code share agreement? Buying AS, beyond being financially impossible, would reek havoc on seniority lists - and ignite labor disputes that would cause serious damage to AA. AA has ZERO intent to buy AS anytime soon.
 
SlamClick
Posts: 9576
Joined: Sun Nov 23, 2003 7:09 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 11:33 am

Add to all this one point: Mergers happen in great secrecy. In nearly forty years observing I have never seen ONE predicted correctly by anybody. If you heard about it - it is not going to happen.

Lots of people have correctly AFTcast them. POSTdicted them. Never heard anybody forecast or predict one.

On a personal note, if there is one airline I would like to see survive as-is it would be AS.
 
AAnalyst
Posts: 127
Joined: Sun Nov 30, 2003 6:55 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 1:39 pm

Lets not forget that AA codeshares with Asiana (OZ) and EVA (BR). We've been looking for a way to start flying into the Pacific Rim. You never know, we might just buy both of them, and become one of the largest carriers in Southeast Asia!
 
CanadianNorth
Posts: 3309
Joined: Sat Aug 24, 2002 11:41 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 1:41 pm

like i say...

"When Hell freezes over, we'll ride there too!"

in this case...

"When Hell freezes over, AA will buy AS too!"




CanadianNorth
 
sprxflySWA
Posts: 587
Joined: Wed Nov 12, 2003 3:37 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 3:53 pm

How about someone buy AA and dismantle them a bit? Just kiddin', who'd waste the time!
 
n949wp
Posts: 1398
Joined: Thu Feb 03, 2000 3:45 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 4:15 pm

AA also codeshares with Cathay Pacific and Japan Airlines. Is an acquisition forthcoming???!!!  Big grin
 
Shenzhen
Posts: 1666
Joined: Wed Jun 25, 2003 12:11 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 4:45 pm

One can't rule anything out. If Alaska and American feel they can compete better as an single entity, why not. It really costs American zero cash if they merge and replace Alaska's stock (say 20 percent premium) with American.

Just get shareholder approval and print new stock certificates. Down the road, take a goodwill right off for the 20 percent premium.
 
Delta777Jet
Topic Author
Posts: 1537
Joined: Tue Jun 13, 2000 6:19 am

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 5:38 pm

I know that NW, DL, HA is codesharing with Alaska Airlines as well, but almost everytime AA was codesharing with another northamerican company (QQ,CP,TW,AirCal etc,) they were later taking them over. I didn`t say about foreign carriers.

Patrick
 
ord
Posts: 1423
Joined: Tue Jul 20, 1999 10:34 pm

RE: Is Alaska Airlines Going To Merge With American?

Fri Dec 05, 2003 11:43 pm

Even if AA bought AS, which will not happen, there is no way the government would approve the merger. They didn't approve the UA/US merger because United would be too big and control too much market share. The government would certainly not permit the largest airline to become even larger.
 
aaway
Posts: 1599
Joined: Tue Oct 21, 2003 2:07 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 12:31 am

AS's management has been zealous in remaining outside of any merger frenzy. The AA-AS rumors go back to the late 80s. It would be a nice addition for AA, but...as others have posted...not likely to happen (at least soon) considering AA's finances and/or AS's market value.
 
L-188
Posts: 29881
Joined: Wed Jul 07, 1999 11:27 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 12:34 am

I am trying to think back, but I don't think Alaska has bought anybody out since the 80's when they aquired, shoot can't remember the name, but that company was where all their california routes came from.
 
Tom in NO
Posts: 6725
Joined: Thu Nov 11, 1999 10:10 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 1:11 am

L-188:
The airline that AS bought out in the late 80's was Jet America, based in Long Beach.

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Photo © Bill Sheridan


Tom at MSY
 
bobnwa
Posts: 4514
Joined: Fri Dec 22, 2000 12:10 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 1:24 am

Delta777Jet,

The facts you list are almost all wrong.
AA did not buy Midway
AA did not buy PSA
AA did not codeshare with TWA.

Please re-examine the right facts then come to an opinion
 
as739x
Posts: 5314
Joined: Tue Apr 15, 2003 7:23 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 2:33 am

Good God, not this one again! Its not going to happen, no one is buying Alaska. Let all move on to a new subject!
ASSFO
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 3:23 am

I think it was shortly after TWA sold AA the LHR slots or because of it, that you were able to earn miles on TWA flights with you AAdvantage number and the other way around, AA flights with you TWA mileage plan, and it was not limited to just the LHR flights. Tho I never remember them code sharing prior to the buy out.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 4:59 am

There are only two strategic pieces needed to complete AA - a AA), Japan">NRT hub (unless they can build a west coast gateway capable of supporting nonstop service to all of Asia) and a SE hub such as US or FL have.

I doubt if AA's employees and unions will allow AA to make a strategic blunder such as buying TWA for a real long time. While AA has a long history of bungling mergers and acquisitions, AA/TW nearly sent AA to bankruptcy, resulting in huge pay cuts for AA employees.
 
alexinwa
Posts: 878
Joined: Fri Sep 29, 2000 2:08 pm

RE: Is Alaska Airlines Going To Merge With American?

Sat Dec 06, 2003 5:05 am

If AS should merge with anyone, It should be CO!!!

Think of the over-night west coast operation they would have!!

Fleets are almost identical. (except for the 737-200's)

AS should stay as it is but If it were to merge, I think CO would be the best fit.

BTW, AS out of SEA code-shares with CO,NW,HA,AA, and of course QX!
 
A330_DTW
Posts: 357
Joined: Thu Sep 28, 2000 9:29 am

RE: Is Alaska Airlines Going To Merge With America

Sun Dec 07, 2003 11:42 am

AS might join SkyTeam with its other partners, NW, KL and CO.
 
SHUPirate1
Posts: 3428
Joined: Sat Sep 20, 2003 2:53 pm

RE: Is Alaska Airlines Going To Merge With American?

Sun Dec 07, 2003 11:49 am

In my humble opinion, my suggested contingency plan for Star Alliance in case United goes Chapter 7 is for both America West and Alaska to replace UA...I think that a conglomeration of airlines with hubs at PHL, PIT, CLT, LAS, PHX, SEA, and one other midwestern city (ORD, in this scenario, is probably the best bet, due to the enormous amount of gates and slots (is ORD slot-restricted?) that would be suddenly made available) would actually give that airline very good coverage across the United States...

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