Originally Posted by
gloopy
I agree with the first part. I think the main reason LCC wants the swap is to pave the way for a merger (or maybe a fragmentation?). But as far as we are concerned, what could we possibly want from them after the slot swap? Maybe a few 330's? A route here and there? But we are pulling down Atlantic flying fast and furiously so how can that be it? We've never seemed to care a whole lot about PHX or LAS beyond our current levels and I'm not seeing much value in anything else they could offer, in whole or in part.
Actually I agree 100%. The question is what would we want from a AMR/B6/LCC tie up? The answer is significant, and important for them and for us. For it to get approval they would need to divest a few assets, and they would "want" to divest of a few unnecessary assets as well. I listed them in my previous post.
-Terminal in JFK
-330 orders and possibly their 330's they currently fly.
-Route Authorities our of MIA that AMR would opt to shift to CLT.
That assumes AMR is the one in the drivers seat. If LCC is, DFW comes in to play and would be a real asset for DAL. MIA would be pulled down more than necessary to protect CLT. AMR has a cash issue and does not need someone like DAL coming to the bidding war to drive up the price. Doing so would put Parker and LCC in the control seat. For us to not do that, I would assume our "fair offers" for certain assets would be given the fullest consideration.
PHX makes little sense because LUV has the S-curve benefit wrt to their revenue potential. For that fact, I see AMR wanting to divest PHX to someone like LUV along with what they would divest to us. There really is not much that would help UCAL out of the tie up.