or I should say;
Could American Airlines Buy Alaska Air?
By Ben Levisohn
Remember when
Delta Air Lines’ (
DAL) was
rumored to be interested in acquiring Alaska Air (
ALK)? Now,
Wolfe Research’s Hunter Keay offers a long, convoluted and very speculative scenario in which
American Airlines (
AAL) makes a play for Alaska Air:
This is a story about Asia. We see a potential scenario unfolding over the next few years centered around American Airlines and Delta Air Lines’ growth to Asia that ends with American Airlines examining an acquisition of Alaska Air. Here’s how:
Fact: American Airlines and Delta Air Lines both have Asian growth ambitions
Fact: American Airlines is now doing more business with two key Delta Air Lines partners
Fact: Both American Airlines and Delta Air Lines
plan on growing a lot out of LAX
Opinion: The Korean Air and Delta Air Lines relationship is worsening
Opinion: The Alaska Air and Delta Air Lines relationship is
not great these days
Opinion: We see Korean Air potentially leaving SkyTeam
Opinion: American Airlines might pursue a three-way JV with JAL and Korean Air …which would be a potential ‘check mate’ for oneworld in Asia
Opinion: We see Alaska Air and Delta Air Lines terminating their codeshare in time
Opinion: Alaska Air could join oneworld soon thereafter
Result: American Airlines fortifies its grip on Asia & west coast U.S. by buying Alaska Air
Keay acknowledges the likelihood of “this series of events happening exactly as we laid out is roughly 0%,” but thinks it reflects changes happening in the industry that will ultimately benefit Alaska Air.
Shares of Alaska Air have dropped 1.5% to $63.65 at 2:49 p.m., while Delta Air Lines has fallen 1.3% to $43.81, and American Airlines is off 0.5% at $48.14.
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I enjoyed the "roughly 0%" this would happen, but still write about it...he might as well be on this forum.