Originally Posted by
PiperPower
What are the chances of a merger? It seems like a strange move to leave a $3 million salary for a position at SY where the last CEO was making $250,000. There's gotta be more to the story on this move.
I'd say ANYTHING is POSSIBLE. The question is what's likely.
Allegiant gains an international infrastructure by buying SY, which is something management has been chasing for a while now, but haven't been able to pull off. Also get a bunch of ETOPS NGs that can make it to Hawaii. AAY would love to get back there after our last 757 gets parked late this year.
Down side is adding another type to an airline that's gone all in for Airbus. My understanding is that SY also carries a large debt load, something allegiant management shuns. Integrating two very different pilot groups with two different unions could be a fiasco. Totally different business models. Allegiant will do anything to make a buck, but runs away from anything that loses a dime like the building is on fire. Our CEO likes to gamble though.
I think the negatives outweigh the positives, but I don't have an MBA, so what do I know. If G4 did buy SY, I would expect everything there as you know it to change. Don't expect more than a handful of planes devoted to MSP. 737s will scatter among the system. It will be more of an assimilation than a merger. Kind of like Alaska/Virgin.