Originally Posted by
labbats
So the best course of action is to merge with a pure 737 carrier that is much smaller than us? What does that accomplish? Even if we traded away all the 737s they own we are left with a bunch of pilots who mainly live in Minnesota. All of which will require expensive type ratings and full courses to switch to Airbus.
Much more likely another airline saw the looming shortage of pilots and are seeing a short transition course for almost 900 Airbus pilots on a route structure that not only makes money but also will sail through government approval.
You've got to think outside the box. We keep the 737s. Why wouldn't we? At the beginning of this year we flew 3 types. I would guess some MSP 737 pilots would be repositioned throughout the system, particularly the west coast (back to Hawaii). We get an international operation and reservations system. Airbi fly to Mexico and the Caribbean. Our management has expressed desire to expand south, but hasn't been able to make it happen for several reasons.
I don't see any of the big 3 legacy carriers buying us. To Delta we are just a fly on the window screen. They are a solid international carrier who cares way more about A330s/350s than A320s. They see their whole domestic network as feed. They don't need us for feed with all of their small narrow body airplanes coming. Wouldn't merge with an airline considered "less" than them.
American is still a basket case from their mergers. I don't see them taking on another airline with a wacky route structure that doesn't integrate with theirs at all. Doug Parker loves money, and we practically print it, but taking on 12 new hubs, and whole bunch of new destinations they don't fly to at all, and tackling another integration? I doubt it.
United has expressed a need for used Airbi, and of course Levi is there. They have played with basic coach and thinner routes. They are committed to growing their domestic network and can't get the planes they need. However, like the others, we would integrate poorly with their route network, and their management is a disaster. It seems the Big Plan over there changes on a weekly basis. They still haven't achieved synergy from the CAL merger. Would the Board even authorize another merger? The only way I could see that merger scenario happening is if they just bought the planes. That would require Allegiant air shutting down, which isn't going to happen. We are a publicly held company, and you can't just tank billions of investor dollars and stay out of jail.
No, I think Sun Country offers us the best synergy. It would be easy to integrate since they basically do the same thing we do. We just open a new base or two. And to add to the fire, people I know over there, both flight crew and management are saying very weird things are happening. They are all certain a merger/buyout is coming soon. We shall see.