SWA buyout?
12-03-2017 | 09:16 AM
#54
Gets Everyday Off
Joined: Aug 2016
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From: Fully Retired
12-03-2017 | 03:23 PM
#56
Gets Everyday Off
Joined: Aug 2016
Posts: 6,995
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From: Fully Retired
Wiki has a good summary. . .
“As the Airline Deregulation Act of 1978 led to a wave of airline failures, start-ups, and takeovers in the United States, TWA was spun off from its holding company in 1984. Carl Icahn acquired control of TWA and took the company private in a leveraged buyout in 1988.”
The entire industry had low stock prices due to competitors failing and going backrupt. It did not lend confidence in the stock market for ANY airline. Hence low stock price. (I.e. less than liquidation value.)
Certainly some other factors lead Icahn selecting TWA, probably not the least of which was the strongest U.S. airline presence at Heathrow. Those gates slots were almost like gold and easily sold. Gate slots at Heathrow still are valuable.
“As the Airline Deregulation Act of 1978 led to a wave of airline failures, start-ups, and takeovers in the United States, TWA was spun off from its holding company in 1984. Carl Icahn acquired control of TWA and took the company private in a leveraged buyout in 1988.”
The entire industry had low stock prices due to competitors failing and going backrupt. It did not lend confidence in the stock market for ANY airline. Hence low stock price. (I.e. less than liquidation value.)
Certainly some other factors lead Icahn selecting TWA, probably not the least of which was the strongest U.S. airline presence at Heathrow. Those gates slots were almost like gold and easily sold. Gate slots at Heathrow still are valuable.
12-04-2017 | 08:06 AM
#57
Gets Weekends Off
Joined: Sep 2011
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No offense, but what kind of deal do you think you'd have gotten had GK been honest about the fate of the 717s prior to the vote?
When we voted on the SLI, everyone on both sides thought that you guys were bringing a proportional number of seats for all of the pilots, which certainly gave you guys some leverage.
Imagine the outcome had we all known that 2/3s of those seats would evaporate by the time you guys migrated over.
I suspect that several high up SWAPA types knew about the 717's departure at the time we voted, and agreed not to disclose it, in the name of getting the thing passed with as little cost/difficulty to the company as possible.
IMHO, it would have been far worse for you guys had SWAPA not had such a cozy relationship with GK, and ignored the leverage of those seats going away, potentially putting 2/3s of your pilots on the street.
Make no mistake that the same threats will be hurled towards the Alaska pilot group (or Spirit or whoever). You’re dealing with a pilot group and union that actually proposed putting ALL of our pilots on probation once they transitioned over to the SWA side. Yes, even our most senior cptns. Yes, you read that right.
So just keep in mind the pompous mentality & attitude that we’re talking about here. Be careful what you wish for.
So just keep in mind the pompous mentality & attitude that we’re talking about here. Be careful what you wish for.
Last edited by SlipKid; 12-04-2017 at 08:33 AM.
12-04-2017 | 08:11 AM
#58
Gets Weekends Off
Joined: May 2014
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12-04-2017 | 08:59 AM
#59
Gets Weekend Reserve
Joined: Jul 2007
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From: B737CA
12-04-2017 | 11:32 AM
#60
Prime Minister/Moderator
Joined: Jan 2006
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From: Engines Turn or People Swim
Anti-trust policy and regulation are clear, and well-established.
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