Spirit and Frontier… just the beginning
07-30-2022 | 08:31 AM
#951
Gets Weekends Off
Joined: Apr 2016
Posts: 159
Likes: 0
From: GearBbychoice
07-30-2022 | 08:56 AM
#952
Isn’t that a sauce?
Joined: May 2022
Posts: 280
Likes: 0
07-30-2022 | 09:19 AM
#953
On Reserve
Joined: Dec 2014
Posts: 47
Likes: 6
Hawaiian's market cap is so low right now that you could buy them with their own cash and no financing required (including the change of control premium). Even for a walk-and-chew-bubble-gum challenged AAG, this would be a compelling opportunity. They could dramatically increase their Hawaii franchise marketshare even if they reduced some of Hawaiian's far east long haul (i.e. Japan, S Korea, China) while keeping Fiji, Australia and New Zealand, and re-purpose that widebody capacity to island to mainland domestic flying. This would also be a body blow to Southwest's Hawaii plans.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
07-30-2022 | 12:04 PM
#955
Isn’t that a sauce?
Joined: May 2022
Posts: 280
Likes: 0
Hawaiian's market cap is so low right now that you could buy them with their own cash and no financing required (including the change of control premium). Even for a walk-and-chew-bubble-gum challenged AAG, this would be a compelling opportunity. They could dramatically increase their Hawaii franchise marketshare even if they reduced some of Hawaiian's far east long haul (i.e. Japan, S Korea, China) while keeping Fiji, Australia and New Zealand, and re-purpose that widebody capacity to island to mainland domestic flying. This would also be a body blow to Southwest's Hawaii plans.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
07-30-2022 | 09:50 PM
#956
Line Holder
Joined: Jul 2017
Posts: 27
Likes: 0
Hawaiian's market cap is so low right now that you could buy them with their own cash and no financing required (including the change of control premium). Even for a walk-and-chew-bubble-gum challenged AAG, this would be a compelling opportunity. They could dramatically increase their Hawaii franchise marketshare even if they reduced some of Hawaiian's far east long haul (i.e. Japan, S Korea, China) while keeping Fiji, Australia and New Zealand, and re-purpose that widebody capacity to island to mainland domestic flying. This would also be a body blow to Southwest's Hawaii plans.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
Single fleet or not (and the associated unit cost benefits), AAG simply can't grow fast enough to be relevant in a consolidating industry. This isn't about profit margins, this is about scale.
Cheers - Rob.
In my opinion, unless they have any ambitious growth plans outside of the niche markets they keep adding with ERJs — AS will become the next takeover target. It might behoove them to initiate merger talks with the most viable partner.
Last edited by Tmeister; 07-30-2022 at 10:11 PM.
07-30-2022 | 10:56 PM
#957
Gets Weekends Off
Joined: Jun 2021
Posts: 228
Likes: 0
It would be dangerous for AS (and irresponsible to their shareholders) if they pursued HA. They’d be acquiring all of Hawaiin’s debt on top of inheriting a very unprofitable operation. Not to mention zero fleet efficiency gains. What AS stands to gain most through acquiring HA (interisland and real estate) are things they can do organically if the market was that critical to their ambitions. Acquiring HA brings little benefit to AS
In my opinion, unless they have any ambitious growth plans outside of the niche markets they keep adding with ERJs — AS will become the next takeover target. It might behoove them to initiate merger talks with the most viable partner.
In my opinion, unless they have any ambitious growth plans outside of the niche markets they keep adding with ERJs — AS will become the next takeover target. It might behoove them to initiate merger talks with the most viable partner.
07-31-2022 | 07:09 AM
#958
Line Holder
Joined: Apr 2018
Posts: 700
Likes: 0
It would be dangerous for AS (and irresponsible to their shareholders) if they pursued HA. They’d be acquiring all of Hawaiin’s debt on top of inheriting a very unprofitable operation. Not to mention zero fleet efficiency gains. What AS stands to gain most through acquiring HA (interisland and real estate) are things they can do organically if the market was that critical to their ambitions. Acquiring HA brings little benefit to AS especially in the current economic climate.
In my opinion, unless they have any ambitious growth plans outside of the niche markets they keep adding with ERJs — AS will become the next takeover target. It might behoove them to initiate merger talks with the most viable partner.
In my opinion, unless they have any ambitious growth plans outside of the niche markets they keep adding with ERJs — AS will become the next takeover target. It might behoove them to initiate merger talks with the most viable partner.
I feel they believe they can stay solo and still be able to make those monster profits.They have a competitive moat with their unique niche markets, own a lot of their assets, have manageable debt, and have quite a sizeable war chest.
If push comes to shove they've got a ways to run before they feel any pressure to consolidate.
Last edited by All Bizniz; 07-31-2022 at 07:26 AM.
07-31-2022 | 08:26 AM
#959
Perennial Reserve
Joined: Jan 2018
Posts: 14,194
Likes: 240
Don't know who they'd initiate a merger with that would make sense at this point, as they've pretty much run out of dance partners now that B6 will be off the table. Anything else is going to be an acquisition, and it won't be AS doing the acquiring.
I feel they believe they can stay solo and still be able to make those monster profits.They have a competitive moat with their unique niche markets, own a lot of their assets, have manageable debt, and have quite a sizeable war chest.
If push comes to shove they've got a ways to run before they feel any pressure to consolidate.
I feel they believe they can stay solo and still be able to make those monster profits.They have a competitive moat with their unique niche markets, own a lot of their assets, have manageable debt, and have quite a sizeable war chest.
If push comes to shove they've got a ways to run before they feel any pressure to consolidate.
07-31-2022 | 08:53 AM
#960
On Reserve
Joined: Apr 2022
Posts: 31
Likes: 2
From: 73NA With the bestest view
