American to buy Alaska?
#21
I think this is in fact a real possibility. But I think if any 1 legacy declares the other 2 won’t be too far behind. The legacy that declares first will gain some immediate cost advantages by being able to shed unserviceable costs and immediately begin renegotiating labor contracts which would have a longer-term savings benefit. Yes they will lose market share, but will the other 2 be in any position to come take it in the event things are so bad bankruptcies are being declared? No. They won’t. They’ll be faced with the reality that they too are bleeding cash (even if they have more of it and less debt) combined with competing against another airline with a new found inherent cost advantage.
#22
Feds won't allow it, they just told Hawaiian and JAL they can't do a JV.
#23
#24
Gets Weekends Off
Joined APC: Jan 2009
Posts: 212
American to buy Alaska...
My best friend's sister's boyfriend's brother's girlfriend heard from this guy who knows this kid who's going with the girl who heard American is buying Alaskan out at 31 Flavors last night. I guess it's pretty serious.
#25
With that being said, I'm not sure comparing the JAL/HAL JV with this latest rumor is accurate. The proposed JAL/HAL JV involved a domestic and a foreign airline. And while other JV's between US domestic and foreign airlines have been allowed, a merger between two domestic airlines (such as AS/AA) compares to a JV between a domestic and a foreign airline is like apples to oranges in this context.
#26
Actually, the DOT did allow some aspects of the JAL/HAL codeshare to expand (https://thepointsguy.com/news/u-s-li...d-partnership/).
With that being said, I'm not sure comparing the JAL/HAL JV with this latest rumor is accurate. The proposed JAL/HAL JV involved a domestic and a foreign airline. And while other JV's between US domestic and foreign airlines have been allowed, a merger between two domestic airlines (such as AS/AA) compares to a JV between a domestic and a foreign airline is like apples to oranges in this context.
With that being said, I'm not sure comparing the JAL/HAL JV with this latest rumor is accurate. The proposed JAL/HAL JV involved a domestic and a foreign airline. And while other JV's between US domestic and foreign airlines have been allowed, a merger between two domestic airlines (such as AS/AA) compares to a JV between a domestic and a foreign airline is like apples to oranges in this context.
#27
I agree. But all things considered, if the economy gets bad enough and you have two airlines without a lot of route overlap, I think it at least stands a good chance of getting approval.
#29
Gets Weekends Off
Joined APC: Aug 2009
Position: 737
Posts: 190
I think this is in fact a real possibility. But I think if any 1 legacy declares the other 2 won’t be too far behind. The legacy that declares first will gain some immediate cost advantages by being able to shed unserviceable costs and immediately begin renegotiating labor contracts which would have a longer-term savings benefit. .