Does AA liquidate one WO
07-24-2020 | 07:43 AM
#271
Line Holder
Joined: Aug 2019
Posts: 67
Likes: 0
Here is how you do it AA whipsaws the regional in question down to an industry-low payscale signs a 5-10 year CBA then signs a similar length CPA, they might actually keep flow in place because its actually really helps RJ management removing experienced pilots with years of seniority and high pay and benefits from the list and replacing them with more junior personnel. But if AA can create a regional with a 200 million dollar difference between costs and a 10 year CPA they could probably get 1-1.5 billion bucks for it
07-24-2020 | 02:05 PM
#272
Gets Weekends Off
Joined: Dec 2010
Posts: 3,201
Likes: 32
From: 4A2FU
OO's acquisition of two competitors eliminated two of their larger barriers to growth and gave themselves the ability to whip-saw employee groups instead of getting whipsawed. They also gutted both of those carriers of anything and everything they had that was lucrative, "merged" them together, and then packaged up the now undesirable scraps with some of their debt, and sold it to United in exchange for $100 million + contracts for more E175s.
Now United is stuck with a debt payment and an airline they couldn't even get rid of for free if they tried to.
If OO finds another opportunity to gain significant market share in 3-4 years by buying a carrier for pennies on the dollar today, they might just do it.
07-24-2020 | 05:19 PM
#273
Gets Weekends Off
Joined: Feb 2012
Posts: 4,601
Likes: 0
From: CRJ FO
They could easily buy PSA. Our contract is up in 2023. They buy PSA in 2021, wait out the contract and absorb that flying and take that contract for themselves in 2023 and divest a skeleton of an airline.
07-24-2020 | 05:21 PM
#274
Gets Weekends Off
Joined: May 2017
Posts: 1,285
Likes: 0
From: 175 CA
I don't think it will happen though. The WO's have exploded in size because they are cheap.
07-24-2020 | 05:29 PM
#275
Thread Starter
Banned
Joined: May 2017
Posts: 2,012
Likes: 0
that’s an odd situation because if American wanted to do that they could just void the contract now. Now Skywest (Or Southwest) buying Mesa might make sense
07-24-2020 | 06:28 PM
#276
Gets Weekends Off
Joined: Dec 2017
Posts: 660
Likes: 0
Seems like year over year skywest is pulling back from the east. They closed their ATL and NYC bases this year. ORD and DTW are all they have East of the Mississippi. I think it’d be more likely for them to buy Mesa. Skywest operates out of both DFW and PHX, being direct competitors with Mesa. Contract is up the end of the year. Skywest buys them, takes the flying, planes, and AA would probably let them keep their 900s to satisfy the contract.
07-24-2020 | 08:28 PM
#277
Gets Weekends Off
Joined: Feb 2019
Posts: 121
Likes: 0
I think it’d be more likely for them to buy Mesa. Skywest operates out of both DFW and PHX, being direct competitors with Mesa. Contract is up the end of the year. Skywest buys them, takes the flying, planes, and AA would probably let them keep their 900s to satisfy the contract.
07-24-2020 | 09:07 PM
#280
Prime Minister/Moderator
Joined: Jan 2006
Posts: 45,187
Likes: 807
From: Engines Turn or People Swim
How did it not work out the last two times?
OO's acquisition of two competitors eliminated two of their larger barriers to growth and gave themselves the ability to whip-saw employee groups instead of getting whipsawed. They also gutted both of those carriers of anything and everything they had that was lucrative, "merged" them together, and then packaged up the now undesirable scraps with some of their debt, and sold it to United in exchange for $100 million + contracts for more E175s.
Now United is stuck with a debt payment and an airline they couldn't even get rid of for free if they tried to.
If OO finds another opportunity to gain significant market share in 3-4 years by buying a carrier for pennies on the dollar today, they might just do it.
OO's acquisition of two competitors eliminated two of their larger barriers to growth and gave themselves the ability to whip-saw employee groups instead of getting whipsawed. They also gutted both of those carriers of anything and everything they had that was lucrative, "merged" them together, and then packaged up the now undesirable scraps with some of their debt, and sold it to United in exchange for $100 million + contracts for more E175s.
Now United is stuck with a debt payment and an airline they couldn't even get rid of for free if they tried to.
If OO finds another opportunity to gain significant market share in 3-4 years by buying a carrier for pennies on the dollar today, they might just do it.
If they want more capacity, they'll grow it, just like they've done countless times in the past. They can afford to buy planes (especially now, just go out to the desert and pick out the ones you like). If they opened a hiring window tonight, they'd have 1,000 applicants in 24 hours.
If they buy another regional it will be in small pieces at the fire sale.
Thread
Thread Starter
Forum
Replies
Last Post
