Proximity

I vote we buy Moxy so we can get the A220s.

Ronin47

Ok, I'll bite. Staple to the bottom or dove tail the buyouts? Just conversation.

Salukidawg

I’m not sure what you’re asking?

PNStoKLIT

Think he is saying put all pilots from bought-out company to the bottom of of the senority list (staple to bot) or spread them out with corresponding DOH

Ronin47

Yes sir. Just conversation. I personally dont see a buyout anytime soon.

Salukidawg

I’m not touching that. Fair and equitable can mean two different things depending on whether your Airline is the acquirer or the acquirie.

PDTGIMP

This is what Gary Kelly actually told Wall Street:

(Earnings Call Q2 2018):

Gary C. Kelly - Southwest Airlines Co.

"Well, Duane, I think it's very fair to say that our primary focus is investing in Southwest Airlines. This year in particular we've got a lot of our major strategic initiatives behind us. There's always work to do. But, in particular, here in 2018 and my hope is 2019 and 2020, we're really focused on the quality and the cost-effectiveness of our operation, the hospitality of our customer service, those very basic things. We want to continue to grow the airline. We've got wonderful opportunities to grow. And the tax reform, obviously, is a nice little boost to our sources of financing.

So there's no imperative that we need to be hunting for an acquisition. I think that that's different than where we were in the late 2000s; 2009, 2010. And clearly this is our priority is just to grow organically. Having said that, we've always got to have our eyes open and be thinking about how we can improve shareholder value, and if there is a good opportunity in our view, it's something that we'll take a look at. We're always thinking about that, but admittedly that is not a focus and clearly not a focus right now."

I don't think we are buying anyone anytime soon, unless we got a sweetheart deal...at least not in the near term.

Salukidawg

Define sweetheart deal. FL was cutting into our margins on the East Coast and at BWI and MDW specifically. Fast forward nearly ten years and AS is doing the same in all of California and soon to Hawaii. I’m not saying that WN is buying anyone necessarily, I’m just saying, the parallels are very similiar that’s all.

PDTGIMP

Stock valuation:

(NYSE: AAI), the former parent company of AirTran Airways (AirTran). Based on the average of Southwest Airlines' closing prices for the 20 trading days ending three trading days prior to May 2, 2011, of $11.90, the transaction valued AirTran common stock at approximately $7.57 per share. (press release; SWA investor relations)

Today's closing price, last day of 2018, for Alaska Air Group (ALK: NYSE): $60.33

That is quite a premium. Now, if ALK was trading at a few times earnings and on Jim Cramer's "Wall of Shame" as AAI was in 2010....or Hawaiian, etc....I agree.

All of these stocks have valuations too high....and Spirit is up 20% this year.

IF in the middle of a recession and these stocks trade for single digit multiples...maybe we make a bid...then there is DOJ anti trust variables....a risk for a carrier with a large domestic presence...unknown what they will do (even in a Republican Administration) ((DOJ tried to block Time Warner/AT&T under Trump))...SWA doesn't like paying break up fees....AAI concentrated in Atlanta....we didn't serve ATL at all, so little anti-trust overlap, depsite build up in MKE and BWI...

Zard

Other than a bunch of planes and knocking off a competitor in CA/west coast (if the DOJ wojld even let that happen), is there anything that gobbling up AS buys us more effectively than just growing organically?

SEA base would be nice. Alaska flying would be cool. Ifs and buts and all that.

I don’t think we buy anyone until the next economic nosedive when airline stocks are in the tank again. Everything is way too pricy right now.