Republic Airways Holdings, Inc.
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Will the Fourth Time be the Charm for American Airlines?
By Jonathan Yates - February 20, 2013 | Tickers: RJET
The merger of American Airlines with US Airways (NYSE: LCC) is not the first for the Texas-based carrier.
American has merged with other airlines three times since 1986 in the hopes of delivering more value to its shareholders. The culmination was the bankruptcy filing of American Airlines in November 2011. Based on the rise in US Airways' stock since that unfortunate event for American, the stock market has been anticipating more »
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Will American Airlines be all that for US Airways?
By Jonathan Yates - October 3, 2012 | Tickers: DAL, RJET, SAVE, UAL, LCC
US Airways (NYSE: LCC) has taken another step closer towards a deal with American Airlines with the signing of a non-disclosure agreement that will facilitate more intensive due diligence before any transaction can be initiated. Doug Parker, Chief Executive Officer of US Airways, has been very open about his desire to combine the two airlines. US Airways even went so far as to negotiate with the unions of American Airlines more »
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Buy Republic Airways to Profit from its Farewell to Frontier Airlines
By Jonathan Yates - September 12, 2012 | Tickers: DAL, JBLU, RJET, LUV, LCC
The third time should prove to be a charm for Republic Airways Holdings (NASDAQ: RJET) in its quest to move Frontier Airlines out from its corporate structure and off its financial statements.
In 2009, Republic Airways topped Southwest Airlines (NYSE: LUV) in the bidding war for Frontier Airlines, purchasing it for about $1.1 billion in considerations. Southwest Airlines was the ultimate winner, by far, as the acquisition has proven more »
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Is Delta Grounding Comair to Take off with American Airlines?
By Jonathan Yates - August 24, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC
Delta Airlines (NYSE: DAL) has hardly attempted to cloak its interest in acquiring American Airlines, now that it is in bankruptcy. While the efforts of US Airways (NYSE: LCC) have certainly been more prominent, it was reported in The Wall Street Journal that Delta Airlines has hired the investment firm Blackstone to advise on the feasibility of a bid and how it should be structured. There has been no offer more »
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Why US Airways Should Buy American Airlines and Why You Shouldn't
By Alexander MacLennan - August 22, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC
There has been much speculation in the airline industry that US Airways (NYSE: LCC) will buy now-bankrupt American Airlines as a way to expand their business and compete with the other major carriers. At this point, I contend that US Airways does not only want to merge with American, but they need to if they are going to survive industry consolidation and rising jet fuel prices.
Mergers Mergers Everywhere!
To more »
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Devil's Advocate: Airline Stocks
By Alexander MacLennan - August 18, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC |
In all my years of investing, I have never been a fan of airline stocks. With constantly fluctuating fuel prices, frequent labor disputes, enormous debt levels, and high capital costs, I just don't see the risk/reward situation being in my favor. But this got me thinking.
People must buy airline stocks and they must do so for a reason. In the interest of showing another side of the more »
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First American Airlines, Then Republic Airways and Now Delta Airlines
By Jonathan Yates - August 2, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC
Airline CEOs would do well to read Motley Fool more and listen to their investment bankers less.
In 2000, Delta Airlines (NYSE: DAL) acquired Comair in a deal valued at $2.3 billion. Delta Airlines just announced that it would be closing Comair, its feeder carrier, this fall. There has been no statement yet on the impact of this on the earnings from Delta Airlines.
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Should American Airlines take off with Japan Airlines?
By Jonathan Yates - August 2, 2012 | Tickers: DAL, JBLU, RJET, BA, LCC
Based in Fort Worth, Texas, American Airlines clearly has no desire to traverse the state of New Mexico to join forces in any manner with US Airways (NYSE: LCC), headquartered in Phoenix, Arizona. Crossing over the Pacific Ocean might result in a more beneficial arrangement with Japan Airlines, which is coming out of reorganization with plans for a $6 billion initial public offering in September.
Japan Airlines is already a more »
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Southwest Airlines will Win the US Airways-American Takeover Battle
By Jonathan Yates - July 25, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC
Southwest Airlines (NYSE: LUV) will most likely come out on top no matter the end result of the takeover campaign being waged by US Airways (NYSE: LCC) for American Airlines. According to analysts, if US Airways does not acquire American Airlines, it cannot survive. Even if US Airways does buy American Airlines, it will be so weakened by the takeover costs, its future operations will be crippled.
This can be more »
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Will Bernanke Burst the Airline Stock Bubble?
By Jonathan Yates - July 17, 2012 | Tickers: DAL, GS, RJET, UAL, USO, LCC
Goldman Sachs recently issued a Sell Rating for both United-Continental Airlines (NYSE: UAL) and Delta Air Lines (NYSE: DAL). This is long overdue as airline stocks are in a bubble, with US Airways (NYSE: LCC) tripling since last November based mostly on its ability to buy American Airlines out of bankruptcy. If Federal Reserve Chairman Ben Bernanke announces Quantitative Easing 3 at the Jackson Hole economic summit in August, as more »
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Like the Bachelor, American Airlines is Publicly Looking for a Partner
By Jonathan Yates - July 16, 2012 | Tickers: ALK, AAMRQ.PK, DAL, JBLU, RJET, LUV, LCC
In the stock market version of a personal ad or starring in a reality show, American Airlines is now looking for a partner, as recently blared forth in The Wall Street Journal article, "American Airlines Opens Its Door to a Merger."
As with many reality shows, the journey of American Airlines to this destination has not been one for those who cannot handle public setbacks or unwaivering scrutiny. Before American more »
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Will US Airways Take Off if it Acquires American Airlines?
By Jonathan Yates - July 16, 2012 | Tickers: DAL, GS, JBLU, RJET, LUV, SAVE, UAL, LCC
US Airways (NYSE: LCC) is negotiating against itself in its attempt to buy the bankrupt American Airlines. That is never a wise move in any bidding process. But, so far, the market is rewarding these efforts as US Airways is up more than 185% for 2012, in large part due to its efforts to acquire American Airlines. By contrast, United-Continental (NYSE: UAL) is up only 27.93% for the same more »
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Can This Airline Change Course?
By Jonathan Yates - June 4, 2012 | Tickers: DAL, RJET, LUV, UAL, LCC
After two bankruptcy filings and years of disappointing investors such as Warren Buffett, US Airways (NYSE: LCC) finally appears to be learning from Southwest Airlines (NYSE: LUV) in two critical areas: mergers and acquisitions, and customer service.
US Airways has shrewdly waited for American Airlines to go into bankruptcy before maneuvering into position to bid for the last domestic legacy carrier to file Chapter 11. Before entering bankruptcy, American Airlines more »