I was looking through this whole TPG offer, and that lead me to a question. Do you guys think NW will eventually merge with YX?
Lets look at a few things:
Northwest is providing funding for the buyout.
Midwest and Northwest already code share and are going to expand it.
Quote 1:
Quote 2In a statement, Northwest says it has "the right, but not the obligation" to acquire TPG's stake in Midwest." Northwest goes on to say that it has "no current plans to exercise that right."But on the other side, you also have NW's labor condition. You could end up like the US/HP merger with a union crisis.On Friday, TPG Capital partner Rick Schifter said it was "contemplated that Northwest would acquire Midwest in the future"
I think if anything WERE to happen, labor issues would have to be worked out on NW's side beforehand
What do you guys think? Like it or not, I think by 2010, NW will merge with YX and use the 717's to replace the DC-9-50's, E-190's to replace the DC-9-40's, and E170/175's to replace the DC-9-30.
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