Will NW merge with YX?

[nwafan20]

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:

In 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."

Quote 2

On Friday, TPG Capital partner Rick Schifter said it was "contemplated that Northwest would acquire Midwest in the future"

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.

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.

[PhilDernerJr]

I don't think so. Norethwest obtains the benefits of contributing to tehm as it stands with the codeshare, and it's just not necessary to merge I'd assume. The Midwest brand does well, and is successful with its own special service.

[T-Bird76]

NW investing in YX doesn't mean they'll buy them out at a later date. UAL has about a 25% stake in Aloha but has no plans in buying them. If I'm correct I thought BA has a bit of a small stake in AMR corp. Even though I do like the YX brand FL would have expanded MKE and brought in more jobs.

[hiss srq]

I highly doubt it would ever happen. Just because another airline has a stake does not mean it is intent on consolidation. WN/TZ will probably never become one either. ElAl which was in a way a competitor to Tower Air dumped millions into Tower to try to save them but it does not mean they had any intent on aquireing the airline. Than again who in their right mind would have wanted to put their hands on that rotten fish.