Delta is making money. Alaska Airlines is making money. Alaska has a lot of coverage where Delta is light. With AA+USAIR becoming #1, would this be a good growth option for Delta?
This piece in the Motley Fool seems to think so.
“Even though Alaska shares trade near all-time highs, the company is still valued at only eight times forward (2014) earnings. Given Alaska’s modest debt levels and strong pretax margin, the company is a relatively safe investment when compared to other airline stocks. Furthermore, Alaska has continued growth opportunities, and is returning cash to shareholders. Lastly, Alaska’s strong position in Seattle could make it an attractive takeover target, particularly for Delta Air Lines” – Adam Levine-Weinberg – The Motley Fool
Aircraft wise it seems like a good fit to me with the current generation of planes Delta has other than the Bombardier Q400’s.
Many are thinking about changing their earnings of Skymiles over to Alaska once 2014 MQD begins. MVP GOLD only takes 50k of Delta flight credited to Alaska and gives you similar benefits to Delta GOLD without the spend requirements.
So what do you think? Is Alaska on Delta’s radar for a buyout? Would be it a good idea for Delta to snap them up? I would love to know what you think! – René
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