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Would CO/DL Merger Make Any Sense?  
User currently offlineJetpixx From United States of America, joined Jul 2004, 844 posts, RR: 1
Posted (8 years 3 months 1 week 4 days 4 hours ago) and read 2938 times:

I know that the two airlines visited this a while back - (1999 or so I think?) - and NW worked hard against this. Would it not make sense for these two airlines to get together - since their hubs are distanced fairly far apart (with the exception of CLE/CVG, EWR/JFK)? The fleet types are generally the same with a few exceptions which are soon to be retired.

Also, why did NW work so hard against this - I heard that a lot of animosity exists between DL and NW - so why are they working together on SkyTeam?

[Edited 2006-04-13 22:20:15]

12 replies: All unread, jump to last
 
User currently offlineUAXDXer From United States of America, joined exactly 10 years ago today! , 765 posts, RR: 3
Reply 1, posted (8 years 3 months 1 week 4 days 4 hours ago) and read 2916 times:

Why would Continental want to go and ruin a good thing by merging with Delta? I do see Continental buying a lot of Delta assets should something happen though.


It takes a bug to hit a windsheild but it takes guts to stick
User currently offline1337Delta764 From United States of America, joined Oct 2005, 6431 posts, RR: 2
Reply 2, posted (8 years 3 months 1 week 4 days 4 hours ago) and read 2906 times:

Quoting UAXDXer (Reply 1):
Why would Continental want to go and ruin a good thing by merging with Delta? I do see Continental buying a lot of Delta assets should something happen though.

A Delta/Continental merger would be FAR BETTER than a Delta/Northwest merger. The fleets are similar.

How would a merger of two bankrupt airlines survive?



The Pink Delta 767-400ER - The most beautiful aircraft in the sky
User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 3, posted (8 years 3 months 1 week 4 days 4 hours ago) and read 2887 times:

Quoting Jetpixx (Thread starter):
Would it not make sense for these two airlines to get together - since their hubs are distanced fairly far apart (with the exception of CLE/CVG, EWR/JFK)?

It probably would. Try doing a search on this, I think it's been discussed many times before.


User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 4, posted (8 years 3 months 1 week 4 days 3 hours ago) and read 2830 times:

A DL/CO combination was rumored for years - in good times and in bad times - as the route systems of both carriers would work well together. The story went that NYC ops could be consolidated at EWR, the CO CLE hub would be losed down in favor of the DL CVG hub, ATL would of course remain and expand, DL's DFW hub (DFW was still a DL hub when these rumors were hot) would be closed down in favor of IAH, and SLC would continue to be the western hub of the system. Aircraft are a good (but not great fit) - while both CO and DL fly 737s, 757s, 767s, and 777s, engines differ on the 757s, some 767s (DL has a mixed PW/GE fleet) and the 777s......and CO has all of those 2nd generation 737s while DL is a big MD80 operator (as well as the MD90). But there are serious problems when it comes to finances (CO is in reasonable shape financially and has actually shown a profit here and there in the past years while DL is stuck in bankruptcy), both airlines have an awful lot of debt,and then there are the employees and intergration to think about (CO in recent years has been a much happier place to work at than DL).

When the DL + CO merger was good gossip (back before things got so difficult over at DL).......for various reasons, CO would be the surviving carrier although it would be absorbing a far bigger airline.

It never happened, and probably never will - CO seems content in growing on its own and continue to expands.

Then, of course, there are the CO + UA rumors -again, unlikely to happen.


User currently offlineIcelandairMSP From United States of America, joined Dec 2005, 121 posts, RR: 0
Reply 5, posted (8 years 3 months 1 week 4 days 3 hours ago) and read 2786 times:

It would be a landmark if they could get this through antitrust court. It would produce one very large airline with very significant shares of various markets--particularly the south and across the Atlantic. US/HP merger went through with relatively little trouble in being stuck with antitrust in that their hubs markets were very different and complimentary. A DL/CO merger would only give increased access to many markets they already have a sizeable share in.

Even so, bankrupcy and what has appeared to be largely unsuccesful restructuring has made DL look even worse. Taking over the airline would mean consolidating the already disillusioned unions of DL and, unless DL was in liquidation and CO could basically dicatate a lot of the terms of an employee consolidation, working that through would be an absolute, utter nightmare. CO has been through bankrupcy enough to know that employees make things very difficult--not in the sense that they're hellraisers, but in the sense that they are people with needs and can't be as easily disposed of, rearranged, or reformed as other areas of operation can.

I think a lot of people on a.net think a CO/DL merger would be great because of their compatible fleets creating a super fleet of Boeing aircraft for the ages to remember and would give them the opportunity to order more super fleets of Boeings. They would also have the grandest, most comprehensive network across the Atlantic ever envisioned for route map enthusiasts and a merger would probably mean more expansion and consolidation, etc. But as a rule, the bigger the merger, the more difficult it is to sort through. A DL/CO would be enormous with one side exasperated from painful bankrupcy procedures and the other one a multiple-time survivor of bankrupcy that isn't on incredibly sturdy ground either. It just wouldn't be as viable as is hoped.


User currently offlineIkramerica From United States of America, joined May 2005, 21472 posts, RR: 60
Reply 6, posted (8 years 3 months 1 week 4 days 3 hours ago) and read 2769 times:

CO has no reason to want this. They'd be far better off taking DL assets and route authorities than absorbing all of DLs domestic structure.

Should DL fail, and we don't have evidence that will happen, ATL would become like JFK or LAX, where multiple airlines would have large operations there but it would no longer be a superhub like it is now.



Of all the things to worry about... the Wookie has no pants.
User currently offlineSac From United States of America, joined Feb 2006, 98 posts, RR: 2
Reply 7, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2692 times:

From what I can remember when all this went down, DL wanted something more than a merger. One thing that killed the deal was placing all the CO employees at the bottom of the DL sonority list. With NW, they got a large share of class A stock and seats on the board, along with access to the CO route system with a long-term code share agreement, with out the mess of a merger. This arrangement was changed in 2001 when CO repurchased the stock back from NW. The code share deal was extended to something like 25 years and NW was given first rights of refusal when it come to another merging with CO.

User currently offlineFlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 8, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2683 times:

I think CO is happy with their long list of strategic partnerships. They have an integrated codeshare with NW, as well as a number of other foreign airlines. CO seems to have the healthiest business at the moment of any of the American big 4 legacy carriers.


"Let the world change you, and you can change the world"
User currently offlineCO767FA From United States of America, joined Aug 2005, 532 posts, RR: 2
Reply 9, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2634 times:

Quoting Sac (Reply 7):
... it come to another merging with CO.

Let's get this straight....If CO is the acquirer, NW has no say in the matter. If CO is being acquired, NW has first right of refusal.


User currently offlineAirCanada014 From Canada, joined Oct 2005, 1513 posts, RR: 0
Reply 10, posted (8 years 3 months 1 week 4 days 2 hours ago) and read 2634 times:

I wouldn't merge a good profit airline with a bankruptcy airline.. DL and CO no way. I agree CO buying DL's assests.

User currently offlineUAL#1Fan From United States of America, joined May 2001, 88 posts, RR: 0
Reply 11, posted (8 years 3 months 1 week 3 days 23 hours ago) and read 2492 times:

CO would never get Delta's trans-Atlantic assets if Delta failed. The government would never allow it on antitrust violations, since Continental would then pretty much control the New York-Europe market. If anything, the trans-Atlantic DL routes would go to an airline with a modest presence in Europe by comparison like UA or NW, to add balance.

CO could get the Latin American routes, though.

The whole problem with Delta and CO merging is while their fleets might complement each other, their route structures parallel each other too much, with the exception of the western US.



United Air Lines -Mainliners Coast to Coast
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5360 posts, RR: 7
Reply 12, posted (8 years 3 months 1 week 3 days 22 hours ago) and read 2430 times:

Quoting UAL#1Fan (Reply 11):
CO could get the Latin American routes, though.

I'm not sure CO would want many of DA's Latin routes without the ATL hub to fill them up.



I love long German words like 'Freundschaftsbezeigungen'.
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