Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Continental-Delta Merger?  
User currently offlineContinental123 From United States of America, joined Nov 2006, 147 posts, RR: 0
Posted (7 years 7 months 2 weeks 3 days 12 hours ago) and read 6260 times:

Hi this is my first post so please bear with me. With all of the recent discussion about mergers here I was wondering about a Continental-Delta merger.
Here are a few points:
a) The fleets are both all-boeing
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other
c) Both airlines are members of SkyTeam

Please post repectfully and give me your opinion on this possible merger.

18 replies: All unread, jump to last
 
User currently offlineJetBlueAUS From United States of America, joined Apr 2006, 1145 posts, RR: 8
Reply 1, posted (7 years 7 months 2 weeks 3 days 12 hours ago) and read 6247 times:

First off, welcome to A.net!

In all honesty, I am not a big fan of "What if ABC Airlines merges with XYZ Airlines?" because as of right now it doesn't look like CO and DL are going to merge and I really don't think its possible. Though other people's opinions my differ, I stand firm in mine.



Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
User currently offlineDalb777 From United States of America, joined May 2005, 2192 posts, RR: 0
Reply 2, posted (7 years 7 months 2 weeks 3 days 11 hours ago) and read 6243 times:

Hi, welcome to A.net!

However, a DL/CO merger was discussed here last week:

http://www1.airliners.net/discussion...general_aviation/read.main/3102792



Geaux Tigers! Geaux Hornets! Geaux Saints! WHO DAT!!!
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 3, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 6103 times:

I thihnk it would be much more palatable to Delta and Continental employees than a US/DL merger.

JFK would probably be sold off, as would CLE or CVG.

I think this makes the most sense.

I do not believe, however, that NWA would allow it to happen....unless it included them as well.

My 2 cents.



Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlineRiddlePilot215 From United States of America, joined Oct 2003, 317 posts, RR: 0
Reply 4, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 6081 times:
Support Airliners.net - become a First Class Member!

Quoting Continental123 (Thread starter):
Hi this is my first post so please bear with me. With all of the recent discussion about mergers here I was wondering about a Continental-Delta merger.
Here are a few points:
a) The fleets are both all-boeing
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other
c) Both airlines are members of SkyTeam

Please post repectfully and give me your opinion on this possible merger.

Welcome to a.net!


Oh and secondly.....


Not a SNOWBALL'S CHANCE IN HELL

The corporate cultures of DL and CO are just WAAAAY too different to bear any kind of merger between the two.



God is good, all the time. All the time, God is good.
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13469 posts, RR: 62
Reply 5, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 6061 times:
Support Airliners.net - become a First Class Member!

Quoting Jetdeltamsy (Reply 3):
I do not believe, however, that NWA would allow it to happen....unless it included them as well.

NW's "Golden Share" allows them to have a say if another company tries to acquire CO.

Not the other way around, though - CO can acquire anyone they want and NW cannot block it.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlineFXramper From United States of America, joined Dec 2005, 7172 posts, RR: 86
Reply 6, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 6061 times:
Support Airliners.net - become a First Class Member!

Quoting RiddlePilot215 (Reply 4):
The corporate cultures of DL and CO are just WAAAAY too different to bear any kind of merger between the two.

 checkmark   checkmark   checkmark 


User currently offlineRiddlePilot215 From United States of America, joined Oct 2003, 317 posts, RR: 0
Reply 7, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 6024 times:
Support Airliners.net - become a First Class Member!

Quoting Continental123 (Thread starter):
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other

Oh I also forgot to mention....Being from Cleveland....


Mayor Jackson would do everything in his POWER to stop the Cleveland hub from closing. Just simply based on the fact that CO is literally all the CLE has.... CO is repsonsible for nearly 80% of the traffic at Hopkins, and they put through 88% of the passengers.

Plus CO employes and trains an extremely large amount of Clevelanders, pumping hunderds of millions of dollars into an already faultering local economy (due to the downsizing of many of the Detroit automakers, the US steel industry tanking, and the fact that there aren't many "business" oriented industries in the city...Cleveland is still very much a manufacturing town). Cleveland can't AFFORD to lose CO....It's come close many times in the past, with the city generally making lots of concessions, and toning down their usually bullish attitude towards economic growth for the city, in order to maintain some sort of decency for a city that's seen so much decline over the last 60 years....

Cincy doesn't nearly have AS MUCH to lose...as Cincy has evolved into a banking, and pharmacutical powerhouse ( Fifth Third, Providient Bank, and P&G if I'm not mistaken). And unlike Cleveland, Cincy has seen considerable growth and improvement in their downtown, and riverfront districts over the last 30 years.



God is good, all the time. All the time, God is good.
User currently offlineAirframeAS From United States of America, joined Feb 2004, 14150 posts, RR: 24
Reply 8, posted (7 years 7 months 2 weeks 3 days 10 hours ago) and read 5999 times:

Suggested Deletion of the entire thread to the mods.... We already have an official DL merger thread.


A Safe Flight Begins With Quality Maintenance On The Ground.
User currently offlineBobnwa From United States of America, joined Dec 2000, 6432 posts, RR: 9
Reply 9, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 5945 times:

Quoting EA CO AS (Reply 5):
Not the other way around, though - CO can acquire anyone they want and NW cannot block it.

The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.


User currently offlineCO767FA From United States of America, joined Aug 2005, 532 posts, RR: 2
Reply 10, posted (7 years 7 months 2 weeks 3 days 9 hours ago) and read 5892 times:

Quoting Bobnwa (Reply 9):
The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.

Wrong Bob....only where the "control" would change. If CO is the acquirer, NW can only sit there and be quiet.


User currently offline102IAHexpress From United States of America, joined Feb 2005, 1156 posts, RR: 3
Reply 11, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5842 times:

Hi. Welcome to Anet.
Well, CAL management has repeatedly said that CO prefers to grow independently and that a merger would only be considered if CO was left at a competitive disadvantage due to other airlines merging.
So that being the case, if US and DL merge, there’s no way CO and DL could merge. And if US and DL don’t merge CO still wouldn’t be interested in DL unless another merger not involving CO or DL took place.
Don’t know if that makes sense. But this link may help.

http://www.chron.com/disp/story.mpl/headline/biz/4359043.html


User currently offlineBobnwa From United States of America, joined Dec 2000, 6432 posts, RR: 9
Reply 12, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5781 times:

Quoting CO767FA (Reply 10):
Wrong Bob....only where the "control" would change. If CO is the acquirer, NW can only sit there and be quiet.

If CO wanted to be the acquirer in a merger it would need billions of dollars from investors. With the billions of dollars would be certain requirements on CO's part, by the investors. This would cause the control of CO to change. Just like when Bonderman virtually controlled CO before he sold the stake to NW.

NW will not allow control of CO to be adverse to their interests. CO may very well end up merging but it will be with NW's ok.


User currently offlineRiddlePilot215 From United States of America, joined Oct 2003, 317 posts, RR: 0
Reply 13, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5769 times:
Support Airliners.net - become a First Class Member!

Quoting Bobnwa (Reply 12):
NW will not allow control of CO to be adverse to their interests. CO may very well end up merging but it will be with NW's ok.

One question...in the event of NW ever going the way of PanAm or Eastern...who do the rights go to?

Or even being absorbed by another carrier...but that conclusion can already be drawn....the rights would just go to the new carrier....



God is good, all the time. All the time, God is good.
User currently offlineDutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 57
Reply 14, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5747 times:

Quoting Bobnwa (Reply 12):
If CO wanted to be the acquirer in a merger it would need billions of dollars from investors.

Not necessarily.......a deal could be constructed using debt. I agree is would be difficult and probably not financially prudent, but if a DL/CO deal were to happen (heavans forbid), CO would be the acquring airline taking over larger DL. The lawyers and the bankers could work this out and CO could, in theory, take over DL without giving NW any opportunity to block the deal. Does any of this make sense? I think not.


User currently offlinePlanesNTrains From United States of America, joined Feb 2005, 5438 posts, RR: 29
Reply 15, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5734 times:

Quoting AirframeAS (Reply 8):
Suggested Deletion of the entire thread to the mods.... We already have an official DL merger thread.

I'm not clear - if we want to discuss any merger involving Delta, we need to use the official DL/US thread? It's going to become a little unwieldy when the thread reaches 400 posts in about 6 months.

Continental123, I've always thought the two carriers make a great fit, but whether they end up getting together is another story of course. Like said above, if US+DL goes away, then CO may just go back to business as usual. However, if AA makes a run for DL (for example), then CO may be forced to act. Who knows. I tend to like US-NW, AA+DL, and UA+CO as possibilities, but we shall see.

-Dave



Totes my goats!
User currently offlineJetdeltamsy From United States of America, joined Nov 2000, 2987 posts, RR: 8
Reply 16, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5727 times:

Quoting RiddlePilot215 (Reply 13):
One question...in the event of NW ever going the way of PanAm or Eastern...who do the rights go to?

If they went belly-up, the routes would be auctioned off by the bankruptcy court.

NWA could always sell them in bits and pieces as they see fit.

NWA isn't going anywhere. Theirs is one bankruptcy that will be successful, you can count on that. Their management are ruthless to the core and failure is not an option at NWA. They will cut and and cut until they are back to profitability (which, i think, they arleady are).



Tired of airline bankruptcies....EA/PA/TW and finally DL.
User currently offlineDiamond From United States of America, joined Apr 2004, 3279 posts, RR: 63
Reply 17, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5715 times:

As this thread involves a Delta merger, please continue it in one of the recently created threads dedicated to this subject:

http://www1.airliners.net/discussion...eneral_aviation/read.main/3105695/



Blank.
User currently offlineATLFlyer323 From United States of America, joined Jan 2005, 614 posts, RR: 0
Reply 18, posted (7 years 7 months 2 weeks 3 days 8 hours ago) and read 5648 times:

Quoting Bobnwa (Reply 9):
The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.

May I ask what this "golden share" is please?

Thanks,
Brandon



Everyday, the fluffy temptation of wheat!
Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
US Airways-Delta Merger Good For Airbus. posted Sun Nov 26 2006 12:41:37 by LHStarAlliance
US Airways - Delta Merger Proposal Conference Call posted Wed Nov 15 2006 14:34:50 by Nuggetsyl
Continental/Delta Still? posted Thu Oct 4 2001 00:31:36 by Giantjets
1980's Continental/TWA Merger Talk posted Thu Jun 15 2000 19:21:37 by ContinentalEWR
Alaska - Delta Merger ? posted Fri May 21 1999 23:05:06 by United777
Delta/Continental Merger? posted Mon Mar 12 2001 05:52:43 by Teej13
Delta And Continental Merger posted Mon Feb 12 2001 04:54:41 by Danilovics
Delta & Continental Talking Again, Merger Mainia posted Tue Jun 20 2000 02:36:27 by DeltaAir
Delta/Continental Merger posted Fri Jun 2 2000 17:30:19 by HARTSFIELD
Continental Merger posted Tue Nov 21 2006 23:21:57 by AirplaneFan