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What Will AA DL Aand NW Do If The UA/CO Combine?  
User currently offlineAAden From United States of America, joined Jan 2006, 835 posts, RR: 0
Posted (8 years 1 week 1 day 15 hours ago) and read 4089 times:

I was wondering just what how these carriers will respond if the UA/CO merger happens?

AA isn't seeking a merger, should they not be worried about there new and stronger competitior in texas. Also in chicago, New york and lax?


DL and NW arn't in the condition to merge. what will they do? they seem to be the weakest carriers at this time.

5 replies: All unread, jump to last
 
User currently offlineUSAirPlatinum From United Kingdom, joined Jul 2006, 244 posts, RR: 0
Reply 1, posted (8 years 1 week 1 day 15 hours ago) and read 4084 times:

If UA and CO combine, the Delta creditors will send Grinstein back to Tempe with his hat in his hand to hammer out a deal, as Delta will be even harder pressed to survive as a weak, heavily indebted "independent" carrier.

NWA will be forced to combine with AA and shift the Asia/Pacific flying to ORD and away from DTW and MSP. I expect DTW will lose some significant flying as a result. STL will also probably get cut even further due to overlap with ORD and Memphis. AA will emerge the strongest combined carrier at the end of all of it, IMO.



"Hey guys, Delta is OUR Delta right now." -- Unpaid Creditors
User currently offlineUAXDXer From United States of America, joined Jul 2004, 765 posts, RR: 3
Reply 2, posted (8 years 1 week 1 day 14 hours ago) and read 4071 times:

Quoting USAirPlatinum (Reply 1):
NWA will be forced to combine with AA and shift the Asia/Pacific flying to ORD and away from DTW and MSP

ORD cannot handle any additional traffic.



It takes a bug to hit a windsheild but it takes guts to stick
User currently offlineMAH4546 From Sweden, joined Jan 2001, 33289 posts, RR: 71
Reply 3, posted (8 years 1 week 1 day 14 hours ago) and read 4068 times:

Quoting USAirPlatinum (Reply 1):
STL will also probably get cut even further due to overlap with ORD and Memphis

St. Louis is a far stronger market than Memphis. Memphis would probably suffer at the expense of St. Louis at first, but in the long run, I could imagine any AA/NW merger elimating both.



a.
User currently offlineUSAirPlatinum From United Kingdom, joined Jul 2006, 244 posts, RR: 0
Reply 4, posted (8 years 1 week 1 day 14 hours ago) and read 4057 times:

ORD cannot handle additional traffic is often claimed, but I would guess it could handle a small bump, and AA will bump RJ flights to Tulsa to slot in NWA's A-Pac flights should NWA become part of AA. They'll launch an all-out effort to compete with United on high-yield routes out of ORD and won't let slot restrictions get in the way.

STL might be a strong O&D market, but it also has a major presence with SWA in town. I'd bet AA will weigh its options and cut at STL first.



"Hey guys, Delta is OUR Delta right now." -- Unpaid Creditors
User currently offlinePanamair From United States of America, joined Oct 2001, 4977 posts, RR: 25
Reply 5, posted (8 years 1 week 1 day 14 hours ago) and read 4041 times:
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UA and CO will only proceed with more serious merger talks if the US-DL deal comes to fruition. CO has expressed over and over and over again that it does not want to wheel-and-deal and will only do so as a last resort (i.e., if there is industry consolidation). Hence, look for Kellner to throw Tilton's number away if the US-DL bid falls apart. Basically, no one wants to engage in a merger except for UA's Tilton and US' Parker. Maybe the two should go talk to each other instead if they are so hellbent on wheeling-and-dealing...

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