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US Raised Bid For DL  
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8878 times:

http://biz.yahoo.com/prnews/070110/law023.html?.v=84

LARGE increase!


Experience is what you get when what you thought would work out didn't!
141 replies: All unread, showing first 25:
 
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 1, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8877 times:

TEMPE, Ariz., Jan. 10 /PRNewswire-FirstCall/ -- US Airways Group, Inc. (NYSE: LCC - News) today announced that it has increased its offer to merge with Delta Air Lines, Inc. (OTC: DALRQ - News). Under the revised proposal:

* Delta's unsecured creditors would receive $5.0 billion in cash and
89.5 million shares of US Airways stock.

* When applying the same valuation methodology and assumptions as
described in Delta's Disclosure Statement, US Airways' advisor
Citigroup estimates this new proposal will provide between $12.7 and
15.4 billion in value to Delta's unsecured creditors, which represents
a significant premium over the $9.4 to 12.0 billion valuation that
Delta places on its stand-alone plan.

* Based on the closing price of US Airways stock as of Tuesday,
Jan. 9, 2007, the new proposal has a current market value of
approximately $10.2 billion.

The merger is expected to be accretive to US Airways' earnings per share in the first full year after completion of the merger.

The increased offer is set to expire on Feb. 1, 2007 unless there is affirmative creditor support for commencement of due diligence, making the required filings under Hart-Scott-Rodino, as well as the postponement of Delta's hearing on its Disclosure Statement scheduled for Feb. 7, 2007.



Experience is what you get when what you thought would work out didn't!
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 2, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8846 times:

US has yet to say anything on how this deal is good for anyone except stockholder pockets. Nearly every pasenger and employee would loose under this scenario. Hopefully the DOJ will agree...or better yet, hopefully the shareholders will see all the flaws that US "will discuss later" and see that there is more certainly in the execution of the Delta plan.


Experience is what you get when what you thought would work out didn't!
User currently offlineMD-90 From United States of America, joined Jan 2000, 8507 posts, RR: 12
Reply 3, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8827 times:

And people said having Morgan Stanley onboard wasn't going to change much. Wow.

User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 4, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8803 times:

This is a rather larger increase, they just wont let it go will they. Interesting to see DL's response.

User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 5, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8765 times:

The headline says much higher numbers but the fine print says:

Quote:
the new proposal has a current market value of
approximately $10.2 billion.

Still a sizeable increase, but US has still yet to come clean on details behind the merger such as realy job cut #'s, and real aircraft cut #'s.


The only time that 1 + 1 doesn not = 2 is in airline mergers!!!


the other thing i find interesting is the expiration date, the creditors were supposed to vote in the feb-april timeframe, now they are trying to rush them...hmmm



Experience is what you get when what you thought would work out didn't!
User currently offlineDTW757 From United States of America, joined Oct 2003, 1567 posts, RR: 4
Reply 6, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8756 times:

It's hard for me to understand where a company that was in bankruptcy itself and days from shutting down has had this kind of turn around and now wants to buy Delta...just amazing. Keep Delta My Delta


721,2,732,3,4,5,G,8,9,741,2,3,4,752,3,762,3,4,772,3,788,D93,5,M80,D10,M11,L10,100,AB6,319,20,21,332,3,388,146,CR2,7,ERJ,
User currently offlineERJ170 From United States of America, joined Apr 2004, 6771 posts, RR: 17
Reply 7, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8734 times:

I don't care what they do..

I hope that this does not go through.. I can only see disaster in the future... As the old gospel song says.. "sweet around your own front door, before you try to sweep around mine".

I've flown US Airways lately, and they still have a LONG way to go on their customer service, aircraft revitalization, and operation sync before they try to go though the same problem again.

I see I shall probably have to email to voice my opinion that they should not go through with it. I wonder how many of these emails they have received??



Aiming High and going far..
User currently offlineD L X From United States of America, joined May 1999, 11357 posts, RR: 52
Reply 8, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8724 times:

Quoting RL757PVD (Reply 2):
US has yet to say anything on how this deal is good for anyone except stockholder pockets.

That's not true. They've also said that it would produce a better, more stable airline for consumers.

Quoting UAL777UK (Reply 4):
they just wont let it go will they.

February 1 is right around the corner. This new offer is part increase and part exit strategy. if nothing is done by 2/1, DL stays with its current management.



Send me a PM at http://www.airliners.net/aviation-forums/sendmessage.main?from_username=NULL
User currently offlineAirlinelover From United States of America, joined Jun 2001, 5580 posts, RR: 22
Reply 9, posted (7 years 8 months 2 weeks 2 days 11 hours ago) and read 8726 times:

Quoting UAL777UK (Reply 4):
This is a rather larger increase, they just wont let it go will they. Interesting to see DL's response.

Hopefully Delta's response will be

"Go to Hell"


Chris



Lets do some sexy math. We add you, subtract your clothes, divide your legs and multiply
User currently offlineFlyingchoirboy From United States of America, joined Oct 2003, 281 posts, RR: 4
Reply 10, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8699 times:
Support Airliners.net - become a First Class Member!

Why can't US Airways stop being a bully? I think plenty of people have made it clear that DL should emerge as an independant company. This will reduce competition, increase fares across the country, and cost many good-working people their jobs. I predict that this will simply not happen.

Keep Delta My Delta!



Flyingchoirboy: He sings, he flies, and sometimes he does both at the same time.
User currently offlineWhappeh From United States of America, joined Mar 2006, 1563 posts, RR: 2
Reply 11, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8679 times:

Quoting Flyingchoirboy (Reply 10):
Why can't US Airways stop being a bully?

I am just shocked to see US Airways being called a bully by people in the industry. I can recall back in the day where they were the little guy.



-Travel now, journey infinitely.
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 12, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8669 times:

Quoting D L X (Reply 8):
That's not true. They've also said that it would produce a better, more stable airline for consumers.

Both airlines will be profitable in 2007 (operationally, excluding DL Ch11 writeoffs)

Less seats mean less options ans higher fares

Less planes mean less employees (1000's)

Duplicate hubs mean even mroe massive job cuts

Opposite fleets mean increased costs, thus less profits

More debt means more interest, thus less profits

Merger would likely trigger others, creating airline combinations with superior networks to US/DL, further diminishing said synergies.

Other combines airlines would have sizeable atlantic and pacific ops, US/DL would be horribly one-sided.

Airports in the eastern US will see a sharp decrease in competition, competition results in better schedules and fares for the consumers.

Dozens of airports in the east would loose competition all together





So where exactly do the cunsumers and employees win?



Experience is what you get when what you thought would work out didn't!
User currently offlineUPSMD11 From United States of America, joined May 2003, 815 posts, RR: 4
Reply 13, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8590 times:
Support Airliners.net - become a First Class Member!

Quoting RL757PVD (Reply 2):
US has yet to say anything on how this deal is good for anyone except stockholder pockets. Nearly every passenger and employee would loose under this scenario. Hopefully the DOJ will agree...or better yet, hopefully the shareholders will see all the flaws that US "will discuss later" and see that there is more certainly in the execution of the Delta plan.



Quoting RL757PVD (Reply 12):
So where exactly do the consumers and employees win?

A merger like this does not seem good on the surface but the industry is in dire need of some changes. There are too many airlines and people's jobs and airline business is at risk should anything devastating happen in the economy or some other terrorist act like 9/11 happens.

A business is "IN BUSINESS" for the stockholder. It seems like a cold statement but a business is not in business just to be nice, have pretty planes and excite us here on A.net. If a company does not make profits and make wise decisions for the future they are doing the stockholders a disservice.

With that being said, the airline industry is a service industry and they must serve the customer in order to gain revenue paying customers. I have flown DL quite a bit lately and I do not find them offensive but I also do not find them superior to US either. On US when I fly trans-con or on any of the Airbus single aisle aircraft I can plug in my laptop -- I can't do that on DL.

I have also flown DL and US internationally in business class. The US A330 experience is fantastic and easily competes with the DL business class on the 767. I will say that some of the old-time Delta flight attendants are great and made even Air France look bad on a trip I took to Paris flying on Air France over and Delta back.

Anyway, this is going to be an interesting ride and if Delta doesn't bite on the offer from US then some sort of merger elsewhere will take place and maybe US and DL both will be in trouble from the other newly joined airline.

Cheers,
John


User currently offlineLTBEWR From United States of America, joined Jan 2004, 13116 posts, RR: 12
Reply 14, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8589 times:

To me the only winners in this deal are the deal makers and a few executives that bail out in time. To me it is foolish to add more money to the deal as the airline industry is a long term loser and can be ruined in an instant if there were to be another 9/11 like event in the USA or elsewhere.

User currently offlinePHX Flyer From United States of America, joined Apr 2001, 551 posts, RR: 0
Reply 15, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8558 times:

Quoting DTW757 (Reply 6):
It's hard for me to understand where a company that was in bankruptcy itself ...

Sorry, you have to get your facts straight. The company bidding for Delta, is America West, which renamed itself US Airways after taking over the bankrupt east coast carrier of the same name.
Interestingly, you do not hear a lot of complaints from US Airways (east) employees about America West management. Most of those who have worked for them for a while are actually full of praise.


User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 16, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8531 times:

Quoting UPSMD11 (Reply 13):
but the industry is in dire need of some changes

I dont doubt that for a minute, but US has failed to consider how the new airline would compete with other merged airlines.

Lets assume that UA+CO and AA+NW happen... both combined airlines are larger with more ballanced networks. Significan Atlantic, Pacific, Latin AM, Carib and South American Markets... US/DL will be severely lacking especially in the pacific. Having larger airlines with larger networks than US/DL will significiantly erode the synergies US is boasting about.


Mergers YES
DL/US NO



Experience is what you get when what you thought would work out didn't!
User currently offlineRedFlyer From United States of America, joined Feb 2005, 4329 posts, RR: 28
Reply 17, posted (7 years 8 months 2 weeks 2 days 10 hours ago) and read 8489 times:

Quoting D L X (Reply 8):
That's not true. They've also said that it would produce a better, more stable airline for consumers.

Oh, sure, just like the US/HP merger has created a better, more stable airline for consumers  Yeah sure

That merger, while profitable for shareholders, has created two diverse companies with opposing employees within a single company. Given DL's long and deep cultural roots, we're now going to end up with three diverse companies within a company.



My other home is a Piper Cherokee 180C
User currently offlineDeltaWings From Switzerland, joined Aug 2004, 1294 posts, RR: 17
Reply 18, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8463 times:

http://www.chron.com/disp/story.mpl/ap/fn/4460206.html

Another good link

The increased bid includes 89.5 million shares of US Airways stock and $5 billion in cash. The original offer included 78.5 million shares of US Airways stock and $4 billion in cash. The value of the increased bid could go even higher if US Airways' stock rises after the market opens later Wednesday.

Executives of Atlanta-based Delta have said they oppose a buyout by US Airways. The nation's third-largest carrier has filed a reorganization plan that calls for it to emerge from bankruptcy by the middle of this year as a standalone company worth $9.4 billion to $12 billion.

Based on the Delta's valuation method, US Airways estimated that its increased bid could actually be worth $12.7 billion to $15.4 billion.

Despite the position by Delta management, Delta's unsecured creditors committee in its bankruptcy case will play a key role in deciding the airline's future course. The committee had said prior to Wednesday that it was reviewing both Delta's standalone plan and US Airways' buyout offer.

Daniel Golden, a lawyer for the creditors committee, did not immediately return a call Wednesday seeking comment on US Airways' raised offer.

The Feb. 7 bankruptcy hearing would be to consider approval of Delta's disclosure statement relating to the carrier's standalone reorganization plan.

The disclosure statement includes details on Delta's operations. If the statement is approved, that means Delta can begin soliciting votes on its reorganization plan, which typically takes four to eight weeks.

Parker has said previously that if that hearing were to go forward it could increase the urgency of US Airways' bid because US Airways hopes to consummate its deal to buy Delta before Delta emerges from Chapter 11.



Homer: Marge, it takes two to lie. One to lie and one to listen.
User currently offlineWhappeh From United States of America, joined Mar 2006, 1563 posts, RR: 2
Reply 19, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8445 times:

Quoting RedFlyer (Reply 17):
has created two diverse companies with opposing employees within a single company.

Thats the one thing I don't get about this. Are Delta employees that damn loyal to their current Management? They aren't loosing the name, or evidently, their pay scale. I've never heard of any company ever in which a merge happened and the employees were just like "Well, these new guys paying the bills are big asses, I can't work under this condition so forget this I'm out". If thats the attitude they have, that is just shocking and immature. A lot of these issues I've seen attached to the "negative" sides of this merger are just nonsensical issues raised by people that have more attachment to the romantic idea of Aviation and the industry while being casual observers from a College Dorm Room.



-Travel now, journey infinitely.
User currently offlineNADC10Fan From United States of America, joined May 2005, 165 posts, RR: 10
Reply 20, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8436 times:

Quoting RL757PVD (Reply 16):
Quoting UPSMD11 (Reply 13):
but the industry is in dire need of some changes

I dont doubt that for a minute, but US has failed to consider how the new airline would compete with other merged airlines.

Lets assume that UA+CO and AA+NW happen... both combined airlines are larger with more ballanced networks. Significant Atlantic, Pacific, Latin AM, Carib and South American Markets... US/DL will be severely lacking especially in the pacific. Having larger airlines with larger networks than US/DL will significiantly erode the synergies US is boasting about.

Mergers YES
DL/US NO

I think you've hit the nail sqaurely on the head here.

While I've taken on some of the most rabid of the USAirways cool-aid drinkers, I'm by no means opposed to a merger which makes sense. And therein lies the problem with DL/US ... but I won't rehash the points made here just above and fleshed out so well elsewhere.

Far more learned people have said that consolidation is inevitable in the industry and have given reasons for it; I am certainly inclined to trust that analysis. I blame Doug Parker not at all for seeking to be in the front of that wave; I simply believe he would be better advised seeking both a) a more willing and b) a more strategically complimentary partner. Such would have to be more felicitous than a shotgun marriage of this sort ...



TANSTAAFL!
User currently offlineCVG72 From United States of America, joined Feb 2006, 167 posts, RR: 1
Reply 21, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8367 times:

Why can't US stop bullying a company that doesn't want to be taken over? This was rediculous the first time, now it's just plain silly the second time. Like RL757PVD said, they lack service in the pacific, and I think they'd be smashed if the other two mergers happen. I'm not a really smart guy, but this isn't the greatest of ideas.

Keep Delta Yours Mine and Ours,
CVG72

Cincinnati Enquirer Article:
http://news.cincinnati.com/apps/pbcs.../20070110/BIZ01/301100008/-1/CINCI



Roll Tide // Next: UA/EV/LH CVG-EWR-FRA-DUS-MUC-EWR-CVG
User currently offlineBucky707 From United States of America, joined Aug 2000, 1028 posts, RR: 3
Reply 22, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8343 times:

Quoting Whappeh (Reply 19):
Are Delta employees that damn loyal to their current Management? They aren't loosing the name, or evidently, their pay scale. I've never heard of any company ever in which a merge happened and the employees were just like "Well, these new guys paying the bills are big asses, I can't work under this condition so forget this I'm out"

as a Delta employee I'd like to respond. First of all, I am pretty loyal to current management. I think they have done a great job of turning Delta around and we are poised to succeed in the future. But, having said that, If I believed that a merger with USAir would indeed provide a more secure and stable company for me to work for in the future, I would not oppose it. But that is not the case. I believe many employees, on both sides, but mostly on the Delta side, will lose their jobs. Further, I believe a merge between Delta and USAir does not make sense and will only lead to failure in the future.

Quoting NADC10Fan (Reply 20):
I'm by no means opposed to a merger which makes sense. And therein lies the problem with DL/US ... but I won't rehash the points made here just above and fleshed out so well elsewhere.

This sums is up for me. I am not against any merger at all. But, it has to make sense. Delta/USAir does not make sense, and would be back in bankruptcy in a few years.


User currently offlinePositiverate From United States of America, joined May 2005, 1590 posts, RR: 8
Reply 23, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8321 times:

Quoting DTW757 (Reply 6):
It's hard for me to understand where a company that was in bankruptcy itself and days from shutting down has had this kind of turn around and now wants to buy Delta...just amazing.

It's even harder for me to understand how a company that shed $5 billion in pension obligations to the PBGC, suddenly has $5 billion in cash to go acquire an airline. Seems to me Doug ought to take that cash and make his employees whole for their losses.

[Edited 2007-01-10 15:22:42]

User currently offlineWhappeh From United States of America, joined Mar 2006, 1563 posts, RR: 2
Reply 24, posted (7 years 8 months 2 weeks 2 days 9 hours ago) and read 8309 times:

Quoting Bucky707 (Reply 22):
as a Delta employee I'd like to respond. First of all, I am pretty loyal to current management. I think they have done a great job of turning Delta around and we are poised to succeed in the future. But, having said that, If I believed that a merger with USAir would indeed provide a more secure and stable company for me to work for in the future, I would not oppose it. But that is not the case. I believe many employees, on both sides, but mostly on the Delta side, will lose their jobs. Further, I believe a merge between Delta and USAir does not make sense and will only lead to failure in the future.

Kudos for the honest answer. Fair enough.

Edit: I just realized... so you're against the merger, however, if it goes through then what do you do? I said it seems absurd that a lot of Delta employees would not care to work for the "new" Delta management. What are your takes on that? Does your spite towards US Airways transcend any potential post-merger working environment?

[Edited 2007-01-10 15:07:02]


-Travel now, journey infinitely.
25 Logos : I'm not sure what "rediculous" means, but this certainly wasn't ridiculous now or then. For a long time people have been saying that the airline indu
26 Bucky707 : First of all, I am against this merger, not any merger. Second, I don't have any spite toward USAirways, other than being upset they are trying to fo
27 William : All the emotion is really moot. The DOJ and Congress ( and don't give me Congress cannot stop it...............they can apply pressure) are going to t
28 William : One more thing..................Usually these things happen behind closed doors. The fact that US is upping the bid after a week of saying it was not
29 Whappeh : This is still the one thing I'm trying to work out in my head. I can't grasp the hostility. Whats the point of it? Hostility between frontline employ
30 Post contains links Lumberton : http://biz.yahoo.com/ap/070110/delta_us_airways.html?.v=22 Doesn't Boeing head the creditors committee? What surety can US give them that a merger won
31 Spoke2Spoke : The yahoo article sites that no layoffs will come for DL or US employees as a result of the merger. Also, all employees will be brought to the higher-
32 Post contains images TeamAmerica : The stockholders own the airline, and in the real world that's what matters. I own stocks, and I expect the management of the companies I "own" to ma
33 RL757PVD : Mike Boyd said it best with ....US sees a window of opportunity, too bad the window is on the 40th floor....
34 Panamair : Has it occured to you that perhaps the US-HP merger has been successful in delivering value because of the COMPLEMENTARY nature of the merger? Each c
35 RedFlyer : As a business owner and economics major in undergrad years ago, I have no romantic notions about any industry. Indeed, my philosophy in business is "
36 Bicoastal : TeamAmerica....great response. Nice to have a voice or two of reason and realism on this forum....and especially on this topic.[Edited 2007-01-10 15:5
37 Positiverate : Of course the US management is saying that. The political pressure would be intense if they promised significant layoffs. However, what they are sayi
38 Post contains images Scbriml : Er, isn't that exactly what every publicly owned company is in business for - to make money for their shareholders? But plenty of folks argue that th
39 Bucky707 : That in a nutshell is the question. Do you believe what Parker is saying. No matter what the plan really had in it, do you believe Parker would come
40 Bicoastal : Exactly.....and without Delta's death lock on ATL maybe everyones' darlings, Southwest and JetBlue can finally land in Georgia. That would be good fo
41 SBN580 : I think what you and others are not understanding is that at Delta there has been a long time corporate culture of family, service and tradition. Yes
42 Panamair : It's called involuntary attrition - think about it. Take the ground staff for example. There is a promised 10% capacity reduction and a host of overl
43 Positiverate : And what's stopping them from flying into ATL now? B6 served ATL at one point, they couldn't make it work. Also, you might not be aware, but there's
44 SBN580 : Yes, as of last month the online ticket sites such as Travelocity listed the two airlines still as separate. I could not believe it! Now, try overlay
45 D L X : Actually, it has. The vast majority of people believe the US/HP merger has been a boon for both US and HP, AND a boon for the consumers. Since when w
46 Logos : Agreed. For public consumption, of course they will say that there will be no layoffs, but the only logic for a merged airline screams for them. From
47 RL757PVD : I smell BULL$hit How do you reduce flying by 10% without job cuts? Not only did they say reduced flying, but also getting rid of some aircraft. less
48 AirFrnt : I really should just stay out of A.net arguments over DL, since they pretty much have absolutely nothing to do with any facts, just emotions, especial
49 FFlyer : But Boeing, and other creditors, might think as many here; DL as a standalone carrier has a bigger chance to survive and buy (and pay) planes, than a
50 D L X : Without this merger, DL is likely to go back into BK soon because US's bid is going to make it very expensive to go it alone. US wins either way at t
51 RL757PVD : id say US has more to worry about than DL in the future. US severely lacks an international network that the rest of the legacies have, which is the
52 AirFrnt : Why? People keep on mentioning that somehow US will be a Airbus only shop, but in reality the US management was kicked out during their merger. There
53 D L X : What does that have to do with BK? How many international routes does WN fly? The point is that DL's exit strategy (forced upon them by the surprise
54 Post contains images TeamAmerica : I feel great sympathy for people who are facing change and all the unknowns that go along with it. We've all been there. The greatest bit of sorrow I
55 Post contains images SLCUT2777 : My honest "perception" (Notice that word Vega!) is that 02/01 is the deadline Parker has set in stone, so that he can then go to plan B and make a fo
56 IH8B6 : Yes we are. We have been through a lot. We may not be loosing the name, but we will be losing he heart of the company. Do you think employees of the
57 RL757PVD : WN is a true LCC with little debt INTL is where the real $$$ is, even without a merger, US was late to the game and airlines like DL, CO, UA and NW h
58 Post contains links D L X : How do you figure that? http://finance.yahoo.com/q/ks?s=LCC Lookst like around $3B to me. And again, a red herring, in my opinion. What does this hav
59 MasseyBrown : You have that totally right. Even if the takeover fails, the revised US bid will force Delta to retain much more debt than is healthy for its reorgan
60 ARGinLON : I struggle to understand what are you afraid considering you don't know what the corporate culture is like at US. Probably is a better than DL. Who k
61 Micstatic : Well this would certainly make US look silly wouldn't it
62 Panamair : How do you figure that? DL's current exit strategy as a standalone carrier offers virtually no cash to the creditors. Debt load will also be much low
63 RL757PVD : because they started a ton of then after they went into CH11! Notice how DL's CH11 duration in BK was far shorter than UA's.... if anything INTL rout
64 TeamAmerica : Even if the takeover succeeds, the new Delta will have more debt! And BTW, second bankruptcies aren't much of an option anymore with the change in th
65 LAXdude1023 : I call BS on that one. More than ever, I believe this merger is about greed and making people who are already rich, richer. This is a loser for emplo
66 MasseyBrown : True, but they would have a bigger earnings base to support it. Isn't it third bankruptcies that are the third strike? Or has the law changed yet aga
67 AirFrnt : Which of course is why the most profitable carrier over the last 30 years has been WN? Please, think about what you post, and don't just accept the c
68 SeeTheWorld : More hostile than it already is? I've got an idea - If the merger goes through, why don't all DL employers try to destroy the combined airline. That'
69 Bbobbo : Actually, the DOJ does have jurisdiction in airline mergers, along with the DOT. Any mergers would have to pass muster with both. For example, when U
70 RL757PVD : Thats what little to no debt and a true LCC structure gets you.... something that a merged US/DL carrier would be VERY far from being!
71 Post contains links SLCUT2777 : You're reading the wrong lines and wrong report. The proposed merger debt isn't going to be in the Yahoo stock quotes. But an 8.78 P/E ratio isn't ve
72 TeamAmerica : The law was changed effective October 17, 2005, which is why NW and DL filed when they did - just before the changes came into effect. There is no "t
73 Post contains links and images D L X : No. It would make US look genius if they can prevent DL from becoming profitable without actually having to manage DL. Not BS. Go visit www.buildinga
74 Scbriml : The company is run purely for the benefit of the shareholders. I'm sure you knew that already. I work for a large US corporation. Our #1 goal is safe
75 Lawgman : As others in the minority have said, this is really about providing value to shareholders (or in this case the creditors) of Delta. If the deal makes
76 AndrewUber : As has been mentioned before, it doesn't really matter what Delta's response will be, and the cool red buttons don't matter either. It's what the sha
77 DeltAirlines : The real winner of any merger between these two might just be UA. Look over on FlyerTalk and see how many elites (on both sides!) that would leave the
78 D L X : This leads me to ponder - what can Boeing get out of DL? Don't they already have their planes? If DL keeps its management, they're not going to order
79 JayDub : US has proven they can't even get one merger straight...what makes them think they can work out two mergers? Am I the only one that sees US slowly but
80 D L X : Come on dude, US's service is not any better or worse than DL's. I've only been treated very well at US. The only airline that has treated me better
81 RL757PVD : all of these mergers will surely shake up the FF base, and the most lucrative business fliers (like cellphone users!) will go with whoever has the bes
82 SBN580 : I'm sorry, but I never said that HP management was incompotent. That being said, we have seen other attempts to weld airlines together in the last 25
83 MasseyBrown : Ah, that change. But it did nothing to a company's ability to refile, which I thought was the topic. As it happens, Delta is trying to file in about
84 NADC10Fan : I kept finding myself thinking the same exact thing. Between '05 and '06 I passed through Atlanta ... hm, 5 times? Not one of those instances was on
85 D L X : RL757PVD, you've said this many times, but repetition does not make it true. Do you think that Parker et al. are dummies? I'm sure they are well awar
86 Post contains images Charger : I will not use the word superior, but IMO they are better. That's just my opinion after using both airlines extensively. Yet. Maybe in the future you
87 Logos : I would say it will depend where you live, just like it does now. I would assume that the merged company will still maintain an almost choking presen
88 Post contains links RL757PVD : From www.buildingabetterairline.com FAQ section : If this goes through, would we be the largest airline? Indeed we would! We'd be the largest US dome
89 SeeTheWorld : Dude! What are you talking about? Your comment doesn't even make sense.
90 AirEMS : Or in the words of a soldier in WW2 when asked by the Germans to surrender his reply was simply: "Nuts" A reply to which General Patton commented: "A
91 SeeTheWorld : Of course they are considering that there will be other mergers. You can be sure they have run any number of models of potential mergers and analyzed
92 SeeTheWorld : Dude, your confused. The US (HP management) I'm talking about is the PHX folks that ran America West, not the US Airways folks in Arlington, VA. Thos
93 Logos : And, so what? The answer will be correct given everything that's knowable today. What would you expect them to say in a public document? "We'll be nu
94 SeeTheWorld : Again, you speaking of the old US, whose management doesn't exist anymore. With few exceptions, the current management of US is the HP management. Yo
95 LAXdude1023 : This would basically be the story of how HP became a monster airline if the merger goes.
96 Charger : I was responding to a quote earlier about why Delta is in Bankruptcy. 90% of the blame rests on the old Delta management who are also gone. So if a c
97 NADC10Fan : Interestingly, isn't the part of the argument in Delta's favor as well? The management that drove them into BK was Mullin et.al.; the current managem
98 SBN580 : Logo discussion is really for another thread but.... The widget is actually quite representative. It is triangular or "delta" shaped. It has movement
99 SeeTheWorld : That is certainly a point, but it's not exactly the same. Many of the same senior managers are at DL. That is not true of the HP/US situation.
100 D L X : I never once said I agreed or disagreed with it. RL757PVD said US hadn't said anything about it, and I showed him where they had. Don't shoot the mes
101 Rikkus67 : My biggest concern with this proposed merger comes from watching what happened here in Canada. Pacific Western Airlines bought out the much larger Can
102 Post contains images TeamAmerica : True, the new bankruptcy law doesn't affect filing, but it very much effects the outcome. An airline filing Ch.11 in the future faces a much tougher
103 LawnDart : Delta's management requested from the Bankruptcy judge, and was granted, a period of exclusivity in filing a plan of reorganization. Correct me if I'
104 SBN580 : Another good example. Thanks for adding another historical example to the discussion. The Canadian airline industry has merged itself to one major ai
105 Bbobbo : Talk about misunderstandings breeding misunderstandings. First, I think it was LAXdude1023 you're referring to, not RL757PVD. Second, you took LAXdud
106 Post contains images Steeler83 : That would be mine too That is why I am emphatically against it. PIT has suffered enough. If that is cut any further, they should just pull out all t
107 AirFrnt : Actually, by DL's (somewhat suspect) accounting system, this bid comes in at $13-15 billion.
108 Micstatic : It is worse per my experiences and more importantly the JD Power service measure.
109 D L X : US stated at that point that they weren't going to raise it at that point but reserved the right to reconsider.
110 RL757PVD : I did not they they are not planning for it, but they havent said one iota about it, probably because if they did it would negatively impact their pr
111 D L X : Running a business is like playing poker. Sometimes even when you have the best cards, you don't show them. Neither is Doug Parker. Well, I hope you
112 Evan767 : Maybe because if the merger goes through, my mother will lose her job. US employees at her station have way higher senority than the DL ones. Use you
113 TeamAmerica : Scream, squirm, whatever...they can argue their case, but they don't decide. Delta's exclusive right to file a reorganization plan currently ends Feb
114 Post contains images LawnDart : Huh? By "this bid", do you mean US's revised offer for DL, or DL's self-valuation delivered with their reorganization plan. If the latter: From Delta
115 Positiverate : Such as...?
116 HighFlyer9790 : i really wanty DL to stay single-otherwise a market wide consolidation may happen within the coming years, raising prices.
117 JayDub : Please explain how my comment doesn't make sense. I think it's pretty straight forward. The US/HP has been quite a mess. Have you flown US post US/HP
118 NW748i : Well if they don't "Make My Delta Their Delta" in this power play, methinks their only option will be to get swallowed by AA... if the authorities al
119 Flybyguy : I really don't understand the overwhelming hostilities towards US Airways in this takeover bid. First and formost an airline is to provide value to in
120 AirFrnt : Umm. reread what I said (or you can keep trolling). The US offer, by the same methodology that the Blackstone group used to evaluate Delta is now wor
121 DeltaJet757 : I wish US would just back off and leave DL alone. Not to mention but parker and his people are being real pests. If DL wants to do their own thing le
122 GOCAPS16 : Keep Delta My Delta.
123 AirRyan : The fact is this is a capitalisitc society and either DL does not deserve to come back out of BK or they need to be acquired by US - to cry foul and
124 D L X : Can *someone* tell me just how it's "their" Delta? (Sorry to pick on you GOCAPS, but no one seems to want to answer this.)
125 VonRichtofen : This is a hostile take-over attempt. It's not up to Delta to decide, it's up to Delta's shareholder and creditors. Kris
126 LAXdude1023 : Thanks much Bbobbo. That is exactly correct. Im dont doubt they have said that, I know that they have. Its just that there is alot of sugar-coating g
127 Micstatic : It's a thing called pride in your company. I could elaborate, but it's pretty clear and simple conceptually.
128 RL757PVD : under that thought process, US should have been already gone.... twice
129 DLPMMM : I am not an employee, creditor or shareholder. I am a platinum level international business flyer that used to be a gold level US Airways flyer. I do
130 Micstatic : I think most people believe of all carriers to merge or take-over DL, US Airways brings the least to the table. I agree with DLPMMM on US's treatment
131 D L X : Thanks for your response! But I have to ask, you do know the word "my" implies ownership, correct? So the next question is, in what way do the employ
132 Micstatic : There are many different types of "ownership". I think you may have an easier time understanding this if you look at the employees as stakeholders. I
133 DLPMMM : DALPA (the DL pilots) are one of DL's largest creditors and have publicly denounced the HP takeover, so obviously you do not know what you are talkin
134 Post contains links AirFrnt : According to the docket, DALPA is a unsecured creditor at Delta. Looking at the list of the top twenty unsecured creditors, DALPA isn't even listed:
135 D L X : To add to what AirFrnt said, what about the other employee groups? There are an awful lot of people that are saying "Keep Delta *my* Delta" when it d
136 Micstatic : I don't really mean to be mean, but you just have to get over it. Delta people don't seem to want anything to do with US Airways. I realize in the NE
137 SBN580 : Yes, and if there were no US Airways, where would America West be? United should be gone as well by this logic. There is no true capitalism or commun
138 D L X : Quite frankly, it's not for me to get over. I'm not on either side. I think there are a lot of people who would say the same about Delta.
139 Post contains links DLPMMM : " target=_blank>http://www.deltadocket.com/delta_dow...n.pdf This shows how much you know, the link you provided was for unsecured creditors to the De
140 Post contains links Fdex727 : US Air's SEC filing concerning the merger.
141 Luketenley : I was with my g/f and family today taking her brother to the gate to fly back to Iraq and noticed the Delta employees at PIT wearing the Keep Delta My
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