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The Real Value In The US-DL Merger?  
User currently offlineBobbydgg From United States of America, joined Feb 2001, 99 posts, RR: 0
Posted (7 years 8 months 2 weeks 1 day 19 hours ago) and read 2880 times:

In reading over both the US Airways merger proposal and DL's rebuttal, it seems to me that the unspoken value in the US-DL merger is the "New Delta's" ability to raise prices stemming from its market power as the largest airline in the world.

In its presentation, US emphasized only the synergies that the companies achieve by using the bankruptcy rules to reduce capacity and thereby improve profit margins. Obviously, US has downplayed the enhanced pricing power of the new airline due to anti-trust concerns.

For those with knowledge of the proposed transaction, what am I missing in terms of the merits of the US proposal?

3 replies: All unread, jump to last
 
User currently offlineAirFrnt From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 1, posted (7 years 8 months 2 weeks 1 day 17 hours ago) and read 2810 times:

Quoting Bobbydgg (Thread starter):

For those with knowledge of the proposed transaction, what am I missing in terms of the merits of the US proposal?

It's a combination not only of reduced capacity driving up fares, but also in elimination of duplicated jobs (primarily management, but also gate staff, and some maintainence).

Also greater traffic into a hub helps demarginalize profitable international routes. In other words, that extra flight from spokane into Atlanta might help make a extra flight to LHR, which is money.


User currently offlineFlyDeltaJets87 From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 8 months 2 weeks 1 day 14 hours ago) and read 2731 times:

Quoting AirFrnt (Reply 1):
In other words, that extra flight from spokane into Atlanta might help make a extra flight to LHR, which is money.

Kinda' hard to go direct from ATL to LHR.  wink 


User currently offlineCharliejag1 From United States of America, joined Aug 2006, 240 posts, RR: 0
Reply 3, posted (7 years 8 months 2 weeks 1 day 14 hours ago) and read 2727 times:

Quoting FlyDeltaJets87 (Reply 2):
Kinda' hard to go direct from ATL to LHR

Wait, Hartsfield isn't on the list?


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