Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Do DL/CO/NW Have To Merge?  
User currently offlineNwa747-400 From United States of America, joined Sep 2000, 1337 posts, RR: 4
Posted (15 years 2 months 3 weeks 4 days 7 hours ago) and read 3117 times:

My question is, why can't DL , CO , and NW just create an alliance such as the CO/NW deal now. NW/CO have a substantial market share with their alliance and with DL onboard they would have the biggest market share in the industry.

While they would not have to deal with all the problems of a merger and the customer would be happy because they would still have the ability to choose between several airlines, not just three?

I think a "mega alliance" between DL, CO, and NW is much more attractive than a "mega merger" of all or part of the three.

3 replies: All unread, jump to last
User currently offlineDCA-ROCguy From United States of America, joined Apr 2000, 4647 posts, RR: 31
Reply 1, posted (15 years 2 months 3 weeks 4 days 7 hours ago) and read 3098 times:

That's a big question mark. If the Bush Administration approves AA-TW and UA-US, the others will bleat that they have to merge too to remain competitive. I'm not convinced, but the DL-CO-NW will simply bleat and bleat, year after year, until they'are allowed to merge. Industries don't usually settle out in two sharply distinct tiers of major companies.

The funny thing is, AA-TW wouldn't produce that unbalanced situation in the industry. AA-TW would give AA 22.6 percent of the US market, only 2.4 percent more than UA has now. I don't see any structural reason for any merger other than AA-TW to be approved, but Don Carty cannily stapled AA-TW and UA-US together in order to save the yummy anticompetitive round of consolidation the execs all want.

I'm still undecided, but am leaning towards allowing AA-TW and canning everything else. The industry won't be *that* out of balance if only AA-TW merge.


Need a new airline paint scheme? Better call Saul! (Bass that is)
User currently offlineNwa747-400 From United States of America, joined Sep 2000, 1337 posts, RR: 4
Reply 2, posted (15 years 2 months 3 weeks 4 days 6 hours ago) and read 3084 times:

That was my point. AA/TW is only a little larger than the UA we all know (and love...ha) today. So let AA/TW do their thing to save TW employees and STL, but make the others stay the way they are.

All the airlines are then more or less equal

CO/NW alliance

and the rest

User currently offlineAeroGlobeAir7 From United States of America, joined Jan 2001, 586 posts, RR: 2
Reply 3, posted (15 years 2 months 2 weeks 5 days 10 hours ago) and read 3059 times:

Yeah, that's true, and Delta, Continental, and Northwest could always do something to compete more heavily, they're good companies, they can think of something.

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...
DL/CO/NW Expected To Announce Codeshare On Friday posted Fri Aug 23 2002 02:09:20 by B747-437B
Why Don't CO, DL, Or NW Fly To Australia? posted Sat Aug 28 2004 08:23:03 by ACB777
DL/CO/NW To Implement Agreement Despite DOT posted Tue Jan 21 2003 19:58:06 by TWFirst
Should DL/CO/NW/US Get Access To Heathrow? posted Fri May 12 2000 06:41:09 by VH-BZF
Do DL MD-88s Have Coat Closets? posted Sat Feb 25 2006 21:52:13 by DL4EVR
Airline Analyst Says DL And NW Lean To 11. posted Thu Jun 23 2005 20:46:17 by Isitsafenow
CO's Bethune Wants To Merge With UAL posted Thu Oct 14 2004 04:30:15 by Ramper@iah
AA/DL/CO/NW/US/UA -what's The Difference? posted Fri Dec 26 2003 02:52:30 by Expex
DL/CO/NW Award Redemption/booking... posted Thu Jun 19 2003 23:49:21 by Jessman
DL / CO / NW Finally Cleared posted Tue Apr 1 2003 02:44:39 by Artsyman