staralliance85 From United States of America, joined Jul 2011, 201 posts, RR: 0 Posted (3 years 5 months 2 weeks 2 days 7 hours ago) and read 18716 times:
With Delta being the second largest airline and Not having a strong West Coast base, would it be smart for them to grab AS and expand their West Coast presence? The farthest West Coast base that Delta has is SLC. United has strongholds at SFO and LAX while DL has lAX, SEA and PDX as focus cities at best! The strategy should be to expand their domestic network (taking over AS) and adding a SEA to HKG and PVG route (in addition to their NRT,KIX and PEK routes) , which will lead to a much easier connection to Asia. If this were to happen, DL would be on par with UAL (SFO and LAX) and Air Canada (YVR) with best connections to Asia.
lhr380 From , joined Dec 1969, posts, RR:
Reply 7, posted (3 years 5 months 2 weeks 2 days 7 hours ago) and read 18449 times:
Quoting point2point (Reply 5): Well, the main reason anyone would want to do this is $$$$$$$$$......
Being non alliance they can codeshare with who ever they want and make more money. They seem to be doing quiet well as it is, why would they want to get rid of the deals they have now and only align themselves to one alliance/airline
chrisjw From United States of America, joined Jan 2009, 123 posts, RR: 0
Reply 9, posted (3 years 5 months 2 weeks 2 days 7 hours ago) and read 18338 times:
For what it is worth, Bill Ayer (CEO of AS) recently said that AS has no desire for a merger.
Quote: Alaska Airlines CEO Bill Ayer pilots a rarity in the airline industry — a carrier that has made it through a turbulent decade without filing for bankruptcy or merging with another airline.
He plans to keep it that way, despite speculation that the Seattle airline is too small to operate alone.
"The history of mergers in this industry is not a good one," said Ayer, Alaska's CEO since 2002 and CEO of Alaska Air Group. "There have been rumors about somebody buying Alaska Airlines as long as I've been here, and probably longer than that."
So considering a merger is out, DL would have to do an outright buyout, and with Alaska Airlines being the most profitable carrier in 2010 and had the most profitable first quarter this year (just over $74M), I don't think DL would be in a good position to buy AS.
BD338 From United States of America, joined Jul 2010, 739 posts, RR: 0
Reply 10, posted (3 years 5 months 2 weeks 2 days 7 hours ago) and read 18208 times:
Has this topic now officially replaced the "when will NW/DL retire the DC9" threads as the most frequently asked DL question?
I see zero benefit to DL in making such an acquistion and even less for AS. Both do very nicely out of the current arrangement, gaining and sharing business without the hassle of M&A. AS gets to 'share the love' with plenty of other airlines. AS has a fairly unique situation of having expertize in serving many remote areas of the PNW and Alaska, with a loyal customer base, that could well be lost in any merger. The present situation allows other airlines to offer the AS destinations which couldn't be justified in their own networks. AS gains passengers/revenue from many airlines, I doubt a merged DL/AS (or any other combo) would open up to codeshare with so many other airlines so one of the financial benefits enjoyed by AS at present could well be lost in any merger scenario, making the whole prospect even less attractive.
The DL/AS arrangement doesn't seem significantly different to the previous NW/AS deal which never seemed to generate questions of when NW would buy AS.
LV From United States of America, joined Jun 2001, 2007 posts, RR: 0
Reply 11, posted (3 years 5 months 2 weeks 2 days 6 hours ago) and read 17750 times:
Nothing is impossible.... but I would put the likelihood of this happening kind of down the list a ways.... probably right after US East and West pilots become BFF's and hold a joint news conference to praise Parker's leadership.
SESGDL From United States of America, joined Jan 2001, 3489 posts, RR: 10
Reply 12, posted (3 years 5 months 2 weeks 2 days 5 hours ago) and read 17423 times:
Quoting DLPMMM (Reply 1): Alaska does not want to be aquired and Alaska's market cap is high enough to make a hostile takeover almost impossible for Delta.
Alaska's business model would probably not be as profitable under Delta's payscales and work rules as well, so much of their value would be lost in a merger.
The exact same thing is said of AA and B6, yet many AA insiders are adamant that an AA/B6 merger is inevitable. I think the same can be said of a DL/AS merger. This is a time in American history when companies are growing through acquiring all the competition, and doing so to remove excess capacity and gain greater control over pricing. Weren't people on here confident that CO would never agree to merge with UA? Look where that is now. In 10 years, possibly 5, I see three legacy carriers: AA, DL, and UA, (who knows what's going to happen with US), and one major low-cost carrier to balance everything out: WN.
EA CO AS From United States of America, joined Nov 2001, 13751 posts, RR: 61
Reply 14, posted (3 years 5 months 2 weeks 2 days 4 hours ago) and read 17141 times:
Quoting mayor (Reply 16): Quoting chrisjw (Reply 9):
"The history of mergers in this industry is not a good one,"
I would say that this is an awful general statement. DL/NE/WA was pretty smooth as well as DL/NW.
So, you're citing just three mergers as having been smooth compared to how many other mergers/LBOs in the industry that haven't lived up to the expectations, destroyed shareholder value and/or resulted in the loss of thousands of jobs?
I'd say Bill's commentary is spot-on.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
dfwexecplat From United States of America, joined Jul 2011, 22 posts, RR: 0
Reply 17, posted (3 years 5 months 2 weeks 2 days 3 hours ago) and read 16741 times:
Hmmm..seems to me that so many folks on here seem to believe that bigger is better?? Not sure merging anything and everything is the right answer. Southwest has never been the biggest but always wildly successful. I think Jet Blue, Alaska and the like are just fine as they are. There are also seem to be a lot of people concerened that AA needs to merge to be competitive with UA and DL...They just need to be leaner and meaner! I hate seeing all these airlines being gobbled up...just means less competition and higher prices.
Braniff727Ultra From United States of America, joined Jul 2010, 109 posts, RR: 0
Reply 20, posted (3 years 5 months 2 weeks 2 days 1 hour ago) and read 15753 times:
SLC may be DL 's most westerly "hub" but they have & continue to grow their presence at LAX. Sure it's not a hub in the true escence of HUBS but the growth plans DL has put in place I see no reason to grab AS.
aviators99 From United States of America, joined May 2008, 456 posts, RR: 0
Reply 24, posted (3 years 5 months 2 weeks 1 day 19 hours ago) and read 12430 times:
I haven't participated in the other threads on this topic, but have thought about it...
How about in a hypothetical situation where the Skyteam partners get fed up with how cozy DL and AS are right now (reciprocal upgrades and elite status, early boarding, mileage and awards deals, etc)? I don't know how the politics of these alliances work, but if the current DL-AS arrangements were *disallowed*, would that add value to DL to consider a merger?
Let's also set aside AS's statement that they are disinterested...
25 EA CO AS
: Why stop there? I mean, if you're going to ignore reality because it's too inconvenient....how about we assume AS also has 25 firm orders and 25 opti
: Let's also have one for: 1) When is NW (now DL) retiring the DC-9? 2) Airbus v. Boeing 3) Continental v. every other legacy (why they are so much bet
: It's fun to play hypothetical mergers, but the reality is that merging two companies together is not always the best for all of those involved. We've
: I've wondered the same thing... Maybe it's *because* of AS' continually stating they want to be left alone?
: Why beat up on the newbies? Why not welcome newbies to the forum and help educate folks who are obviously very interested in aviation rather than ber
: The more they play hard to get, the more they get pursued........people or corporations.
: I don't see an AS DL merger for a couple reasons. One, as pointed out, is the cost of the purchase. I can't see that kind of cash rolling into DL. Two
: Thinking back to the 80's I get the same perception about mergers myself. CO and the Big Boom merger in 87, NW/RC, AA/OC, US/PI/PS, OZ/TW and of cour
: AS doesn't put out press releases constantly saying that they don't want to merge. They are always responding to speculation and others asking them t
: Uugh, what will put this to rest aside from it actually happening? Obviously Bill Ayer saying its nonsense and Delta not ever saying anything isnt eno
: whoa dude. I meant it in fun. And to be honest it was kinda serious. Since the topic is brought up so regularly it might not be a bad idea. I know th
: This point will eventually be moot. Have a look at the LAX threads and you will read AS will move to Terminal 6, and this will not result in an uncom