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Delta-Alaska Airlines Merger?  
User currently offlinestaralliance85 From United States of America, joined Jul 2011, 201 posts, RR: 0
Posted (3 years 3 weeks 1 day 10 hours ago) and read 17847 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.


brad Fitzpatrick
36 replies: All unread, showing first 25:
 
User currently offlineDLPMMM From United States of America, joined Apr 2005, 3589 posts, RR: 10
Reply 1, posted (3 years 3 weeks 1 day 10 hours ago) and read 17819 times:

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.

Not going to happen in the foreseeable future I think.


User currently offlineaznmadsci From United States of America, joined Dec 2007, 3659 posts, RR: 5
Reply 2, posted (3 years 3 weeks 1 day 10 hours ago) and read 17807 times:

AS seems to be happy teaming up with whomever they want, regardless of alliance, and have no desire at this time to merge.


The journey of life is not based on the accomplishments, but the experience.
User currently offlinehatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 3, posted (3 years 3 weeks 1 day 10 hours ago) and read 17705 times:

Here...we...go...again...

User currently onlineKPDX From United States of America, joined Dec 2005, 2729 posts, RR: 2
Reply 4, posted (3 years 3 weeks 1 day 10 hours ago) and read 17706 times:

Why would AS even want to do this?


View my aviation videos on Youtube by searching for zildjiandrummr12
User currently offlinepoint2point From United States of America, joined Mar 2010, 2740 posts, RR: 1
Reply 5, posted (3 years 3 weeks 1 day 10 hours ago) and read 17617 times:

Quoting KPDX (Reply 4):
Why would AS even want to do this?

Well, the main reason anyone would want to do this is $$$$$$$$$......   

And if there were enough of it, well......


User currently offlineBCEaglesCO757 From United States of America, joined Mar 2011, 242 posts, RR: 2
Reply 6, posted (3 years 3 weeks 1 day 10 hours ago) and read 17617 times:

From most posts on here, I was under the impression that DL's current Hub network was just fine. Isn't that why they merged with NW ?

I don't see merging with anyone now or in the near future as a smart move on their part.


User currently offlinelhr380 From , joined Dec 1969, posts, RR:
Reply 7, posted (3 years 3 weeks 1 day 9 hours ago) and read 17580 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


User currently offlinepoint2point From United States of America, joined Mar 2010, 2740 posts, RR: 1
Reply 8, posted (3 years 3 weeks 1 day 9 hours ago) and read 17516 times:

Quoting lhr380 (Reply 7):
why would they want to get rid of the deals they have now and only align themselves to one alliance/airline

if there was enough $$$$$$$$$, anything is possible, and that would probably be the major reason of why, so I guess that's all I can really say.....  


User currently offlinechrisjw From United States of America, joined Jan 2009, 123 posts, RR: 0
Reply 9, posted (3 years 3 weeks 1 day 9 hours ago) and read 17469 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."
http://seattletimes.nwsource.com/html/businesstechnology/2015064635_alaska16.html

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.

Just my   


User currently offlineBD338 From United States of America, joined Jul 2010, 702 posts, RR: 0
Reply 10, posted (3 years 3 weeks 1 day 9 hours ago) and read 17339 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.


User currently onlineLV From United States of America, joined Jun 2001, 1992 posts, RR: 0
Reply 11, posted (3 years 3 weeks 1 day 8 hours ago) and read 16881 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.

User currently offlineSESGDL From United States of America, joined Jan 2001, 3466 posts, RR: 10
Reply 12, posted (3 years 3 weeks 1 day 7 hours ago) and read 16554 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.

Jeremy


User currently onlinemayor From United States of America, joined Mar 2008, 10351 posts, RR: 14
Reply 13, posted (3 years 3 weeks 1 day 7 hours ago) and read 16421 times:

Deja vu, all over again.  Wink
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.



Anyway, I think it's too early to speculate on this......lets finish the DL/NW merger, first, ok?

[Edited 2011-07-08 14:27:38]


"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 14, posted (3 years 3 weeks 1 day 6 hours ago) and read 16272 times:
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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
User currently onlinemayor From United States of America, joined Mar 2008, 10351 posts, RR: 14
Reply 15, posted (3 years 3 weeks 1 day 6 hours ago) and read 16201 times:

Quoting EA CO AS (Reply 17):

To me, the statement makes it sound as if NO merger has been successful. Maybe that's just my perception.



"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13517 posts, RR: 62
Reply 16, posted (3 years 3 weeks 1 day 6 hours ago) and read 16060 times:
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Quoting mayor (Reply 19):
Quoting EA CO AS (Reply 17):


To me, the statement makes it sound as if NO merger has been successful. Maybe that's just my perception.

I see your point. I do believe he was generalizing though, saying that when you look at the overall history of mergers in the airline industry, for the most part they haven't been a rousing success.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlinedfwexecplat From United States of America, joined Jul 2011, 22 posts, RR: 0
Reply 17, posted (3 years 3 weeks 1 day 5 hours ago) and read 15872 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.

Thoughts?


User currently offlineflyby519 From United States of America, joined Jul 2007, 1128 posts, RR: 0
Reply 18, posted (3 years 3 weeks 1 day 5 hours ago) and read 15772 times:

Quoting hatbutton (Reply 3):
Here...we...go...again...

The only thing worse than a DL-AS merger thread is an AA-B6 merger thread!



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User currently offlinepoint2point From United States of America, joined Mar 2010, 2740 posts, RR: 1
Reply 19, posted (3 years 3 weeks 1 day 5 hours ago) and read 15694 times:

Quoting flyby519 (Reply 22):
The only thing worse than a DL-AS merger thread is an AA-B6 merger thread!

How about a US-F9 merger thread?   

Or even better, a VX-NK merger thread?   


User currently offlineBraniff727Ultra From United States of America, joined Jul 2010, 109 posts, RR: 0
Reply 20, posted (3 years 3 weeks 1 day 3 hours ago) and read 14884 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.

User currently offlineCV880 From United States of America, joined Mar 2007, 1124 posts, RR: 2
Reply 21, posted (3 years 3 weeks 1 day 3 hours ago) and read 14978 times:

Quoting KPDX (Reply 4):
Why would AS even want to do this?

Why would DL need to do this just to get much of what they abandoned after the merger with WA, unless they don't want to wait in line for more 738/739 orders?


User currently offlineDeltAirlines From United States of America, joined May 1999, 8894 posts, RR: 12
Reply 22, posted (3 years 3 weeks 1 day 3 hours ago) and read 14793 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.

Not going to happen in the foreseeable future I think.

This post is the credited response. /endthread.


User currently offlinemurchmo From United States of America, joined Sep 2005, 166 posts, RR: 0
Reply 23, posted (3 years 3 weeks 1 day 1 hour ago) and read 13177 times:

Why don't we just keep an ongoing "the neverending AS merger thread"? That way newbies can research to their hearts desire all the discussions of old and post new questions.


to strive to seek to find and not to yield
User currently offlineaviators99 From United States of America, joined May 2008, 455 posts, RR: 0
Reply 24, posted (3 years 3 weeks 22 hours ago) and read 11561 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 Post contains images 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
26 delta2ual : 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
27 srbmod : 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
28 nwaesc : I've wondered the same thing... Maybe it's *because* of AS' continually stating they want to be left alone?
29 dfwexecplat : 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
30 mayor : The more they play hard to get, the more they get pursued........people or corporations.
31 davescj : 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
32 ABQopsHP : 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
33 hatbutton : 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
34 woodsboy : 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
35 Post contains images murchmo : 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
36 Post contains links phatfarmlines : 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
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