Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 7:43 am

I dont get this, ever since UA and US merged, why would DL ,AA,NW and CO merge with one another, just because they undergo talks doesnt mean that anything will happen, these press releases are probably only to stop US and UA from merging, just because the press says something, that doesnt mean that it is true, the press lies all the time or puts things in that arent true. the press could even be making this stuff, I mean just because one airline CEO has dinner with another airline CEO doesnt mean that they will discuss any alliance whatsoever, they could have been to high school or grown up with each other and were just catching up on things, more than likely the press is making 50-75% of this stuff up or the airlines are doing this so the government wont approve the US-UA merger.I mean most of this stuff is made up and I doubt that any of these airlines are going to merge with one another, they dont even have alliances with each other(except for NW and CO) so that makes the "merger" even more doubtfull.
comments welcome,

RE: Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 9:37 am

Anytime a mega-merger of this magnitude is announced, regardless of the industry, all of the other major industry players scramble to merge or form some type of alliance that will still leave them in a competitive position should the merger receive approval.

Whether or not the exact details provided by the media are accurate, you can be pretty sure that Continental, American, Delta, Northwest, and the rest of the U.S. airlines are all seriously evaluating their ability to compete against United/US by themselves. Those that do not feel they can do so are certainly looking into mergers and other alliances. At a time like this, discussions between top airline executives aren't simply casual meetings.

I don't think the other airlines can do anything to cause United to back out. The pending merger discussions only create more of an incentive for United to tighten its grip on the market.
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RE: Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 10:47 am

Well considering that I'm in ATL at the World Headquarters doing MD-88/90 training, rumors are extra hot and heavy (again) about Continental, however the American annoucement today hit like a ton of bricks around the campus too.

Besides, if us (Delta) and American merged we would have like 38% of the market which is good. American wants a stronger presence in the east, Delta wants a stronger one out west. Granted AA isn't very strong out west but reallocating assets to that region would be a lot easier with a 1300 or 1400 aircraft fleet. AA wants more RJ's, we have zillions of RJ's.

Strange(r) days ahead.

Doug Taylor
Delta MD-88/90FO
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RE: Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 2:23 pm

Everyone needs to take a major CHILL PILL on this merger nonesense. If any merger (or mergers) is/are going to happen, it will require approvals from many, many people (few of which have any reason to say 'yes'), and will be months in the future. In the end it is a very real posibility that, after all the dust settles, nothing will have changed at all.
Working Hard, Flying Right Friendly....
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RE: Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 9:42 pm

Yes however industry consolidation is a reality and once it begins, the game of "musical chairs" can be brutal.

Besides, even though Microsoft is under attack now, AT&T has "re-"acquired MediaOne, AOL married Time-Warner, etc. If the Department of Justice approves the UA/US merger resulting in about 31% of the US market, what would be so unbelievable about a DL/AA merger with 36% market share?

Doug Taylor
Delta MD-88/90 FO

RE: Is This Merger Mania Crap Really True?

Thu Jun 08, 2000 10:47 pm

I think NW will be looking seriously if you take into account that their current alliance is with KLM and the BA/KLM merger talks are looking very serious.
Where does that leave NW?
BA are currently aligned with AA in One World.

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