justapassenger
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US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 8:37 pm

It looks like America West (now US) wants to become one of the big 3 by specializing in merging with airlines just coming out of bankruptcy.

http://www.post-gazette.com/pg/06181/702279-28.stm

I found the article very interesting and one paragraph summarizes what US CEO Parker is thinking:

“… as Delta and Northwest get closer to emerging from bankruptcy, they may look for a merger partner on the way out, as US Airways did in 2005, and if that happens "we will be there to talk to them," Mr. Parker said. "It's not like something is certainly going on or we are actively working on anything right now." But, "we can't ignore it. It is too big a deal, and it may not come around again." “
 
PHLBOS
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 8:43 pm

Quoting Justapassenger (Thread starter):
I found the article very interesting and one paragraph summarizes what US CEO Parker is thinking:

“… as Delta and Northwest get closer to emerging from bankruptcy, they may look for a merger partner on the way out, as US Airways did in 2005, and if that happens "we will be there to talk to them," Mr. Parker said. "It's not like something is certainly going on or we are actively working on anything right now." But, "we can't ignore it. It is too big a deal, and it may not come around again." “

Will that mean we'll see DL & NW heritage liveries (including Northeast, Western, Republic & North Central) in the works?

IMHO, Parker may be biting off more than he can chew should he pursue DL and/or NW too soon.
"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
 
NewSky
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 8:54 pm

US sure do like their mergers don't they!
 
DAL767400ER
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 9:01 pm

Too bad though that neither carrier would want such a merger to happen  Wink . Besides which, could you imagine the uproar of the DOT over a merged DL/US entity? Domination in BOS, domination at LGA, domination at DCA, large presence at PHL, large presence at JFK? Too much Northeast domination for the DOT to ever allow such a merger to happen.
 
BHMNONREV
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 9:13 pm

Quoting PHLBOS (Reply 1):
Will that mean we'll see DL & NW heritage liveries (including Northeast, Western, Republic & North Central) in the works?

Well, any talk of Republic would have to include a couple of these babies in retro colors. NW has enough DC-9's still around..


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Quoting PHLBOS (Reply 1):
IMHO, Parker may be biting off more than he can chew should he pursue DL and/or NW too soon.

No question...
 
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deltadawg
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 10:22 pm

This ain't going to happen! DOT won't let it happen, NW & DL don't want it to happen! And, HP would be foolish to try and make it happen!

Too much overlap and differences in fleets. Scenario: DL merger:
Hubs: ATL, CVG, SLC, CLT, PHL, BOS, JFK, LAS, PHX - focus cities: DCA, PIT, LAX, MCO, FLL.
Losers in such a deal: BOS, PIT, CVG, SLC, FLL

I am not going to go on - just ain't going to happen. If & big IF DL & NW were looking for merger partners they would merge with themselves - period.
GO Dawgs, Sic' em, woof woof woof
 
John
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 10:37 pm

Honestly, I don't think the DOT would allow a merger of this magnitude, since it would significantly diminish competition...this was the major reason for the UA/US failure/rejection. Also, we all know what happened after USAir swallowed PSA and Piedmont. The entire PSA route system was dismantled within 3 years and many of Piedmont's successful business strategies, such as the Florida Shuttle for instance, were gone.
 
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SLCUT2777
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:01 pm

Quoting DeltaDAWG (Reply 5):
If & big IF DL & NW were looking for merger partners they would merge with themselves - period.

Enough said! DL will likely emerge from Chapter 11 first in a fairly strong position late this year or early next year, so IF that were to happen, then look for it to come along in late 2007 or early 2008.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:08 pm

If you read carefully, Parker indicates that nothing is going on. It is just a scenario that is going to be on everyone's mind but it doesn't mean that US is going to merge with another one. In my opinion, that would be a bad idea. Why ruin a good thing with the merger of HP/US which is doing great so far.
The next generation of aircraft is just around the corner!
 
emseeeye
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:15 pm

"Both of those carriers are still in bankruptcy, and as US Airways learned in 2003 and 2005, both will be able to drastically reduce costs by giving unneeded airplanes back to lenders or renegotiating labor contracts -- making either company more attractive to potential partners.

It "presents an opportunity that may not exist for a long, long time," said Mr. Parker, who was in Moon yesterday to dedicate a new US Airways aircraft outfitted with an old Allegheny Airlines tail logo."


I would be willing to bet in the next 5 years we are probably going to be seeing quite a bit of consolidation. Some idea like this doesnt suprise me. With fuel prices through the roof and more than half the airlines taking a loss at least one quarter through the last year (and more to come) maybe this type of consolidation isnt a bad thing...
 
deltairlines
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:27 pm

Please don't let DL merge with US...that's all I'm hoping for. I've ditched US Airways now that they're cheapening their overall product (read FlyerTalk for details), while DL is intent on improving their overall product. I'd hate for Delta to regress into becoming US.

Jeff
 
MalpensaSFO
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:28 pm

Quoting Justapassenger (Thread starter):
It looks like America West (now US) wants to become one of the big 3 by specializing in merging with airlines just coming out of bankruptcy.

Money is with NW if anybody joining HP/US

Quoting DeltaDAWG (Reply 5):
This ain't going to happen! DOT won't let it happen, NW & DL don't want it to happen! And, HP would be foolish to try and make it happen!

Stranger things have happened.. Such as HP/US

Quoting John (Reply 6):
Honestly, I don't think the DOT would allow a merger of this magnitude

Why? To protect old hats AA and UA?
TO FLY IS TO SERVE
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:35 pm

I agree with the opinion that there will be more consolidation in the airline industry but i don't see USAirways merging again. I think you can have a "smaller" airline and be profitable instead of having a larger airline with a ton of employees (which would be the case with a US and NW merger) which would make it harder to deal with labor. I admire Doug Parker and what he has done to help US (along with the employees) to become a great airline. Just leave US as it is and let them complete the merger with HP.
The next generation of aircraft is just around the corner!
 
worldtraveler
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RE: US Airways Interested In Merging With DL Or NW

Fri Jun 30, 2006 11:55 pm

DL and US could never merge given their east coast overlap. Period.

It does make you wonder if Parker is more interested in making money from M&A activity rather than running an airline. In case you haven’t noticed, US is not exactly class leading in much of any metric since the HP/US merger but they sure have allowed LFCs to continue to grow in their markets. They’ve got a lot of work to do before they convince anyone they are a viable merger partner.
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:08 am

I have to disagree...Doug Parker made America West an airline that many people want to fly. I don't think Parker is more interested in making money...from what i recall he rejected a bonus or some type of payment not to long ago.
The next generation of aircraft is just around the corner!
 
worldtraveler
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:11 am

Ok… disagree but US is far from on sound footing yet. And they haven’t stemmed the flood of LFCs into their markets. I believe I just read that B6 is starting new service from PIT today in a key US market.
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:17 am

So what...the advantage US now has over many other carriers is that they have a strong footing in both the East and West. They are still getting the merger done but so far things are going MUCH more smoothly than thought.
The next generation of aircraft is just around the corner!
 
slider
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:24 am

Quoting BHMNONREV (Reply 4):
Well, any talk of Republic would have to include a couple of these babies in retro colors. NW has enough DC-9's still around..

And don't forget Bonanza or North Central either!



Crazy talk.....must be Friday. Or there must be something in the water in PHX.
 
worldtraveler
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:26 am

The industry as a whole is doing better than expected thanks to revenue improvements. And US has not improved its relative position in any markets because of the merger. US is a nationwide LFC but that doesn't necessarily mean anything when carriers routinely match each others' fares. And US does not have a cost advantage over other legacies. So what was accomplished by the merger other than to provide desperately needed funding to US and HP, esp. US that was very close to liquidation. All Parker has done is push out the D-Day for old US and pulled HP deeper into the fray.
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:37 am

WorldTraveler, obviously you have a US bug up your A**...you seem to be such a pessist regarding US that you are most definitley in the minority. What was accomplished by the merger was that US lived, if they had not merged, the airline would most certainly have failed. Many jobs were saved.
The next generation of aircraft is just around the corner!
 
HunUtazo
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:41 am

AMR - nwac


CAL - ual / f


LCC - fragments above/below


LUV - dal / f
dude
 
Alitalia744
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:42 am

Quoting 7E72004 (Reply 19):
What was accomplished by the merger was that US lived, if they had not merged, the airline would most certainly have failed.

Unfortuantely, true.
Some see lines, others see between the lines.
 
ca2ohHP
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:49 am

Quoting WorldTraveler (Reply 18):
And US does not have a cost advantage over other legacies.

I beg to differ, from Air Transport World, May 2006:

"According to a late February investment update, full-year CASM ex-fuel is expected to come in at around 7.25 cents versus 7.50-7.75 cents for the first quarter. That likely will put the carrier in the forefront of a tightly packed group of hub-and-spoke airlines but still behind Southwest. Parker says that isn't a target: "We are never going to have Southwest's level of CASM."

link: http://www.atwonline.com/magazine/article.html?articleID=1600
 
kiwiandrew

RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:52 am

Quoting HunUtazo (Reply 20):
AMR - nwac


CAL - ual / f


LCC - fragments above/below


LUV - dal / f

I am sure that you knew what you meant when you wrote that - but for the rest of us who haven't been taught your brand of shorthand could you please explain

I assume you are suggesting

AA/NW merger

CO /UA merger ( not sure what the 'f' means - unless it is a polite way of
indicating the reaction from the rest of the industry : f____!"

LUV - dal / f ( if you are suggesting the WN takes over DL then I think
you should change the 'f' to "Holy F____!" Big grin
 
steeler83
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:55 am

Quoting PHLBOS (Reply 1):
IMHO, Parker may be biting off more than he can chew should he pursue DL and/or NW too soon.

I agree. US just emerged bk after a successful HP/US merger. Why would he want to do that again?

Quoting SLCUT2777 (Reply 7):
Enough said! DL will likely emerge from Chapter 11 first in a fairly strong position late this year or early next year, so IF that were to happen, then look for it to come along in late 2007 or early 2008.

I think so too. DL as drastically improved their product and a whole slew of other things to become profitable. I don't think they'll merge with anyone.

Quoting WorldTraveler (Reply 15):
Ok… disagree but US is far from on sound footing yet. And they haven’t stemmed the flood of LFCs into their markets. I believe I just read that B6 is starting new service from PIT today in a key US market.

And from looking at the B6-in-PIT thread, hopefully PIT will do exceptionally well for B6 that they add more destinations as well as more flights, especially to West Coast Cities using the A320...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
worldtraveler
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 12:55 am

DL just reported an ex-fuel CASM below 7 cents and they are still restructuring. DL is US' biggest competitor.

I have no bug up anything about US.... I simply point out that they haven't accomplished near what they thought they would. When your archrival has surpassed in 8 months of BK what US/HP took 3 full BKs and a merger to accomplish, I wouldn't say US has accomplished a whole lot. And B6 and WN are not expanding in DL's hubs. Sorry if that sounds cruel but it's real.
 
ca2ohHP
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:00 am

Quoting WorldTraveler (Reply 25):
And B6 and WN are not expanding in DL's hubs.

Doesn't Delta have like $18 billion in debt? I wonder how little of that they're going to have to actually pay?
 
7e72004
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:04 am

It is not real...US was in BK two times...NOT three...and the reason they were in two bk's was because they had inept management that was driving the airline into the ground. And just because another airline got thru bankruptcy in eight months or whatever, does not mean that is what it takes for all airlines. US has accomplished a lot...probably one of the areas a lot has been accomplished in was the management has finally got its act together and has a CEO who knows what he is doing. Furthermore, the employee relationships are improving greatly...i have spoken to several US employees and they indicated that they are actually enjoying working for the new airline and they probably would not be saying that if the merger did not happen...they also indicated that many US employees have a lot of respect for Parker and that they like what he is trying to do for the company. So don't go and say that a whole lot has been accomplished.
The next generation of aircraft is just around the corner!
 
steeler83
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:05 am

Quoting WorldTraveler (Reply 25):
what US/HP took 3 full BKs and a merger to accomplish

They were not bankrupt 3 times, but I see your point, even though I also disagree with it. They posted the first quarterly profit in a while, and I only think things will get better for US...

Quoting Ca2ohHP (Reply 26):
Doesn't Delta have like $18 billion in debt? I wonder how little of that they're going to have to actually pay?

And didn't US pay off their debts? They owed some cash to Airbus IIRC, but that was taken care of I think...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
DL787932ER
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:12 am

Quoting HunUtazo (Reply 20):


AMR - nwac


CAL - ual / f


LCC - fragments above/below


LUV - dal / f

 rotfl  Can I buy some of those drugs from you?  rotfl 

Good sarcastic post, though. It's no crazier than lots of other nonsense that gets posted as ABSOLUTE FACT (because someone's brother's teacher's cousin's uncle was a UA captain and overheard Tilton coming out of the lavatory).
F L Y D E L T A J E T S
 
steeler83
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:15 am

Quoting DL787932ER (Reply 29):
Good sarcastic post, though. It's no crazier than lots of other nonsense that gets posted as ABSOLUTE FACT (because someone's brother's teacher's cousin's uncle was a UA captain and overheard Tilton coming out of the lavatory).

Oy vey...
Do not bring stranger girt into your room. The stranger girt is dangerous, it will hurt your life.
 
airmailer
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:18 am

Quoting DeltaDAWG (Reply 5):
This ain't going to happen! DOT won't let it happen, NW & DL don't want it to happen! And, HP would be foolish to try and make it happen!

I disagree with half of that statement.

Quoting DeltaDAWG (Reply 5):
I am not going to go on - just ain't going to happen. If & big IF DL & NW were looking for merger partners they would merge with themselves - period.

I highly doubt that DL would merge with anyone. And the only airline that seems a valid combination for DL is CO.

Quoting MalpensaSFO (Reply 11):
Money is with NW if anybody joining HP/US

 checkmark 
NW has lost it's place from 4th largest carrier down to 5th, and if I recall correctly they are in danger of getting past by WN and/or HP by the end of the year.
If HP/US merges with anyone, my money is on NW.
 
ca2ohHP
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:27 am

Quoting Steeler83 (Reply 28):
And didn't US pay off their debts?

Yeah I believe so, I was more curious about what US paid their debtors per dollar during bankruptcy as well as what DL is going to be paying theirs. I don't think US ever had the debt load that DL has. Worldtraveler is minimizing the seriousness of DL's position and I believe they (DL) has a few tremendous hurdles to overcome before you could say DL is in a better position than US.
 
airmailer
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:45 am

Quoting 7E72004 (Reply 16):
So what...the advantage US now has over many other carriers is that they have a strong footing in both the East and West

You're right, the 5 larger U.S. carriers have very little presence on the east or west coasts compared to HP/US  Yeah sure

Quoting WorldTraveler (Reply 18):
So what was accomplished by the merger other than to provide desperately needed funding to US and HP, esp. US that was very close to liquidation.

 checkmark 

Quoting 7E72004 (Reply 19):
What was accomplished by the merger was that US lived, if they had not merged, the airline would most certainly have failed. Many jobs were saved.

I'm gonna' have to ask you to tell the full truth there please. Big grin (see below)

Quoting Alitalia744 (Reply 21):
Unfortuantely, true.

Not Exactly.

Doug Parker himself said that HP would have filed for BK by the end of the year had it not been for the merger.

Quoting 7E72004 (Reply 27):
US has accomplished a lot...probably one of the areas a lot has been accomplished in was the management has finally got its act together and has a CEO who knows what he is doing.

 checkmark   checkmark  I agree completely on this point.
The old management at US was horrible!
I have a lot of respect for Doug Parker and what he was able to accomplish with what he had.
HP and US are both MUCH better off as a result of the merger.

Quoting 7E72004 (Reply 27):
Furthermore, the employee relationships are improving greatly...i have spoken to several US employees and they indicated that they are actually enjoying working for the new airline and they probably would not be saying that if the merger did not happen...they also indicated that many US employees have a lot of respect for Parker and that they like what he is trying to do for the company. So don't go and say that a whole lot has been accomplished.

I agree that the employees are happier than they were, but in all honesty I don't think that it could have gotten much worse at the old US. I do not envy those people for what they had to go through.

Quoting Steeler83 (Reply 28):
And didn't US pay off their debts? They owed some cash to Airbus IIRC, but that was taken care of I think...

No. Not exactly.
That was a loan that was given as exit financing from Airbus to protect 2 of their best customers in the U.S. from having to dump a whole lot of Airbus equipment on the market.
(Damn smart of them too in light of recent events!)


All Right!! Now that I got all of that out of my system; Go ahead. I'm Ready...  flamed  me!
 
airlineaddict
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:47 am

Quoting Kiwiandrew (Reply 23):
LUV - dal / f ( if you are suggesting the WN takes over DL then I think
you should change the 'f' to "Holy F____!"

Too funny! More like "What the F___!"  bigthumbsup 
 
luv2fly
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 1:48 am

Quoting PHLBOS (Reply 1):
IMHO, Parker may be biting off more than he can chew should he pursue DL and/or NW too soon.

Just because it has so called work this time, does not mean it will work again.
You can cut the irony with a knife
 
bobnwa
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 2:28 am

Quoting Steeler83 (Reply 28):
And didn't US pay off their debts? They owed some cash to Airbus IIRC, but that was taken care of I think...

Are you saying that US has zero debt? I don't think so.
 
UNITED777ORD
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 2:28 am

I think a merger between US/NW would give something that US has been lacking and that is a strong hub/feed in the midwest. If US/NW merge MSP and DTW are two hubs in the midwest that will greatly improve the efficiency and reach of the US route network. The major challenge of a US/NW merger is going to be the harsh relations between employee unions and management at NW. Otherwise, I hope US/NW merge within the next 2 years. That would be one heck of an airline:
HUBS: CLT, PHL, DTW, MSP, PHX, NRT
FOCUS CITIES: LAS, MEM, PIT, DCA, LGA, BOS, LAX, IND, SEA

Aircraft:
A319/320/321/332/333
B733*/734*/752/753/787
D9S*/D94*/D95*
CRJ/CR7/CR9
E70/E95
DH8/DH3

*The B733/734 and D9S/D94/D95 would be retired if the two carriers were to merge.

I hope this happens and hopefully US will still remain in the Star Alliance.

-United777ORD-

[Edited 2006-06-30 19:32:44]
 
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lightsaber
Crew
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 3:21 am

Quoting PHLBOS (Reply 1):
Will that mean we'll see DL & NW heritage liveries (including Northeast, Western, Republic & North Central) in the works?

 rotfl   rotfl 

Quoting MalpensaSFO (Reply 11):
Stranger things have happened.. Such as HP/US

 checkmark 

This pressure on NW and DL management. They now have to create more shareholder value (future shareholders, that is) than NW or DL merged into HP/US. Except for a few shuttle runs, I see no reason why DL couldn't be picked up. NW is a fraction healthier (in my opinion), but would be a nice fit with HP/US; this would give HP/US the pacific presense they lack making them a contender with AA and UA...

DL could work... but it isn't as straight forward as HP/US. Why?
NW already opperates A320's.
NW will probably opperate E190's which will work well with HP/US's E190's.
The NW A330/747 fleet could be consolodated with the HP/US fleet. This could be a killer A350 order... or not. The HP/US/NW merger would still lack a strong Europe/India/Africa presense though...  scratchchin 

DL's mixed single isle fleet is a liability Mr. Parker had better take into account. But with Pan Am's old Europe network merged with HP Western opps... that's a feeder stream that shouldn't be ignored. You then would need to push for trans-Pacific routes...  scratchchin 

I see more mergers ahead and this makes more sense to me than F9/B6 or any other LCC merger I've heard proposed.

Interesting...
Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
QXatFAT
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 3:34 am

Quoting MalpensaSFO (Reply 11):
Money is with NW if anybody joining HP/US

I agree. Why would they move with DL and still not have asia service? NW makes the better choice as US already flys to europe. Only thing still missing would be the South America flights.

South West will go international before a merger  Wink
Don't Tread On Me!
 
kyair
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 3:54 am

What airline CEO in their right mind would want to plunge head-long into the toxic soup that is labor-relations at NW?  yuck 
Don't cry because it's over, smile because it happened - Dr. Seuss
 
HVNandrew
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 3:57 am

As others have said, a DL/US merger just can't happen. They would OWN the east coast of the United States...ATL, CLT, LGA/JFK, BOS, PHL, and a huge presence in the Florida market. They'd also have alot of the west coast, with LAS, PHX, and SLC. But, hubs like CVG and PIT would be huge losers with a deal like that. I guess if you're looking to build a true mega carrier, that's the way to do it. But, we know the DOT wouldn't let that happen.

I still don't see a NW/DL merger. One, a major part of DL's reorganization efforts center on simplifying their fleet. Right now, they're doing a great job with that. The last thing they need is to take NW in, and deal with an additional 10+ aircraft types - many of the planes ancient. Two, the hub locations won't work. DL doesn't need MSP or DTW with SLC and CVG. I could maybe see them shutting down CVG in favor of one of the other two NW hubs, but SLC is going nowhere. DL keeps building it up, and it's an essential part of DL staying in the west coast market. And that leads me to three, NW is nothing in California. DL needs to focus on continuing its JFK buildup, and also on growing in LAX and southern California. NW is going to be of no help there - none.
 
TL8490
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 4:14 am

If you watch what is happening from a union standpoint at NW it looks like they are trying to become very similar to DL....If NW can throw out the FA contract and break the union like they did with the mechanics they will be down to the pilots as the major union...I think....someone will correct me if I am wrong....

At the same time they are trying to creat a Delta Global Services group which would help with the transition and cost structure.....

Only time will tell but...I am starting to think NW is trying to look alot like DL these days from an employee standpoint.
 
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mariner
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 4:16 am

Quoting Steeler83 (Reply 30):
Oy vey...

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bobnwa
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 4:58 am

Quoting TL8490 (Reply 42):
....If NW can throw out the FA contract and break the union like they did with the mechanics they will be down to the pilots as the major union

You are forgetting the IAM which represents ground services. CSA's, reservations agents and is the largest union at NWA.
 
ScottB
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 5:07 am

Quoting 7E72004 (Reply 16):
They are still getting the merger done but so far things are going MUCH more smoothly than thought.

I'm not so sure that's the truth. The biggest hurdles by far are still ahead -- integrating the several union groups and the resultant seniority battles, as well as consolidating reservations on SHARES (not to mention training the US East employees on it). If the brokenness of the website changeover is any indication, they still have a LOT of work to do. Moreover, many of the frequent flyers from the US side are up in arms over the changes to Dividend Miles. The current state of the merger isn't much more of a "merger" than the NWA/KLM transatlantic joint venture.

Moving gate locations around and slapping new coats of paint on aircraft is relatively straightforward. The big problems from the AA/TWA asset purchase weren't as obvious until AA ran into the post-9/11 airline industry implosion. Just wait until the fights start over seniority integration...
 
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 5:34 am

Quoting WorldTraveler (Reply 25):
DL just reported an ex-fuel CASM below 7 cents and they are still restructuring. DL is US' biggest competitor.

Delta downsized their domestic network by a big chunk, yet their domestic load factor trails competitors by a large margin. The move towards more international flying by Delta is not some brilliant strategy, it is their ONLY choice besides parking another couple of hundred of aircraft. Then there is too much competition in large international markets such as Paris, Frankfurt, London or Tokyo, so Delta has to throw the dice at services like Accra. Frequently, airlines in trouble devise this kind of international expansion only to postpone their end.


Quoting WorldTraveler (Reply 18):
All Parker has done is push out the D-Day for old US and pulled HP deeper into the fray.

Possibly he may do the same for Delta.
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HPLASOps
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 5:36 am

I think this article was one of those "lets check in with the HP/US merger and see if we can throw in a question that will catch Dougie off guard" interviews. I don't believe Parker is going to become merger happy just because this one is going along very smoothly. He gave a general answer, one that says there are no active plans to merge with anyone, but that such a scenario can't be ignored in the future. Take that with a grain of salt folks, and don't start picturing US with extra hubs in DTW, MSP, and ATL. Besides, the article already dismissed DL as a merger partner:

Quote:
But Colorado airline consultant Mike Boyd claims Delta is not interested in a merger. " I know they are not," he said. "The chairman of Delta told me that they are not."

This is not news folks, just Dougie getting trapped with a question.
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OzarkD9S
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 6:03 am

Quoting Steeler83 (Reply 28):


Quoting WorldTraveler (Reply 25):
what US/HP took 3 full BKs and a merger to accomplish

They were not bankrupt 3 times,

Yes, they were. US twice and HP once. Note the US/HP reference, combined total times in BK: 3.

[Edited 2006-06-30 23:11:12]
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RE: US Airways Interested In Merging With DL Or NW

Sat Jul 01, 2006 6:15 am

Quoting MalpensaSFO (Reply 11):
Quoting John (Reply 6):
Honestly, I don't think the DOT would allow a merger of this magnitude

Why? To protect old hats AA and UA?

Do keep in mind that it was the DOT that shot down the UA/US merger in early-to-mid 2001 due to anti-trust issues; a merger that would've created the largest airline in the world. So there's no way that US/DL merger would be approved (East Coast dominance)... US/NW might be another story. Prior to the HP/US merger last September (and before everyone knew about DL & NW filing for Chapter 11); many believed (or at least were speculating) a NW/US merger.
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