Continental123
Topic Author
Posts: 142
Joined: Mon Nov 27, 2006 3:10 am

Continental-Delta Merger?

Mon Nov 27, 2006 3:28 am

Hi this is my first post so please bear with me. With all of the recent discussion about mergers here I was wondering about a Continental-Delta merger.
Here are a few points:
a) The fleets are both all-boeing
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other
c) Both airlines are members of SkyTeam

Please post repectfully and give me your opinion on this possible merger.
 
JetBlueAUS
Posts: 852
Joined: Sat Apr 01, 2006 9:15 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 3:32 am

First off, welcome to A.net!

In all honesty, I am not a big fan of "What if ABC Airlines merges with XYZ Airlines?" because as of right now it doesn't look like CO and DL are going to merge and I really don't think its possible. Though other people's opinions my differ, I stand firm in mine.
Not all of us can be heroes, some of us can only stand on the sidewalk and clap as they go by.
 
dalb777
Posts: 1698
Joined: Thu May 26, 2005 9:35 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 3:34 am

Hi, welcome to A.net!

However, a DL/CO merger was discussed here last week:

http://www1.airliners.net/discussion...general_aviation/read.main/3102792
Geaux Tigers! Geaux Hornets! Geaux Saints! WHO DAT!!!
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:00 am

I thihnk it would be much more palatable to Delta and Continental employees than a US/DL merger.

JFK would probably be sold off, as would CLE or CVG.

I think this makes the most sense.

I do not believe, however, that NWA would allow it to happen....unless it included them as well.

My 2 cents.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
RiddlePilot215
Posts: 280
Joined: Wed Oct 29, 2003 2:19 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:07 am

Quoting Continental123 (Thread starter):
Hi this is my first post so please bear with me. With all of the recent discussion about mergers here I was wondering about a Continental-Delta merger.
Here are a few points:
a) The fleets are both all-boeing
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other
c) Both airlines are members of SkyTeam

Please post repectfully and give me your opinion on this possible merger.

Welcome to a.net!


Oh and secondly.....


Not a SNOWBALL'S CHANCE IN HELL

The corporate cultures of DL and CO are just WAAAAY too different to bear any kind of merger between the two.
God is good, all the time. All the time, God is good.
 
User avatar
EA CO AS
Posts: 13438
Joined: Wed Nov 14, 2001 8:54 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:10 am

Quoting Jetdeltamsy (Reply 3):
I do not believe, however, that NWA would allow it to happen....unless it included them as well.

NW's "Golden Share" allows them to have a say if another company tries to acquire CO.

Not the other way around, though - CO can acquire anyone they want and NW cannot block it.
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
User avatar
fxramper
Posts: 5837
Joined: Sun Dec 04, 2005 12:03 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:10 am

Quoting RiddlePilot215 (Reply 4):
The corporate cultures of DL and CO are just WAAAAY too different to bear any kind of merger between the two.

 checkmark   checkmark   checkmark 
 
RiddlePilot215
Posts: 280
Joined: Wed Oct 29, 2003 2:19 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:23 am

Quoting Continental123 (Thread starter):
b) With hubs in Houston, Newark, Cleveland, Cincinnati, Atlanta, Salt Lake City none really cross over besides Cleveland & Cincinnati and you can dissolve one of them into each other

Oh I also forgot to mention....Being from Cleveland....


Mayor Jackson would do everything in his POWER to stop the Cleveland hub from closing. Just simply based on the fact that CO is literally all the CLE has.... CO is repsonsible for nearly 80% of the traffic at Hopkins, and they put through 88% of the passengers.

Plus CO employes and trains an extremely large amount of Clevelanders, pumping hunderds of millions of dollars into an already faultering local economy (due to the downsizing of many of the Detroit automakers, the US steel industry tanking, and the fact that there aren't many "business" oriented industries in the city...Cleveland is still very much a manufacturing town). Cleveland can't AFFORD to lose CO....It's come close many times in the past, with the city generally making lots of concessions, and toning down their usually bullish attitude towards economic growth for the city, in order to maintain some sort of decency for a city that's seen so much decline over the last 60 years....

Cincy doesn't nearly have AS MUCH to lose...as Cincy has evolved into a banking, and pharmacutical powerhouse ( Fifth Third, Providient Bank, and P&G if I'm not mistaken). And unlike Cleveland, Cincy has seen considerable growth and improvement in their downtown, and riverfront districts over the last 30 years.
God is good, all the time. All the time, God is good.
 
AirframeAS
Posts: 9811
Joined: Thu Feb 05, 2004 3:56 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:27 am

Suggested Deletion of the entire thread to the mods.... We already have an official DL merger thread.
A Safe Flight Begins With Quality Maintenance On The Ground.
 
bobnwa
Posts: 4463
Joined: Fri Dec 22, 2000 12:10 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 5:54 am

Quoting EA CO AS (Reply 5):
Not the other way around, though - CO can acquire anyone they want and NW cannot block it.

The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.
 
CO767FA
Posts: 388
Joined: Mon Aug 08, 2005 1:45 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 6:12 am

Quoting Bobnwa (Reply 9):
The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.

Wrong Bob....only where the "control" would change. If CO is the acquirer, NW can only sit there and be quiet.
 
102IAHexpress
Posts: 898
Joined: Sat Feb 19, 2005 6:33 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 6:34 am

Hi. Welcome to Anet.
Well, CAL management has repeatedly said that CO prefers to grow independently and that a merger would only be considered if CO was left at a competitive disadvantage due to other airlines merging.
So that being the case, if US and DL merge, there’s no way CO and DL could merge. And if US and DL don’t merge CO still wouldn’t be interested in DL unless another merger not involving CO or DL took place.
Don’t know if that makes sense. But this link may help.

http://www.chron.com/disp/story.mpl/headline/biz/4359043.html
 
bobnwa
Posts: 4463
Joined: Fri Dec 22, 2000 12:10 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 6:50 am

Quoting CO767FA (Reply 10):
Wrong Bob....only where the "control" would change. If CO is the acquirer, NW can only sit there and be quiet.

If CO wanted to be the acquirer in a merger it would need billions of dollars from investors. With the billions of dollars would be certain requirements on CO's part, by the investors. This would cause the control of CO to change. Just like when Bonderman virtually controlled CO before he sold the stake to NW.

NW will not allow control of CO to be adverse to their interests. CO may very well end up merging but it will be with NW's ok.
 
RiddlePilot215
Posts: 280
Joined: Wed Oct 29, 2003 2:19 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 6:53 am

Quoting Bobnwa (Reply 12):
NW will not allow control of CO to be adverse to their interests. CO may very well end up merging but it will be with NW's ok.

One question...in the event of NW ever going the way of PanAm or Eastern...who do the rights go to?

Or even being absorbed by another carrier...but that conclusion can already be drawn....the rights would just go to the new carrier....
God is good, all the time. All the time, God is good.
 
dutchjet
Posts: 7714
Joined: Sat Oct 14, 2000 6:13 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 6:57 am

Quoting Bobnwa (Reply 12):
If CO wanted to be the acquirer in a merger it would need billions of dollars from investors.

Not necessarily.......a deal could be constructed using debt. I agree is would be difficult and probably not financially prudent, but if a DL/CO deal were to happen (heavans forbid), CO would be the acquring airline taking over larger DL. The lawyers and the bankers could work this out and CO could, in theory, take over DL without giving NW any opportunity to block the deal. Does any of this make sense? I think not.
 
PlanesNTrains
Posts: 5449
Joined: Tue Feb 01, 2005 4:19 pm

RE: Continental-Delta Merger?

Mon Nov 27, 2006 7:01 am

Quoting AirframeAS (Reply 8):
Suggested Deletion of the entire thread to the mods.... We already have an official DL merger thread.

I'm not clear - if we want to discuss any merger involving Delta, we need to use the official DL/US thread? It's going to become a little unwieldy when the thread reaches 400 posts in about 6 months.

Continental123, I've always thought the two carriers make a great fit, but whether they end up getting together is another story of course. Like said above, if US+DL goes away, then CO may just go back to business as usual. However, if AA makes a run for DL (for example), then CO may be forced to act. Who knows. I tend to like US-NW, AA+DL, and UA+CO as possibilities, but we shall see.

-Dave
-Dave
 
jetdeltamsy
Posts: 2688
Joined: Tue Nov 14, 2000 11:51 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 7:03 am

Quoting RiddlePilot215 (Reply 13):
One question...in the event of NW ever going the way of PanAm or Eastern...who do the rights go to?

If they went belly-up, the routes would be auctioned off by the bankruptcy court.

NWA could always sell them in bits and pieces as they see fit.

NWA isn't going anywhere. Theirs is one bankruptcy that will be successful, you can count on that. Their management are ruthless to the core and failure is not an option at NWA. They will cut and and cut until they are back to profitability (which, i think, they arleady are).
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
diamond
Posts: 3000
Joined: Sun Apr 11, 2004 8:01 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 7:08 am

As this thread involves a Delta merger, please continue it in one of the recently created threads dedicated to this subject:

http://www1.airliners.net/discussion...eneral_aviation/read.main/3105695/
Blank.
 
ATLFlyer323
Posts: 487
Joined: Sun Jan 16, 2005 2:01 am

RE: Continental-Delta Merger?

Mon Nov 27, 2006 7:21 am

Quoting Bobnwa (Reply 9):
The golden share allows NW to control CO's merger intentions whether it is the aquirer or the aquiree.

May I ask what this "golden share" is please?

Thanks,
Brandon
Everyday, the fluffy temptation of wheat!

Who is online

Users browsing this forum: A330NZ, atypical, Baidu [Spider], BoeingVista, euroflyer, Gemuser, hummingbird, KarelXWB, knope2001, MattSYD, Moosfliege, Pbb152, SomebodyInTLS, SyeaphanR, ty97 and 351 guests