nycfly75
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Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 4:12 am

 
cltguy
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 4:30 am

Let the stacking of the deck begin.

Note that USAirways hasn't uped its offer yet...just added a respected financial institution that has bought into the merger.
 
blueflyer
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 4:48 am

It doesn't mean very much other than US saying they're essentially planning on borrowing money from Morgan Stanley and Citibank to fund their merger plan if it happens.

All you can infer from this press release is that both banks believe that US' plans are solid enough that they're worth loaning out a few billions for. It's an endorsement of sorts, but it's also the kind of deals the two banks (and several others) do for a living, it's not major news.
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airfrnt
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 4:50 am

With both the Citi group, and Morgan Stanley, US Airways has a huge portion of the investment community coming into this merger, and it gives US room to increase the bid if they need to.

It also will increase institutional investors willingness to fund portions of the combined US/DL debt. Morgan Stanley has a reputation for making a lot of money, but at a lot of risk.
 
atlflyer
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:23 am

Quoting BlueFlyer (Reply 2):
It doesn't mean very much other than US saying they're essentially planning on borrowing money from Morgan Stanley and Citibank to fund their merger plan if it happens.

All you can infer from this press release is that both banks believe that US' plans are solid enough that they're worth loaning out a few billions for. It's an endorsement of sorts, but it's also the kind of deals the two banks (and several others) do for a living, it's not major news.

Morgan Stanley and Citibank aren't necessarily loaning out money; they are the underwriters for the debt offering to finance the deal; the institutional investors who purchase the debt are the ones loaning out the money.

Morgan Stanley is a very prestigious name on Wall Street, so by adding a name like Morgan Stanley, I am sure US Airways hopes people may look at the deal in a new way.
 
WesternA318
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:26 am

Quoting AirFrnt (Reply 3):
With both the Citi group, and Morgan Stanley, US Airways has a huge portion of the investment community coming into this merger, and it gives US room to increase the bid if they need to.

Amen, and I can't wait for SLC's T2 to start sporting US Airways plane at the gate...
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flight777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:32 am

If US and DL were dating, I guess US doesn't understand N.O. means NO!!
 
vega
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:34 am

This on the same day that Gordon Bethune is meeting with US Airways.
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deltadawg
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:35 am

Ain't goin' to happen. Just ain't goin' to!

US already has its hands tied up in dealing with it own debt and labor problems. I really am surprised that Morgan Stanely would get behind something like this unless they see a liquidation of assets and something they can turn a profit on in a relatively short period of time.
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WesternA318
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:42 am

Quoting DeltaDAWG (Reply 8):
US already has its hands tied up in dealing with it own debt and labor problems. I really am surprised that Morgan Stanely would get behind something like this unless they see a liquidation of assets and something they can turn a profit on in a relatively short period of time.

My company's investments are with Morgan Stanley and and we keep buying LCC stock. Our upper management says its a good deal, and I think so as well. Hell, when the merger goes through,I cash out on top with my company, and DL can liquidate for all its worth.
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:48 am

Quoting AirFrnt (Reply 3):
With both the Citi group, and Morgan Stanley, US Airways has a huge portion of the investment community coming into this merger, and it gives US room to increase the bid if they need to.

   They will need to do this since it seams the major creditor players are balking at the idea of so much of the deal thus far being in US stock which doesn't have the stability of a good P/E ratio being as new on the market as it is. It appears as if they've tipped their hand as to wanting cash to be a significantly larger portion of this deal, but the financial risks for Morgan Stanley and Citi' Group will undoubtedly go higher.

Quoting AirFrnt (Reply 3):
Morgan Stanley has a reputation for making a lot of money, but at a lot of risk.

   Money could be made in this deal over the long term but it really is a big IF.

[Edited 2007-01-08 22:51:15]
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blueflyer
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:49 am

Quoting ATLflyer (Reply 4):
Morgan Stanley and Citibank aren't necessarily loaning out money; they are the underwriters for the debt offering to finance the deal; the institutional investors who purchase the debt are the ones loaning out the money.

I was trying to keep it simple. I know by personal experience that pretty much every industry is included in the aviation world, but I figure most aviations fans are not necessarily experts, or interested, in the details of debt financing for the same reason I don't expand on the use of Ethernet onboard the A380....

 tired   tired 
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ikramerica
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 6:52 am

Quoting BlueFlyer (Reply 2):
It doesn't mean very much other than US saying they're essentially planning on borrowing money from Morgan Stanley and Citibank to fund their merger plan if it happens.

Actually, it means two large institutions thing enough of their plan to risk $7.5Billion against it.

What US really needs is Boeing to come in. US has not officially committed to the 350X, DL is a Boeing customer with outstanding orders, and with Boeing capital involved, a "sweater" deal including good slots for 787s and additional 77Ls would really help.

Looking through their proposals, I don't see the US/DL merger as this horrible thing, but I believe they will be forced by the DOJ (or whoever) to divest assets in the Middle Atlantic. The current #1 and #2 merging would dominate that region.

The question is, who is up for those assets? AA could take over 1/2 of the shuttle operations. UA needs more presence in that market and Florida, and losing the US partnership would mean they need to make up slack. NW could use assets there but are in no position to do much.
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:01 am

Quoting Ikramerica (Reply 12):
but I believe they will be forced by the DOJ (or whoever) to divest assets in the Middle Atlantic. The current #1 and #2 merging would dominate that region.

It would likely be substantial. The DOJ would likely force a combined US/DL to give up at least half if not more of their slots at LGA and DCA. The largest beneficiaries will undoubtedly be WN and B6. I think getting a second financial play like Morgan-Stanley behind this deal is assuming they could divest some of these slots for a great price as well as DL's MD-88/90 fleet. As for Boeing, I don't see them signing onto this buyout until they feel it is best for them in the long haul. Doug Parker is totally committed to taking the combined carrier Airbus. Perhaps not publicly, but Airbus helped him turn HP around in a big way quickly once he came on board in 1995, something he also started when he was at NW prior to that.
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:03 am

Quoting WesternA318 (Reply 5):
Amen, and I can't wait for SLC's T2 to start sporting US Airways plane at the gate...

Airbus?
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LAXdude1023
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:25 am

This indeed will help their case, but they still need more.

Quoting Ikramerica (Reply 12):
What US really needs is Boeing to come in.

Absolutely. Boeing (pretty much) has the power to make or break the deal. If US could sway boeing to its side, then game over for DL. But if Boeing sides with DL, I would put my money on DL coming out alone.
It is what it is...
 
ikramerica
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:29 am

Quoting SLCUT2777 (Reply 13):
As for Boeing, I don't see them signing onto this buyout until they feel it is best for them in the long haul.

Absolutely. Boeing has to gain some ground here, or they will fight it.

I don't buy the "allegiance to airbus from 12 years ago" argument. That's a stupid way to run a mega-company, when Airbus, Boeing and the rest are really not the same entities they were 12 years ago. They offer different aircraft (for the future), Airbus has become a different kind of company, Boeing ate up MD, etc.

If US were so Airbus positive, they would have said: we reaffirm our A350 orders in regard to this new A350X project.
Instead they said: we have paid back our money to Airbus and are free to make any choice we like...

If US can play the Airbus thing against Boeing, they, as I said, can get prime hold back slots for the 787, good deals on additional 77Ls, and preferential placement in line for the 737RS. Until then, they can continue taking new 738 and A320 aircraft (the fleets are big enough for both to coexist without issue) and ween off of the MD80s right away.
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whappeh
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:30 am

Quoting Flight777 (Reply 6):
If US and DL were dating, I guess US doesn't understand N.O. means NO!!

If the Open Market was like dating, I'm sure a lot of companies would be in jail for rape... alas its not, and this great thing our country uses called Capitalism lets it happen.
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N908AW
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:34 am

Quoting Flight777 (Reply 6):
If US and DL were dating, I guess US doesn't understand N.O. means NO!!

Good one...
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vega
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:42 am

Quoting SLCUT2777 (Reply 13):
Doug Parker is totally committed to taking the combined carrier Airbus.

There you go again. Trying to turn a supposition into a fact. Do you personally know Parker? Do you work for US? Are you a major Creditor? I suggest you learn how to use the phrase: "IN MY OPINION". When you started an earlier thread about DL at SLC, you made the following statement in Quotes "":

Quoting LAXdude1023 (Reply 46):
We cant live like US will get their grimmy hands on DL. I for one refuse to even entertain the notion that this will happen. DL will come out alone and SLC will flourish. I refuse to let US and their crowd get me down anymore!!!

"Very much agreed! But again, lets not attract that crowd of cockroaches to this thread."

I suggest you follow that advice and stick to threads you know something about - and US Airways isn't one of them.
We are but a moment in this vast Universe and when gone we will never have existed.
 
ikramerica
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:52 am

Quoting Whappeh (Reply 17):
If the Open Market was like dating, I'm sure a lot of companies would be in jail for rape... alas its not, and this great thing our country uses called Capitalism lets it happen.

yes, efficient markets and allowing companies to fail and be bought out is the root of all evil...  Wink

a merger would be the best thing for the market and the consumer assuming that certain conditions were met.

as for no means no, the night is still young. US's just knocked on the door and offered some flowers. DL is playing cold, but lets see what happens when they go to the dance club and start shaking it for a while. A few drinks, DL sees how other girls look at US, he says all the right things...  Wink
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panamair
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:05 am

Quoting Ikramerica (Reply 20):
A few drinks, DL sees how other girls look at US

Ah...therein lies the salvation for DL, 'cause which 'other girls' are going to be looking at US? Big grin Sad truth is, most other girls (and probably even some boys) have looked at US and passed.....
 
N908AW
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:11 am

Quoting Ikramerica (Reply 20):
as for no means no, the night is still young. US's just knocked on the door and offered some flowers. DL is playing cold, but lets see what happens when they go to the dance club and start shaking it for a while. A few drinks, DL sees how other girls look at US, he says all the right things... Wink

Good lord, I didn't need the visual. Interesting...the airline industry is susceptible to sex too? Where will the Freudian tendencies end?  eyebrow 
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LAXdude1023
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:17 am

Quoting Ikramerica (Reply 20):
as for no means no, the night is still young. US's just knocked on the door and offered some flowers. DL is playing cold, but lets see what happens when they go to the dance club and start shaking it for a while. A few drinks, DL sees how other girls look at US, he says all the right things...

HAHAHA!!! Love the analogy Ikramerica. We come from the best area of the country, so people from SoCal are mostly jolly!!!

But the analogy seems to fit the situation. They are "doing the dance". It will just come down to the creditors. If im not mistaken, Boeing has a very large pull and could make or brake it.
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:24 am

Quoting WesternA318 (Reply 5):
Amen, and I can't wait for SLC's T2 to start sporting US Airways plane at the gate...

I for one hope that day never comes. Given my past, very negative, experiences on HP, I will avoid the "new" DL at all costs. Anyway, the livery will not change. Don't forget that the new entity would remain DL regardless of the fact that US is doing the buying.
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airfrnt
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:31 am

Quoting SLCUT2777 (Reply 10):
Money could be made in this deal over the long term but it really is a big IF.

Banks are actually surprisingly good at getting cash on deals like this out shorter term. I do find it amusing how many people seem to think that Bethune is going to save DL from US, when the DL creditor community appointed the man who has been the most outspoken advocate of consolidation in the industry over the last five years.

That being said, emotional responses notwithstanding, Bethune's report to the creditors will probably consist of the phrase "not quite what DL is worth, but close... throw in another billion to sweeten the deal and we are done". The question will then be if US will be willing to meet a bigger price (almost certainly if the UA/CO deal picks up strength) and how much of their route structure they will have to give up to meet DoT's requirements (hint, not as much as people think).
 
NW748i
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:33 am

Quoting ATLflyer (Reply 4):
I am sure US Airways hopes people may look at the deal in a new way.

Well it certainly gets my attention. I think this will certainly have an impact on the general public's view. Thus far people like Oberstar have sat there saying how no seems to be in support of this merger, which is something that will influence your typical Joe. This move by MG says the exact opposite and will quite possibly get the ball rolling for other banks to step in on Doug's side.

I'm hoping that we hear what G. Bethune has to say about this latest news soon. Someone mentioned the timing up above. If Stanley's move was to influence Bethune for when he step in from of his clients on Wednesday morning to report, it can make one heck of a difference whatever the minutiae.
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panamair
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 8:40 am

Quoting AirFrnt (Reply 25):
if US will be willing to meet a bigger price (almost certainly if the UA/CO deal picks up strength)

There will be no UA/CO if there is no DL/US - Kellner will conveniently lose Tilton's number the second a DL/US deal falls apart...
 
N908AW
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 10:10 am

Yay! Jump on the merger bandwagon...Everybody's doing it!
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FlyPNS1
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 10:49 am

The financial community has usually favored mergers in the industry for two reasons:

1) Banks make lots of money off of M&A activity.

2) For a long time, the financial community has wanted mergers to reduce legacy capacity and help the legacies establish more pricing power. Since deregulation, there has been too much legacy capacity chasing too few customers at too low a price. Mergers can solve that problem.

Of course, the financial community doesn't care about the impact on airline employees or the communities served by all these airlines.
 
TL8490
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 11:22 am

Boeing will NEVER support this deal and here is why....

IF DL and US Merge the first thing they will do is reduce capacity....AKA Less Planes.....If DL and US merge then CO and UA and then AA and NW....all this will result in less need for new aircraft....Boeing does not want that...

The point that will stop this dead in its tracks is the continued time in Chapter 11.....creditors want something for sure now versus more later...they have already written off part of this debt against a great 2006 year
 
jlbmedia
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 11:53 am

To sum up what I see in a nutshell, US is making money and fortifying it's takeover position by continuing to bring on very impressive financial backers. While Delta is printing cute buttons for people to wear. John
JLB54061
 
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 12:08 pm

Quoting Jlbmedia (Reply 31):
To sum up what I see in a nutshell, US is making money and fortifying it's takeover position by continuing to bring on very impressive financial backers. While Delta is printing cute buttons for people to wear. John

Actually John, I wouldn't put it past DL CFO Ed Bastian to be putting together a counter financial deal. He pointed out recently DL has had several competing offers for exit financing, and I think there are many financial and investment firms that are likely interested given the progress DL has made in chapter 11. Keep in mind they have managed to get through it in less than half the time it took UA to exit. UA has done quite well and is attracting even more investors. I think creditors likely have taken a look at how UA has done seeing a highly profitable future in the restructured carrier. I think the crew in ATL is going to launch a counter attack very quickly. But having Parker and US up the ante in the percentage of cash from roughly 45% of the deal to 80-85% certainly will be a temptation. The "unofficial" creditors will likely increase the heat on the official committee very quickly to say the least.

Quoting TL8490 (Reply 30):
Boeing will NEVER support this deal and here is why

Boeing has the most to gain or lose in this deal.
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atmx2000
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 3:18 pm

Quoting Ikramerica (Reply 12):

Looking through their proposals, I don't see the US/DL merger as this horrible thing, but I believe they will be forced by the DOJ (or whoever) to divest assets in the Middle Atlantic. The current #1 and #2 merging would dominate that reg

Well I could never figure out what to do with US and DL after mentally merging CO with UA and AA with NW. If US and DL can figure out somehow to make their highly overlapping networks mesh, that solves my dilemma.  Wink
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HPRamper
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 3:34 pm

Quoting Flight777 (Reply 6):
If US and DL were dating, I guess US doesn't understand N.O. means NO!!

It'll be more like an arranged marriage. Nobody cares if the daughter wants it or not. The parents made their agreement.

Quoting OA412 (Reply 24):
Don't forget that the new entity would remain DL regardless of the fact that US is doing the buying.

In name only. US has in fact become basically a really big HP regardless of what's painted on the planes and printed on the tickets. I'd even wager that the Cactus callsign would be kept through a possible DL acquisition.

Quoting Atmx2000 (Reply 33):
If US and DL can figure out somehow to make their highly overlapping networks mesh

The entire point is that they overlap. US isn't going for a nationwide network (a la a merger with NW), they are going for domination of a selected region...the southeast and mid-Atlantic. Personally I like the idea of a NW merge better, but I'm not a financial expert and the people running the show doubtless looked at this with the treasury in mind.
 
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 3:45 pm

Quoting HPRamper (Reply 34):
In name only. US has in fact become basically a really big HP regardless of what's painted on the planes and printed on the tickets. I'd even wager that the Cactus callsign would be kept through a possible DL acquisition.

I realize all this but my post was in response to another poster saying that Terminal 2 in SLC will be overrun by US liveried aircraft which is clearly not going to be the case as the aircraft will still say DELTA on them even if the airline is Delta in name only.
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ikramerica
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 5:22 pm

Quoting LAXdude1023 (Reply 23):
But the analogy seems to fit the situation. They are "doing the dance".

And last call is hours away...

Quoting HPRamper (Reply 34):
It'll be more like an arranged marriage. Nobody cares if the daughter wants it or not. The parents made their agreement.

Now it really comes down to whether the requisite number of goats can be delivered.
Of all the things to worry about... the Wookie has no pants.
 
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 7:32 pm

Quoting HPRamper (Reply 34):
It'll be more like an arranged marriage. Nobody cares if the daughter wants it or not. The parents made their agreement.

With all of the possible financial players coming into this who knows. Quite obviously DL is more attractive than what many realize and we get this:

slcut2777
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andrewuber
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RE: Morgan Stanley Joins US Bid For DL

Tue Jan 09, 2007 9:42 pm

As much as I like Delta, this could very well be the straw that breaks the camel's back. All the creditors can hear now is "Keep Delta My Bankrupt Delta".

Any more money gets piled on, and this thing will really pick up steam.
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SBN580
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RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 12:29 am

Quoting OA412 (Reply 35):

I realize all this but my post was in response to another poster saying that Terminal 2 in SLC will be overrun by US liveried aircraft which is clearly not going to be the case as the aircraft will still say DELTA on them even if the airline is Delta in name only.

Yes, I am afraid that would burst his bubble. I have already sent an email to Morgan Stanley opposing the merger and that I will take my business elsewhere should a merger happen.
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worldtraveler
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RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 12:41 am

it only means MS wants in on the potential action. yes, US could raise the bid but if they do it will be undoubtedly be to add more debt - you don't need MS to add equity. The creditors have to decide if adding any unnecessary debt (part of the current US proposal) makes sense. Given that DL and other carriers went through BK because they had too much debt, it doesn't make alot of sense to want DL to add back debt that will only hinder their ability to compete by raising their costs - and at the same time increasing the risk of another BK which would wipe out the creditor's ownership in the reorganized DL.

Remember that the creditors are generally long-term suppliers to the industry. They do not want to eliminate potential business they could have in the future any more than they want to reduce their chance of recovery. They want the greatest recovery with the highest certainty. DL's plan may not offer the most cash now but with the lowest debt load for an airline of its size and the lowest costs among network carriers along with increasing revenues, DL will be the LAST network carrier that has to go through BK again.

of couse, US has to make the antitrust issues "go away" - something that is highly unlikely to happen since legislators in both DL and US strong states are opposed to the deal. No amount of spinning or divestitures will change the fact that two very large competitors could become one - and capacity would be reduced on top of that. No government in the world wants that kind of proposal from business.
 
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SLCUT2777
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RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 12:46 am

Quoting WorldTraveler (Reply 40):
The creditors have to decide if adding any unnecessary debt (part of the current US proposal) makes sense. Given that DL and other carriers went through BK because they had too much debt, it doesn't make alot of sense to want DL to add back debt that will only hinder their ability to compete by raising their costs - and at the same time increasing the risk of another BK which would wipe out the creditor's ownership in the reorganized DL.

Remember that the creditors are generally long-term suppliers to the industry. They do not want to eliminate potential business they could have in the future any more than they want to reduce their chance of recovery. They want the greatest recovery with the highest certainty. DL's plan may not offer the most cash now but with the lowest debt load for an airline of its size and the lowest costs among network carriers along with increasing revenues, DL will be the LAST network carrier that has to go through BK again.

of course, US has to make the antitrust issues "go away" - something that is highly unlikely to happen since legislators in both DL and US strong states are opposed to the deal. No amount of spinning or divestitures will change the fact that two very large competitors could become one - and capacity would be reduced on top of that. No government in the world wants that kind of proposal from business.

 checkmark   checkmark   checkmark  All very important issues the proponents of this deal fail to adequately address.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
 
DLPMMM
Posts: 2121
Joined: Wed Apr 20, 2005 12:34 am

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 1:07 am

I think that if Mr. Parker manages to pull of the takeover of DL, he and his investors will be in for a rather nasty suprise.

While his takeover is predicated on reducing competition and maintaining a virtual monopoly on the Legacy South East USA market, I think that the combined DL/US will almost immediatly encounter a sustained revenue shortfall verses projections. The revenue shortfall will especially hit the international portion of their system as DL international business frequent flyers such as myself jump ship to CO, UA, and AA.

There is a reason that I have not flown on either HP or US in the last 4 years. They do not cater to the international business customer. There are many more like me who do not care so much about what airline we fly on, but the experience. In the past, DL and US were equally convenient, but with a DL/US combination, I expect that CO/AA/UA will upgrade my city to mainline and add additional flight to their hubs.

I am sure that I will have no trouble in getting a status match from any of the competing carriers.
 
 
miamix707
Posts: 3848
Joined: Tue Oct 21, 2003 2:22 pm

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 1:25 am

Quoting Ikramerica (Reply 20):
a merger would be the best thing for the market and the consumer assuming that certain conditions were met.

Yeah sure, especially with all the other ones who are going to want to merge after this "to remain competitive". This persistence only shows corporate greed. A few investors will make a fortune, passengers will have less options/higher fares and a legacy name will be gone not to mention jobs.

I guess US is desperate to see if they can get something done before DL emerges from bankruptcy, which could be soon. I wish there was some kind of rule that woudln't let this happen. As it has been said plenty of times, the two airline's networks highly overlap, this merger would have no positive results for the majority.

I know that a ramp rat for example, working for Comair can get free flying benefits in 30 days. I know someone who went to apply for US Airways and they told him 6 months... So US seems to me like a sh*tty company who's just trying to get as big as possible and have a competitive advantage that way.

Quoting Panamair (Reply 21):
Ah...therein lies the salvation for DL, 'cause which 'other girls' are going to be looking at US? Sad truth is, most other girls (and probably even some boys) have looked at US and passed.....

 Silly
 
MCOflyer
Posts: 7071
Joined: Tue Jun 13, 2006 5:51 am

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 2:31 am

Quoting SLCUT2777 (Reply 10):

Agreed

Quoting AirFrnt (Reply 3):

Agreed

Quoting Ikramerica (Reply 20):
as for no means no, the night is still young. US's just knocked on the door and offered some flowers. DL is playing cold, but lets see what happens when they go to the dance club and start shaking it for a while. A few drinks, DL sees how other girls look at US, he says all the right things...

No US has just bugging DL hoping they'll accept the date, drink to a new airline, then get their pants wet and merge.

I wonder what FAA is saying about this. Will it be best for DL to merge or will be best to let them go and survive through BK. They exit it this May I believe.

MCOflyer
Never be afraid to stand up for who you are.
 
HPRamper
Posts: 4595
Joined: Sat May 14, 2005 4:22 am

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 2:36 am

Quoting Miamix707 (Reply 44):
I know someone who went to apply for US Airways and they told him 6 months...

Interesting, perhaps they haven't yet changed that to match HP. I could fly after two weeks.
 
ca2ohHP
Posts: 657
Joined: Sat Sep 17, 2005 4:14 am

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 2:40 am

Quoting Miamix707 (Reply 44):
I know that a ramp rat for example, working for Comair can get free flying benefits in 30 days. I know someone who went to apply for US Airways and they told him 6 months... So US seems to me like a sh*tty company who's just trying to get as big as possible and have a competitive advantage that way.

You couldn't be more wrong. It's 15 days for US...NOT 6 months. 6 months is the new hire fleet probationary period.
 
jfk777
Posts: 5840
Joined: Tue Aug 22, 2006 7:23 am

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 3:26 am

Usairways should forget Delta and buy Northwest. Dl and US have big operations to Europe and almost none to Asia, buying NW get US the big Asian network they don't have and a huge fleet of A330's to go with US's current A330-300's. US & NW hubs don't overlap with the exception of Memphis. Detroit and MSP would complement US's hubs on both coasts very nicely. Both operate large A320 fleets so the fleets are very similar except for different engines on the 757's, NW's 744's and NW doesn't have 767.
 
miamix707
Posts: 3848
Joined: Tue Oct 21, 2003 2:22 pm

RE: Morgan Stanley Joins US Bid For DL

Wed Jan 10, 2007 3:47 am

Quoting Ca2ohHP (Reply 47):
You couldn't be more wrong. It's 15 days for US...NOT 6 months. 6 months is the new hire fleet probationary period.

that's what this person told me, I have to be honest I don't know for sure.

Quoting Jfk777 (Reply 48):
Usairways should forget Delta and buy Northwest

That's what would make more sense, I still wish no mergers would take place though. US and NW would seem like the perfect fit at a glance, why is neither interested in the other?

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