|Quoting Xbraniffone (Thread starter):|
"In an interview with the Star Tribune at his Eagan office, Chief Executive Doug Steenland said that Northwest will spend a total of $6.2 billion to acquire 32 new Airbus A330s and 18 Boeing 787s for overseas travel, modify 10 Boeing 757s for flights to Europe and add 72 new 76-seat regional jets for domestic flights. Some of the airplanes already have been added to the fleet, while others are on order."
"Northwest executives held some preliminary discussions with Delta Air Lines about a merger deal. Steenland said board members also considered "finding and bringing in a strategic investor that would have taken a controlling position in the company, like a private equity firm, or engaging in a strategic transaction with another airline."
While no deal was reached in bankruptcy to combine with Delta or another airline, Steenland said that Northwest is ready for any scenario that could unfold if consolidation talks reemerge."
Well we knew NWA had orders for 787s and A330s. This just adds to the fleet. The RJs will replace aging DC9s that need to be retired. The big question on NWA domestically is, will the pax revolt because of lack of first class? If the RJ
route were not especially high-yielding, that won't be a problem. FWIH, the E175s will be used on morning flights initially, which are not usually that packed. As for a NW
merger with someone else, it's got to be DL
. No one else's network fits as well. CO
works very well with NWA on domestic and Latin American codeshare routes, but in order to be competitive with UA
, NWA needs a strategic partner. YX
doesn't count. I still wouldn't be surprised if DL
and NWA sign a merger agreement late this year. Sorry guys, it's been in the cards since 2005. Yes, I know that DL
's fleet does not match NW
's, but this is the easiest way for DL
to get Asia and for NW
to truly become a global carrier, not a large regional, which is exactly what their main domestic system has become. A large Midwest presence plus some service to the east and west. You might even say they're a legitimate archrival for UA
as competing hubs), but that can only go so far with lack of international connections. There. I'll get off my soapbox. Congrats to NWA for exiting bankruptcy. Good luck to the employees (NWA or contract)--you'll need it.