IndianGuy
Topic Author
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

Delta To Bid For AI

Fri Sep 08, 2000 9:47 am


According to report in todays 'Times Of India', Delta of the US is to make a joint bid for Air India, along with Air France.

Any more info. on this? Is Delta part of any Alliance?

 
dia77
Posts: 658
Joined: Sat Jan 22, 2000 3:49 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 9:52 am

This could be really interesting. AI in the right hands could be a cash machine.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 9:52 am

DL is part of the SkyTeam alliance with Air France, Korean Air and Aeroflot.

I can actually see some sense behind this bid. AI has strong ties already with AF and Aeroflot.

My dad is in SIN for the next couple days, but I will talk to him when he gets back and see if this bid means anything or is just a press release for the sake of making noise.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
Hamlet69
Posts: 2481
Joined: Thu Mar 09, 2000 2:45 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 9:56 am

The SkyTeam alliance includes AeroMexico, not Aeroflot.

Other than that, this does make a lot of sense, and could be very profitable for all involved.

Hamlet69
Honor the warriors, not the war.
 
IndianGuy
Topic Author
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: Delta To Bid For AI

Fri Sep 08, 2000 9:56 am

How is Delta as an Airline. What is its general rep. among the travelling public and the industry?

AF seems to be OK, though u dont see much of it in the news. What about Delta?
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 10:00 am

I personally won't touch DL with a bargepole, but thats only my personal opinion. The service is strictly functional, and under CEO Leo Mullin the focus has sadly shifted away from serving the pax to worshipping the bottom line.

Sorry - forgot about AM in SkyTeam. SU is not a formal SkyTeam member, but will be soon enough.

My odds on the AI sale have been updated with this late entry :

Singapore Airlines : 2-1
No Sale : 5-2
Emirates : 5-1
Delta/AF : 8-1
Others : 6-1
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
IndianGuy
Topic Author
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: Delta To Bid For AI

Fri Sep 08, 2000 10:04 am

Have the Tata's teamed up with Singapore for this bid?

 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 10:06 am

I believe that the SQ bid is actually being made through the joint-venture entity that they set up with the TATAs for the domestic airline that never came to fruition back in the mid-90s, which has remained dormant ever since.

Wouldn't that be ironic - AI going back into the hands of the Tatas? Finally something to bring a smile to JRD's face while he rolls in his grave over everything else that happens to AI!
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
IndianGuy
Topic Author
Posts: 3126
Joined: Fri Jul 07, 2000 3:14 pm

RE: Delta To Bid For AI

Fri Sep 08, 2000 10:10 am

I feel that the Tata-bid would be the best from AI point of view. And as a foreign partner, SQ would be the best bet from the available lot.

I am already hearing horror stories about BA and 9W (Jet Airways) teaming up to bid for AI. I sincerely hope that isnt true!
 
nycank
Posts: 232
Joined: Mon May 29, 2000 6:47 pm

RE: Delta To Bid For AI

Fri Sep 08, 2000 2:48 pm

Indianguy: DL is a typical bottomline/care-about-business-pax/non-union airline out of Atlanta. Which is to say if you live in ATL you are SOL. Every other Atlantan is
a medallion member.

On the other hand, DL out of NYC salivates over business traffic internationally (in terms of bottom line RPMs) so we do get a slightly better service. It is better than AA and UA when it comes to serving Europe.

Sean: If I lived in ATL, I too wouldn't touch DL. Making any DL out of Hartsfield is a nightmare (Which I am forced whenever I head to SJO). Hmmm what airlines do the TurnerBoys fly normally when they come late fall to see the Bronx Bombers    

Finally DL/AF buying AI - God forbid. Why ?
From a purely business perspective, DL abhors unions and organized labor, it is a non-union airline. AF OTOH, is labor-saturated. DL is cash rich, AF is *not*. If DL had it's way it would
try to trim AI of its high overhead in terms of personnel. DL has done this in the past with bankrupt or distressed markey airline like good-old PamAm

nycank (Who still refused to call the PamAm building - MetLife Bldg)
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Delta To Bid For AI

Fri Sep 08, 2000 7:25 pm

NYCANK -

I live in Atlanta and I am a proud NW Silver Elite!  

DOWN WITH DELTA!  
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
AF Cabin Crew
Posts: 930
Joined: Sun Sep 19, 1999 11:45 pm

Delta To Bid For AI

Fri Sep 08, 2000 9:43 pm

Hello IndianGuy !

I am in Buenos Aires and will be flying back to Paris CDG tomorrow on AF 417 on a Boeing 777-200IGW.

Air France was amongst the first to show interest for Air India, also, AF has a big FFP and flight agreement with AI and IC to and from India and for the domestic market.

Delta and Air France are leaders in the aviation market being the world´s third and seventh airline.
They are both founding members of the new airline alliance SkyTEAM with other members being KE and AM and having OK and most probably AZ awaiting to get in.
Delta is the carrier which flew more passengers in the world with over 105 million passengers a year and is flying out of its home airport of Atlanta which is also the world's biggest airport before ORD in Chicago.
Delta together with Air France form the 2nd most powerful alliance across the most important market in the world after UA/LH on the North Atlantic market.

Having flown Delta in both businessElite and Economy class I can say that they are very good airline and they are commited to their customers well being. I have always found them to be very pleasant and arranging when needed, the comfort in economy class needs to be addressed but the service is very professional, efficient and pleasant. The crews were always delightful and kind and I can tell you that the Business Class service is excellent !

I believe that Air India would be a very nice add to our alliancce and that together, AI and SkyTEAM could do wonders for the indian market to the world and vice-versa.

Hope my views will help,

Happy Flying,

AF Cabin Crew.


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Ia Maitai to tatou tere !
 
AFa340-300E
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

Nycank

Fri Sep 08, 2000 10:29 pm

Hello,

I think you're not totally up-to-date: Air France has recently announced their highest profit for the half-year of their existence since 1933!

According to Bloomberg, there are currently two European majors making profits: Lufthansa and Air France.

The large growth of the French airline is 100% financed by the airline itself. Also the airline has dramatically reduced its debts over the three last year, making it among the European companies with the lowest debt rate.

For any additional information about the financial situation of Air France, I strongly advise to visit www.AirFrance.net.

Best regards,
Alain Mengus
 
AFa340-300E
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

DL-AF To Make A Join-bid For AI

Fri Sep 08, 2000 10:48 pm

Hello,

According the the investment bank Lazard India, Delta Air Lines and Air France have joined forces to bid for the 26 percent stake offered to the foreign investors, within the 40 percent stake which is sold by the Indian government.

More news in the Reuters press release Click here.

Best regards,
Alain Mengus
 
nycank
Posts: 232
Joined: Mon May 29, 2000 6:47 pm

RE: Delta To Bid For AI

Sat Sep 09, 2000 2:45 am

Alain: I am quite up to date on AF's finances. I do know that they declared a
profit. All I mentioned in my previous post was that DL is cash rich. When
folks evaluate bids, they look at what % is financed by their own stock and what
percentage is hard moola.

Hope this clarifies  


 
DeltaAir
Posts: 1059
Joined: Tue May 18, 1999 4:41 am

RE: Delta To Bid For AI

Sat Sep 09, 2000 3:00 am

I heard this the past that Delta had the most liquid assets of any airline in the U.S. or World. This doesn't surprise me, but currently pilots want another raise. Air France was one of the few airlines in Europe to post a profit, thanks to SkyTeam and Delta. AI is very valuable, and in the right hands can be a cash cow.
 
B747-437B
Posts: 8777
Joined: Thu May 30, 2002 6:54 am

RE: Delta To Bid For AI

Sat Sep 09, 2000 8:18 am

AF CabinCrew -

I must respectfully disagree with you as far as perceptions of Delta are concerned. I have flown multiple times on DL as a non-rev as well as a paying customer, and I think it is a sad commentary on the airline when you get better service when non-revving.

DL was an airline that had a little bit of *zing* to it (kinda like CO is today) back in the early-mid 90s until Leo Mullin came in. Leo and his team have slowly but consistently taken away small priveledges from passengers in the interest of the bottom line, and that is why I find them distasteful. Examples? Upgrading from L fares, formation of a "revenue protection division", etc...

Leo is the textbook case for how to make money at an airline while alienating your passengers. I would be sorry to see his philosophy take over at AI.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada
 
nycank
Posts: 232
Joined: Mon May 29, 2000 6:47 pm

RE: Delta To Bid For AI

Sat Sep 09, 2000 3:12 pm

There is a saying about how to become a millioniare in the airline business - Start with 100 million and you'll be left with a million    .

I agree with Sean about upgrades from L, however when half of Atlanta is a medallion member, I'd have done the same thing as Leo   As long as load factors are high the likes of Leo will be admired and loved, because DL can get away with jerking
pax around. If the economy tanks, business pax
become stingy see how DL scrambles 

Back to the question at hand. DL and AF have very different cultures. DL needs AF more because of AF's routes. DL/AF like the rest want AIs unused
routes/slots and mostly India's bi-lateral agreements. Whoever wins, will have a big indegestion.

The Wall St. mentality would dictate that the gummint make concessions w.r.t personnel i.e trimming. AF culture would not like doing that,
DL's would.

BTW: what was the $$$ value put at AI's slots and landing rights ?

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