audidudi
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DL Interested In Acquiring AMR?

Thu Jan 12, 2012 5:51 pm

Just heard on FOX Business News that according to The Wall Street Journal, DL may be interested in acquiring AMR. '' DL and TPG Capital are separately assessing possible bids for American Airlines parent AMR".
No further details.

[Edited 2012-01-12 09:55:23]
 
United1
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:00 pm

Quoting audidudi (Thread starter):
No further details.

Its also being reported in the Wall Street Journal.

Any likely bid would come months from now at least according the free part of the article.
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Av8tor
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:02 pm

This will be the first step in breaking up AMR with assets going to Delta, United, US Airways etc..
 
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STT757
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:06 pm

According to the article both Texas Pacific Group and DL are interested:

Quote:
Delta Air Lines Inc. and private equity firm TPG Capital are separately assessing possible bids for American Airlines parent AMR Corp., with hopes that AMR's troubles presents another opportunity for airline consolidation, people familiar with the matter said.

AMR filed for bankruptcy court protection in late November and is in the midst of restructuring its debt and cutting labor costs after it. Any bid for AMR likely would come several months from now. AMR could use the bankruptcy process to shed a trove of obligations that a buyer might be hesitant to assume.
Quote:
Delta has hired Blackstone Group as its financial adviser to assess a potential AMR bid, people familiar with the matter said. Blackstone helped Delta restructure in its 2005 bankruptcy.
Quote:
Delta has conducted an antitrust analysis on a possible tie-up with AMR and concluded that with some concessions, such a deal has a good chance of getting approval from regulators.

Here's what I think if DL makes a play:

DL would drop ORD. ORD would be become like Denver and Atlanta that went from two Legacy hub carriers to one legacy and one LCC.

DL would grab DFW, MIA, LAX.

DL would be required to divest all of AA's slots at LGA and JFK, however they would be able to acquire T-8 at JFK. The JFK slots would go into a pool to be bid upon (B6, WN, VX being the beneficiaries IMO). The LGA slots would be pursued by UA and WN.
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ScottB
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:08 pm

Quoting audidudi (Thread starter):
Just heard on FOX Business News that according to The Wall Street Journal, DL may be interested in acquiring AMR. '' DL and TPG Capital are separately assessing possible bids for American Airlines parent AMR".
No further details.

Delta probably does not want all of AMR, but rather selected assets like MIA, DFW, and the JFK terminal. The key is figuring out how much of AA they'd be allowed to take by DOJ/DOT.
 
commavia
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:10 pm

The actual article from WSJ says that Delta is assessing a bid as a potential further consolidation opportunity, believing that with some concessions they would stand a "good chance" of winning antitrust approval. I doubt it. I think Delta may well be interested in picking apart certain pieces of AMR, but I don't expect that to be successful. Like many others, I think AMR - particularly given some if its inherent strengths and advantages as it goes through this process - stands a very good chance of emerging from this process as an independent company (i.e., not picked apart and/or bought by another airline/airlines).

Separately, the article also mentioned that TPG is also examining a bid for AMR and - unlike Delta - has made contact with the company about such a proposal. This seems far more plausible. Not only does TPG have extensive experience (and success) in the airline industry, but TPG and AMR have a longstanding and positive relationship. I could absolutely see AMR bringing TPG into the fold in any restructuring and recapitalization.
 
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STT757
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:10 pm

Quoting Av8tor (Reply 3):
This will be the first step in breaking up AMR with assets going to Delta, United, US Airways etc..

DL will not be allowed to acquire any more slots at LGA (and probably not JFK), AA's T-8 is something I can see DL picking up. T-4 needed to be expanded anyway, with or without DL as a major tenant.

DFW (albeit a bit smaller), MIA and LAX fit perfectly into DL's network.
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commavia
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:13 pm

Quoting STT757 (Reply 7):
DFW (albeit a bit smaller), MIA and LAX fit perfectly into DL's network.

I'm sorry - I just think the prospect of this is laughable. I simply do not see any way that any administration is going to allow one airline to grow that large through an acquisition. Hubs in ATL, JFK, DTW, MSP, DFW, MIA, SLC, and LAX? I have a hard time believing that would ever pass regulatory approval - even if it was just DFW/MIA/LAX.

I recognize the salivating that some are doing over the concept, but I think it's unrealistic.
 
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par13del
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:17 pm

If AA sheds 50-60% of itself in Chpt.11 no one really cares who buys them, but if they do not shed that much size, I don't see government approval of any purchase by DL or UA, US maybe.
 
TeamintheSky
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:18 pm

Whoever DL is paying to do their "Anti-Trust Analysis" is obvioulsy touching their hand to a document and then saying, "Yep feels good to me." It took 47 years to get a slot swap through, no way this gets done (even though I would personally love it).

Maybe this is DL's way of going after WN. "You buy into my market by taking Airtran, I will take Numero Uno position in Dallas."
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commavia
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:22 pm

Quoting par13del (Reply 9):
If AA sheds 50-60% of itself in Chpt.11 no one really cares who buys them, but if they do not shed that much size, I don't see government approval of any purchase by DL or UA, US maybe.

If AMR shrinks by 50-60% in Chapter 11, AA will cease to exist. It's as simple as that. Not sure why anybody would expect that, seeing as that was far from the experience at Delta, United, and USAirways during their restructurings, during which all of them shrunk more in the 5-10% range, and considering that it is arguable that AMR is - in several ways - in a far stronger position than they were entering Chapter 11.

Thus, since I think it's far-fetched to see AA shrinking by half or more in bankruptcy, I think it's unlikely that this hypothetical Delta-AMR cherry-picking thing would ever receive regulatory approval.
 
PPVRA
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:22 pm

Another example of why Chapter 11 needs to go.
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elmothehobo
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:26 pm

Quoting par13del (Reply 9):
If AA sheds 50-60% of itself in Chpt.11 no one really cares who buys them, but if they do not shed that much size, I don't see government approval of any purchase by DL or UA, US maybe.

There is no way that American is cutting itself in half. That would amount to keeping DFW, MIA and keeping either LAX or JFK. There is no way that American drops two cornerstones in bankruptcy. At the extreme, American sheds 25% of its total capacity (including mainline, Eagle and Connection) - that would entail cutting one of the cornerstones (LAX or NYC) and half of ORD.

IMO you won't see anything greater than 5-7.5% of its total ASMs (again, mainline, Eagle and Regional) - and that's short term. Remember, American spent the last decade cutting away the fat, its network is about as lean as it'll get, now they are trying to address overhead costs - leases and labor.
 
Alitalia744
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:27 pm

Would be a great move toward more consolidation and making a healthier US airline system. Bring it!
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yellowtail
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:29 pm

Quoting STT757 (Reply 3):
DL would grab DFW, MIA, LAX.

MIA for sure...that IMHO is the crown jewel.
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flyingcat
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:32 pm

What is not mentioned is the kind of bid Delta may offer.

What if they tried another variant of the Pan Am deal. They acquire one or two hubs along with the necessary equipment. Heck they could them

In all this recent history on mergers everyone forgets that these transactions were big in the 80s.

Of course in hindsight the deal was a last gasp for PA as DL quickly withdrew their support of PA. IT took longer than necessary but DL would not be where it is today in NY if it werent for this.

They still are NY focused however they could cut back on CVG and MSP if they got their hand on MIA and DFW
 
PlaneAdmirer
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:37 pm

Quoting commavia (Reply 6):
Separately, the article also mentioned that TPG is also examining a bid for AMR and - unlike Delta - has made contact with the company about such a proposal. This seems far more plausible.

   It's far more plausible that either a single private equity firm or a consortium of PE firms will provide the necessary equity to fund the bk exit than DL buying AA. A purchase by DL is politically undesirable on anti-trust grounds and the loss of employment at AA if AA were sold or carved up to various airlines. DL's interest may motivate the other partners in Oneworld to invest alongside the PE firm(s) to avoid losing their US partner.

It makes sense for DL to look and it should be expected that US will too, but looking isn't the same as buying or being able to complete the transaction.
 
tsnamm
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:38 pm

Quoting commavia (Reply 7):
I simply do not see any way that any administration is going to allow one airline to grow that large through an acquisition

exactly...all relevant agencies would throw up so many roadblocks its not funny. While many in the industry see consolidation as good and inevitable, the government seemingly doesn't. With the possible exception of US, I couldn't envision any other merger or acquisition will get any green light. Unless AA liquidates DL won't be cherry picking their assets.
 
IADLHR
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:39 pm

I think what could happen is that at some point BA will make nosies, again, about raising the foreign ownership levels in US airlines to 51%. BA will say that doing so will preserve competition jobs.

Compare that to the possibility of DL taking over AA and competition decreasing and jobs lost and there is a major dilema for the US Congress and President Obama in an election year.

[Edited 2012-01-12 10:41:35]
 
flyinryan99
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:40 pm

If this were to happen, I would be buying stock of business aircraft manufacturers. More small cities being cut and less competition would drive businessmen/women to less productivity.

The only way I could see this happening is if USAirways and Delta go in and do a packaged bid to split up assets. I am definitely against this as I think the airline system is very healthy the way it is. No growth or very limited growth over the next 5 years is what I think would do well for the industry.
 
commavia
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:44 pm

Quoting tsnamm (Reply 17):
While many in the industry see consolidation as good and inevitable, the government seemingly doesn't.

I disagree - I think regulators in the last few years actually have woken up to the industry's chronic capital destruction problem, and have recognized the value and need for consolidation. Nonetheless, I think this has a limit. And allowing the nation's second largest airline to acquire its third largest, and in the process lock up around one third of the nation's airline capacity, is - I suspect - far beyond that limit.

Quoting tsnamm (Reply 17):
With the possible exception of US, I couldn't envision any other merger or acquisition will get any green light.

Agreed. While I'm not necessarily predicting or advocating it, I do think an AA-USAirways merger could get regulatory approval. I do not think the same is true of any AA-Delta transaction, short of something so limited and watered down so as to - in my estimation - make it not worth the time, money and effort for either party.

Quoting tsnamm (Reply 17):
Unless AA liquidates DL won't be cherry picking their assets.

  

Agreed.

[Edited 2012-01-12 10:46:00]
 
tsnamm
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:53 pm

Quoting commavia (Reply 20):
I disagree - I think regulators in the last few years actually have woken up to the industry's chronic capital destruction problem, and have recognized the value and need for consolidation. Nonetheless, I think this has a limit.

I agree with your assessment overall ; I was speaking in terms of this particular match up. As you say, their acceptance has limits, and this scope of a merger well exceeds it. A domestic industry with 2 mega carriers, 1or 2 medium ones,and a few smaller ones is a scenario regulators would surely want to avoid.
 
ldvaviation
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:53 pm

Clever move by Delta. They are trying to entice US Airways to make a bid. They want to muddle the process.

Now, the TPG bid on the other hand could very well succeed if the strategic partner were a Oneworld airline or two.
 
LAXdude1023
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:54 pm

Ironic that some of the same posters cheering this were the ones up in arms about US acquiring DL several years ago.

I guess there is no objectivity left.
It is what it is...
 
yellowtail
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 6:56 pm

You guys forget that ultimately there is only one way to survive in the airline industry...and that is grow. and ultimately at some point the only way to grow is to buy competitors.

If US and DL were to come up with joint bid where DL gets JFK, MIA and LAX and US gets DFW, LGA and ORD I see no problem with this this...both carriers would be stronger. US (presumably keeping the AA brand) would then go into OW and you would have three very strong legacy carriers competing vigorously, with 2 very strong LCCs (WN and B6) and some nice niche player NK, AS and HA. Sounds like a sound air transportation system to me.

DL would have ATL, MIA, JFK, LAX, MSP, SLC and a small hub at LGA.
US (AA) would have PHX, DFW, CLT, PHL, ORD
UA would have EWR, IAD, ORD, DEN, IAH and SFO
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dtw9
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:12 pm

Quoting yellowtail (Reply 24):
DL would have ATL, MIA, JFK, LAX, MSP, SLC and a small hub at LGA.
US (AA) would have PHX, DFW, CLT, PHL, ORD
UA would have EWR, IAD, ORD, DEN, IAH and SFO

So you're saying Delta would just close their second largest hub at DTW?
 
kiwiandrew

RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:17 pm

Quoting LDVAviation (Reply 22):
Clever move by Delta. They are trying to entice US Airways to make a bid. They want to muddle the process.

  


I think we may have a winner here.

I cannot believe that DL would seriously bid with any hope of being allowed to take over AA. I simply cannot imagine any regulatory body permitting the acquisition of AA by either of the other 'big three' players DL or UA. There would be way too much concentration of market share.
 
ldvaviation
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:21 pm

Quoting yellowtail (Reply 24):
You guys forget that ultimately there is only one way to survive in the airline industry...and that is grow. and ultimately at some point the only way to grow is to buy competitors.

If US and DL were to come up with joint bid where DL gets JFK, MIA and LAX and US gets DFW, LGA and ORD I see no problem with this this...both carriers would be stronger. US (presumably keeping the AA brand) would then go into OW and you would have three very strong legacy carriers competing vigorously, with 2 very strong LCCs (WN and B6) and some nice niche player NK, AS and HA. Sounds like a sound air transportation system to me.

DL would have ATL, MIA, JFK, LAX, MSP, SLC and a small hub at LGA.
US (AA) would have PHX, DFW, CLT, PHL, ORD
UA would have EWR, IAD, ORD, DEN, IAH and SFO

What you seem to forget is that all three of AA's major unions have a seat on the unsecured creditors committee. If they are scared of losing their jobs now, what do you think your proposal would do for their peace of mind?

Ironically, the hint of a Delta or US bid will only serve to unify the AA unions around a cause, saving the AA enterprise as it is. That's exactly what happened at Delta after US made an unsolicited bid for them.
 
TeamintheSky
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:23 pm

I got it Gents! This is FINALLY DL's way to get their hands on AS, which has been their target all along per this outlet.
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rjm777ual
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:31 pm

Wow good move by DL. If they do in fact buy AA, they can possibly open up more asian routes to compete with UA and their huge asian network.
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srbmod
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:42 pm

If DL is going to make a play for AA, I see it being something more along the lines of the abortive merger between UA and US about a decade ago. Some US assets were going to be spun off into a separate airline (DC Air) and some were going to be sold to AA. But the question is, who would join them in the breaking up of AA? US is of course a likely answer, but what about someone like JetBlue or Virgin America?

If this were to come to fruition, here's my DL hub lineup post-buyout:

ATL
DTW
MSP
LAX
NYC (JFK/LGA)

I could see them having MIA and DFW as focus cities with some international services to key European markets.


Do I see this actually happening? No, as there are far too many potential anti-trust hurdles to make this workable without complicating the deal by bringing in other competitors to purchase assets.

I think that the more likely option is that TPG Capital will take the airline private as part of a "club deal" with some other private equity investment firms, since that will not be under as much scrutiny as if an airline or a group of airlines made a play for them. Then again, TPG Capital was the company that bought Midwest Air Group in order to stave off the hostile takeover bid from AirTran. TPG Capital lost a lot on that deal considering they bought Midwest for $452 million and eventually sold the airline to Republic for $31 million. Of course AA would be a whole different kettle of fish in comparison to YX.
 
catiii
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:43 pm

Could it be a move by DL to force US' hand, and thus begin the industry consolidation endgame in the United States? There's no doubt in my mind that Doug Parker already had a strategy in place before AA went into Chapter 11 as to how US would react, and my sense is that DL knows this and wants to force them to make a move so they can see how things shake out.
 
Viscount724
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:43 pm

Quoting yellowtail (Reply 24):
If US and DL were to come up with joint bid where DL gets JFK, MIA and LAX and US gets DFW, LGA and ORD I see no problem with this this...both carriers would be stronger. US (presumably keeping the AA brand) would then go into OW and you would have three very strong legacy carriers competing vigorously, with 2 very strong LCCs (WN and B6) and some nice niche player NK, AS and HA. Sounds like a sound air transportation system to me.

Sounds like a very good solution to me. Even with recent consolidation the U.S. doesn't need as many carriers as it has. It would also make U.S. airlines stronger competitors in international markets, as they would be able to focus on competing with their many foreign competitors rather than with each other.

Will be interesting to see how it plays out.
 
Tdan
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:44 pm

Won't happen unless AA is broken up into pieces and acquired by DL, UA and US due to antitrust issues. Don't think UA and US will sit on the sidelines with this news. Doug will be VERY aggressive in pursuing some of AA's assets...particularly DFW. Also, the unions could make a deal with AA management in order to prevent a possible takeover or breakup of the company. In the end, I think the unions and management make a deal and AA emerges from bankruptcy. There's a long way to go with this one and it will be interesting to follow!
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macsog6
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:45 pm

Quoting kiwiandrew (Reply 26):
I cannot believe that DL would seriously bid with any hope of being allowed to take over AA. I simply cannot imagine any regulatory body permitting the acquisition of AA by either of the other 'big three' players DL or UA. There would be way too much concentration of market share.

Let's not forget that this would also require foreign regulatory approval. AA being acquired would likely mean the end of 1W as AA would be merged into ST and I cannot see the other regulatory bodies about the world letting it get to two alliances.
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jayspilot
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:48 pm

First off I don't think it will happen and its just talk. Of course people at other carriers are going to try but I think that the asset holder at AA who has a vote in the sale will see the most value in their purchase as one compnay (like Delta's asset holders did when US tried this crap in 2007) If they do go after something I bet it will be to try to pick off a hub (with gates and equipment to operate it) where DL doesn't have a strong position. MIA is the first thing to come to mind for me, Going after half of DFW reclaming that city as a hub doesn't seem like a logical move, maybe Lax to have a direct Asia presense. But again if something does happen I see it as similar to the DL pick off of PA in JFK 20 years ago.

I think once AA clears up the leases and gets a lot of concession's see a much stronger cash position and a compnay that can stand and win/compete on its own. Get ready in 10-14 months to see "keep AA my AA" stickers  
 
deltaflyertoo
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:53 pm

The reality is to get the US market fully balanced (its only half way there) an airline has to die. There is still too much capacity. For years peeps thought United would be it, now prolly not. Then it was US, well they're sticking around at least for short term. THEN everyone thought it would be and should be AMR (esp with a dual hub w/ UAL in ORD bloating capacity not just at ORD but nationwide on connections when paired w/ DFW). If AMR doesn't merge and comes out of Ch 11-even w/ capacity cuts, there will still be way too much to profitably sustain all the players.

STT757 in reply 3 actually lays out a really convincing model as to how this could potentially shake out. Basically it would def lower capacity, and thus allow for higher fares in return better profitability.
 
LAXdude1023
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:55 pm

This may well be DL trying to force US to come out of hiding and reveal their intentions.

I cannot see this passing any hurdles from a anti trust stand point without serious concessions.
It is what it is...
 
commavia
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 7:57 pm

Quoting deltaflyertoo (Reply 36):
The reality is to get the US market fully balanced (its only half way there) an airline has to die. There is still too much capacity. For years peeps thought United would be it, now prolly not. Then it was US, well they're sticking around at least for short term. THEN everyone thought it would be and should be AMR (esp with a dual hub w/ UAL in ORD bloating capacity not just at ORD but nationwide on connections when paired w/ DFW). If AMR doesn't merge and comes out of Ch 11-even w/ capacity cuts, there will still be way too much to profitably sustain all the players.

There is no need for AMR to cease to exist in order for the U.S. airline industry to reach a sustainable, profitable equilibrium. Again, the U.S. airline industry is really already there now - it's broadly profitable, except AMR. And, once AMR's cost structure and business model is radically transformed in bankruptcy - just as happened at their peers - they should be profitable, too.

Quoting deltaflyertoo (Reply 36):
STT757 in reply 3 actually lays out a really convincing model as to how this could potentially shake out. Basically it would def lower capacity, and thus allow for higher fares in return better profitability.

You may find that hypothetical scenario plausible and "convincing." I, personally, don't in the slightest. Again, I realize that some people - especially those who have a certain personal affinity for one of AA's competitors - love to salivate over this, but I don't see it happening. Perhaps that's because many, deep down, realize that AA dramatically lowering their costs in bankruptcy - just as their peers did - is going to be a huge change (and challenge) for the competition. The reality is likely going to shake out for AMR just as it did for other bankrupt airlines in the last ten years: for all the uncertainty, speculation and drama, they will likely emerge, independent, and dramatically more competitive.
 
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:12 pm

If DL does buy out AMR, expect US Airways to quickly jump to Oneworld to fill in the void left by AA leaving.
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OA412
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:14 pm

Let me begin by saying that I am generally against mergers (yes really), and really hope that AA remains a standalone carrier. However, I have always said that, as a fantasy grouping, a combined DL/AA under the AA brand would be an awesome force to be reckoned with. Hypothetically speaking, they'd have almost everything that UA/CO has, along with the one thing they do not, the MIA hub. That said, I can't see this happening for a variety of reasons, but I actually do think that it could be a very interesting match-up.
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yellowtail
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:26 pm

Quoting dtw9 (Reply 25):
So you're saying Delta would just close their second largest hub at DTW?

No, just missed that one. sorry to the dtw fans.

Quoting commavia (Reply 38):
I realize that some people - especially those who have a certain personal affinity for one of AA's competitors - love to salivate over this, but I don't see it happening.

I propose that as part of the a.net registration process that everyone must declare their loyalties and this will appear with their screen name  
Quoting commavia (Reply 38):
Perhaps that's because many, deep down, realize that AA dramatically lowering their costs in bankruptcy - just as their peers did - is going to be a huge change (and challenge) for the competition.

And will probably send everyones domestic networks back into the red again.

IHO One of three things needs to happen for a healthy US airline industry. More consolidation, Less capacity from everyone, or one of the major carriers call its quits.
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:27 pm

If and only if it happens, sounds like alot more job losses, more metal being placed in storage possibly, higher fares and the list I'm sure goes on. Yah, its a win for the traveler. Oh well.   

[Edited 2012-01-12 12:27:56]
 
avek00
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:32 pm

Quoting commavia (Reply 7):
I simply do not see any way that any administration is going to allow one airline to grow that large through an acquisition.

Antitrust law would not generally block a DL/AA combo depending on the concessions offered at a few key airports. There's nothing wrong, in and of itself, with being gigantic so long as effective competition is able to enter a given market and fairly compete.
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1337Delta764
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:35 pm

One dilemma that DL will have to face is whether to keep the Delta name or the American name. Both names seem to be equally recognizable globally, so this will be a tough decision. Hopefully DL doesn't drop their livery for AA's ancient one.

Also, another dilemma that DL will face is which breast cancer organization a merged DL/AA will choose to align with. DL is aligned with the Breast Cancer Research Foundation, while AA is aligned with Susan G. Komen for the Cure. Please let it be the BCRF and keep the pink 764ER!

[Edited 2012-01-12 12:38:52]
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:43 pm

Quoting commavia (Reply 38):
There is no need for AMR to cease to exist in order for the U.S. airline industry to reach a sustainable, profitable equilibrium. Again, the U.S. airline industry is really already there now - it's broadly profitable, except AMR. And, once AMR's cost structure and business model is radically transformed in bankruptcy - just as happened at their peers - they should be profitable, too.

I agree, it is profitable now. But most in the industry are predicting a downward trend coming over the next few years. As stated above, a good move by Delta as it could push AA to reveal more about their post CH11 plans. I am one who is gone on record as saying I haven't heard nearly enough to suggest that AA has planned any major changes other than cutting labor cost. Maybe we'll here more soon, and I'll be a believer. But I don't see the current Cornerstone strategy as their best bet.

Quoting commavia (Reply 38):
especially those who have a certain personal affinity for one of AA's competitors

Cmon, like you don't have one for American? Nonetheless, I agree their are plenty on here with certain loyalties. This will be an interesting scenario for all to observe.
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:46 pm

Quoting 1337Delta764 (Reply 44):
One dilemma that DL will have to face is whether to keep the Delta name or the American name. Both names seem to be equally recognizable globally, so this will be a tough decision. Hopefully DL doesn't drop their livery for AA's ancient one.

I think the AA name would be much better, at least in international markets, where many people have no idea who DL is or what country they're from. It's impossible to make that mistake with AA's name.

And, re the livery, even after 44 years, in my opinion AA's is much better than any of the multiple DL liveries that have come and gone during that same period. So many livery changes has also weaked DL's brand recognition since you just get used to one and then it changes again.
 
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STT757
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:52 pm

Quoting 1337Delta764 (Reply 39):
If DL does buy out AMR, expect US Airways to quickly jump to Oneworld to fill in the void left by AA leaving.

Why wouldn't DL switch to OneWorld. BA is a much stronger partner than AF, which is having big financial problems right now.
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:52 pm

Quoting 1337Delta764 (Reply 44):
One dilemma that DL will have to face is whether to keep the Delta name or the American name. Both names seem to be equally recognizable globally, so this will be a tough decision. Hopefully DL doesn't drop their livery for AA's ancient one.

AA is generally a more recognizable name but Delta is a better global brand name. Will be hard to sell an intra-asian ticket with a brand such a AMERICAN airlines.

I would also suggest that at least in my part of the world the AA brand has lost a lot of its lustre.

Quoting Viscount724 (Reply 46):
I think the AA name would be much better, at least in international markets, where many people have no idea who DL is or what country they're from. It's impossible to make that mistake with AA's name.

Not knowing what country they are from is actually a plus.

Maybe they could resurrect Pan-Am
  
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mogandoCI
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RE: DL Interested In Acquiring AMR?

Thu Jan 12, 2012 8:59 pm

Quoting commavia (Reply 38):
Again, I realize that some people - especially those who have a certain personal affinity for one of AA's competitors -

As supposed to you who is Switzerland incarnate ?