sdexplorer00
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WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:10 pm

Wow, didn't see this at all. This would be quite a turn of events if it ever happened. Not quite sute what Delta would get out of it though. They don't need Charlotte with Atlanta, don't need PHL with JFK and LGA, don't need PHX with SLC, and certainly don't need labor headaches.

"Delta Air Lines Inc. is studying US Airways Group Inc. as a possible acquisition target, people familiar with the matter said, the latest twist in a swirl of deal-strategizing for the industry.

Delta, the world's No. 2 airline by traffic, also has been assessing a similar move for much-larger American Airlines parent AMR Corp., the people have said. It is working with Goldman Sachs Group Inc. as one of its financial advisers, along with Blackstone Group, the people said.

Delta sees itself as a consolidator in the airline industry and is studying several options, the people added. AMR entered bankruptcy-court protection in late November.

Delta has not yet approached US Airways, the No. 5 U.S. airline, and is still weighing which deal if any would make most sense and have the best odds of success, the people familiar with the matter said. Delta's last transaction was in 2008, when it acquired Northwest Airlines.

US Airways is open to being both buyer and seller and is expecting Delta to reach out, the people said. US Airways is also looking at a possible tie-up with AMR, US Airways has said. A marriage of US Airways and AMR would create a company on par in size with Delta and United. "

Delta Weighs a US Air Deal



[Edited 2012-01-28 00:49:11 by SA7700]
 
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STT757
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:15 pm

I feel like it's the '80s all over again.
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ldvaviation
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:19 pm

Delta is too clever for their own good. Now, they are trying to pressure AA into merging with US. LOL.

AA should call their bluff.

Let them merge with US.
 
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DeltaMD90
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:21 pm

Haha what are you doing DL? I think they're just throwing a bunch of curve balls out trying to mess stuff up. DL/AA makes at least some kind of sense if you sell off some of AA, but DL/(NW)/US??? It would be hard to argue that after arguing against US/DL a few years ago

Edit: conspiracy theory time, do you think DL might be trying to piss off everyone with these merger propositions to turn off the thought of ALL mergers, including AA/US?? Just a thought  Smile

[Edited 2012-01-27 15:23:13]
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UAL747
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:26 pm

Anyone just think this latest round of merger articles is spawned by AA's bankruptcy and nothing else? US/DL makes absolutely no sense other than some fleet commonality. Of course, when you fly everything under the sun such as DL, everyone will have fleet commonality with you.

So far we've had:

AA/US
DL/AA

and now DL/US.

Poor United.
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flyabr
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:27 pm

According to BTS stats...Delta is still the largest airline in terms of 2011 enplanements...so what the heck use do they have for US Airways?
 
FlyASAGuy2005
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:28 pm

Quoting DeltaMD90 (Reply 3):

I think it's all of the above including driving up their stock price. A lot of noise but I don't see much weight behind it. Again as I said before, it's their duty to explore all options; crazy or not.
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LAXdude1023
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:29 pm

Quoting DeltaMD90 (Reply 3):
I think they're just throwing a bunch of curve balls out trying to mess stuff up.

Thats what I think theyre doing.

They dont actually want US and all they care to have from AA is MIA and maybe pieces of JFK, LAX, and DFW. Yet, with IAG and TPG involved, AA wont be broken up like that. Given DL's management are pretty smart, they know this as well.

They want to murky the waters and force AA into something they dont know if they want. Thats what I think anyway.
It is what it is...
 
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:32 pm

Quoting flyabr (Reply 5):

Other than DCA,.........not much !!!!!!
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seabosdca
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:36 pm

Quoting DeltaMD90 (Reply 3):
a bunch of curve balls out trying to mess stuff up.

Very artfully phrased and very correct.

This is DL trying to disrupt what it sees as an impending US/AA deal. DL has to know that US is about the worst possible fit for DL. DL could use DCA, a bunch of A330s and new A321s, and pretty much nothing else.
 
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:38 pm

Quoting flyabr (Reply 5):
so what the heck use do they have for US Airways?

US best assets are the CLT and PHL hubs, and DCA opperation.

Since DL has ATL, they dont need CLT and DL's northeast opperation would make PHL somewhat redundant.

No, US is a much better match for AA if anybody.
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Flighty
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RE: WSJ - Delta Weighing US Airways Deal

Fri Jan 27, 2012 11:44 pm

Such a merger would not be legal at all, and would be denied unless the RNC does very well in 2012, and even then, probably would be denied.

That kind of concentration in the Southeast (where over 100 million people live, in a giant regional economy) would not be possible...

Quoting seabosdca (Reply 9):
This is DL trying to disrupt what it sees as an impending US/AA deal

Probably.
 
WA707atMSP
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 12:09 am

My own personal theory:

Every mergers and acquisitions investment banker on Wall Street is trying to come up with deals that they can offer to prospective clients.

Regardless of whether or not a DL / US, DL / AA, US / AA, or even DL / UA deal makes sense, the Wall Street bankers know that if they can get a client to go through with the deal, the bankers will get massive fees and commissions.

When you read that "unnamed sources say that DL is considering a bid for airline XXX", what it really means is that "I've shown Richard Anderson what the financials would look like if DL actually bid for airline XXX. He said he would "consider it", and if he goes ahead with it, my bank will make $500 million in fees off of the deal. Of course, even if the deal is a dumb decision for Delta, I will still get my fees if I can sucker Richard Anderson into going through with it".
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 12:11 am

I think you guys that say that US is not a good fit for DL to buy are the same ones that didn't understand why DL was a good airline for US to buy a couple years ago: you become more profitable by elimination. Yes, it obviously does help some to merge with someone who doesn't have much market overlap. BUT, it is MORE profitable to merge with a competitor, because you lose some of the competition, and can expand the duplicative resources into other competitors regions.

That's why you don't see McDonald's buy Oracle, but you do see Oracle buying Sun. Obviously, that's an extreme example, but I hope it makes the point.
 
boeing773er
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:23 am

wow, I never even heard anything like DL was interested in US.

But I spouse it is a bluff, sorta like how UA was interested in US, while in was trying to get CO to merge with them.
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:43 am

Quoting Boeing773ER (Reply 14):
wow, I never even heard anything like DL was interested in US.

But I spouse it is a bluff, sorta like how UA was interested in US, while in was trying to get CO to merge with them.

I think its exactly what it is. I think they are trying to force AA/US's hands to show their cards as they probably know a deal is in the works. Or try to get UA to get in the picture as they have always wanted CLT. DL/US didnt make sense 5 years ago and it certainly doesnt make sense now. There would be too many hub closures, unless they are trying to work a deal and sell off CLT, PHL to AA in exchange for MIA. PHX wouldnt make any sense with SLC to the north and what they are trying to build at LAX.
 
IADCA
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:45 am

Quoting D L X (Reply 13):
I think you guys that say that US is not a good fit for DL to buy are the same ones that didn't understand why DL was a good airline for US to buy a couple years ago: you become more profitable by elimination. Yes, it obviously does help some to merge with someone who doesn't have much market overlap. BUT, it is MORE profitable to merge with a competitor, because you lose some of the competition, and can expand the duplicative resources into other competitors regions.

Not to mention that closer competitors are more likely to be able to find efficiencies (consolidating closely-spaced crew bases, etc.)

There are, however, some significant antitrust hurdles here. The DOJ just forced divestitures to effect the LGA-DCA slot swap. They'd certainly not allow the same two carriers to then just combine the holdings at the two airports together to generate even larger concentrations than the arrangement already rejected.

Second, I'd imagine there might be some difficulty getting US added into the Skyteam immunized JV as well (though this difficulty might come more from the EU than American side). The EU focuses a lot more on the "lock-up" effect of hubs than the DOJ and DOT do, and throwing PHL into the Skyteam JV would likely not please them. Recall also that US isn't a member of A++, Star's JV, so they're currently an independent competitor across the Atlantic.

Third, this might just be another example of looking at the nationwide market and saying "nope, too big." That's essentially what AT&T/T-Mobile was, and that was a #2 plus #5 merger in a network-effects industry with significant entry barriers.

I'd hate to have to stand up and argue for this merger. I'm having a hard time thinking of any really significant pro-competitive justification here.
 
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:46 am

Gotta be a ruse. There would be tremendous political heat to keep it from happening, and I bet the DOJ would not look lovingly at it.
 
AAIL86
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:47 am

what happened to "keep Delta my Delta"??  
Quoting WA707atMSP (Reply 12):
Every mergers and acquisitions investment banker on Wall Street is trying to come up with deals that they can offer to prospective clients.

Regardless of whether or not a DL / US, DL / AA, US / AA, or even DL / UA deal makes sense, the Wall Street bankers know that if they can get a client to go through with the deal, the bankers will get massive fees and commissions.

There's probably some truth to this theory. Bankers have always profited off major transactions like, whether they provide anything of value or not to the process.
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:48 am

Quoting WA707atMSP (Reply 12):
Regardless of whether or not a DL / US, DL / AA, US / AA, or even DL / UA deal makes sense, the Wall Street bankers know that if they can get a client to go through with the deal, the bankers will get massive fees and commissions.

When you read that "unnamed sources say that DL is considering a bid for airline XXX", what it really means is that "I've shown Richard Anderson what the financials would look like if DL actually bid for airline XXX. He said he would "consider it", and if he goes ahead with it, my bank will make $500 million in fees off of the deal.

  

It's a new year, and all these guys are dreaming up ways to do transactions so they can make some fees. Doesn't matter at all if it makes sense for the customer.
 
tharanga
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:59 am

the only thing Delta would want to do with US would be to shut it down, to remove competition and capacity.
 
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:11 am

Quoting UAL747 (Reply 4):
Poor United.

Why? They are just getting through a merger and the only hub they can really use is CLT. PHX competes with DEN and PHL would have a bit of competition between IAD and EWR.

Quoting flyabr (Reply 5):
so what the heck use do they have for US Airways?

Less competition.

My take: this is DL just pulling AA to consider merging with US. I think DL knows that US is not a good fit in their network. Sure, they eliminate competition by dismantling it, but other than that, there's nothing. However, by taunting AA that US IS a good fit, AA and US might consider merging.

After flying with AA this week, I'd say it would be a good idea. Let's see how this plays out.
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caliboy78
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:13 am

I think that DL after tasting what it feels like to be #1 they want to keep that status no matter what they have to do. Just my thoughts.
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:36 am

Quoting caliboy78 (Reply 22):

Not really. I would use that argument with AA+DL but not DL+US. The combined carrier would have to divest a lot. The biggest gain IMHO would be DCA and we already know how the gov't felt about that. US isn't going to have much of anything left in LGA after the second phase of the swap. Multiple dailys to the hubs and a few other markets and of course the US Shuttle.

The difference between #1 and #2 is pretty insignificant now considering both carriers are doing swell financially. DL is about as big as it needs to be on the domestic front. They can go up and down as much as they need across the Atlantic already and have very good coverage across and through the Pacific with the NRT operation complementing the global "reach". Big inroads would be made in LatAm/Carib and South America and there's nothing US can offer them there.

Again, my personal feelings but the noise is much about nothing and most certainly not about trying to get back to the #1 spot. More like elimination of competition and what exactly will US investors get out of that outside of what they're getting now other than a stake in the current company. DL already has investors they have to please and now the US folks will have to share that pie while they have what they currently have all to themselves. In the end, it would be a net loss and that doesn't make sense.
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:57 am

DL is still the largest airline in the USA (if not the world) based on passenger traffic. Total 2011 enplanements (passengers) through October for domestic and international travel still beats out UA/CO combined...quite handily in fact. However, if you consider only domestic passengers...Southwest carried the most. The stats are available on www.bts.gov

[Edited 2012-01-27 19:01:11]
 
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mayor
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:27 am

I believe this would be as much, or more of a nightmare than an DL/AA deal.....at least with AA, along with the headaches, you got some assetts worth having.........with a DL/US deal there are very few things that DL would really want........kind of an expensive foray, just to get rid of some competition.

Not even that much that DL would want to cherry pick, if it came down to that, execept, MAYBE, the Airbus a/c.
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:38 am

Let's get really devious here and think it through:
a) Delta makes a pitch for US
b) US complains and tries to get Delta to pay more to buy US
c) Delta says OK, we will support you and invest in US, and add another 400MM-700MM in capital to US's balance sheet, so that now US is strong enough and US can take over AA,
d) and then DL will ask US once they control AA, to turn over DFW and MIA to DL in exchange for DL's relinquishing their ownership share in US.

Don't forget the executive suite of Delta is full of NWA people who had experience in managing their investment in CO and kept the golden share in Continental for all of those years-- I think they know how to play the stock market 'investment' game.
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jmc1975
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:41 am

It appears that DL is simply trolling US, perhaps to turn up the pressure for sort of action to take place. DL would (as would all carriers) benefit from further consolidation in the industry, including a US/AA combo. If this rumor persists through the weekend and gains momentum, it would not be surprising to expect to see LCC stock as well as AAMRQ.PK continue to rally on Monday.
.......
 
FlyASAGuy2005
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:43 am

Quoting coronado (Reply 26):

It was a different time then, though. CAL really needed the help. US doesn't. There are very large investment firms out there who will be MORE than willing to invest in AA with or without Delta and US. I just think this whole thing is getting crazy and we're looking into all of this a little more than we should.

Let's not forget that any formal talks could be well over a year from now. AA hasn't even straetched the bk surface and is a WAYS away from an exit plan or considering other partners. By then, all these threads will be long forgotten and new ones would have sprung up. Heck, two weeks from now this one will be way off the charts. Look at the other DL/AMR thread already...

[Edited 2012-01-27 21:22:37]
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EA CO AS
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 5:17 am

Is it conceivable that US could effectively be "split" between both DL and AA, and not merge with either as a single entity? Parker might very well determine that the best return on investment for his shareholders (and the best odds of continued employment for his workforce) would be breaking it up and going in two separate directions, with one part to DL and another to AA.

Not sure how the nuts and bolts of it would work - I'd imagine you'd need a third investor to actually buy US and then sell off pieces to each carrier - but in theory it may be possible, and it would have a far better chance of passing DOJ.


EDIT - I think the method would have to be a prearranged deal with both AA and DL, then selling US to a third investor. At that point the investor sells the DL-favored assets to DL, and then the remainder of US is merged by the investor/holder with AA, with the operating certificate going to AA.

The third-party investor makes a few bucks in the deal, brokered by AA, DL and US in a three-way agreement. The proposed DL/AA split of assets would be designed to have the best chance of getting by the DOJ.

[Edited 2012-01-27 21:48:49]
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TWA772LR
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 5:40 am

As it looks, a US/AA deal is forseeable. I think DL says they are looking at taking AA to pressure US to do so. And now DL says they are looking at a DL/US deal. I am positive this won't happen. DL is trying to pressure US to make a move, and with US's labor situation not in check, DL (now this is a big stretch) is trying to pressure US to take over AA to collapse AA/US, far fetched I know.

Conspiracy aside (DL trying to kill AA/US), I really think DL is trying to pressure US to make a deal for AA.
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AADC10
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 5:44 am

It definitely appears to be some kind of move to nudge US and AA together, similar to the move with US and UA that pushed the UA/CO merger ahead. I am not sure what DL would get out of it, other than eliminating a competitor. Perhaps they expect to get something at LGA or DCA that US would have to divest to get the merger approved.
 
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 6:03 am

Quoting AADC10 (Reply 31):
It definitely appears to be some kind of move to nudge US and AA together, similar to the move with US and UA that pushed the UA/CO merger ahead. I am not sure what DL would get out of it, other than eliminating a competitor. Perhaps they expect to get something at LGA or DCA that US would have to divest to get the merger approved.

Or perhaps it's all just A.net speculation, stemming from some media sources that may or may not be accurate. But that's what we're all about, here, isn't it?   
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
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TWA772LR
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 6:07 am

Quoting AADC10 (Reply 31):
LGA or DCA

Maybe since the slot swap went through, DL wants to take the new DCA slots from US     
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rampart
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 8:17 am

Remember the old "Deltaflot" livery?

Aeroflot is coming back, based in Atlanta! They even have crop dusting heritage in common. All they need to do now is start up air ambulance and firefighting services, and we're good.

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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 8:32 am

I am trying to figure out which is a more ridiculous combination, DL/AA or DL/US.

One would create an absurdly large airline and throw the global airline industry into chaos.

The other is just straight-up anti-competitive. What purpose could DL/US serve other than eliminating a competitor?

I think DL/US is even worse than UA/US. At least CLT would actually bring something to UA's network.

Let's face it, of the legacy carriers, AA is by far the best merger partner for US. It's the smallest (though still massive) and has the least network overlap. Whatever one thinks of the merits of an AA/US merger, it is surely better than DL/AA or DL/US or (not that anyone seems to be talking about it right now) UA/US.

Of the four legacy carriers (if one can consider US a legacy carrier), to me the only defensible combination is AA/US. That doesn't mean it's inevitable or even necessarily a good idea (though I think it's reasonably likely and not a terrible idea), but any other combination is a terrible idea.
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usdcaguy
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 12:47 pm

Quoting seabosdca (Reply 9):
This is DL trying to disrupt what it sees as an impending US/AA deal. DL has to know that US is about the worst possible fit for DL. DL could use DCA, a bunch of A330s and new A321s, and pretty much nothing else.

I actually see the US hubs (especially CLT/PHX) as filling a niche role for a handful of important companies with business in those cities. It is likely DL has a hard time competing in PHX due to its poor network fit, and CLT has many nonstops for which US gets a premium while many business markets out of ATL are subject to FL/WN competition and pricing.
 
B777ER
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 1:39 pm

Don't any of you remember the old days? I can see DL making a serious play for US. Look at what AA did after snapping up TWA. Did AA really need the TWA hub at STL or JFK? Nope. They bought TWA, picked all the good fruit off the tree and let the rest die out. Look what STL has become today. Just another out station in AA's route network.

What seriously do you think DL would do with US? Of course they dont need CLT or PHL. They would likely over time downgrade both from hub cities to nothing more than two cities on their route map as terminal leases and what have you expired they would not renew them but likely just lease a few gates at each station. DCA of course would be some of that good fruit they would pick off the tree. PHX would be a toss up over SLC.

Like someone else said, they would pick up the best aircraft and likely dump the older stuff like the 734's, etc...

If DL did snap up US, I can totally see US going the way TWA did. I am sure many US employees would be made redundant in the process.
 
DL WIDGET HEAD
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:06 pm

Quoting B777ER (Reply 37):
Of course they dont need CLT or PHL. They would likely over time downgrade both from hub cities to nothing more than two cities on their route map

I think PHL would survive a DL/US merger largely intact.
 
delta2ual
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:51 pm

Next up: "DL Considers Bid for United Airlines". News at 11!  
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ajhYXE
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 2:59 pm

Isn't the whole point of antitrust law to prevent deals like this from happening? As many have said the primary outcome of such a merger would be reduced competition. I can't see any element of US that DL would consider valuable. It would be no different than a number of other "bulimic" mergers the industry has faced over the years (AA-TW, US-PSA, etc.).

That being said, I highly doubt DL is seriously interested in acquiring US. I believe they are simply "meddling" in the affairs of both US and AA.
GO RIDERS!
 
DL WIDGET HEAD
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 3:13 pm

Quoting ajhYXE (Reply 40):
I believe they are simply "meddling" in the affairs of both US and AA.

I think DL is serious about aquiring another airline and not simply "meddling" in their affairs. Which airline that is remains to be seen but I'm enjoying watching this chess match being played.
 
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 3:19 pm

Quoting DL WIDGET HEAD (Reply 41):
I think DL is serious about aquiring another airline and not simply "meddling" in their affairs. Which airline that is remains to be seen but I'm enjoying watching this chess match being played.

If so, I think it's a defensive move more than an offensive one. They clearly don't like the idea of the combined US/AA, and want to disrupt that deal or at least make it difficult and expensive to complete.

Quoting usdcaguy (Reply 36):
CLT has many nonstops for which US gets a premium while many business markets out of ATL are subject to FL/WN competition and pricing.

Interesting theory, although I'm not sure FL/WN really is a factor in the biggest ATL business markets. But the trouble is that CLT is much more of a connecting hub than an O&D market for US, because Charlotte is just not that big a market. As such, It seems very duplicative with ATL in a DL/US deal.

PHL might be a little more useful to the combined carrier.
 
luckyone
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Joined: Thu Aug 21, 2008 1:50 pm

RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 3:20 pm

Quoting usdcaguy (Reply 36):

Phoenix-based businesses would probably be the worst reason to buy an airline. As much as I love Arizona there simply aren't many. Delta, actually, carries a lot of passengers in and out of Phoenix. They have almost hourly departures during the evening from ATL, and have multiple departures to their other hubs. Beyond that, PHX isn't much to chase after. CLT and ATL aren't going to coexist in the same airline. It just isn't going to happen because one will canabalize the other. They are too close together, and ATL will likely be the focus of any US/DL combination because ATL is a much bigger city and all-around business market.
 
DL WIDGET HEAD
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 3:29 pm

Quoting seabosdca (Reply 42):
If so, I think it's a defensive move more than an offensive one. They clearly don't like the idea of the combined US/AA, and want to disrupt that deal or at least make it difficult and expensive to complete.

Since The DL bankruptcy, DL has been extremely agressive in all regards. DL management is not one to sit back and play defense and allow other companies get an upper hand. When DL sees worthwhile opportunities they act upon them and this may be one of those times. As an astute airline analyst recently put it...there aren't many plums on the tree left to pluck. I think DL wants another piece of fruit in their basket before they're all gone.
 
Bobloblaw
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 3:57 pm

Quoting sdexplorer00 (Thread starter):
US Airways is open to being both buyer and seller and is expecting Delta to reach out, the people said

I cant see Doug Parker and Kirby wanting to be bought. They are buyers
 
bobnwa
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:00 pm

Quoting mayor (Reply 32):
Or perhaps it's all just A.net speculation, stemming from some media sources that may or may not be accurate. But that's what we're all about, here, isn't it?

You hit the nail on the head.
This is just A net. speculation, to make a lively discussion for the wannabee CEO's

Quoting BOACCunard (Reply 35):
What purpose could DL/US serve other than eliminating a competitor?

DL and US do not compete on significant number of routes.
 
chepos
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:04 pm

It must be a slow news day, but here at a net pelple get excited over any news that comes out. This is just one of the many rumors that we will be seeing in the up coming weeks/months etc. etc.

Regards,

Chepos
Fly the Flag!!!!
 
Bobloblaw
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 4:06 pm

Quoting WA707atMSP (Reply 12):
Regardless of whether or not a DL / US, DL / AA, US / AA, or even DL / UA deal makes sense, the Wall Street bankers know that if they can get a client to go through with the deal, the bankers will get massive fees and commissions.

We dont even know who leaked this info. But I would suspect it didnt come from 1030 Delta Blvd.

Quoting coronado (Reply 26):
Let's get really devious here and think it through:
a) Delta makes a pitch for US
b) US complains and tries to get Delta to pay more to buy US
c) Delta says OK, we will support you and invest in US, and add another 400MM-700MM in capital to US's balance sheet, so that now US is strong enough and US can take over AA,
d) and then DL will ask US once they control AA, to turn over DFW and MIA to DL in exchange for DL's relinquishing their ownership share in US.

That isnt going to happen. How can US take over AA if DL is taking over US? You must think Doug Parker and Scott Kirby are not very smart to fall for a trick which forces them to dump DFW and MIA.

This is a nothing story most likely made up by Wall Street investment bakers who want to see some sort of a deal somewhere.
 
penguins
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RE: WSJ - Delta Weighing US Airways Deal

Sat Jan 28, 2012 5:31 pm

It looks like in my opinion that the US market is becoming like that in Soviet Russia. If all these deals go through, you will be strongly suggested to fly UA or DL like you were strongly "suggested" to fly Aeroflot. That is just my opinion.