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deltagator
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:15 pm

Quoting Warreng24 (Reply 46):
But, can you imagine how nice the 767-400ER will look in the new US livery?

Too bad US has said they would keep the Delta name and the Widget.

Quoting Indy (Reply 41):
Note the term "hostile". Is there any significance to this?

See my previous reply about how US can make the offer but DL doesn't have to listen. Grinstein wants to go it alone but US wants to run the end around and take it to the shareholders.
"If you can't delight in the misery of others then you don't deserve to be a college football fan."
 
whappeh
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:15 pm

I can't really even see the odds of this happening. Like stated before, the Government shot down the US/UA merger a while ago, this would be even more massive. Plus fleet issues, though they would work them selfs out over time... the fleets would be more screwy then the Pan-am Fleet. The extra routes would be good, I suppose (for both airlines). Expanding European, Asian, South American and African services would be possible. Current US issues with its employees could be a problem. Lets see how this pans out.
-Travel now, journey infinitely.
 
dartland
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:16 pm

Quoting Falstaff (Reply 42):
Mergers usually help the bottom line, but end up screwing the employees and usually a customer or two. Not all business mergers work out for the best either.

Actually, mergers usually also hurt the bottom line. I forget the statistic, but it's roughly that >75% of all mergers are failures in that the overall ROI never goes above 0.

Quoting UALPHLCS (Reply 48):
In my opinion if your going to buy someone buy a company that compliments your route network not duplicates it.

Why? I agree that intuitively,that sounds right. But think about it -- still overcapacity, fighting off LCCs -- wouldn't it make sense to buy a top competitor and then slim down? You become entrenched and unbeatable in your home territories and as a result, are able to churn some profits. Extending yourself into NEW territories via a merger is far more risky.

Quoting UALPHLCS (Reply 48):

I agree this is going to get a really hard look by regulators.

On one hand, I totally agree based on the refused US/UA merger and actions from the past. But in today's world, you never know what they'll let by.
 
gokmengs
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:17 pm

IMO its an offer first of all that undervalues DL, and US's strategy reminds me of other merger hungry companies that did this way too fast and crashed. How integrated is US with HP at this point to make an offer to DL? These things take time and this one is way too quick.
To my surprise no one clarified if this is just a proposal and if DL is thinking about it,(there was a comment about DL exec saying the combined company would be called DL???) but why announce it when there is no agreement? not very common in M&A's
No Fleet Commonality
Hubs to close to each other
I don't think its a good idea
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isitsafenow
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:17 pm

Boy this news is sure a shocker...I thought NW and USAirways would talk first.
Well, my thoughts are if this is a do-able thing and turns out to be a go, the MD-80's are gone and replaced with a few more airbuses. The 737-800's are a good bird and should be kept but the real problem with fleet is the wide bodies.
You need to consolidate down from 767,777, and A 330's to one or two.
Something here has to go and I dont think it will be the 767. DL uses them too
much for domestic. Perhaps NW or a foreign carrier will be interested in the A 330.
But look at the hubs...this merger could be a real strong do-able thing.

All this is in the "maybe-I think" mode, of course.
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
ei2ksea
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:19 pm

Obviously this has been thought thru intensively by US in financial terms but on the face of it; from an ignorent fleet/routes aspect would'nt NWA seem like a more attractive candidate as regards good synergy between fleet (Airbus A319/320/330/Boeing 757) as well as route structure (US in the Southwest/West and Southeast/Northeast with growing Europe ops with NWA in the midwest and Northwest and extensive far eastern ops).

Just my few cents. I dont see this working so well at all in terms of fleet, labor and network overlap. Short of basically shutting down half of US in the east (CLT) and a big chunk of DL in the west (SLC?) - SLC/PHX/LAS and ATL/CLT seem to overlap hugely never mind eatsern ops where US and DL have big Boston and New York (LGA/JFK) operations...
Next Flight: EWR-SEA (AS), SEA-EWR (UA), EWR-SEA-EWR (UA)
 
nycaross
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:20 pm

Is this trend going to leave only 2 or 3 major airlines in the US?
 
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airzim
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:22 pm

Delta has officially been put in play. It will be interesting to see the reaction from NW, CO and AA.

I think US' offer for DL is not about synergies of the two companies, it's about cherry picking DL's best assets and combining them with US. Delta will be a shell of its former self if this goes through.

Plus Delta's creditors and the bankruptcy court are the ones calling the shots. Maybe they'll like their investment paid back sooner?
 
stirling
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:24 pm

Quoting Walter747 (Reply 18):
They'll get the asian routes too.

But at the same time, they are still far away from having a significant Asian presence equal to what they had when PDX was the transPac hub.
The only U.S. carrier with a thinner Asian network is American.
They still would have a long way to go to match Northwest and United.

Quoting AkjetBlue (Reply 17):
Long haul - B777 or A330? Which would they keep?

I believe those are two entirely different animals. There are several airlines right now operating both the 777 and 330 side by side. This is a non-issue.

Quoting AkjetBlue (Reply 17):
Obvious problems with 738 vs the A32x family

When talking about fleet commonality, after a certain point, it does not matter. Both airlines have large fleets of both, and has been mentioned, keeping them hub specific, makes this less of an issue as some might think.
Yes, they are very similar, some airline execs have stated the only real difference between the 738 and 320 is the acquisition price.

A merger like this is not so much concerned with hubs and fleets as we are on A.Net...right now, the accountants are looking at much more intense stuff....share prices, debt load, then labor contracts, seniority lists, etc.
The most important thing is the removal of capacity....not from any one hub in particular, but the U.S. and International networks as a whole.
In this instance, it is about market share; how they go about it, through which hubs and with what fleet is all secondary at the moment.
Look to the current US/HP merger for proof. It's been how long now?, and they still have many holes in the domestic network....they only thing they've really done is added the flights to Hawai'i......plus there has been virtually no movement on the fleet end....the two airlines are flying what they had before the merger, taking on orders placed before.
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BNinMSY
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:27 pm

IMHO I think the Delta merger will not go thru with USAirways and then US will turn toward NWA, then CO will approach DL. Ending up with AA, UA, US, CO/DL - I prefer the Continental name - classier and a better reputation for service these days.

And there are your four major U.S. carriers that were predicted back with deregulation was cut loose!

WN is in a class of it's own .. and is a major I do realize, but I don't think they can really be put in this same class with the legacy carriers - they are so different. Frankly I don't know why the hardheads at the legacy carriers haven't adapted more toward the WN structure. But then there is only one WN.
 
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centrair
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:29 pm

Quoting Warreng24 (Reply 46):
The question is now....Which alliance would the new HP/US/DL be in?Star Alliance?SkyTeam?

Skyteam.
Reason. Delta's very strong relationship with AF and KE. DL helped build Skyteam while US basically just joined Star. But this would mean that all the recent codeshare deals with Star carriers would go into the trash.
My name is Centrair but HND is closer. Let's Japanese Aviation!
 
MCOflyer
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:36 pm

I think a US and NWA would be better. As others have said a CO/DL will be a perfect combo.

MCOflyer
Never be afraid to stand up for who you are.
 
cityguy
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:37 pm

Quoting PanAm_DC10 (Thread starter):

Another Doug Parker and Company mess looming!
 
UAL777UK
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:44 pm

I wonder if it did go through where the HQ's would be?
 
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STT757
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:45 pm

Quoting Nycaross (Reply 56):
Is this trend going to leave only 2 or 3 major airlines in the US?

DL+US
AA+NWA
CO+UAL
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
A480
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:45 pm

If the merger goes ahead, I guess it is great news for the A350 XWB
 
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foxecho
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:45 pm

lalalallalalalalalal

not gonna happen not gonna happen not gonna happen not gonna happen
..uh, we'll need that to live......
 
isitsafenow
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:46 pm

After some thought, this could be the first shot fired. Lets see if there is
an offer by someone else.......and up the ante a little.
safe
If two people agree on EVERYTHING, then one isn't necessary.
 
worldtraveler
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:47 pm

Doug Parker of US has said for months he wanted a deal like this.

DL has no interest in a merger w/ anyone and even they did it would never be w/ US. US and DL combined are so large on the East Coast that regulators would never approve it. Further, US has still not completed its merger w/ HP from a year ago.

The fact that the proposal has been on the table for 2 months should indicate that Grinstein has the backing of the creditors in not pursuing a merger.

This proposal will die as fast as the Ryanair proposal to buy Aer Lingus.
 
COERJ145
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:47 pm

Wow, what a way to wake up this morning, log on to A.Net, and see that US had proposed to DL. Wow, shocking. I wish both airlines the best if this goes through.
 
MCOflyer
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:51 pm

Quoting WorldTraveler (Reply 68):
This proposal will die as fast as the Ryanair proposal to buy Aer Lingus.

It could happen. I've seen weirder mergers happen. ( KL/AF) It wouldn't surprise me if US offered to buy NW.

MCOflyer
Never be afraid to stand up for who you are.
 
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deltadawg
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:53 pm

NO, NO, NO, NO, NOOOOOOOOOO!

I cannot see HP giving up the US Airways name and I cannot see Delta giving up its identitiy either. This is not a good move for either airline.

NO, NO, NO, NO, NOOOOOOOOOO!
GO Dawgs, Sic' em, woof woof woof
 
BUFjets
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:56 pm

Cities like Wilmington, NC are only served by DL and US. I would expect ILM to see fare increases if this goes through. What other airports besides ILM are served only by DL and US?

BOS would be dominated by a combined DL/US
 
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foxecho
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:56 pm

JERRY~

Go tell US to go back to PHX

God forbid this happens- What a nightmare this would be.

I am in agreement that this is a similar situation to the FR EI bid. Delta will brush them off.

Andrew (only slightly more lucid since my last post)
JFK/MEM/MCI

[Edited 2006-11-15 14:58:49]
..uh, we'll need that to live......
 
airmailer
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:58 pm

I'll admit that I didn't read through all of the posts yet, but does anyone else think that if US did end up buying DL that WN might seize the opportunity to purchase FL?

I know that there are hard-liners that say that WN would never ever ever buy an airline that had anthing other than 73Gs, but it would make sense to me that they (WN) would do this to keep competitive with HP/US.

What does everyone else think (besides of course: "No WN would never operate a second type" )?
 
sidishus
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 10:59 pm

Parker said a US Airways-Delta combination would have about 85,000 employees. He said he would anticipate flying with 10 percent fewer planes, but that doesn't mean job cuts.
"The plan is not predicated on any job cuts," Parker said.



BWAHHHHAAAAAAA!!!!  Wink

Yeah, riiiighhhhht Parker. You must've inhaled too much in college too.
the truth: first it is ridiculed second it is violently opposed finally it is accepted as self-evident
 
IADLHR
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:00 pm

Quoting Nycaross (Reply 56):
Is this trend going to leave only 2 or 3 major airlines in the US?

Thats why I think that perhaps congress, maybe even a lame duck one, will once again consider raising the foreign ownership levels above 25%. I am not saying they will approve 51% but there will be a discussion of it very, very soon. I can easily see the discussion and debate taking place.
 
jacobin777
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:01 pm

I'm a bit miffed at this one too...I would have thought NW was the better one to go for..

1)NW has coveted Asia routes
2)Fleet commonality
3)Not as much route overlap
4)US has a strong presence to Europe as it is
"Up the Irons!"
 
DAYflyer
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:04 pm

I personally think they (US) would be bitting off more than they could chew on this one.

There is a huge debt load at DL, different cultures, Unions, aircraft fleets and so on, but on a much larger scale than the merger with America West.
One Nation Under God
 
N1120A
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:08 pm

Quoting DeltaGator (Reply 3):
Quoting EWRandMDW (Reply 1):
US and DL both operate hourly shuttle flights between BOS-LGA-DCA; one will have to go.

Why? The market can handle both now so perhaps move DL to on the hour and US on the half hour.

There would be a huge problem with monopoly, quite similar to what was feared at DCA with the United/US Airways merger.

Quoting DeltaGator (Reply 3):
Quoting EWRandMDW (Reply 1):
DL is in BK, US recently exited BK.

And both of those have nothing to do with anything.

Actually, US did not recently exit bankruptcy protection. The new US is the corporate successor of America West, which purchased bankrupt US Airways.

Quoting DeltaGator (Reply 3):
Quoting EWRandMDW (Reply 1):
DL has its main hub in ATL and US about 250 miles away in CLT. DL has major intercontinental ops at JFK and US at PHL, about 100 miles away.

Close or reduce CLT as ATL is a far superior facility. Reduce PHL and continue to fix up JFK.

ATL is also a massive mess anytime a cloud is seen over Marietta, so relieving some of the overcapacity there would bode well. PHL is superior as a hub to JFK in that it offers a more hub friendly terminal as well as being a single airport to serve one O&D market.

Quoting EWRandMDW (Reply 12):
What's happened since then -- the "New" ATT which is swallowing up the remnants of those "baby Bells" and will soon essentially monopolize communications again

Verizon might have something to say about that.

Quoting AkjetBlue (Reply 17):
Long haul - B777 or A330? Which would they keep?

There is absolutely no reason why both of those aircraft cannot be operated in the same fleet.

Quoting AkjetBlue (Reply 21):
Didn't US buy the Trump Shuttle giving it the BOS-LGA-DCA run? Some how I was thinking that it was held as a different airline, would US sell that to come up with some cash?

Actually, both airlines did that.

Quoting AvConsultant (Reply 32):
Delta to become a Low Cost Carrier.

Delta to...Unionize

Has anyone else noticed that there is a major issue with the work groups?

Quoting Falstaff (Reply 42):
That way AA can screw over all the NWA employees the way they did to the TWA people. According to an article I read in Airways Classics about TWA; AA's unions didn't give much seniority to TWA people because TWA had been bankrupt and therefore the employees didn't have much of a future anyway. I would hate for that to happen again.

Big difference. TWA was in Chapter 7 liquidation, not Chapter 11 reorganization.

Quoting UALPHLCS (Reply 48):
Besides I don't see the route structure fit. As has been pointed out PHL-JFK, CLT-ATL, PHX-LAS-SLC, PIT-CVG. Delta's routes mirror US/HP's routes

PIT-CVG is pretty much a non-issue at this point, given the major US pulldown at their historic home. I can see SLC being pulled down to the benefit of PHX and HP's LAS hub has always been more of an O&D pull. CLT is in a position of relieve ultra-congested ATL and read above for PHL-JFK.

Quoting A480 (Reply 65):
If the merger goes ahead, I guess it is great news for the A350 XWB

Actually, it would likely be bad news for it.

Quoting MCOflyer (Reply 70):
It could happen. I've seen weirder mergers happen. ( KL/AF) It wouldn't surprise me if US offered to buy NW.

NW would actually make more sense.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
JetBlueGuy2006
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:09 pm

So does this mean we won't see the new awesome US livery anymore? I just don't see this going through. As some people have already said, the 2 companies don't mix very well. I guess time will tell.

It is just a proposal
Home Airport: Capital Region International Airport (KLAN)
 
WJ
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:11 pm

Quoting Sidishus (Reply 75):
Parker said a US Airways-Delta combination would have about 85,000 employees. He said he would anticipate flying with 10 percent fewer planes, but that doesn't mean job cuts.
"The plan is not predicated on any job cuts," Parker said.


BWAHHHHAAAAAAA!!!!

Yeah, riiiighhhhht Parker. You must've inhaled too much in college too.

If you look at the US/HP merger, no jobs were outright cut. Early retirement was offered, management was offered transfers to where they were needed but no-one was directly let go. The same will likely happen if this thing will take place, DL has a lot of 35-40 year veterens that will likely be interested in retirment packages if offered.

Regardless of all that, IF this thing happens, and IF it is successful (as overall the US one has been), Doug Parker will go down is the greatest CEO in airline history. I cant think of anyone who at that point would have taken over as much of of the industry in such a short period of time, keep labor at relative quiet and turn hemreging operations into one profitable one. it will be very impressive.
146,727,732,733,734,735,73G,738,739,742,743,744,752,753,762,763,764,772,300,310,319,320,321,330,343,DC9,D10,MD11,M80,E17
 
BigOrange
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:12 pm

OK, here's my thoughts on what will happen IF this merger goes ahead.

The name will be Delta, that much we already know.

It will be a member of Skyteam

CLT will go, LAS will go. SLC and CVG will be built up into major hubs. LAX will stay. PHL will go, JFK will stay.

The A330's will go eventually, to be replaced by more B777's. A320's will be phased out on a one for one basis in place of more 738's. The A350 order will not happen. An order for 787's will be placed to replace the aging 767's.

The question I keep asking myself is why DELTA?? I would have thought NW would have been a better choice. Do US know something we don't about the state of DL's finances as opposed to NW's finances?

As far as the regionals go, ASA will be closed down and replaced by an expanded Comair/Skywest. PDT will be expanded and merged with PSA. Republic/Chautauqua will pick up the remaining flying.
 
positiverate
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:15 pm

Under bankruptcy, Delta has exclusivity for re-organization and their own plan will not be presented until at least February. I would think since Delta didn't respond to any overtures, since they're committed to doing this themselves, Doug Parker and his ego couldn't help themselves so he went public. Delta is a good story and the turnaround has been remarkable. They'll probably have a few more offers in the next months leading to their exit.

And furthermore, this merger makes zero sense. From a fleet commonality standpoint it's a nightmare, to say nothing of the corporate cultures being vastly different. The employees of USAir are good folks, as are the employees at Delta. I think both employee groups would be best served if Doug Parker backed off.
 
Silver764
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:16 pm

This is a hostile attempt at a take-over attempting to throw enough money at Delta's creditors to hopefully sway them to take a deal that would be better than when delta emerges from BNK.

It will be Delta's job to show GE Capital and others this will not be the case. GE has alot to loose with potential future plane financing, engines etc.

Honestly doubt this merger will happen. But it comes down to bean counting....
 
UNITED777ORD
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:18 pm

I just listened to the conference call and Parker and management does not sound organized. Parker is moving too fast and I hope this transaction does not fall through. USAirways needs to focus on completing the merger with America West and growing the airline before even considering a merger. Also, Northwest Airlines is a better match for USAirways but again USAirways needs to wait at least 5-10 years before going thru a merger. This proposed DL/US merger will create many monopolies in many markets.
 
COERJ145
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:20 pm

Quoting BigOrange (Reply 82):

The A330's will go eventually, to be replaced by more B777's. A320's will be phased out on a one for one basis in place of more 738's.

It would make more sense to keep the A320s, as they outnumber the 738s. Maybe the 734s could be replaced by the 738s. They both seat about the same(738s-150, 734s-144, 733s-134/126). The 738s have the range for trans-cons while the 734s/733s don't. I agree with the A330s being phased out.
 
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STT757
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:21 pm

Quoting WorldTraveler (Reply 68):
The fact that the proposal has been on the table for 2 months should indicate that Grinstein has the backing of the creditors in not pursuing a merger.

This proposal will die as fast as the Ryanair proposal to buy Aer Lingus.

If DL were not operating under bankruptcy protection I would agree, however operating under bankruptcy protection outside investors have a right to by-pass DL's management and talk directly to DL's creditors. If the creditors (to whom DL owes $16 Billion in debt) feel they will get something (even if it's fifty cents on the Dollar) more from accepting US Airways offer than letting DL wipe away more debt or to refinance DL's existing debt they will accept the offer from US Airways.

The creditors and Bankruptcy Judge are in control while DL is in bankruptcy protection, with a $7.2 Billion Dollar commitment from Citigroup the creditors (should they accept the offer) have a strong case to make to the Judge to allow the deal to go forward.

DL would have a hard time countering the offer as they do not have an investor such as Citigroup backing their own recovery plan.
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
sidishus
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:22 pm

Quoting WJ (Reply 81):
Regardless of all that, IF this thing happens, and IF it is successful (as overall the US one has been), Doug Parker will go down is the greatest CEO in airline history. I cant think of anyone who at that point would have taken over as much of of the industry in such a short period of time, keep labor at relative quiet and turn hemreging operations into one profitable one. it will be very impressive.

That "not predicated on job cuts" is PR pablum pure and simple, and as far as I am concerned a view into the man's (lack of) character.

You can't run a successful airline by cutting 10 percent of your flying without cuts in costs...And that means people.
the truth: first it is ridiculed second it is violently opposed finally it is accepted as self-evident
 
UNITED777ORD
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:22 pm

SOMEONE IN USAIRWAYS MANAGEMENT TELL PARKER TO GET A CLUE, FINISH THE MERGER WITH AMERICA WEST AND IN ANOTHER 5 YEARS CONSIDER NORTHWEST AIRLINES AS A MERGER PARTNER..GEEZZZZZ...
 
N1120A
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RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:25 pm

Quoting BigOrange (Reply 82):
Do US know something we don't about the state of DL's finances as opposed to NW's finances?

DL's finances are in far better shape than NW's.

Quoting BigOrange (Reply 82):
As far as the regionals go, ASA will be closed down and replaced by an expanded Comair/Skywest.

ASA is already owned by Skywest. Comair needs a major restructure.

Quoting STT757 (Reply 87):
If DL were not operating under bankruptcy protection I would agree, however operating under bankruptcy protection outside investors have a right to by-pass DL's management and talk directly to DL's creditors.

They do, but they would have to get a major defection of creditors from DL's management.
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
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STT757
Posts: 14221
Joined: Tue Mar 28, 2000 1:14 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:26 pm

Quoting BigOrange (Reply 82):
PHL will go, JFK will stay.

What would come out of abandoning a near monopoly on International flights at PHL with large adequate facilties to be fourth banana in NYC with poor facilities.
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:27 pm

Quoting AvConsultant (Reply 32):
US would not go to this lengths without talking to DL. We have no idea what DL mgt has committed to creditors

Grinstein could not have been saying for six months that he intended to remain a standalone company if he did not have the backing of the creditors. DL mgmt has a responsibility to obtain the greatest value for DL’s creditors and those creditors have to have said they do not believe their value will be enhanced by any merger.

I just listened to the conference call. The analysts who asked questions were cordial but they clearly don’t see this as a viable offer because US mgmt was unable to answer some of the basic questions people here are asking – fleet, alliances, regulatory issues.

And let’s also remember that the old US was on the verge of shutdown when HP bought them. HP and US also had very little network overlap. DL has executed one of the best turnarounds in airline history (I’m not the only one saying this).

The fact that DL and US are archrivals on the east coast and duplicates throughout their network makes this deal DOA - no matter how good the financial terms may be.

Quoting AvConsultant (Reply 32):
Delta to become a Low Cost Carrier.

Newsflash: DL already has lower costs than US.

Quoting FlyPNS1 (Reply 49):
The only thing I see feeding this merger is Doug Parker's mega ego.

BINGO! And the fact that he will get lots of money if a deal is pulled off. Plus it distracts everyone from the fact that US and HP are not fully merged and there is no definite plan for them to be.

Quoting MCOflyer (Reply 70):
( KL/AF) It wouldn't surprise me if US offered to buy NW.

This might have some chance from a regulatory perspective of succeeding but the value to creditors issues are the same – it is virtually impossible to create more value in a merger for an airline than could be done by operating independently.

Hope the moderators enjoy all the traffic this proposal will bring to these boards because they are about the only people that will benefit from such talk.
 
dolphinflyer
Posts: 320
Joined: Sun May 08, 2005 9:57 pm

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:31 pm

From a network perspective, I fail to see any synergies of substance between US and DL. There's too much duplication/overlap and not enough complementary routes. This proposal makes absolutely no sense!
 
DL WIDGET HEAD
Posts: 1469
Joined: Wed Apr 12, 2000 8:18 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:32 pm

Dear Mr Parker,

Not just NO, but hell NO!

We've got one question to ask you, what does crack taste like?

Signed,

Delta Employees
 
okie73
Posts: 357
Joined: Sat Mar 18, 2006 11:09 pm

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:34 pm

Quoting BigOrange (Reply 82):
As far as the regionals go, ASA will be closed down and replaced by an expanded Comair/Skywest. PDT will be expanded and merged with PSA. Republic/Chautauqua will pick up the remaining flying.

the regionals is where this could get interesting. Lets say you have a market currently served by 4-5 USAir RJs and 4-5 Delta RJs. All the sudden it makes sense to put in 3-4 mainline aircraft. This could mean a serious reduction in the numbers of RJs....certainly the 50 seaters.
 
WJ
Posts: 299
Joined: Mon Feb 27, 2006 6:14 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:34 pm

Quoting Sidishus (Reply 88):
You can't run a successful airline by cutting 10 percent of your flying without cuts in costs...And that means people.

It's not to say that there wont be less people working at a combined US/DL operation than with the two entities separated. I am just saying that there are other ways to reduce your work force without sending out several thousand lay-off notices. Besides, proposing such a deal, that does not show how you reduce labor costs without massive lay-offs will never get a DOT approval. The last thing the government needs to see is 5000-10000 former airline employees out of a job overnight due to a takeover. It may be a preliminary bid offer, but I am sure that this aspect has been on or near the top of the priority list from day one. Everyone thought the HP/US deal will never happen, let alone become profitable, without layoffs. Guess what, it did. Nothing to do but wait and see...
146,727,732,733,734,735,73G,738,739,742,743,744,752,753,762,763,764,772,300,310,319,320,321,330,343,DC9,D10,MD11,M80,E17
 
A340Spotter
Posts: 1743
Joined: Tue Jul 29, 2003 9:52 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:38 pm

And on a side note, shares of CO, AA, WN are all up 3-5% in early trading due to this announcement!

 Smile
"Irregardless, it's a Cat III airplane, we don't need an alternate!"
 
sidishus
Posts: 488
Joined: Mon Oct 25, 2004 1:45 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:42 pm

Quoting WJ (Reply 96):
I am just saying that there are other ways to reduce your work force without sending out several thousand lay-off notices

It would take some serious magic to get several thousand people to leave Delta willingly...

Tell them, "Sure you have a job...for X fraction of the payscale you had before, and oh-by the way, you are stapled on the bottom of the seniority list so you get the junior pay on that new and improved scale "....?

I'm sure that will be an amicable process.
the truth: first it is ridiculed second it is violently opposed finally it is accepted as self-evident
 
incitatus
Posts: 3392
Joined: Wed Feb 09, 2005 1:49 am

RE: US Airways Proposes Merger With Delta

Wed Nov 15, 2006 11:42 pm

Quoting DeltaGator (Reply 7):
Just because US is making the offer doesn't mean DL has to listen or respond.

Actually Delta does not have to listen for the purchase to go through. Delta is in Chapter 11.

All of Delta can whine about it but if it cannot convince the creditors to turn the offer down, it will be assimilated into the current USAirways.
I do not consume Murdoch products including the Wall Street Journal

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