Gordon Bethune gives the US/Delta deal "60-40" odds of happening

[Lampshade]

http://www.businessweek.com/bwdaily...p+news_top+news+index_businessweek+exclusiveshttp://www.businessweek.com/bwdaily...p+news_top+news+index_businessweek+exclusives

 

[Heavy Set]

I read this article with him saying that before he was asked by the creditors to view the proposals. This is old news. He has been asked to view the differences and give his opinion on the merrits of the proposals. That´s all. And, he hasn´t covered any antitrust issues, which are huge in the case. Parker can deny it all he wants, but the hubs are next to each other and they both fly to the same cities from CLT and ATL for example. To say that both hubs will remain and all city pairs will too, is naive. His statement about 60-40 was made a month ago.

 

[9rj9]

Spin

I love how you and Gen lee spin everything, never gets old.

 

[Heavy Set]

I love how you and Gen lee spin everything, never gets old.

I don´t have the zest for life GL does. I am just calling it the way I see it. If you have an issue with that, then that is your opinion sir.

 

[ACL65PILOT]

It will not be USA and DAL, but DAL will eventually merge with someone. I think that it will be after they are out of B/K for the simple fact that they will have more say in how it is done.

 

[Dogwood]

I read this article with him saying that before he was asked by the creditors to view the proposals. This is old news. He has been asked to view the differences and give his opinion on the merrits of the proposals. That´s all. And, he hasn´t covered any antitrust issues, which are huge in the case. Parker can deny it all he wants, but the hubs are next to each other and they both fly to the same cities from CLT and ATL for example. To say that both hubs will remain and all city pairs will too, is naive. His statement about 60-40 was made a month ago.

Overlap actually has very little to do with whether the merger is approved or not. Many mergers in the past had overlap, and got the thumbs up. They will just be forced to give up some gates and slots to avoid ainti-trust issues. Overlap is not an issue here.

The Delta name remaining is a very important key in this issue that many underestimate. The BK judge who has a big say in this deal, is obligated to look very strong on any deal that will retain the Delta name. That is why they want to keep it, not for the name recognition.

Ask any Bk lawyer, they will tell you the same think. In fact a BK lawyer friend told me that over dinner the other night.

When he read that they were keeping the Delta name, this jumped right out at him.

 

[ACL65PILOT]

Either way a being at the bottom of a major's list right now is not a wise call. It may pay off for you in the long term, but in the short term it could be quite painful.

 

[FDJ2]

Overlap actually has very little to do with whether the merger is approved or not.

Yes it does, particularly when the two carriers represent a dominant presense in the market. In the case of DAL and LCC their are many airports that will only primarily be served by one network carrier if this deal goes through. There is significantly more overlap and market dominance with this merger than the UAL/US merger ever had.

 

[800Dog]

Overlap actually has very little to do with whether the merger is approved or not. Many mergers in the past had overlap, and got the thumbs up. They will just be forced to give up some gates and slots to avoid ainti-trust issues. Overlap is not an issue here.





The Delta name remaining is a very important key in this issue that many underestimate. The BK judge who has a big say in this deal, is obligated to look very strong on any deal that will retain the Delta name. That is why they want to keep it, not for the name recognition.

Ask any Bk lawyer, they will tell you the same think. In fact a BK lawyer friend told me that over dinner the other night.

When he read that they were keeping the Delta name, this jumped right out at him.

Examples of the many mergers that had overlap of this magnitude and were approved? Where did this friend go to law school? Nothing of any substance to your post.

 

[Heavy Set]

Overlap actually has very little to do with whether the merger is approved or not. Many mergers in the past had overlap, and got the thumbs up. They will just be forced to give up some gates and slots to avoid ainti-trust issues. Overlap is not an issue here.

The Delta name remaining is a very important key in this issue that many underestimate. The BK judge who has a big say in this deal, is obligated to look very strong on any deal that will retain the Delta name. That is why they want to keep it, not for the name recognition.

Ask any Bk lawyer, they will tell you the same think. In fact a BK lawyer friend told me that over dinner the other night.

When he read that they were keeping the Delta name, this jumped right out at him.

Overlap is an issue that Oberstar took personally when he voted to not allow the US and UAL merger. It was subsequently denied by the DOJ. The Delta name is better known than USAir´s in international circles also. Look, everyone can see that this merger looks kooky, and the overlap is tremendous. The creditors are simply making sure that the DL management stays on their promise of 60 to 80 cents on the dollar, which is great in any BK recovery. When DL started this process, it was 13 cents on the dollar. United creditors got 24 cents on the dollar.