Delta talks to NWA for merger alternative.

[YourPilotFriend]

Looks like NWA and Delta are making their talks public now about the merger.

 

[FlyingSig]

Delta now has a policy of unlimited jumpseats. this applies to the entire system both domestic and international. All of the carriers with whom Delta has a reciprocal agreement have been turned "on" for unlimited jumpseats. Delta will be renewing all existing agreements with the new language and all future agreements will be unlimited.

Craig Stephens
DAL MEC Jumpseat Committee Chairman

The above was gotten of the ALPA website...

 

[YourPilotFriend]

The Wallstreet Journal

Northwest, Delta Discuss Tie-Up
By Susan Carey, Melanie Trottman and Evan Perez
Word Count: 520 | Companies Featured in This Article: US Airways Group, UAL, Continental Airlines
Northwest Airlines has been having recurring talks with Delta Air Lines about a potential link-up between the two, possibly after they both emerge from bankruptcy-court protection later this year, said people familiar with the matter.
Meetings between executives at various levels of management and between the airlines' advisers have been occurring regularly for weeks, including some in recent days. These sessions have helped Delta's creditors come to see a combination with Northwest as a realistic alternative to US Airways Group Inc.'s hostile takeover bid.
US Airways today upped the ante by sweetening its hostile takeover bid for Delta to $10 ...

 

[ponder]

Wow, so Bethune told US that the 8billion offer
wasn't enough. That's interesting.

 

[Noserider76]

Looks like NWA and Delta are making their talks public now about the merger.

Though they said they are looking at a combo after both emerge from BK, it wouldn't be much of a stretch to see DL/NWA get third-party financing and offer the creditors a combo of cash and new NWA/DL stock that would blow Parker's offer out of the water. I think NW and DL would do very well alone but the combo would be a global powerhouse. These discussions have probably been going on since before they declared BK on the same day. Fear of this combo is probably one of the main reasons for Parker's offer in the first place.

 

[YourPilotFriend]

Actually not a little before bankruptcy, since the early 90's.

 

[michael707767]

Folks, it is not coincidence that news of Delta/Northwest talks hit the street a few hours after Parker ups his offer. This is Delta's response.


Noserider hit the nail on the head.....with a combo of cash and stock in the new DL/NW, Delta can blow Parkers offer out of the water. The valuation of the combined DL/NW will be way, way more than DL/US. Delta/Northwest makes sense. The future prospects for DL/NW stock are a lot brighter than prospects for DL/US stock.

 

[JT8D]

Fear of this combo is probably one of the main reasons for Parker's offer in the first place.

Bingo!

 

[Kenney G]

Maybe Delta's stand alone plan may not have held up the US Airs new offer. Thats why they came public with NWA.

 

[General Lee]

Even our people in the crew lounge talks have stated we were talking to someone else, but never said who of course. The key here is Boeing. I think they would LOVE to replace Northwest's DC9s, and they would give their support on our creditor committee if they could get a chance at new planes for a combined airline. NW already has a 787 order, and DL is rumored to announce one after we exit BK.

Oberstar, the D from MN, also could be persuaded on this one, since NW is based in his district. What they say could sway Oberstar. That is one thing about AA taking over NW----Oberstar might not want his NW headquarters moved from his district to DFW, and a tie up with AA could cause one of those three hubs (MSP--ORD--DTW) to potentially close.

The aircraft between DL and NW are a bit different, but many need replacing. The A320s and A330s are different, but remember at DL we had L1011s, Md11s, 767-400s, 777s, and 763s at the same time pre-9-11. I guess there could be 747-400s, 747-200 cargo, 777s, 764s, A330s, and 763s in the mix. I bet the DC9s could be replaced by 737-700s or E190s. You never know.....


For the merger to take place, route overlap must be limited, small communities must not be affected, and major hubs should not be closed. Also, both airlines might want to do it, rather than one saying no and making sure all of the local Congressmen fight for them. We'll see, but it is better than the USAir offer by far, it actually makes some sense....


Bye Bye--General Lee

 

[Fly4hire]

Even our people in the crew lounge talks have stated we were talking to someone else, but never said who of course. The key here is Boeing. I think they would LOVE to replace Northwest's DC9s, and they would give their support on our creditor committee if they could get a chance at new planes for a combined airline. Bye Bye--General Lee

General,

The talk is NWA is going to aquire DAL - not sure how that would effect such a purchase unless Boeing is one of NWA's creditosr in the exit deal as well. NWA is filing it's POR next week with no extension - DAL's hearing is Feb 7. NWA will likely be out of Ch11 well before DAL.

Disclaimer: not trying to initiate a intergration DMC -who aquires who has no bearing on ALPA merger policy.

 

[NYRANGERS]

General,

The talk is NWA is going to aquire DAL - not how that would effect such a purchase unless Boeing is one of NWA's creditor in the deal as well. NWA is filing it's POR next week with no extension - DAL's hearing is Feb 7. NWA will likely be out of Ch11 well before DAL. Do the math

Disclaimer: not trying to initiate a intergration DMC -who aquires who has no bearing on ALPA merger policy.

The discussions are about merging after both companies come out of BK.

 

[michael707767]

The talk is NWA is going to aquire DAL - not sure how that would effect such a purchase unless Boeing is one of NWA's creditosr in the exit deal as well. NWA is filing it's POR next week with no extension - DAL's hearing is Feb 7. NWA will likely be out of Ch11 well before DAL.

Delta has already filed its POR.

 

[xjhawk]

i hear that if a merger happens, they would take something from both names to name the new company. They would take the "Delta" from Delta airlines, and the "airlines" from NWA, So the new company woulld be called Delta Airlines.

I did not come up with that, just retold the joke!

 

[General Lee]

General,

The talk is NWA is going to aquire DAL - not sure how that would effect such a purchase unless Boeing is one of NWA's creditosr in the exit deal as well. NWA is filing it's POR next week with no extension - DAL's hearing is Feb 7. NWA will likely be out of Ch11 well before DAL.

Disclaimer: not trying to initiate a intergration DMC -who aquires who has no bearing on ALPA merger policy.

Here is the actual article:

By SUSAN CAREY, MELANIE TROTTMAN AND EVAN PEREZ
January 10, 2007 2:17 p.m.
Northwest Airlines has been having recurring talks with
Delta Air Lines about a potential link-up between the two,
possibly after they both emerge from bankruptcy-court
protection later this year, said people familiar with the
matter.

Meetings between executives at various levels of management
and between the airlines' advisers have been occurring
regularly for weeks, including some in recent days. These
sessions have helped Delta's creditors come to see a
combination with Northwest as a realistic alternative to US
Airways Group Inc.'s hostile takeover bid.

US Airways today upped the ante by sweetening its hostile
takeover bid for Delta to $10 billion. US Airways improved
its mid-November $8.4 billion bid after Gordon Bethune, a
former airline executive hired as an adviser by the Delta
creditors, on Monday told US Airways its first offer wasn't
good enough, said one person familiar with the matter.

Delta, which has insisted that it wants to step out of
Chapter 11 as an independent airline, was trying to persuade
its creditors that its standalone post-bankruptcy business
plan is superior to US Airways' first offer. The Delta
creditors, who met today, are taking the improved offer
seriously and intend to pressure Delta to consider opening
its books to due diligence by US Airways and possibly other
suitors, this person said.

Meantime Northwest has emerged as a "promising third option"
to Delta's standalone plan and US Airways' sweetened bid,
said one person familiar with the matter. Another person
with knowledge of the matter said there also have been
contacts by UAL Corp.'s United Airlines with Delta. But this
individual said it's not clear whether Delta has officially
investigated an alternative deal with either Northwest or
United.

Another individual said the United-Delta conversations
haven't been as frequent or recent as the ongoing Northwest-
Delta contacts. United has been having exploratory talks
about a combination with Continental Airlines Inc., its
preferred dance partner, although many issues remain to be
sorted out, according to another person familiar with that
situation. Continental isn't certain it wants to combine
with any rival, but is going along with negotiations out of
concern that any Delta deal with lead to a flurry of
mergers.

Northwest, which also wants to step out of court protection
as an independent company, is expected in the next few days
to file its preliminary plan of reorganization with the U.S.
Bankruptcy Court in New York. It must file that document by
Tuesday as that is the day its right to field such a plan
without facing rival plans from creditors or other parties
expires. Leading up to that, Northwest has been out in the
marketplace trying to raise equity capital to help fund the
company once it leaves Chapter 11.

Northwest, which had been virtually mum about the merger
speculation sweeping the industry, last month broke its
silence by hiring investment-banking and restructuring
advisers Evercore Partners Inc. to help it evaluate and
possibly implement a merger, acquisition or other business
combination. But as early as last May, the Northwest board
of directors created a special committee to evaluate
consolidation possibilities.



So, according to this, there could be a merger, acquisition, or other business combination. You never know---except that your DC9s will be history probably before our planes. (we just dumped the 737-200s and 737-300s).
Thank Gawd that ALPA merger policy is there! Fences probably would go up for your 747s, and our other 120 widebodies including the 777s. But, we both could get 787s, so they would be open to everyone.... That would be a sight to see!


Bye Bye--General Lee

 

[xjhawk]

i hear that if a merger happens, they would take something from both names to name the new company. They would take the "Delta" from Delta airlines, and the "airlines" from NWA, So the new company woulld be called Delta Airlines.

I did not come up with that, just retold the joke!

 

[Whine Lover]

"Even our people in the crew lounge talks have stated we were talking to someone else, but never said who of course."

Genius. Pure Genius.


YKW

 

[Diesel-9]

deleted

 

[Diesel-9]

If I recall, NWA has 18 firm orders for 787's with options for 50. Think I read in Aviation Leak they were working on engine purchase for the next 18. Think the order for 68 787's is all part of a merger scenario that they have had in planning for years. Being the North American launch customer they probably got a great price on them when ordered years ago and like the 747-400 deal they got as the launch customer, they could sell excess 787's today for $20 mil. or more profit per slot.

 

[doh]

Looks like NWA and Delta are making their talks public now about the merger.

I would hate to see my beloved NWA fall under the influence of the evil empire in any way, shape or form! Sad news...sad news.

 

[filejw]

The word I have heard for the last few months is a NWA managment with the Delta name. Don't shoot the messenger.

 

[dtfl]

I've got a novel idea...how about Delta come out of BK and remain a standalone carrier.

 

[filejw]

dtfre....Nice but the Bankers/wolf's are at the door

 

[NuGuy]

The word I have heard for the last few months is a NWA managment with the Delta name. Don't shoot the messenger.

That may or may not be. NWAs Pacific routes depend on NWA being the surviving "corporate entity".

Nu

 

[filejw]

NuGuy ...True however changing a name does not mean a corporation has changed. These people although cruel are not stupid.

 

[General Lee]

That may or may not be. NWAs Pacific routes depend on NWA being the surviving "corporate entity".

Nu

Didn't United buy Pan Am's NRT hub and slots? They didn't have to name it "United Pan Am..." I think they can change names if they want to.


Bye Bye--General Lee

 

[General Lee]

dtfre....Nice but the Bankers/wolf's are at the door

Northwest needs this deal just as much as we do. If USAir actually got this going, the others would supposedly be allowed to merge.(The DOJ would have to if they allowed this mess to merge) UA and CAL get together, and possibly AA and NW. If AA and NW get together, there will be 3 midwest hubs---MSP, ORD, and DTW. One will probably have to go, and Southwest will be chomping at the bit. I bet it won't be ORD, so take your pick. Your headquarters would also go to DFW. So, in reality, we need each other. IF we merge, then most of the hubs stay put (CVG and MEM would become focus cities probably), we keep our East Coast Shuttle and pound USAir with it, and we replace your DC9s with E190s or 737-700s that Boeing would love to provide us with, along with a combined 787 order. We would become the biggest alternative to a combined CAL/UAL, which would be huge. AA would become a distant 3rd in size, and USAir would be puny. Parker would be looking around for another merger partner, and might do it with Spirit or USA3000. (He'll have the money from the banks to buy BOTH maybe!!!!--$10.3 Billion)


Bye Bye--General Lee

 

[Hpilot]

So let me get this straight, you'd rather merge with Northwest than US Airways. Boy, you are are one dumb, uninformed, trailer trash, clueless mother f@er.

 

[General Lee]

So let me get this straight, you'd rather merge with Northwest than US Airways. Boy, you are are one dumb, uninformed, trailer trash, clueless mother f@er.

Huh? You bet I would. There is less overlap, which means less job loss. The hubs would remain, and we would be able to compete with a UAL/CAL combo. You have no clue what you are talking about. And, nobody wants to get mixed up with those senior USAir pilots. You should know that.


Trailer trash? Come on now. We look sharper than you do.


Bye Bye--General Lee


Delta Air Lines is once again up for grabs.

US Airways chief executive officer Doug Parker fired a second blast Wednesday by upping his $8.5 billion offer by 20%, offering Delta creditors $10.2 billion in cash and stock.

But at market close on Wednesday, Northwest and United (nasdaq: UAUA - news - people ) emerged as possible buyers for the bankrupt airline.

Both Northwest and United Airlines have both been in talks with Delta, reports Calyon analyst Ray Neidl who put out a note on the development late Wednesday. “These meetings have helped Delta’s creditors come to see a combination with Northwest as a realistic alternative to US Airways Group’s hostile takeover bid,” wrote the analyst

 

[NuGuy]

Didn't United buy Pan Am's NRT hub and slots? They didn't have to name it "United Pan Am..." I think they can change names if they want to.


Bye Bye--General Lee

Entirely different set of rules for NWA's Pacific routes, and you know it GL.

To refresh everyone's memory, NWAs NRT routes, slots and 5th freedom rights are granted directly to NWA from the Japanese Government. Part of the rights are that they are NON-Transferable, and that the ONLY corporate entity that can operate said routes is NWA.

The Japanese government has stated MANY times that should NWA go away for some reason (liqudation, purchase, etc), that the routes, rights and slots revert to the Japanese governement, and WILL NOT be re-issued.

Think about it...NWAs current rights out of NRT is like ANA comming into ORD and flying international (and some domestic flights) with US Passengers...cabotage, in other words.

So while they MIGHT think about switching names...doubtfull since NWA is somewhat of a "household name" in Asia, it will be planes and pilots on the NWA operating certificate doing the flying.

Nu