NWA?DAL deal rumored within 2 weeks

[jetflier]

This was taken from NWA ALPA web boards:

Saturday, January 05, 2008 01:53 PM
Originally Posted 5-Jan-2008 13:44 I wrote to the author of Planebusiness.com, of which I have been a long time subscriber regarding her take on heavy call volumes on UAUA, and to a lesser degree DAL, and NWA.

This was the rather specific (my emphasis) response:

"..Yes, I think something is up. I think we should hear something on the Delta/NW deal in the next two weeks . As for United, remember that Monday is the date of record for the dividend payment. Aside from that, I think something is afoot with them as well, but I really don't think it involves Delta. It may involve someone outside the U.S. We'll have to wait and see. But yes, there is a lot of "chatter" out there this week. -H."

The comments on NWA/DAL from this weeks newsletter:

"..First big rumor is actually a recurring rumor. Only this time it has more details. Delta-Northwest. Over the last week, we've received a number of pieces of intel from various folks on both the industry side and the financial side and it's all pointing in one direction -- that this deal could be announced this month. As I have said in the past, I think this one is going to happen. I mean, folks, remember it was me who said Richard Anderson was going to be the new CEO at Delta -- months before it was announced...

 

[Lear70]

As I have said in the past, I think this one is going to happen. I mean, folks, remember it was me who said Richard Anderson was going to be the new CEO at Delta -- months before it was announced...

She sounds a bit insecure...

Someone who really has a good track record of making predictions shouldn't have to beat their chest like that.

Either way, it's been the speculation for a while, wouldn't be all that surprising and hardly an "original thought".

 

[spongebob]

What's it going to be, DOH with 5 year fences? I think career expectations just took a dive with the imminent reduction in fleet size.

DAL has Captains hired in '00 but NWA has more upcoming retirements. Should be an interesting seniority merger.

Not looking forward to AWA vs. AAA ch. 2.

SB

 

[MD80DRVR]

Upcoming retirements??? You meah in 2012?

 

[Schwanker]

Upcoming retirements??? You meah in 2012?

No, I think he/she means near term retirements. Most NWA pilots in the 55-60 year range can still retire at 60 with a full retirement package with no deductions. Many would earn as much in retirement than if they kept working. Expect most NWA pilots to continue to retire at 60 for the next several years as there is very little (none in some cases) financial incentive to continue beyond 60. This is especially true now that the TDC has started. Those with a full retirement no longer are receiving DC contributions as these funds are being targeted to those who lost the most in the DB freeze. Retirements will still be very high at NWA.

Schwanker

 

[michael707767]

Not looking forward to AWA vs. AAA ch. 2.

SB

there are some differences between DL and NW, but they are very small compared to AWA and AAA. Frankly the only airline out there that was way, way out of wack was AAA. A merger with any airline but them is a lot easier.

I think the biggest problem with a DL/NW merger is the DC-9s would be parked very, very quickly. How do you account for that in the list merger?

 

[Schwanker]

there are some differences between DL and NW, but they are very small compared to AWA and AAA. Frankly the only airline out there that was way, way out of wack was AAA. A merger with any airline but them is a lot easier.

I think the biggest problem with a DL/NW merger is the DC-9s would be parked very, very quickly. How do you account for that in the list merger?

Same argument could be made for the 80s. The DC-9s are paid for and generate revenue. There are zero plans to retire them as they are part of the NWA fleet plan for the next 5-10 years.

What about MEH? It's very likely they'd be folded into this mix as well although it may be a can that's kicked down the road.

 

[Fly4hire]

I think the biggest problem with a DL/NW merger is the DC-9s would be parked very, very quickly. How do you account for that in the list merger?

It's only an issue if they are parked prior to a PID, which is doubtful. They may be parked after the operations are combined, but if they are on the property and staffed at the time integration is set it becomes a very bad deal for new hires at either company.

I think there is also an issue, that despite there newer age that the 142 seat DC9-80,88,90 is a different airframe for integration and operational purposes than the DC9-30,40 at a 110-124 seats. I wouldn't want to try that with an arbitrator.

The fact is they fly full, and are some of the most profitable acft NW flies, and even if they do need to be replaced, will not simply be parked until there is a need of the combined operation to reduce capacity - after an operational merger, and by it's definition, the seniority integration.

 

[michael707767]

It's only an issue if they are parked prior to a PID, which is doubtful. .

good point.

 

[~~~^~~~]

My bet is that the DC-9's life will be stretched until a "Dreamliner" technology version of a 737 is announced. NWA has a foot in the door with the Embraer product, but some in the industry believe the E jets will be obsolete 5 to 7 years from now.

Delta has new hires in the 767 and in Atlanta (which I guess would be a more senior choice than NWA's bases).

Sure is a lot of noise about this deal and Delta's stock price is in the basement.