Moak says Merger may be close for DL

[Sedona16]

I think the most telling words in the letter are at the very end:

"Finally, the MEC has scheduled a "State of the Union" rally on Wednesday, January 23 at 10:00 a.m. at the Georgia International Convention Center. We are operating in a very dynamic environment.

Consequently, a precise agenda will depend on what events, if any, occur between now and the time of the rally. In general terms, the rally will provide an overview of your union’s recent efforts with an emphasis on the consolidation related activity that has dominated the industry’s financial press and how you can participate to craft our collective future. You will receive more details in the near future."​

 

[Ty Webb]

A little off subject, but if we "rank and file" were a little smarter, DALPA would invite some AirTran NPA pilots to join them as a show of unity, and the AirTran pilots would turn-out in force to show support for the Delta pilots.

Hmmm . . . . What a concept. . . . Pilots showing support for each other.

 

[Schwanker]

I think it could have been. NWA was trying to move in on MEH's MKE hub, starting A319 flights to the West Coast, LAS and Florida, and also using RJs to the East Coast. When it seemed they couldn't beat them and Airtran was knocking at the door, they worked a deal with TPG to purchase them. It just doesn't pass the smell test, and was very predatory in nature. Maybe Airtran will get it's chance to buy them anyway.


Bye Bye--General Lee

It sounds like you're saying, "if you can't beat them, join them."

In all honesty, and don't know whether this is the case or not. I'm sure NWA would have been fine with the status quo, but if MEH were to be bought, what's wrong with the prize going to the largest bidder? ValueJet can fly as many flights into MKE as they'd like. Nothing is stopping them.

Schwanker

 

[General Lee]

It sounds like you're saying, "if you can't beat them, join them."

In all honesty, and don't know whether this is the case or not. I'm sure NWA would have been fine with the status quo, but if MEH were to be bought, what's wrong with the prize going to the largest bidder? ValueJet can fly as many flights into MKE as they'd like. Nothing is stopping them.

Schwanker

You mean "if you can't beat them, buy them." I am sure more than one person was perplexed when hearing NWA won the bid for MEH. I thought Airtran would win in hands down. Amazing.

Bye Bye--General Lee

 

[FUZZO]

So, when are the earnings reports due out?

 

[Sedona16]

Alot of assumptions here but for a guy in the bottom half of the seniority list, a DAL/NWA merger does have some advantages. In a perfect world DAL would buy 400 jets and hire 2000 pilots a year, making money hand over fist. The pilots would get 70% pay raises and add to already decent work rules. That isnt going to happen. In order to force the issue for pay raises Delta needs to keep making money. Creating a more complete route network and driving prices up a bit MAY be one way to do that. NWA also brings many more retirements in the short term to DAL pilots. With little route overlap and a healthy number of aircraft deliveries (DAL- 757/737/ and possible MD's. NWA's 787's) I dont see furloughs and in fact see the need for continued hiring depending on how many aircraft are shed (the DC9 is the wild card here). I doubt the government would approve a deal that sheds lots of jobs. If pilots who are not commuting can be base protected and still anticipate some sort of movement and good long term career expectations and a merger is going to happen this is the deal I would want.

 

[radarlove]

What attorneys did Delta hire? Anyone know the name of the firm?

I have a friend who does union work and he says there are only a handful of union friendly firms out there.

 

[400ADude]

What attorneys did Delta hire? Anyone know the name of the firm?

I have a friend who does union work and he says there are only a handful of union friendly firms out there.

http://www.cw13.com/

I believe it is these guys.

 

[jetflier]

I think it could have been. NWA was trying to move in on MEH's MKE hub, starting A319 flights to the West Coast, LAS and Florida, and also using RJs to the East Coast. When it seemed they couldn't beat them and Airtran was knocking at the door, they worked a deal with TPG to purchase them. It just doesn't pass the smell test, and was very predatory in nature. Maybe Airtran will get it's chance to buy them anyway.


Lets not forget that if NWA didn't pull back the Republic and North Central Airlines MKE hub after the merger, MEH woul never had the chance to form and begin to fly the old Republic and North Central Airlines routes.

NWA just wants to take back its old routes and hub. NWA only loaned the MKE hub to MEH.

 

[IronCityBlue]

Yep, looks like something is on it's way. I would be surprised if it were United, since I think NWA would be a better fit route and hub wise. Aircraft wise NWA doesn't have a lot in common, except 757-200s. But, we had 13 different plane types back in 2000, and now we are down to 6 or 7. It can be done, but some would have to be pared down I would think. It will be interesting indeed.


Bye Bye--General Lee

I hear this a lot, but when I think about it it just doesn't make sense. How would NWA and DAL be any better than UAL and DAL? Hub wise wouldn't it be far superior to get your hands on Chicago and DC, versus Detroit and Minny? NWA/DAL may have more redundant hubs to close, but is that a good thing or not? I would think the end result, post merger network would be a bigger consideration than just "what hubs can we close" and DAL/UAL make far more sense in that regard. Ditto for the fleets. Both NWA and UAL would compliment DAL a lot especially route wise, but I just don't see NWA being any better, and can see them being a lot worse.

 

[lowecur]

What attorneys did Delta hire? Anyone know the name of the firm?

I have a friend who does union work and he says there are only a handful of union friendly firms out there.

Hamilton, Joe, Frank, and Reynolds

imp:​

 

[catIIIc]

I think the Sky Team partnership alone is why if these mergers do happen DL/NW will be the first to merge. AF/KLM has stated many times that this is what they want.

Time will tell and good luck to us all.

 

[puddlejumper101]

everyone keeps saying DL/NWA makes more sense than DL/UAUA. To whom??? the pilots??? since when does Wall Street give a crap about what the rank and file think? Whichever deal makes Wall Street more money is the one that will happen end of story. Wall Street never waits to see if something makes sense...they will just fix it later. Plus, there is pressure to get this done before Bush leaves office. The Gov. will approve whatever right now to save the economy, even if it means job loss.

 

[johnsonrod]

I hear this a lot, but when I think about it it just doesn't make sense. How would NWA and DAL be any better than UAL and DAL? Hub wise wouldn't it be far superior to get your hands on Chicago and DC, versus Detroit and Minny? NWA/DAL may have more redundant hubs to close, but is that a good thing or not? I would think the end result, post merger network would be a bigger consideration than just "what hubs can we close" and DAL/UAL make far more sense in that regard. Ditto for the fleets. Both NWA and UAL would compliment DAL a lot especially route wise, but I just don't see NWA being any better, and can see them being a lot worse.

UAL, for the most part, is dead wood. Why would DAL want to compete more with SWA in Denver? We all know SWA is expanding there. Also, as GL stated, UAL and DAL have overlapping hubs - LAX, SLC/DEN, JFK/IAD. No way the Feds will allow a reduction of competition in those big markets. Consumers would lose big time with less competition and higher fares. Look how long it is taking the NWA-Midwest deal to happen - the hubs are too close.

Again, UAL is dead wood with no growth, increasing competition on all fronts, no real strategic plan and very low employee morale... Why get involved with that? NWA and UAL both have strong Asian networks. DAL and NWA, on the other hand, have complementary route networks (DAL has Europe/South American/Africa and limited Asia while NWA has very strong Asia and limited Europe) and hubs (except CVG/MEM - one would probably have to go). Yeah, DAL + NWA makes a lot more sense from a strategic standpoint and the combination would be a powerhouse. All they would need to figure out is the fleet mix (maybe negotiate a big deal to replace either the Airbus narrowbody or the Boeing narrowbody fleets). I am sure the regionals would be upset because the combined carriers would not need 7 regional feeders (especially if a hub closed to reduce costs). That might actually cause regional consolidation in order to compete better for low-cost feed.

With regard to the NWA-Midwest deal, we all know why it happened. NWA didn't want a bigger competitor in its backyard (MKE). AirTran + Midwest made A LOT more sense from an operational (717s) and strategic standpoint. The combination would have provided NWA with some real compeition in that part of the country. The Midwest CEO just wanted a bigger payout from the private equity firm. It's a total scam...

 

[PCL_128]

A little off subject, but if we "rank and file" were a little smarter, DALPA would invite some AirTran NPA pilots to join them as a show of unity, and the AirTran pilots would turn-out in force to show support for the Delta pilots.

Hmmm . . . . What a concept. . . . Pilots showing support for each other.

They probably would if we would join their union and end the isolationism.