Oberstar won't back DL/NWA merger....article

[lowecur]

And the evidence mounts. Further indication that MN is going to do whatever it can to keep the HQ in any proposed M&A in Minneapolis. Gov. Tim "Good n" Pawlenty begins his posturing to pressure NWA to pressure DL to consolidate HQ in Minneapolis. Let's see, that's now Oberstar & Good n Pawlenty.

Next up, the contingent from Georgia that will include the Gov, Senators, Congress People, and Mayor of ATL. My goodness, what is a company to do?

imp:​

Minnesota governor reminds Northwest of commitments

By Christopher Hinton


NEW YORK (MarketWatch) -- Minnesota Governor Tim Pawlenty sent a letter to Northwest Airlines executives to "respectfully" remind them of their commitment to keep their headquarters in Minneapolis, the governor's office said Thursday.

The letter also invited Northwest executives to meet with Pawlenty along with heads of Delta. The two companies are considering a merger and analysts have speculated that Northwest would likely move its headquarters to Delta's Atlanta base, which threatens hundreds of employees with job cuts or relocation, either of which pose a loss of state tax revenue.

 

[General Lee]

And the evidence mounts. Further indication that MN is going to do whatever it can to keep the HQ in any proposed M&A in Minneapolis. Gov. Tim "Good n" Pawlenty begins his posturing to pressue NWA to pressure DL to consolidate HQ in Minneapolis. Let's see, that's now Oberstar & Good n Pawlenty.

Next up, the contingent from Georgia that will include the Gov, Senators, Congress People, and Mayor of ATL. My goodness, what is a company to do?

imp:

Minnesota governor reminds Northwest of commitments

By Christopher Hinton


NEW YORK (MarketWatch) -- Minnesota Governor Tim Pawlenty sent a letter to Northwest Airlines executives to "respectfully" remind them of their commitment to keep their headquarters in Minneapolis, the governor's office said Thursday.

The letter also invited Northwest executives to meet with Pawlenty along with heads of Delta. The two companies are considering a merger and analysts have speculated that Northwest would likely move its headquarters to Delta's Atlanta base, which threatens hundreds of employees with job cuts or relocation, either of which pose a loss of state tax revenue.

Anderson just told a Georgia Congressman at the hearings before Thanksgiving that he would not move the HDQ from ATL. This will get good! Maybe it will be moved to Paris and I will wear a baret and grow a thin mustashe.... I already smell like Pepe Lepue..


Bye Bye--General Lee

 

[lowecur]

Anderson just told a Georgia Congressman at the hearings before Thanksgiving that he would not move the HDQ from ATL. This will get good! Maybe it will be moved to Paris and I will wear a baret and grow a thin mustashe.... I already smell like Pepe Lepue..


Bye Bye--General Lee

Yeah, maybe you could talk them into Amsterdam.

My guess is either ATL or Minneapolis will both have to meet each other halfway. Does Minneapolis have room for a combined MX base?

imp:​

 

[UALjan15]

What is Hillary going to do to make things better for me..... Be specific now......

I look to the Private Sector to help me out.....not to Wash. DC.......

Specifics now, what are the solutions from the other side of the aisle.....

1) Fix NMB that currently stonewalls unions and even after 5+ years of contract talks, fails to declare impasse.

2) Revamp broken 1113 code that allowed BK airline managements to apply scorched earth policy to many contracts without showing evidence of the need to do so.

These are just a couple. Of course they are just campaign promises made to gain support from their traditional support base. Still, I'll take them over anything I'm hearing from the other side of the aisle.

 

[Jetjockey]

3) Prevent all out cabotage

4) Will not allow increases in foreign ownership

5) Not allow companies to steam roll workers and unions rights. (i.e. right to strike)

 

[MINIME]

[deleted

 

[another cfii]

Maybe they can move the HQ to Salinas Kansas, that way it should please everybody in th lower 48 states...

 

[123]

123

Your right about this. However:
- until someone comes into the market after consolidation, to bring competition back up, the carriers will reap the rewards. This cycle can take years
It could take years, but there are very low barriers to entry therefore I wouldn't be surprised to see additional JetBlue, SkyBus, etc type companies startup.
- The rewards don't always come from a change in the price, much of it comes from efficiencies gained in the consolidation...reduced expense.
Yes, in our industry, reduced expense = reduced labor (ground, agents, mechanics, pilots, FA's, office, even upper management)
- With the price of oil, ticket prices can't get much cheaper. Even WN had to raise ticket prices, and slow their growth. The theory that someone will just automatically come it and charge lower fares is naive...there are more factors involved.

I was mainly talking about the fact that if the companies collude to set prices (as in a cartel such as OPEC), there will be one company out there that will try to lower the price a little bit in order to try and reap a few more dollars in profit. Economic Game Theory. Also, as stated above, with low barriers to entry, I would expect to see additional entrants into the market trying to copy a WN business plan.

I believe that air travel has become somewhat of a homogeneous product...people go to Orbitz, and find the cheapest price. Hell, I even do this! So, that being said... they only way to raise the price is lower supply. Consolidate! This is the very reason lawmakers are against it.
An airline seat is a commodity similar to grain and corn. There is very little differentiation in the US market. Lowering supply is not the only way to raise tickets, finding a niche is another tool. The problem is that nobody has come up with the idea which may not be possible in this market.

Response in Red above

 

[satpak77]

uhh...

http://www.ajc.com/business/content/business/delta/stories/2008/01/17/delta_0117.html

 

[satpak77]

When will he be out? This year? The airlines wanted to merge quickly before the next administration comes in and changes things around. He is incharge of the Aviation Sub Comittee and he wrote a paper on why Airlines should NOT merge when United and USAir tried to do it back then, when he was just a member of the comittee. Now he is the Chairman of that same comittee.

Bye Bye--General Lee

Has no veto power, see article

http://www.startribune.com/business/13910711.html

 

[Superpilot92]

Has no veto power, see article

http://www.startribune.com/business/13910711.html

He still have power to influence decisions.

 

[schafjet]

What is Hillary going to do to make things better for me..... Be specific now......

I look to the Private Sector to help me out.....not to Wash. DC.......

Specifics now, what are the solutions from the other side of the aisle.....

If your conservitive Republicans are so pro business, shouldn't they be pro business for everyone? NWA just got bailed out of a $380+ million tax bill. Also, here in Minnesota our Governor (Republican T. Pawlenty) is so afraid of what will happen with a merger he is once again promising money to NWA, while my company (SCA) struggles to stay in business. We (SCA) cannot compete with a company that continues to get subsidies and plays on an unfair playing field.

Someone said it here.. It's not democrat or republican nor is it liberal or conservative. It is letting the companies manage on their own. NWA would have been long gone if it weren't for the government intervention and the state of Minnesota. SCA was in bankruptcy and had zero help from any government intervention to exit and rise from the dead.

NWA is a "state" run company and in no way reflects how any normal company is run in a free enterprise system. Supply and demand my a$$.