Looks like DAL/NWA

[Captain X]

That news reported on CNBC's "Opening Bell" this morning (1-22-08). Formal announcement expect within the week.

 

[Draginass]

Get ready for massive layoffs for NW and NW compensation for Delta employees!!

 

[coogebeachhotel]

O my where does that leave the General? Gear swinger for Skywest????

 

[Princedietrich]

Just to stir the pot a little more....

What's the speculation as to which hub is going to get nuked: CVG or MSP?

 

[Draginass]

My guess would be CVG. However, Delta will shutdown the NW HQ in MSP. Delta's going to leave no doubt about who ate who in this deal . . . and the execs will stuff their personal bank accounts in the meantime.

 

[Old Crow]

Maybe the Northwest hangar in ATL will have the lights back on soon...

 

[Kharma Police]

Maybe the Northwest hangar in ATL will have the lights back on soon...

You think DAL will keep the DC-9s?

 

[SplitBar]

CVG and MEM will be closed as Hubs. Thats already been predicted by all of the analysts following this merger.

 

[hockeypilot44]

Does anyone else think this is going to turn out like the United/USAirways merger?

 

[Bill Nelson]

The difference this time is that the entire industry REQUIRES consolidation to survive. The only opportunity outside of consilidation is to reregulate the industry. That ain't gonna happen.

 

[ACL65PILOT]

The NWA hanger in ATL has major structural issues in the slab. That would have to be resolved first.

 

[Habib]

Will it be a merger, buyout, acquisition, that’s going to be important in the seniority list integrations.

Also, is it true that the DAL FA’s do NOT have a union??? Is it true that the only Union at DAL is the Pilots????

 

[Eagle757shark]

Does anyone else think this is going to turn out like the United/USAirways merger?

NO.....The United US Airways merger did not go through because United walked away from the negotiations with the DOJ. American, TWA, and US Airways would appear at the DOJ meetings but United wouldn't. Back then United was going through a nasty dispute with their pilot's and machinest unions and agreed to huge contracts that we all remember. After those contracts were signed, United realized the cost involved to bring US Air and United together was too much for them and walked away from the merger. The DOJ threatened to sue because United wouldn't comply with the DOJ. In the Fall of 2001 United paid US Airways 50 million dollars for walking away from the merger. If Delta and Northwest are going to merge, you will probable see Air France put up an investment to help with the cost.

 

[tomgoodman]

Unions at DAL

... is it true that the DAL FA’s do NOT have a union???

True, although another organizing attempt is reportedly in progress.

Is it true that the only Union at DAL is the Pilots????

Not quite true. The dispatchers have an in-house union.

 

[Papa Woody]

You think DAL will keep the DC-9s?

Yeah....they'll be re-engined with a SINGLE RB-211 snatched off the Tristars in the desert....using the S-ducts salvaged off the 727's.

Those '9's still have another 20 years!

 

[filejw]

Get ready for massive layoffs for NW and NW compensation for Delta employees!!

I think what some people forget is Richard Anderson was / is a long time NWA executive and his loyaltys most likely are still in MSP. This thing has been in the works for a long time.

 

[4BlueBars]

That news reported on CNBC's "Opening Bell" this morning (1-22-08). Formal announcement expect within the week.

Does anybody have any links to this news? I can't find anything on google or CNBC.

 

[F/O]

Does anybody have any links to this news? I can't find anything on google or CNBC.

I've seen nothing yet on CNBC so I'll assume it's BS until I see a link on their site. Right now I'm enjoying watching the lovely Erin discuss the rate cut.

 

[flying zephyr]

MSP penalties and incentives

very interesting as if NWA closes HQ in MSP b4 the year 2020, a 420 mil fee kicks in immediately. Supposedly iron clad for the state of MN since they paid to build the complex, I am sure that the lawyers will fight it out. Also MN Gov. Tim Pawlenty has already promised further big money tax and other incentives to keep MSP as HQ for whatever semblence of an airline emerges. The plot thickens...

Also, This will play out very interesting for the commuter food chain, I see fewer cuts at NWA/Delta, than at Mesaba, Pinnicle, Comair, ASA, Skywest is this the beginning of the end for the CRJ-200. I don't know how many these combined commuters fly, but it has to be most of the CRJ market in the US.

Only time will tell, but my bet is there will be at least two major mergers this year...

 

[Eagle757shark]

very interesting as if NWA closes HQ in MSP b4 the year 2020, a 420 mil fee kicks in immediately. Supposedly iron clad for the state of MN since they paid to build the complex, I am sure that the lawyers will fight it out. Also MN Gov. Tim Pawlenty has already promised further big money tax and other incentives to keep MSP as HQ for whatever semblence of an airline emerges. The plot thickens...

Also, This will play out very interesting for the commuter food chain, I see fewer cuts at NWA/Delta, than at Mesaba, Pinnicle, Comair, ASA, Skywest is this the beginning of the end for the CRJ-200. I don't know how many these combined commuters fly, but it has to be most of the CRJ market in the US.

Only time will tell, but my bet is there will be at least two major mergers this year...

I believe that if Delta and Northwest merge, the CVG and MEM hubs will be phased out. Both of these bases have large CRJ-200 operations. With the reductions of these hubs will be the need to reduce regional jet flying at both leading to the downsizing of several regional jet operators. The remaining hubs will get larger aircraft to feed the connecting cities to make up for the downsizing in the hubs. Another primary reason for consolidation.

REALITY: With oil prices so high, CRJ-200 aircraft are just too expensive to operate. They will be the first to go in some number when consolidation takes place.

 

[~~~^~~~]

Consider that some of these regionals have contracts which can not be cancelled. Others have contracts that can be adjusted with very little notice. SkyWest / ASA & Republic are probably safe. Comair may act like the accumulator since it is directly controlled by Delta and has the most flexibility.

Also consider where NWA's DC-9 flying will go. Some to the remaining DC-9's and 320's, but NWA's fleet is shrinking. I think this will put pressure on the branded carriers to outsource more while they wait for the perfect 100 seat jet to be invented.

While they wait for the 100 seat version of a Dreamliner, managers are happy to try to have their contractors buy "obsolete" aircraft to fill the gap.

I expect less damage to the RJ fleet than what is expected. RJ flying is low profit, but it is also low risk. With so much uncertainty, low risk will be the easier decision to make.

 

[FDJ2]

Will it be a merger, buyout, acquisition, that’s going to be important in the seniority list integrations.

That plays no part in ALPA merger policy.

Also, is it true that the DAL FA’s do NOT have a union??? Is it true that the only Union at DAL is the Pilots????

The DAL FA's are not unionized. The only two unionized groups at DAL are the pilots and the dispatchers.

 

[FDJ2]

very interesting as if NWA closes HQ in MSP b4 the year 2020, a 420 mil fee kicks in immediately. Supposedly iron clad for the state of MN since they paid to build the complex, I am sure that the lawyers will fight it out....

If there is a DAL/NWA merger I'm sure that will be renegotiated. I know it's "ironclad", but it is in MN best interest to keep as many jobs and airservice as possible in MSP. DAL would promise to keep the MSP hub and associated operations intact in exchange for a large part of that $420M and the politicos will declare victory. Problem solved.

 

[~~~^~~~]

...or the airline will get the politico's in a bidding war while shoveling money into their campaign funds through lobbying firms. Either way, expect ethical standards which would make a Marcos giggle.

 

[Princedietrich]

I just noticed that I had a rampaging case of the dummuss when I posted earlier.

I meant to say CVG or MEM, not MSP.

DOH!

 

[Occam's Razor]

Honestly!

You kids!

1. The UAL piece was a feint. Make it look bigger...then go smaller...and the DOJ approves it.

2. The rumors of breaking up parts of NWA are a gambit by the two of "2/20" hedge fund boys that hold a big chunk of NWA. They paid a premium to buy the pilot's Claim, and are now holding paper that's $8 "underwater". Poor babies!

3. Those two chuckleheads will probably get a "special dividend" in exchange for buying off on the deal. $4-5 a share in the swap might make them happy. KLM/Air France will probably provide the Euros to shut them up...and thereby raise their stake in the combined airline to 25%.

4. The open issues in consummating a deal are like a 2-acre version of the arcade game, "Whack-A-Mole". The state of Minnesota, along with Oberstar and an array of others, will be thrown a bone. It'll be "jobs" or some other promise.

5. The seniority list integration will be painful (Duh!), but only to those whose expectations were formed in the ether of their "Birthright!" cocoons. If everyone's a little pi$$ed, it's a good deal.

6. The Airlinks will be forced to play a bloodthirsty game of "musical chairs". Wish it weren't so...but it will be. Some will blame ALPA. The smart ones will blame Adam Smith. It'll make the $200-million the RJDC "patriots" mocked in 2000 look like a huge missed opportunity. It'll look like that because it was.

7. NWA will release the Golden Share of CAL to appease the DOJ. CAL is more likely to gobble-up UAL than vice versa. (The sound your jaw makes as it drops reading that is spelled "PBGC")

8. The status of hubs, bases, fleets, is "tactical" right now...not "strategic". No one will know "strategic" until the legacies finish this wave of consolidation.

 

[Schwanker]

8. The status of hubs, bases, fleets, is "tactical" right now...not "strategic". No one will know "strategic" until the legacies finish this wave of consolidation.

Now--A Jarhead using words like "tactical" and "strategic." Those are 3 syllable words!!! And all along I thought you only knew 4 letter words.

Schwanker

 

[jws717]

With an unstable economy, fuel is dropping and loads will get lighter. Will this allow the RJ to cling to life?

 

[Caveman]

Honestly!

You kids!

1. The UAL piece was a feint. Make it look bigger...then go smaller...and the DOJ approves it.

2. The rumors of breaking up parts of NWA are a gambit by the two of "2/20" hedge fund boys that hold a big chunk of NWA. They paid a premium to buy the pilot's Claim, and are now holding paper that's $8 "underwater". Poor babies!

3. Those two chuckleheads will probably get a "special dividend" in exchange for buying off on the deal. $4-5 a share in the swap might make them happy. KLM/Air France will probably provide the Euros to shut them up...and thereby raise their stake in the combined airline to 25%.

4. The open issues in consummating a deal are like a 2-acre version of the arcade game, "Whack-A-Mole". The state of Minnesota, along with Oberstar and an array of others, will be thrown a bone. It'll be "jobs" or some other promise.

5. The seniority list integration will be painful (Duh!), but only to those whose expectations were formed in the ether of their "Birthright!" cocoons. If everyone's a little pi$$ed, it's a good deal.

6. The Airlinks will be forced to play a bloodthirsty game of "musical chairs". Wish it weren't so...but it will be. Some will blame ALPA. The smart ones will blame Adam Smith. It'll make the $200-million the RJDC "patriots" mocked in 2000 look like a huge missed opportunity. It'll look like that because it was.

7. NWA will release the Golden Share of CAL to appease the DOJ. CAL is more likely to gobble-up UAL than vice versa. (The sound your jaw makes as it drops reading that is spelled "PBGC")

8. The status of hubs, bases, fleets, is "tactical" right now...not "strategic". No one will know "strategic" until the legacies finish this wave of consolidation.

This pains me to admit, but for once I agree with you. One of us is coming to our senses. I just don't know whether it's me or you. That may sound like a backhanded compliment, but it's not. Your post is the best overall summation of how I see this playing out.

 

[reepicheep]

Either pilot group, if sufficiently enraged and motivated, can influence events to the extent that the merger will become too expensive and it will fall apart. That is basically what started the UAL/US merger down the tubes in '00/'01. The key is the extent to which the entire pilot group becomes mobilized.