Delta acquisition of NWA almost finalized!

[luckytohaveajob]

Forget the concept of merging, as this deal is all about acquisition!

DAL is buying NWA because NWA failed to play ball early in the game. The NWA shareholders have just signed off.

Notices how the AP article avoids the use of the word MERGER and instead manipulates the language with COMBO.

Yes it is a combo of DAL controlling NWA after acquiring NWA.

http://news.yahoo.com/s/ap/20080925/ap_on_bi_ge/northwest_delta_vote

 

[DTW320]

Forget the concept of merging, as this deal is all about acquisition!

DAL is buying NWA because NWA failed to play ball early in the game. The NWA shareholders have just signed off.

Notices how the AP article avoids the use of the word MERGER and instead manipulates the language with COMBO.

Yes it is a combo of DAL controlling NWA after acquiring NWA.

http://news.yahoo.com/s/ap/20080925/ap_on_bi_ge/northwest_delta_vote

Yawn.....

Somebody didn't tell Reuters:

Northwest shareholders approve Delta merger

Thu Sep 25, 2008 11:25am EDT
(Adds details on the vote, quote)
NEW YORK, Sept 25 (Reuters) - Northwest Airlines (NWA.N: Quote, Profile, Research, Stock Buzz) shareholders approved the carrier's proposed acquisition by Delta Air Lines (DAL.N: Quote, Profile, Research, Stock Buzz), a merger that would create the world's largest carrier by traffic.
Northwest said on Thursday that 98 percent of shares voted were in support for the deal, which won the approval of roughly three-quarters of shareholders entitled to vote.
Plans call for Delta shareholders to vote in a separate meeting later on Thursday. The deal still needs regulatory approval, which is likely to come this year.
The new airline would be called Delta and have its headquarters in Atlanta.
Delta and Northwest announced their merger plans in April as the price of jet fuel rallied toward a record high.
The two carriers hope the combination of their complementary operations will produce cost savings and revenues to offset the fuel burden.
"The $2 billion in annual synergies achievable through this merger are something neither carrier could have achieved as a stand-alone carrier," Northwest Airlines CEO Doug Steenland said on Thursday.
"The combined carrier will have a stronger balance sheet and best-in-class liquidity, which will put the airline in a position of financial stability," Steenland added.
The airline industry is in rapid downsizing mode, with carriers cutting flights on less-profitable routes and eliminating staff.
Earlier this week, Delta and Northwest said the Federal Aviation Administration had accepted their plan for a single operating certificate.
Shares of Northwest were up 3 cents at $10.02 in morning New York Stock Exchange trade, while Delta rose 22 cents, or 2.7 percent, to $8.25. (Reporting by Mark McSherry and Kyle Peterson, editing by Dave Zimmerman and Lisa Von Ahn)

 

[d.fitz]

Forget the concept of merging, as this deal is all about acquisition!

DAL is buying NWA because NWA failed to play ball early in the game. The NWA shareholders have just signed off.

Notices how the AP article avoids the use of the word MERGER and instead manipulates the language with COMBO.

Yes it is a combo of DAL controlling NWA after acquiring NWA.

http://news.yahoo.com/s/ap/20080925/ap_on_bi_ge/northwest_delta_vote

You say this like no one knew that was the case? Have you been on vacation? :beer:

 

[ACL65PILOT]

No kidding. We will see if the arbitrators see it as a merger or as an acquisition.

 

[Noserider76]

Forget the concept of merging, as this deal is all about acquisition!

What's your point and how does it make any difference at all to the line pilot? The idiots on Wall Street can call it anything they want but to us it's a merger of operations.

 

[nwaredtail]

Me thinks Y'all should have negotiated before it went to that. Arbitrators won't care about the "terms" used because the deal will not have closed yet. (those pesky details)

With all the experience NWA has with arbitrations, I would still like a negotiated deal. Time will tell.

 

[SpauldingSmails]

DAL is buying NWA because NWA failed to play ball early in the game. The NWA shareholders have just signed off.

http://news.yahoo.com/s/ap/20080925/ap_on_bi_ge/northwest_delta_vote

Hasn't this always been a stock-swap transaction with Delta at the helm?

 

[ACL65PILOT]

Well we are down to a little over two months until we all know our fate.

 

[Going2Baja]

No kidding. We will see if the arbitrators see it as a merger or as an acquisition.

Speaking of arbitrators - Anyone going to the LAX meetings? If so - Please post your notes when you can. I'd expect the respective ALPA's to post, but one never knows anymore.

Thnx - Baja.

 

[Frank Lorenzo]

What's your point and how does it make any difference at all to the line pilot?

You're kidding, right?

Two pilot groups vying for the upper hand in a SLI and you don't think that symantics of "acquisition" vs. "merger" will be brought up?

Go jumpseat on DAL and ask the pilots how they think the SLI should go. I can guarantee that you will hear the words "acquisition" and "bought" used liberally, and the word "merger" will be absent from the conversation.

 

[Noserider76]

You're kidding, right?

Two pilot groups vying for the upper hand in a SLI and you don't think that symantics of "acquisition" vs. "merger" will be brought up?

Go jumpseat on DAL and ask the pilots how they think the SLI should go. I can guarantee that you will hear the words "acquisition" and "bought" used liberally, and the word "merger" will be absent from the conversation.

Well I work there and I really haven't heard anybody care what word is used. I don't think the arbitrators will either. Why would they? People have differing opinions on how an SLI should be accomplished from W2 all the way to DOH but I've never heard buyout vs merger used.

 

[PuffDriver]

Well I work there and I really haven't heard anybody care what word is used. I don't think the arbitrators will either. Why would they? People have differing opinions on how an SLI should be accomplished from W2 all the way to DOH but I've never heard buyout vs merger used.

It will be, bank on it.

The gloves will be off as both sides try and get the best deal possible for their pilots. I would also imagine a negotiated settlement after the 3 arbitrators give their hints prior to their decision.

 

[Noserider76]

It will be, bank on it.

The gloves will be off as both sides try and get the best deal possible for their pilots. I would also imagine a negotiated settlement after the 3 arbitrators give their hints prior to their decision.

That still doesn't answer my question. What difference would it make?

 

[JonnyKnoxville]

It is most certainly not an acquisition!

Lets see...

Delta gives Northwest's shareholders stock in exchange for Northwest to give Delta's shareholders stock. Stocks swaps have never been how acquisitions are done. If this is not a merger, please explain to me how a merger is structured.

It amazes me how simple minded some pilots can be. Do you think Delta is the buyer because the new company name is Delta? If that is the case then I guess US Airways must have bought America West.

By the way, of the top nine executives to run the new Delta, eight of them have spent time working for Northwest. Ed Bastian is the ONLY Delta guy and they are sending him away to run the Northwest subsidiary during the transition! So...Maybe Northwest is taking over Delta!

 

[d.fitz]

It will be, bank on it.

merger or acquisition makes no difference whatsoever to the SLI...

I for one think it will be fair, which is to say, everyone will be a little pi$$ed...

Either way, it's a good thing for long term...

 

[Superpilot92]

That still doesn't answer my question. What difference would it make?

It doesnt matter, its just something for the children on here to argue about. Gets pretty old doesnt it?

 

[FDJ2]

It is most certainly not an acquisition!

Lets see...

Delta gives Northwest's shareholders stock in exchange for Northwest to give Delta's shareholders stock. Stocks swaps have never been how acquisitions are done. If this is not a merger, please explain to me how a merger is structured.

"A stock swap, also known as a share swap, is a business takeover or acquisition in which the acquiring company uses its own stock to pay for the acquired company. Each shareholder of the newly acquired company receives a certain number of shares of the acquiring company's stock for each share of stock they previously held in the acquired company."

http://en.wikipedia.org/wiki/Stock_swap

 

[nonstop]

It will be, bank on it.

The gloves will be off as both sides try and get the best deal possible for their pilots. I would also imagine a negotiated settlement after the 3 arbitrators give their hints prior to their decision.

Jesus... they make you guys wear gloves too? As if the uniform wasn't gay enough. I draw the line at the hat!

 

[PuffDriver]

Jesus... they make you guys wear gloves too? As if the uniform wasn't gay enough. I draw the line at the hat!

Whatever. Go ahead and quit, tough guy, if you think that the uniform is so gay. I didn't think so.


It IS an acquisition. That little fact DOES matter. It WILL be presented as such.

 

[~~~^~~~]

I've not heard the term "acquisition" used anywhere but here. I hear the word "merger" used very frequently. The outcome of pilots debating semantic terms is nothing more than a diversion for bored pilots. I do believe that in the long run, both Delta and NWA pilots will see gains from this transaction.

The NWA pilots will have to adjust to the Delta way of doing things. Delta's flight standards, uniforms, policies and procedures remain after the transaction. There is not any point in fighting it. Others may have been harsh, but it will be a lot easier for NWA pilots to accept what they can not change.

What is more relevant is the objective changes in fleet numbers, the SLOA allowing Delta MD88 pilots to fly over their ALV caps, canceled displacements and growth aircraft. I am more interested in how arbitrators meet their obligation to meet, or improve on, status quo.

Frankly, at the junior end of the list, that is going to be difficult work. Delta's 2007 hires are holding (block in NWA speak) lines on the 757 and 767 both domestic and international. On the MD88's they are pretty senior in the right seat. Another big advanced entitlement for growth comes out on the DAL side in October. It looks possible that a few out of the class of 07 may even get on the 777, or MD88A in NYC. Those results should be available before the arbitration is final. (not that I'm leaving any facts out about NWA, I just don't know if you are doing advancement bids)

If past results are useful for prediction of future outcomes then I expect relative seniority, by equipment. That still does not address the base issues, but if given the choice between NYC, MSP, or DTW, they are about a toss up. I think we will all miss NWA's commuting language.

JMHO