Air France is starting to buy Delta

[Camembert]

For some reason "I told you so" doesn't seem to quite do it...



http://www.reuters.com/article/marketsNews/idUKN1339596420080214?rpc=44



Air France-KLM said to invest in Delta-Northwest

NEW YORK (Reuters) - Air France-KLM Group (AIRF.PA: Quote, Profile, Research), Europe's biggest airline, plans to invest in a combined Delta Air Lines (DAL.N: Quote, Profile, Research) and Northwest Airlines (NWA.N: Quote, Profile, Research) carrier in exchange for a board seat, Bloomberg said on its Website on Wednesday.
The size of Air France's potential stake has not been set yet, Bloomberg said, citing people familiar with the matter.
Industry experts have been expecting Air France-KLM, which already has a marketing partnership with Delta and Northwest as part of SkyTeam global alliance, to provide strategic or financial help to the two U.S. airlines.
A Delta-Northwest combination would create the world's largest airline and keep the carriers in the 11-member SkyTeam Alliance with Air France. The alliance allows airlines to share codes and fly passengers via other carriers on the team.
SkyTeam's chairman and the Air France vice chairman, Leo van Wijk, said in January his Paris-based carrier would do "whatever is possible" to aid the merger.
A merger between Delta and Northwest could be announced in the next few weeks as Northwest pilots review details of a proposed deal, people briefed on the situation told Reuters on Monday.
Northwest's Air Line Pilots Association had been provided with details of what a combined carrier would look like, a person briefed said.
Delta and Northwest have agreed on major terms for a tie-up, including keeping Delta's name and Atlanta headquarters and having Delta Chief Executive Officer Richard Anderson run the combined carrier, Bloomberg said in its report.
The Wall Street Journal last month had reported that Air France-KLM could invest nearly $1 billion (509 million pounds) in a combined carrier, citing people familiar with the situation.

Separately, Air France-KLM also is in talks to buy Italian carrier Alitalia (AZPIa.MI: Quote, Profile, Research).
Air France, Delta and Northwest did not immediately return calls for comment.
(Editing by Carol Bishopric)





You cannot be prouder than being an Air France pilot.

Camembert

 

[General Lee]

For some reason "I told you so" doesn't seem to quite do it...

http://www.reuters.com/article/marketsNews/idUKN1339596420080214?rpc=44

You cannot be prouder than being an Air France pilot.

Camembert

First of all, there is a limit, so Air France can't buy all of Delta. But, it is good to have rich friends, and ones with good credit.




Air France-KLM said to invest in Delta-Northwest
Wed Feb 13, 2008 9:48pm EST

NEW YORK (Reuters) - Air France-KLM Group (AIRF.PA: Quote, Profile, Research), Europe's biggest airline, plans to invest in a combined Delta Air Lines (DAL.N: Quote, Profile, Research) and Northwest Airlines (NWA.N: Quote, Profile, Research) carrier in exchange for a board seat, Bloomberg said on its Website on Wednesday.

The size of Air France's potential stake has not been set yet, Bloomberg said, citing people familiar with the matter.
Industry experts have been expecting Air France-KLM, which already has a marketing partnership with Delta and Northwest as part of SkyTeam global alliance, to provide strategic or financial help to the two U.S. airlines.
A Delta-Northwest combination would create the world's largest airline and keep the carriers in the 11-member SkyTeam Alliance with Air France. The alliance allows airlines to share codes and fly passengers via other carriers on the team.
SkyTeam's chairman and the Air France vice chairman, Leo van Wijk, said in January his Paris-based carrier would do "whatever is possible" to aid the merger.
A merger between Delta and Northwest could be announced in the next few weeks as Northwest pilots review details of a proposed deal, people briefed on the situation told Reuters on Monday.
Northwest's Air Line Pilots Association had been provided with details of what a combined carrier would look like, a person briefed said.
Delta and Northwest have agreed on major terms for a tie-up, including keeping Delta's name and Atlanta headquarters and having Delta Chief Executive Officer Richard Anderson run the combined carrier, Bloomberg said in its report.
The Wall Street Journal last month had reported that Air France-KLM could invest nearly $1 billion (509 million pounds) in a combined carrier, citing people familiar with the situation.
Separately, Air France-KLM also is in talks to buy Italian carrier Alitalia (AZPIa.MI: Quote, Profile, Research).
Air France, Delta and Northwest did not immediately return calls for comment.
(Editing by Carol Bishopric)



Bye Bye--General Lee

 

[Bavarian Chef]

This Delta-NWA merger is never gonna happen.

 

[General Lee]

This Delta-NWA merger is never gonna happen.

Pilots, Air France could see stakes in Delta-Northwest deal

By Marilyn Adams, USA TODAY
Delta (DAL) and Northwest (NWA) airlines appear close to a merger agreement that would give their pilots and European carrier Air France (AKH) ownership stakes in what would be the world's biggest airline.
The Air Line Pilots Association, the union representing 12,000 pilots at both carriers, is seeking a stake of at least 5% of the merged airline, and a seat on the board of directors, according to three sources briefed on the talks who can't speak publicly because the deal isn't final. Delta and Northwest declined to comment on the talks, as did the union and Air France.

In exchange for the stake in the combined airline, the pilot groups would help speed up the integration by agreeing in advance to contract terms, and by resolving issues related to job seniority at their current airlines. If these issues can be resolved quickly, the merger could be announced next week, the sources said.

Air France, which already has a marketing partnership with Delta and Northwest in Europe, would buy a stake in the new airline for nearly $1 billion in cash, the sources said. No payment would be made between the principal airlines. Air France's investment would give the merged carrier an operating cushion. The Air France stake would be within the limits on foreign ownership of U.S. airlines set by federal law.

A merger between Delta, the USA's No. 3 carrier, and No. 5 Northwest would create the world's largest carrier, eclipsing No. 1 American Airlines. (AMR) The "new" Delta would have headquarters in Atlanta, where Delta is based, the sources said. Delta CEO Richard Anderson, at one time Northwest's CEO, would be chief executive.

The deal would be closed through an exchange of stock, with shareholders of Delta and Northwest trading stock for shares in the new company.

No deal could go forward without approval of the U.S. Departments of Justice and Transportation, as well as both carriers' shareholders. The federal reviews would take several months at least.

Delta operates hubs in Atlanta, New York John F. Kennedy, Cincinnati and Salt Lake City. Northwest has hubs at Minneapolis, Detroit, Memphis and Tokyo Narita airport. Plans do not call for closing or significantly reducing any right away, the sources said. That would mean few if any near-term job losses for frontline airline or airport employees.

A Delta-Northwest deal would be the first merger among major U.S. carriers since America West acquired US Airways (LCC) out of Chapter 11 bankruptcy in 2005. Industry experts say a merger as large as Delta-Northwest would quickly prompt other major carriers such as American, United (UAUA) and Continental (CAL) to pursue mergers to stay competitive.

A securities filing Wednesday said Anderson has offered to give up any extra compensation he otherwise would receive after a merger.




Bye Bye--General Lee

 

[Sedona16]

The Air Line Pilots Association, the union representing 12,000 pilots at both carriers, is seeking a stake of at least 5% of the merged airline, and a seat on the board of directors, according to three sources briefed on the talks who can't speak publicly because the deal isn't final.

So if my math is correct each pilot would get about 50K in equity? I hope the pay rates and works rules come up with it.

 

[snow-back]

The Air Line Pilots Association, the union representing 12,000 pilots at both carriers, is seeking a stake of at least 5% of the merged airline, and a seat on the board of directors,

And we all know how well airline investments do.

Ask for cash.

 

[Jurasicpilot]

Whoa, I need to sober up. Just a few hours at the bar with my back turned on the industry and what do you know......

 

[Bavarian Chef]

Pilots, Air France could see stakes in Delta-Northwest deal

By Marilyn Adams, USA TODAY
Delta (DAL) and Northwest (NWA) airlines appear close to a merger agreement that would give their pilots and European carrier Air France (AKH) ownership stakes in what would be the world's biggest airline.
The Air Line Pilots Association, the union representing 12,000 pilots at both carriers, is seeking a stake of at least 5% of the merged airline, and a seat on the board of directors, according to three sources briefed on the talks who can't speak publicly because the deal isn't final. Delta and Northwest declined to comment on the talks, as did the union and Air France.

In exchange for the stake in the combined airline, the pilot groups would help speed up the integration by agreeing in advance to contract terms, and by resolving issues related to job seniority at their current airlines. If these issues can be resolved quickly, the merger could be announced next week, the sources said.

Air France, which already has a marketing partnership with Delta and Northwest in Europe, would buy a stake in the new airline for nearly $1 billion in cash, the sources said. No payment would be made between the principal airlines. Air France's investment would give the merged carrier an operating cushion. The Air France stake would be within the limits on foreign ownership of U.S. airlines set by federal law.

A merger between Delta, the USA's No. 3 carrier, and No. 5 Northwest would create the world's largest carrier, eclipsing No. 1 American Airlines. (AMR) The "new" Delta would have headquarters in Atlanta, where Delta is based, the sources said. Delta CEO Richard Anderson, at one time Northwest's CEO, would be chief executive.

The deal would be closed through an exchange of stock, with shareholders of Delta and Northwest trading stock for shares in the new company.

No deal could go forward without approval of the U.S. Departments of Justice and Transportation, as well as both carriers' shareholders. The federal reviews would take several months at least.

Delta operates hubs in Atlanta, New York John F. Kennedy, Cincinnati and Salt Lake City. Northwest has hubs at Minneapolis, Detroit, Memphis and Tokyo Narita airport. Plans do not call for closing or significantly reducing any right away, the sources said. That would mean few if any near-term job losses for frontline airline or airport employees.

A Delta-Northwest deal would be the first merger among major U.S. carriers since America West acquired US Airways (LCC) out of Chapter 11 bankruptcy in 2005. Industry experts say a merger as large as Delta-Northwest would quickly prompt other major carriers such as American, United (UAUA) and Continental (CAL) to pursue mergers to stay competitive.

A securities filing Wednesday said Anderson has offered to give up any extra compensation he otherwise would receive after a merger.




Bye Bye--General Lee

Seriously, you told me it wouldn't happen so I believe you. You are never wrong.

 

[YourPilotFriend]

This Delta-NWA merger is never gonna happen.

It has already happened.

 

[jetflier]

I think the Delta uniform shop is being swamped with pilot hat orders.