Alaska/Delta? Probably not

[Dan Roman]

this article makes a good case of casting doubt on Alaska, Hawaiian or JetBlue merging with anyone.

http://www.fool.com/investing/general/2013/12/27/dont-buy-alaska-air-for-a-delta-buyout.aspx

 

[Flyby1206]

Selective reading Dan? Thoughts on AS/HA?

Considering how efficient Alaska Air already runs, it would seem that buying Hawaiian Airlines would provide more opportunity of improving operational efficiency. Currently, Hawaiian has roughly 40% of the revenue base of Alaska, but 10% of the market cap. The main difference in the airlines being the higher passenger revenue per available seat mile, or PRASM, considering that both airlines have similar costs. The operating revenue per available seat mile, or RASM, is no contest -- Alaska Air generates 15.39 cents compared to the 13.57 cents of Hawaiian Airlines.

Good article though, this hits it on the head for Delta/Alaska relationships:

The likely impetus of the rumor on Delta buying Alaska Air was the news that Delta plans to operate 79 daily departures in Seattle to 25 cities by mid-2014, up from 35 flights to 15 destinations now. In fact, Delta might be making this move because Alaska Air balked at a deal or knew that regulatory approval won't happen anyway. By both airlines announcing plans to expand into each others hubs makes absolute no sense that a merger is in the works.

I think Delta will start to bleed AS of some revenue and AS might be forced to look for a merger. HA would be a likely candidate.

 

[Jon Rivoli]

Or maybe Delta will do the bleeding. People in the Northwest love the home team.

 

[General Lee]

Or maybe Delta will do the bleeding. People in the Northwest love the home team.

Sorry Jon, you are very likely incorrect, again......DL seems to be firing on all cylinders. How's your SKW doing? Any worry about Compass going out to LA and establishing a crew base with planes? Looks like they can do what you do.


Delta Air Lines December Passenger Revenue Jumps 10%, Partly Thanks to Thanksgiving Travel
By Patrick Morris, Motley fool
January 3, 2014

Delta Air Lines (NYSE: DAL ) reported its financial and operating performance for December today, and the company saw strong year-over-year results. The airline watched its passenger unit revenue rise by 10% on a relative basis, and the company attributed this to both stronger consumer demand as well as the way Thanksgiving fell on the calendar this year, which pushed some of the travel tied to that holiday into December.



Bye Bye---General Lee

 

[IBNAV8R]

DL might be able to put the hurt on them but, they are gonna bleed a LOT in the process and still not win over Alaska's loyal customer base. Trust me. AS is different.

Seems like DL is pi$$ing in a lot of Post Toasties lately.

 

[Flying the Line]

Speaking of Delta in Los Angeles, how's that Sydney flight working out?

 

[scoreboardII]

Or maybe Delta will do the bleeding. People in the Northwest love the home team.

That's what they said about Frontier, Pan Am, TWA, Piedmont, Western
, AirTran, Northwest, Continental, and on and on.

 

[General Lee]

Speaking of Delta in Los Angeles, how's that Sydney flight working out?

Consistantly oversold. Joint Venture with Virgin Australia seems to be helping. I have heard they were considering swapping the 777 for a 744.


Bye Bye---General Lee

 

[General Lee]

DL might be able to put the hurt on them but, they are gonna bleed a LOT in the process and still not win over Alaska's loyal customer base. Trust me. AS is different.

Seems like DL is pi$$ing in a lot of Post Toasties lately.

Riiiiiight. Did you read some of the comments from the locals in JNU at the end of the JNU article? Seems like quite a few locals were pleased that DL was coming in, and some stated they wished it was year round.

Also, DL will use their connections in SEA from every DL hub to fill the flight with doctors and bankers that were going to connect onto one of your flights to see the sights up there during the Summer. So, more locals can use your flights, for $100 less too thanks to competition. I bet they will thank DL regardless of which carrier they fly on.


Bye Bye---General Lee

 

[Old School 737]

Consistantly oversold. Joint Venture with Virgin Australia seems to be helping. I have heard they were considering swapping the 777 for a 744.


Bye Bye---General Lee

What happens when the 744 is retired ? What's the plan?