Analyst Jamie Baker thinks Delta could walk away from NWA....article

[Frank Lorenzo]

Really? But it was such a great idea. I wonder what Delta has up their sleves now that Song is gone. Maybe they'll get together with Coke down in old ATL and rerelease New Coke!

Oh sure, laugh now. Delta will have the last laugh on this one. The merger of these airlines fits together so well - hand in glove - it's almost like it was consummated by the touch of God. Delta would never engage in a merger that did not make sense. Just look at the facts TC....

1. The fleets fit together perfectly. NWA and Delta both fly Airbus jets and 747's. Hence, this will minimize cost to the airline.

2. Both airlines have heavily unionized workforces, and they are the same unions. In fact, they have already worked out mutually agreed to SLI's, and are getting long great.

3. The state of MN is paying big bucks to Delta for taking NWA off their hands. In fact, I think the state of MN will be paying Delta to keep a presence in MN.

4. No jobs will be lost. The executives said it, therefore, it is true. Written in stone. End of story.

5. None of the current routes overlap. Once again, no job losses.

7. All "valuable" hubs like CVG and MEM will be kept open. Once again, no job losses. (Rumor is, DEL will probably grow these hubs to support their cutting edge Space Shuttle flights)

8. Richard Anderson will keep Doug Steelin on the board to ensure labor harmony. "The Delta Family" will be happier than ever.

9. The claims that Delta has overextended into the Middle East and Eastern Europe are completely false. Delta is making a killing in these markets. These markets will continue to reap Delta trillions of dollars a year.

10. This is a "free" merger. It is a stock swap - no cash involved. Even if Delta had to pony up some cash, they have plenty to burn because of their managerial genius and prowess.


I don't know TC. How you could ever question the wisdom of this marriage is beyond this wise, honest, old airline executive.

 

[Tanker Clown]

Sorry Frank. The Gerbil Lee said it was a good deal. My bad. Maybe the overall plan is that they figure "how can the gub'ment let the world's largest airline go under." That's probably not a bad business strategy.

 

[Flyer1015]

It will go through no matter what. Too many greedy and a-hole wall street members and management stand to get rich from this deal.


And their current explanations that there will be no hub losses or jub cuts is pure BS. When this merger goes through, expect job losses on the frontline employees (pilots, FAs, etc). Expect it to start with the DC9s getting parked. It will go from there. I expect CVG and/or MEM to be closed as the merger continues to progress with integration.

Time will tell. One thing is for sure, expect job losses, airplanes being parked, hub(s) closed, all the while management securing MILLIONS in bonuses!

 

[IXLR8]

Exactly,
Once the ink is dry on this, they will claim thay can no longer sustain the level of flying they are at because of FUEL..and they will begin the layoffs....it wont be because of the "merger"....:erm: ...thats the key, they said no job losses to front line employees due to the merger.