General Lee
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Thursday, June 12, 2008 - 3:17 PM EDT
Delta CEO assures Memphis leaders of city's importance in combined company
Atlanta Business Chronicle
Just two days after announcing that Delta Air Lines Inc. would terminate its contract with Memphis, Tenn.-based Pinnacle Airlines Corp., Delta CEO Richard Anderson spoke in Memphis Thursday reassuring business leaders that a merger between Delta and Northwest Airlines stands to benefit the city.
Anderson addressed a near capacity crowd at the Holiday Inn at the University of Memphis telling Memphis Regional Chamber members and Memphis International Airport officials that Memphis "plays an important role" in the future of a merged airline.
"The relationship with the Memphis hub is very important," Anderson said. "It will continue to be an important part of the Northwest/Delta network."
Anderson cited the success of Northwest (NYSE: NWA) in Memphis after the airline merged with Republic Airlines in the mid-80s and said that the merged airline would be the U.S. "flag ship" carrier that could compete with international carriers.
On the decision to bounce Pinnacle Airlines (NASDAQ: PNCL) from its service agreement, Anderson said that until the merger is final, "the decision made between (Delta and Northwest) must be kept separate" and that Delta's agreement does not affect current or future relationships between Pinnacle and Northwest.
Pinnacle announced Tuesday Atlanta-based Delta (NYSE: DAL) planned on canceling its contract with the regional carrier on July 31, citing Pinnacle's failure to meet minimum on-time requirements. Pinnacle called the action "wrongful."
Although the Delta contract only represented about 2 percent of Pinnacle's overall business, analysts have speculated that the decision could foreshadow Pinnacle's future once the Delta/Northwest merger is finalized.
Besides addressing hub closure and Pinnacle concerns, Anderson also called on U.S. leaders to act on rising fuel prices pointing out that passengers should expect airline fare to continue to rise in the future.
"The ramifications of fuel prices are long-term in our society," he said. "You've seen air fare go up and they will continue to go up."
Bye Bye--General Lee
Delta CEO assures Memphis leaders of city's importance in combined company
Atlanta Business Chronicle
Just two days after announcing that Delta Air Lines Inc. would terminate its contract with Memphis, Tenn.-based Pinnacle Airlines Corp., Delta CEO Richard Anderson spoke in Memphis Thursday reassuring business leaders that a merger between Delta and Northwest Airlines stands to benefit the city.
Anderson addressed a near capacity crowd at the Holiday Inn at the University of Memphis telling Memphis Regional Chamber members and Memphis International Airport officials that Memphis "plays an important role" in the future of a merged airline.
"The relationship with the Memphis hub is very important," Anderson said. "It will continue to be an important part of the Northwest/Delta network."
Anderson cited the success of Northwest (NYSE: NWA) in Memphis after the airline merged with Republic Airlines in the mid-80s and said that the merged airline would be the U.S. "flag ship" carrier that could compete with international carriers.
On the decision to bounce Pinnacle Airlines (NASDAQ: PNCL) from its service agreement, Anderson said that until the merger is final, "the decision made between (Delta and Northwest) must be kept separate" and that Delta's agreement does not affect current or future relationships between Pinnacle and Northwest.
Pinnacle announced Tuesday Atlanta-based Delta (NYSE: DAL) planned on canceling its contract with the regional carrier on July 31, citing Pinnacle's failure to meet minimum on-time requirements. Pinnacle called the action "wrongful."
Although the Delta contract only represented about 2 percent of Pinnacle's overall business, analysts have speculated that the decision could foreshadow Pinnacle's future once the Delta/Northwest merger is finalized.
Besides addressing hub closure and Pinnacle concerns, Anderson also called on U.S. leaders to act on rising fuel prices pointing out that passengers should expect airline fare to continue to rise in the future.
"The ramifications of fuel prices are long-term in our society," he said. "You've seen air fare go up and they will continue to go up."
Bye Bye--General Lee