Bizarre CAL-DAL merger rumor

[vc10]

There's some wild rumor floating around about a CAL-DAL merger after a DAL pilot agreement.

This sounds very unlikely, at least in the near future. Airline merger is a very strenuous activity and neither CAL nor DAL has a strong heart right now. Nonetheless I have it on good authority that some DAL pilots believe that a merger is likely.

 

[Boeingman]

With DAL's debt load, I doubt it.

 

[bafanguy]

The DAL-CAL rumor has surfaced so many times over the years that I've lost track of it. My favorite was the Cathay Pacific-DAL merger... circa 1986.


I personally asked Dave Garrett about it and after a pregnant pause, he said, "Well, that's very tricky,legally." And that's all he would say. Something must have been cooking at the time.

 

[AT7^DRIVER]

There's some wild rumor floating around about a CAL-DAL merger after a DAL pilot agreement.

I heard the same rumor about this possible merger about 3 months ago. It makes sense to me - the Bush administration doesn't want three legacy carriers in bankruptcy at the same time. This would actually work in Delta's favor - as far as getting the merger approved which in turn would prevent a possible chapter 11 filing. Just my .02 cents...

 

[BAFAN]

This is simply the rumor that will not die. I haven't heard this one in a long time, and haven't heard ANY talk of it on the line. I wouldn't put any money on that rumor, especially considering the financial mess that the Legacy carriers are in. It wouldn't be a smart move at this point, even with the good match in route structure.

 

[Lolikoka]

What about Northwest?

Delta-Continental is the rumor that won't die. Regardless - what is Northwest's role in Continental? Don't they own part of CAL or have some sort of stake in it? They did a while back, I just don't remember the details. I thought Northwest would be the sticking point in a DAL-CAL merger for some reason.

 

[Boeingman]

Delta-Continental is the rumor that won't die. Regardless - what is Northwest's role in Continental? Don't they own part of CAL or have some sort of stake in it? They did a while back, I just don't remember the details. I thought Northwest would be the sticking point in a DAL-CAL merger for some reason.

NWA has no ownership left in CAL. I think they have a first right of refusal if a takever attempt is made on CAL. This was part of the covenants and agreement for the stock repurchase in the mid to late 90's.

Personally, I want no part of a merger with DAL. I know there are many at CAL that feel the same way.

 

[G4G5]

the clause in the contract allows NWA the right of first refusal if anyone tries to buy CAL. If CAL goes after DAL, NWA has no recourse.

Did anyone else notice last weeks WSJ interview with Bethune ( I think it was last Mon or Tues). He mentioned that he had tried to merge with UAL and was refuted by Tilton? humm. If he is asking UAL he certianly is asking DAL.

Greanjeans history with Western, has shown that this is something that he would consider. Things that make u go hummmm

 

[tk855]

I remember this rumor was rampant back in 2001 when DAL pilots were negotiating their current contract. Back then DAL was going to purchase CAL, but I think now in the current rumor, roles have reversed. I was on a crew bus in EWR last week with a CAL pilot and he was talking of this rumor. He made it sound like CAL wants anyone they can get their hands on, including UAL. Certainly are interesting conversation points aren't they!

tk

 

[flynryan15]

!!!!!!!!!

Bethune has been quoted a few times saying he wants to buy delta. But with the contract stating that CAL can not be bought by another carrier for 25 years it wont be DAL buying CAL. I don't think NWA would back down and allow that either.