Delta and America West merger?

[DesertFalcon]

Friday March 22, 12:19 pm Eastern Time
Delta and America West Could Be Getting Serious
By Holly Hegeman
Special to TheStreet.com

It seems that merger talks between Delta Air Lines (NYSEAL - news) and America West (NYSE:AWA - news) have entered a phase that's worth discussing.

Although the airlines have declined to comment on the report I first made in the RealMoney Columnist Conversation on Wednesday, sources inside Delta confirmed that the Atlanta-based carrier is sniffing around Phoenix-based America West. Sources also tell me that some union representatives were given a heads-up by management about the talks.


Posted by DesertFalcon

 

[skydiverdriver]

I've heard this rumor before. One question though, if AmWest still had Dash-8's, would they merge only the big airplane drivers with Delta, and put the Dash-8 pilots in with Comair/ASA? Or will all of America West's pilots be merged with Comair? Just a question.

 

[flx757]

Your question is about as relevant as this question: What if Spartacus had a Piper Cub?

 

[DesertFalcon]

I've heard this rumor before. One question though, if AmWest still had Dash-8's, would they merge only the big airplane drivers with Delta, and put the Dash-8 pilots in with Comair/ASA? Or will all of America West's pilots be merged with Comair? Just a question.

Sounds like a question for, "LAWMAN!!

 

[spongebob]

Where are AmWest pilot domiciles ?

Hey Amwest guys, when the time comes that you can fly out of lovely QNY, where are your domiciles so we can do some western flying?

Also, how many pilots on the property now?

 

[ifly4food]

I don't put much stock in anything Holly Hegeman says. In my book, she's right up there with Mary Schiavo in the big mouth-little proof department.

I'd say more, but she has a history of suing those who publicly call her for what she is.

As for DAL-AmWest, I'd say doubtful at best. upside for Delta... a fledgling west coast hub. Downside... enormous debt and labor trouble. Don't forget that the US Government now owns some 30% of that airline in exchange for the "bailout". Delta would have to buy that back.
Upside for AmWest... huge, downside none.

About the only thing Delta may be interested in is getting its hands on Mesa (feeder for AmWest). They see great potential in it's president, a.k.a. the "Frank Lorenzo of this decade". He's just the master of alter ego and whipsaw Delta needs to make its crush of ASA and CMR complete.

If Delta gets in bed with Mesa, I see a future of 70 to 90 seat RJs flying routes that used to be flown by ASA, CMR, and DAL. They could paint them in the America West livery and say they don't fall under the scope clauses. Of course, their pilots will make a fraction of what ASA/CMR pilots do. It would be a great addition to DCI's "portfolio of carriers". It would be management's wet dream.

Got scope?

 

[skydiverdriver]

So,how is Delta crushing Comair and ASA right now? Aren't both airlines growing? RJDC's wet dream? You obviously have the most incredibly wrong idea of what the rjdc is doing, and I don't think you have any reason to think that way. Oh well, I'm done arguing about it. The lawsuit goes on, and it's the only thing protecting our jobs from things like this.

 

[ifly4food]

Sorry for the cheap RJDC shot SDD, that was a poor choice of words. I've edited my comment.

See my post under the RJDC update thread. I mean that DAL is using this RJDC issue to divide and conqour us. Yes, we're growing now, but not for long. You and I are on the same page here. You saw the Enquirer article. Delta is growing the non-wholly owned carriers twice to three times the rate they are growing us.
We need to quit fighting and get together. I don't think RJDC in it's present form is the banner we will all (ASA, CMR, DALPA) unite under. That's all.

 

[FlyingSig]

My take on this DAL/AmWest rumor:


A.) Don't think it's gonna happen. I don't see how you can cry poor and "circumstances beyond the control" then run out and buy another airline.... but that's JMHO

B.) What does AmWest bring to Delta? Nothing really. 757's and some old 737's in addition to the Airbus'.

PHX and LAS, thanks to SWA are both low yield origination hubs. While SLC is expensive and certaily rumored to be cutting back I don't see a "Delta Express" expansion in these hubs as upper management has said that model no longer works due to the reduced traffic. Express worked when you could take the leisure fares and overfly ATL on the way to FL leaving more seats in ATL for the high yield pax. Now they don't have enough pax to make it worth overflying....


So why AmWest? Simply to get rid of some competition. Buy them, sell of the airbus and most of the 737's and viola, now you have one less competitor along with less seats in markets which will drive up prices. At $6 /share right now (give or take) it's probally a bargain to buy them to do this....


Just my take on the rumor....like I said, since it first came from Holly and I haven't read it anywhere else I don't see it happening.

 

[skydiverdriver]

Sig,
So, why don't you answer my question about the merger of lists? Would the (former) Dash-8 pilots be treated differently than the Airbus and Boeing pilots? What if they still had the props? Just a question, don't get upset about it.