[FONT=arial, helvetica]Transportation[/FONT]
[FONT=arial, helvetica]Delta Adds Continental to Merger Options[/FONT]
[FONT=arial, helvetica]By Ted Reed[/FONT]
[FONT=arial, helvetica]TheStreet.com Staff Reporter[/FONT]
[FONT=arial, helvetica]1/31/2008 7:12 PM EST[/FONT]
[FONT=arial, helvetica]URL: http://www.thestreet.com/newsanalysis/transportation/10401516.html[/FONT]
[FONT=arial, helvetica]Updated from 6:07 p.m. EST [/FONT]
[FONT=arial, helvetica]As it pursues its consolidation strategy, Delta (DAL) is talking with a variety of carriers including Continental (CAL) . [/FONT]
[FONT=arial, helvetica]Those talks so far have been preliminary, and have not advanced as far as merger discussions with Northwest (NWA) , according to a person familiar with the situation. However, discussions with Northwest appear to have hit snags, including issues involving the leadership of the combined company. [/FONT]
[FONT=arial, helvetica]Delta has also had conversations recently with UAL (UAUA) , the owner of United Airlines, according to published reports. [/FONT]
[FONT=arial, helvetica]In the past, internal Delta consolidation studies have concluded that a merger with Continental would make the most sense, while a deal with Northwest could also have value because it would provide access to the Pacific, according to sources who are familiar with the situation. [/FONT]
[FONT=arial, helvetica]Delta bid unsuccessfully for Continental in 1998, then acknowledged it was again studying a merger effort in 2000. [/FONT]
[FONT=arial, helvetica]The internal studies also determined that authorities wouldn't permit a merger with United because the combined airline would be too big. However, it is uncertain whether regulators would have the same view today given the rapid expansion of low-fare carriers who might also provide competitive alternatives in the event of legacy carrier mergers. [/FONT]
[FONT=arial, helvetica]Additionally, since the internal studies were done, Delta and Continental have both dramatically built their hubs at New York's Kennedy Airport and Newark Liberty International Airport, as well as their trans-Atlantic service from the two hubs. [/FONT]
[FONT=arial, helvetica]Publicly, Delta has said it is "analyzing strategic options, including potential consolidation transactions." Delta and Continental declined to speak for this story.[/FONT]
[FONT=arial, helvetica]Delta Adds Continental to Merger Options[/FONT]
[FONT=arial, helvetica]By Ted Reed[/FONT]
[FONT=arial, helvetica]TheStreet.com Staff Reporter[/FONT]
[FONT=arial, helvetica]1/31/2008 7:12 PM EST[/FONT]
[FONT=arial, helvetica]URL: http://www.thestreet.com/newsanalysis/transportation/10401516.html[/FONT]
[FONT=arial, helvetica]Updated from 6:07 p.m. EST [/FONT]
[FONT=arial, helvetica]As it pursues its consolidation strategy, Delta (DAL) is talking with a variety of carriers including Continental (CAL) . [/FONT]
[FONT=arial, helvetica]Those talks so far have been preliminary, and have not advanced as far as merger discussions with Northwest (NWA) , according to a person familiar with the situation. However, discussions with Northwest appear to have hit snags, including issues involving the leadership of the combined company. [/FONT]
[FONT=arial, helvetica]Delta has also had conversations recently with UAL (UAUA) , the owner of United Airlines, according to published reports. [/FONT]
[FONT=arial, helvetica]In the past, internal Delta consolidation studies have concluded that a merger with Continental would make the most sense, while a deal with Northwest could also have value because it would provide access to the Pacific, according to sources who are familiar with the situation. [/FONT]
[FONT=arial, helvetica]Delta bid unsuccessfully for Continental in 1998, then acknowledged it was again studying a merger effort in 2000. [/FONT]
[FONT=arial, helvetica]The internal studies also determined that authorities wouldn't permit a merger with United because the combined airline would be too big. However, it is uncertain whether regulators would have the same view today given the rapid expansion of low-fare carriers who might also provide competitive alternatives in the event of legacy carrier mergers. [/FONT]
[FONT=arial, helvetica]Additionally, since the internal studies were done, Delta and Continental have both dramatically built their hubs at New York's Kennedy Airport and Newark Liberty International Airport, as well as their trans-Atlantic service from the two hubs. [/FONT]
[FONT=arial, helvetica]Publicly, Delta has said it is "analyzing strategic options, including potential consolidation transactions." Delta and Continental declined to speak for this story.[/FONT]
