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Delta Orient????

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storminpilot

Well-known member
Joined
Jul 6, 2003
Posts
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http://www.usatoday.com/money/biztravel/2005-09-16-merger-speculation_x.htm

http://biz.yahoo.com/usat/050916/13111095.html?.v=1



USATODAY.com
Could airlines merge?
Friday September 16, 12:47 am ET


Delta Air Lines (DAL) and Northwest Airlines (NWAC) entered bankruptcy court together this week, and few will be surprised if they emerge together - as a single combined carrier.

The twin Chapter 11 bankruptcy filings Wednesday night, almost simultaneous and in the same New York courthouse, are leading many industry experts to believe the carriers may be exploring a merger within bankruptcy protection.

"I wouldn't be at all surprised," Benchmark analyst Helane Becker said Thursday. "In the past, these two airlines have talked and they have very little route overlap."

JPMorgan Chase analyst Jamie Baker said his firm "already has coined the term 'Delta Orient,' " a play on Northwest's former brand name, Northwest Orient.

Atlanta-based Delta is concentrated in the East and launches more daily flights across the Atlantic than any other carrier. Eagan, Minn.-based Northwest is concentrated in the Midwest and has a strong route structure in Asia.

The minimal route overlap is considered an advantage with federal regulators.

Airlines proposing a major merger would have to convince government regulators that the combination would not significantly reduce competition, or that one or both of the airlines would fail without the merger.

Northwest declined comment when asked about a merger with Delta.

In a conference call Wednesday, Northwest CEO Doug Steenland said the timing and location of the filings was coincidental. He added he has long believed consolidation among airlines is likely.

Delta spokeswoman Chris Kelly said Delta "expects there will be more consolidation in the industry. Right now, Delta is focused on its own restructuring efforts."

The twin filings, outrageously high fuel prices and declining hope for financial relief from the government could spark a round of merger talks as the remaining big troubled airlines scramble for partners.

A judge today is expected to approve a merger between US Airways and America West Airlines.

Five big potential partners remain: United Airlines, Delta and Northwest, all of which are now in bankruptcy protection, as well as American Airlines and Continental Airlines.

A merger of No. 3 Delta and No. 4 Northwest would propel the combined airline to the front of the industry pack.

It would pass American and United and become the biggest airline in terms of revenue passenger miles, according to an analysis by Back Aviation Solutions.
 
I heard from a NWA captain that NWA would fly the Intl' routes, Delta pick up the domestic routes, with a new airline name in the merge. Be interesting to see if this happens.
 
BoDean-

I'd be very skeptical of that. NW has fifth freedom rights in Japan that would be forfeited should the NW name "go away." Those rights are very, very exclusive and rest upon the Northwest name remaining intact.
 
skykid said:
With all the talk about consolidation, Northwest/Delta is one of the few that makes any sense.

Just because of the fleet types? All of the routes together would challenge your United, and be larger. As far as the fleets go, it may be good initially to have a large Airbus and Boeing presence, since you could play that out against each other in future bids. NW and DL are getting rid of the older equipment right now (DC9s, 737200s, 762s, DC10s, 733s, etc), and NW even made a large Boeing order--787s--in the face of owning a mainly Airbus fleet.

I read in NW's opener that they wanted E190s to replace the DC9s, and DL apparently may be interested too. The hubs would have to be cleaned up a tad---CVG and MEM probably gone---which DL is already sort of doing right now--cutting back at CVG. This process, if it happens, may take awhile---I think a year or so--to clean up and move things around. Those crazy analysts (who I personally love and think are ALWAYS correct) wouldn't have brought this up if it weren't a possibilty. Who knows? I see CAL/UAL next. (Bethune is interested in UAL, and has always loved his CAL)


Bye Bye--General Lee
 
BoDEAN said:
I heard from a NWA captain that NWA would fly the Intl' routes, Delta pick up the domestic routes, with a new airline name in the merge. Be interesting to see if this happens.

I heard that NW would fly ASIA and pick up the ATL-NRT route, while DL would do more Europe (picking up the DC10 Europe routes with our 767ERs from DTW and MSP) and South America. Song would still be the LCC of the two. Then each hub would have a combination of E190s and mid-sized aircraft to serve the larger cities. Not many widebodies would be used domestically, lowering capacity and raising yeilds. They would all be out flying INTL routes. Just a rumor out there...over the pacific at night....


Bye Bye--General Lee
 
new equipment for DL and NWA

you can't pay the mortgage. credit card bills are overdue. last time you made a car payment was in june. electric and phone bills are late. creditors calling. time to file bankruptcy so all the troubles go away.

filed bankruptcy today. tomorrow you go shopping for a brand new M3 convertible? wtfo? i don't think so general. keep sniffing glue though it will help you maintain the positive outlook.
 
Cyclone said:
you can't pay the mortgage. credit card bills are overdue. last time you made a car payment was in june. electric and phone bills are late. creditors calling. time to file bankruptcy so all the troubles go away.

filed bankruptcy today. tomorrow you go shopping for a brand new M3 convertible? wtfo? i don't think so general. keep sniffing glue though it will help you maintain the positive outlook.

Maybe you didn't hear about the AirCanada Chap 11 filing. (or whatever is it in Canada) Aftr being days from liquidation, they came out with a huge Boeing order for 20 787s and 35 777s. The reason it later went south was a pilot dispute over seniority on certain planes---CP Air pilots versus old Air Canada. I don't think that would happen here (?), but it shows you that anyone can get new planes after a bankruptcy.


Bye Bye--General Lee
 
Cyclone said:
you can't pay the mortgage. credit card bills are overdue. last time you made a car payment was in june. electric and phone bills are late. creditors calling. time to file bankruptcy so all the troubles go away.

filed bankruptcy today. tomorrow you go shopping for a brand new M3 convertible? wtfo? i don't think so general. keep sniffing glue though it will help you maintain the positive outlook.
That's funny, and true.
General,
I admire your loyalty, even though I dont agree with your bashing of others at times. The Air Canada example is a stretch as the gov. does'nt have a stake in your Delta or NW.
 

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