Delta sees more possible airline consolidation

General Lee

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Delta Sees More Airline Consolidation as AMR’s Bankruptcy Helps Cut Seats

By Mary Jane Credeur - Dec 14, 2011 9:48 AM MT


Dec. 14 (Bloomberg) --Delta Airlines Chief Executive Officer Richard Anderson said he expects more consolidation across the global industry through additional joint ventures or traditional mergers.


Consolidation and individual carriers’ cuts in seating capacity have helped airlines trim operating costs, and the Nov. 29 bankruptcy filing by American Airlines parent AMR Corp “is another important step in that process,” Anderson said today at an investor event in New York.
Anderson’s comments echoed remarks last week by USAir Corp.Chief Financial Officer Derek Kerr, who said there is “possibly room for more” tie-ups that would bolster industry finances. Delta acquired Northwest Airlines Corp. in 2008, while US Airwayscombined with America West Holdings Corp. in 2005.

Global marketing alliances such as Delta’s SkyTeam that allow carriers to jointly plan schedules also will play an increasingly important role, as will agreements with antitrust protection that permit coordinated pricing, Anderson said.

“We should expect that consolidation around the world will continue” through such joint ventures of mergers, Anderson said. Delta was displaced as the world’s largest airline last year when United Airlinescombined with Continental Airlines Inc. to form United Continental Holdings Inc. Southwest Airlines, the biggest discount carrier, acquired AirTran Holdings Inc. in May.

Delta ‘Opportunities’

“It’s hard to tell” exactly what American’s bankruptcy will mean, Delta President Ed Bastian said on a webcast of the investor presentation. “There will probably be some opportunities there,” he said without elaborating. Delta rose 0.9 percent to $8.06 at 11:45 a.m. in New York trading. The shares fell 37 percent this year through yesterday.
Airlines seek to manage the supply of seats to retain more control over fares. Delta reiterated today that it plans to pare capacity as much as 5 percent this quarter and by 2 percent to 3 percent in 2012. Available seats at AMR may be cut about 10 percent in bankruptcy, according to six analysts surveyed by Bloomberg.

Since the start of December, AMR’s scheduled domestic capacity for the next three months declined 2.5 percent from a year earlier, compared with a 1.4 percent drop forecast by the company two weeks earlier, according to a report today from Hunter Keay, a Wolfe Trahan & Co. analyst in New York. AMR’s pullback affected 44 domestic routes, or 11 percent of the total, Keay wrote.

Delta also said today it was raising its operating margin forecast for the current quarter to as much as 8 percent from a range of 5 percent to 7 percent as fares increased. Unit revenue, a measure of fares and passenger traffic, will rise 11 percent to 12 percent this quarter, Delta said.



Bye Bye--General Lee
 

Whataburger

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Time to fire up the Codeshare machine!!

Pull those RJ's out of the desert!!
 

mach none

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General:

You will have to bid ANC to get those SIT layovers.

Merry Christmas
 

sniper

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General:

You will have to bid ANC to get those SIT layovers.

Merry Christmas



DAL will buy JetBlue within the next 12 months if Usair and AMR merge.....

my opinion, the question is what will it happen to the JB pilots without a union and their 5 year employement contract
 

Dizel8

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Huh?
Anyone could buy blue, going to cost some dollars though.

However, can't see DAL wanting blue, what blue has DAL pretty much has and they would be forced to divest of some of the good stuff, such as JFK slots, maybe even LGA slots. I would put my bet on AMR buying blue, since they would get more access/feed in JFK, A-320 aircraft and APA would love it.
 

Lake Alice

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DAL will buy JetBlue within the next 12 months if Usair and AMR merge.....

my opinion, the question is what will it happen to the JB pilots without a union and their 5 year employement contract

We will be lucky to get stapled. No pessimism but just being realistic.
 

Scoot 11

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DAL will buy JetBlue within the next 12 months if Usair and AMR merge.....

my opinion, the question is what will it happen to the JB pilots without a union and their 5 year employement contract

That will never get past Sen Schumer (JB's biggest fan), I mean the DOJ. Besides if DAL gets more involved in consolidation, think Alaska or Hawaiian.
YMMV
 

zonker

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That will never get past Sen Schumer (JB's biggest fan), I mean the DOJ. Besides if DAL gets more involved in consolidation, think Alaska or Hawaiian.
YMMV

Look I don't pretend to know whats going to happen but Schumer was very much against the UAL/CAL merger and it went right through.

The merger process is bought and paid for by the scumbags at JP Morgan and Goldman Sachs, et al. Judges get greased, politicians bought, etc.
 

curtaindriver

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[/COLOR]


Who cares?

Haha!!! I love it!! You are one of those internet tough guys that talk tough with your computer but wouldn't say this to a JB pilot's face, even if it was a 115 pound girl.

You forgot one more type rating in your profile, D-BAG!!

CD
 

Scoot 11

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Look I don't pretend to know whats going to happen but Schumer was very much against the UAL/CAL merger and it went right through.

The merger process is bought and paid for by the scumbags at JP Morgan and Goldman Sachs, et al. Judges get greased, politicians bought, etc.

That's because it had nothing to do with Jet Blue. Let's face it, Schumer LOVES JB, and will do ANYTHING to protect his hometown airline.
I think it's a good thing.
 

johnsonrod

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I think Delta and American will get together and each buy big pieces of USAirways (East goes to AA and West goes to Delta). Parker will take his $50 million separation check and open a bar.
 
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