Delta talks to NWA for merger alternative.

[YourPilotFriend]

Looks like NWA and Delta are making their talks public now about the merger.

 

[FlyingSig]

Delta now has a policy of unlimited jumpseats. this applies to the entire system both domestic and international. All of the carriers with whom Delta has a reciprocal agreement have been turned "on" for unlimited jumpseats. Delta will be renewing all existing agreements with the new language and all future agreements will be unlimited.

Craig Stephens
DAL MEC Jumpseat Committee Chairman

The above was gotten of the ALPA website...

 

[YourPilotFriend]

The Wallstreet Journal

Northwest, Delta Discuss Tie-Up
By Susan Carey, Melanie Trottman and Evan Perez
Word Count: 520 | Companies Featured in This Article: US Airways Group, UAL, Continental Airlines
Northwest Airlines has been having recurring talks with Delta Air Lines about a potential link-up between the two, possibly after they both emerge from bankruptcy-court protection later this year, said people familiar with the matter.
Meetings between executives at various levels of management and between the airlines' advisers have been occurring regularly for weeks, including some in recent days. These sessions have helped Delta's creditors come to see a combination with Northwest as a realistic alternative to US Airways Group Inc.'s hostile takeover bid.
US Airways today upped the ante by sweetening its hostile takeover bid for Delta to $10 ...

 

[ponder]

Wow, so Bethune told US that the 8billion offer
wasn't enough. That's interesting.

 

[Noserider76]

Looks like NWA and Delta are making their talks public now about the merger.

Though they said they are looking at a combo after both emerge from BK, it wouldn't be much of a stretch to see DL/NWA get third-party financing and offer the creditors a combo of cash and new NWA/DL stock that would blow Parker's offer out of the water. I think NW and DL would do very well alone but the combo would be a global powerhouse. These discussions have probably been going on since before they declared BK on the same day. Fear of this combo is probably one of the main reasons for Parker's offer in the first place.

 

[YourPilotFriend]

Actually not a little before bankruptcy, since the early 90's.

 

[michael707767]

Folks, it is not coincidence that news of Delta/Northwest talks hit the street a few hours after Parker ups his offer. This is Delta's response.


Noserider hit the nail on the head.....with a combo of cash and stock in the new DL/NW, Delta can blow Parkers offer out of the water. The valuation of the combined DL/NW will be way, way more than DL/US. Delta/Northwest makes sense. The future prospects for DL/NW stock are a lot brighter than prospects for DL/US stock.

 

[JT8D]

Fear of this combo is probably one of the main reasons for Parker's offer in the first place.

Bingo!

 

[Kenney G]

Maybe Delta's stand alone plan may not have held up the US Airs new offer. Thats why they came public with NWA.

 

[General Lee]

Even our people in the crew lounge talks have stated we were talking to someone else, but never said who of course. The key here is Boeing. I think they would LOVE to replace Northwest's DC9s, and they would give their support on our creditor committee if they could get a chance at new planes for a combined airline. NW already has a 787 order, and DL is rumored to announce one after we exit BK.

Oberstar, the D from MN, also could be persuaded on this one, since NW is based in his district. What they say could sway Oberstar. That is one thing about AA taking over NW----Oberstar might not want his NW headquarters moved from his district to DFW, and a tie up with AA could cause one of those three hubs (MSP--ORD--DTW) to potentially close.

The aircraft between DL and NW are a bit different, but many need replacing. The A320s and A330s are different, but remember at DL we had L1011s, Md11s, 767-400s, 777s, and 763s at the same time pre-9-11. I guess there could be 747-400s, 747-200 cargo, 777s, 764s, A330s, and 763s in the mix. I bet the DC9s could be replaced by 737-700s or E190s. You never know.....


For the merger to take place, route overlap must be limited, small communities must not be affected, and major hubs should not be closed. Also, both airlines might want to do it, rather than one saying no and making sure all of the local Congressmen fight for them. We'll see, but it is better than the USAir offer by far, it actually makes some sense....


Bye Bye--General Lee