Merger affect on AirTran.......

[jester757]

Funny thing is that it will be like Super Walmart and Super target are next door to each other. Both companies decide to merge and become super walmart. Walmart knows that it is even too much and they are going to have to combine the two into one store. How many shelves of laundry detergent can you havein one town? The two stores are going to be stabbing each other in the back to try to be the employees who keep their jobs. Service will get so bad that people will be beating down the door to go to the mom and pop grocery store. Pretty much describes AAA/AWA.

HUH? Lets say that DAL + NWA is the Walmart in this example in ATL. Who is the Target who is Atlanta - airtran??? Are you serious?

 

[MJ42]

True, but DAL seems to be in the habit of putting lots of expensive and uncomfortable RJs on the routes that they compete with us on. If they wised up and got rid of some RJs and replaced them with MD-90s, then they'd be much better off.

Maybe they're starting to wise up, SLC SKW flying was reduced. Could this start in ATL soon also?

 

[jester757]

True, but DAL seems to be in the habit of putting lots of expensive and uncomfortable RJs on the routes that they compete with us on. If they wised up and got rid of some RJs and replaced them with MD-90s, then they'd be much better off.

You are 100% correct. Part of the deal for the MD90s they are getting is trading a bunch of 50 seat RJs along with some cash for the 90s. A win-win for DAL. 50 seaters are stupid - everyone knew that when they appeared...except the CEOs who thought differently.

Sidenote...from what an ALPA rep said recently for every 70 seater that is brought on in the commuter ranks three 50 seater are being put out to pasture. They just don't work long term.

 

[jester757]

Maybe they're starting to wise up, SLC SKW flying was reduced. Could this start in ATL soon also?

It has begun in ATL....50 seaters are going bye-bye being phased out for 70 seaters and MD88s/big EMBs are going on those routes.

 

[Secret Squirrel]

HUH? Lets say that DAL + NWA is the Walmart in this example in ATL. Who is the Target who is Atlanta - airtran??? Are you serious?

It was your dumb analysis. What I was trying to say is when you combine two companies, 1+1 does not equal two. That is why you are combining the companies. Walmart would buy Target to get rid of the competition, not to double the amount of space for selling laundry detergent. Every company head in the airline industry is saying they need to cut domestic capacity to raise prices. That is what happens in a merger. That is what will happen in this senario. You can bury your head in the sand all you want. When two companies in ANY industry combines there is a lot of job cutting of redundant positions. Base closings, domestic route overlap (and there is a lot of it with either company, remember that NWA and DAL both take people from DSM to LAX, they cut prices to compete with each other. The whole point is to quit fighting and raise fares) and getting fleet uniformity will be painful to both groups. Then there is both groups fighting to get contracts, fences, new international growth. God it will be ugly. I wish any merger group the best of luck.

 

[jester757]

It was your dumb analysis. What I was trying to say is when you combine two companies, 1+1 does not equal two. That is why you are combining the companies. Walmart would buy Target to get rid of the competition, not to double the amount of space for selling laundry detergent. Every company head in the airline industry is saying they need to cut domestic capacity to raise prices. That is what happens in a merger. That is what will happen in this senario. You can bury your head in the sand all you want. When two companies in ANY industry combines there is a lot of job cutting of redundant positions. Base closings, domestic route overlap (and there is a lot of it with either company, remember that NWA and DAL both take people from DSM to LAX, they cut prices to compete with each other. The whole point is to quit fighting and raise fares) and getting fleet uniformity will be painful to both groups. Then there is both groups fighting to get contracts, fences, new international growth. God it will be ugly. I wish any merger group the best of luck.

It was not a stupid senario until you got a hold of it....

Sure there will be cuts in res, mngmt, etc. I doubt it in flight ops when both airlines are growing, hiring and getting new planes - so don't look for a NWA+DAL airline to open the doors to their airports. I would expect to see the fares in those areas be lower than everyone else because they will be able to which will in the long run be bad for the competition.

 

[Occam's Razor]

Kids,

If there are any concessions to be made in a NWA-DAL merger to appease the DOJ, they would probably be focused on the emancipation of CAL. NWA would turn over the key to the handcuffs and CAL could go find her own Prom date.

Think outside the bun...

 

[bizicmo]

What about a continental, alaska and airtran grouping? Alaska creates a west coast hub and airtran a southeast hub. All boeing fleet and could create international flights from alaska and airtran hubs.

 

[Fly4$]

What about a continental, alaska and airtran grouping? Alaska creates a west coast hub and airtran a southeast hub. All boeing fleet and could create international flights from alaska and airtran hubs.


AirTrAlasContinental Airlines !

 

[puddlejumper101]

I simply don't see how in this economy we are living under...and in the near future you can have two companies of the size of DAL/NWA merge and not consolidate. If times were better I could see that argument, but I don't think the current economy has enough to support a mega carrier. I wish guys/gals at both carriers the best...but this does not look good. Then again...neither does the economy.