Moak says Merger may be close for DL

[johnsonrod]

All in all, a DAL/UAL powerhouse would be the most dominant airline in the country. Star/SkyTeam issues may doom it, although the combined airline would likely have no problem getting full support from either (just not both).

We can agree to disagree. I realize SWA was not focusing on just Denver - I mentioned SWA because it is starting to further erode UAL's market share in one of its key hubs and it will continue to do so (over the long run). That can't be good news. UAL and DAL have completely overlapping JFK and LAX hubs and both would likely need to be pared down (for cost reduction/efficiency sake) in a merger. Plus, we all know the new DAL CEO is former NWA and that familiarity with the operation (and respect from the NWA side) could be viewed as an asset in a merger.

UAL is just a tired dog at this point and why would DAL want to inherit those problems (eroding market share, zero growth, complete lack of a strategic plan, very low employee morale, etc.) when NWA offers the same Asian access? If no merger, the only other potentially viable option beyond a merger involving UAL would be an asset sale - UAL sells DAL its Asian routes (potentially in a liquidation). UAL's CEO seems determined to run the airline into the ground to force a liquidation and potential merger situation (like AWA/USAirways)...

 

[zonker]

If any of you think a merger, any merger, is good for the employees, I have bridge I'd like to show you in NY!

These mergers are driven by Wall Street bankers, Financiers, Accountants and Attorneys. The actual "benefits" of a merger such as improved route structures, synergies, and what have you, are window dressing the aforementioned parties use to sell the merger to politicians, employees and the travelling public.

The reality is that many employees can lose their jobs due to the synergies, many communities can end up losing air service and the public can look forward to more expensive travel.

Debate which combination is better all you like. In the end it doesn't mean a rats *ss. The only thing that will matter is how much money it will make for the deal makers and their hangers-on. And that money will likely come from 'savings' from employees gone and airplanes parked!

Just look at how well the AWA/USAirways merger has gone from the employee perspective!

Exactly right.

 

[lowecur]

If any of you think a merger, any merger, is good for the employees, I have bridge I'd like to show you in NY! Where, and how much?

These mergers are driven by Wall Street bankers, Financiers, Accountants and Attorneys. True, but they are also driven by pilot groups that see the possibilities of a return to previous pay scales and ownership in a company that has unlimited potential of being the most profitable airline this side of the Atlantic/Pacific. I doubt all these things will ever be possible going it solo. The actual "benefits" of a merger such as improved route structures, synergies, and what have you, are window dressing the aforementioned parties use to sell the merger to politicians, employees and the travelling public.

The reality is that many employees can lose their jobs due to the synergies, many communities can end up losing air service and the public can look forward to more expensive travel. It still boils down to it's parts being less important than the whole.

Debate which combination is better all you like. In the end it doesn't mean a rats *ss. The only thing that will matter is how much money it will make for the deal makers and their hangers-on. And that money will likely come from 'savings' from employees gone and airplanes parked!

Just look at how well the AWA/USAirways merger has gone from the employee perspective!

I think the AWA/USAirways merger went very well for US Airways employees.....they have jobs. The problems with integration amongst the pilots were many:

• Big difference in average age
• US had a huge number of furloughs
• AWA had no widebody pilots

Lack of these problems between NWA/DAL, should make integration a no brainer.

imp:​

 

[michael707767]

Only you, Gordon Bethune (paid by Pardus Capital) and Pardus Capital believe what you are saying. United and Delta have way too much overlap.

Gen Lee is right here. The only people who have said a Delta UAL merger makes sense are those who stand to make money off the transaction, like Pardus.

 

[On Your Six]

UAL is like the ugly prom date. Nobody wants to dance with her...

I agree that Delta and Northwest combo makes a lot more sense. Why settle for United with all of its "baggage" when you could still get Asia access through Northwest? It's all moot until the DOJ gives the final OK (and that ain't a sure thing at all)...

 

[atpcliff]

Hi!

Today analysts say DAL/NWA and UAL/CAL soon.

cliff
GRB

 

[jke406]

Hi!

Today analysts say DAL/NWA and UAL/CAL soon.

cliff
GRB

are they the same analysts that said Barak would win in NH?

Analysts are worthless.

 

[Schwanker]

The "golden share" is automatically nullified if NWA merges with anyone.

Source?

 

[Daddy]

I've always heard that too, but not sure where it is written...maybe start with their annual report

 

[Hutchman]

Hi!

Today analysts say DAL/NWA and UAL/CAL soon.

cliff
GRB

Analysts are not subject to random drug testing......

 

[Secret Squirrel]

They are probably using this website as their source.

 

[On Your Six]

Hi!

Today analysts say DAL/NWA and UAL/CAL soon.

cliff
GRB

Of course it's all moot unless the DOJ gives the green light... Analysts have been wrong before too. It should be interesting.

 

[Furloughed80]

Source?

http://www.continental.com/web/en-U...docs/continental_certofcorb_2003_03_04_01.pdf

 

[Scrapdog]

Of course it's all moot unless the DOJ gives the green light... Analysts have been wrong before too. It should be interesting.

You hit the nail on the head. Any large merger obviously needs DOJ approval - which is quite the hurdle in itself. I know General Lee likes to spew worthless knowledge out of his cakehole - but all of that is fodder unless any DOJ action takes place.

TBD...

Until then G. Lee can continue to think/dream he is impressing everyone with the fact he flies in the right seat of an airplane that absolutely impresses no one (except instructordude of course).

 

[IronCityBlue]

but all of that is fodder unless any DOJ action takes place.

I especially like this FI cottage industry "knowledge" that says "if one merger is allowed, they all must be allowed to be fair!" :laugh:

Yeah right. The DOJ is going to let this country go to 3 legacy airlines because they care about fairness!:laugh:

Airlines can squeal like stuck pigs all they want about how "unfair" it is, and pre-spend hundreds of millions of dollars and put tens of thousands of jobs on the line before its aprooved in an attempt to extort approoval in the future, but no way will every legacy be allowed to merge. Some will be left out in the cold. Like the US government cares if every airline has a "dance partner" what a freaking joke. :laugh:

 

[johnsonrod]

You hit the nail on the head. Any large merger obviously needs DOJ approval - which is quite the hurdle in itself. I know General Lee likes to spew worthless knowledge out of his cakehole - but all of that is fodder unless any DOJ action takes place.

TBD...

Until then G. Lee can continue to think/dream he is impressing everyone with the fact he flies in the right seat of an airplane that absolutely impresses no one (except instructordude of course).

A bit cocky there Maverick. I am sure he makes more than you do. Don't think CAL won't be immune from this process. You may be flying for CAL/UAL in a year or so... But at least you will have fun flying in Afghanistan to think about...

 

[Thedude]

TBD...

Until then G. Lee can continue to think/dream he is impressing everyone with the fact he flies in the right seat of an airplane that absolutely impresses no one (except instructordude of course).

After a cocky comment like that wouldn't it be ironic if you ended up furloughed because of a merger.

 

[Old School]

you mean the KY Team not SKY Team

 

[dtfl]

Hamilton, Joe, Frank, and Reynolds

imp:​

I got that.

 

[ultrarunner]

The pilots would get 70% pay raises and add to already decent work rules. That isnt going to happen.

Don't be so quick to assume that. I bet if you ask the General, he still has his "United + 1" sticker at the ready.

...you know he does...they still are that cocky...


That sticker campaign still cracks me up, but I'm telling ya, The General prly STILL has that sticker on his bag!