Rercently read an article from KLM where one of their upper managers thought NWA and DAL merger was highly likely. Anyone else hear or read this article? What are your thoughts.
Here's two from today. I'll believe it when I see it.
Mergers, part II: Who's looking, and is US Airways' aim to be the biggest?
The Pittsburgh Post-Gazette reports that US Airways CEO Doug Parker is keeping his ears open on a possible merger (see below), but the paper also touches other merger speculation. “So, what carriers are out there looking?” the paper asks. The Post-Gazette quotes airline consultant Darryl Jenkins as saying he believes United, Delta, Continental and US Airways are all interested in consolidation. On the other side, he claims that American, Northwest and Alaska Air are not interested. Because its route network overlaps with so few other carriers, Alaska is "one of the most attractive merger candidates," Jenkins says. But he thinks that airline’s management has no interest in a merger. One other often-quoted airline consultant has a somewhat different take. For starters, Delta is not interested in a merger, says Michael Boyd of the Boyd Group. "I know they are not," he tells the Post-Gazette. "The chairman of Delta told me that they are not." Boyd says he thinks United is the only carrier actively pursuing a partner. Senior management "is trying to shop the company," he says.
As for US Airways, the Post-Gazette writes that “Jenkins is convinced that Parker wants to build the nation's largest airline -- through mergers -- and that the union of US Airway and America West was just the first step.” The paper asked Parker if that was actually his long-term goal. The Post-Gazette says Parker “deflected the question” by saying: "We want to be the nation's best air carrier and that doesn't necessarily mean the biggest." He added that his top priority is wrapping up the US Airways-America West merger, which could be completed sometime next year. "But what we have learned so far is there is a lot of value to be had by taking two airlines and putting them together," Parker says.
Merger rumor mill: Is US Airways eyeing Delta or Northwest?
With the current merger between US Airways and America West not even complete, could the carrier already be thinking about another merger? US Airways CEO Doug Parker says the airline is not actively seeking out a tie-up with another carrier, but the Pittsburgh Post-Gazette writes that Parker "admitted in an interview yesterday that the subject of consolidation is still on his mind. And he hinted that the most attractive combinations for US Airways could involve the country's third- or fourth-largest carriers, Delta Air Lines and Northwest Airlines.” There has been speculation that either Delta or Northwest could seek a merger partner as they get closer to exiting bankruptcy, much like US Airways did with America West in 2005. And if either Delta or Northwest shop around for a partner, Parker says "we will be there to talk to them.” But, he also seems to strike a cautious note about reading too much into his comments. "It's not like something is certainly going on or we are actively working on anything right now." But, "we can't ignore it. It is too big a deal, and it may not come around again." (Photo: Jets at New York LaGuardia. By Amy Sancetta, AP.)
If this happens, I hope that NWA has the controlling interest. If not, I hope that at least the customer service folks at NWA are the authority because Delta C.S. sucks.
I don't think CAL or DAL are interested in merging with anyone. CAL has orders for 737 800's, 900's (I think.) Apparently DAL has orders for -800's and 777's for delivery from Q2 '07 to '09. The rumors are DAL and NWA followed by UAL and CAL. If DAL were interested in NWA they wouldn't be ordering non-compatible aircraft (or any aircraft.) Likewise for CAL.
UAL, OTOH, hasn't placed an order since before 9-11 (I think.) Tilton is looking to find a dancing partner.
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