NWA makes $170M

[Superpilot92]

Awesome. Yes, we will take names.

I concur :beer:

 

[lowecur]

This doesn't even take into account the $500M per Q that the combo will produce. The remaining airlines don't want anything to do with each other, but they may be forced to take a second look at some point.

All of the airlines are going to take serious revenue hits once this carrier is up and running. They all may be able to keep their heads just barely above water if oil remains low, but in the meantime the new DAL will be raking in the dough hand over fist in a recessionary environment. This will allow the them the ability to underprice all routes + order new a/c.

Should AMR go 11 to try and mirror the success of DL/NWA. It would probably make them more merger attractive and give the DOJ less of a target to say no because of their present size. They all will have a tough time competing against the new DL.

imp: ​

 

[Occam's Razor]

The game plan for both NWA and DAL over the next few months will be to "optimize" revenue. I'm not being sarcastic....

They will try to wring every last penny from the "premium" folks that are flying. Buckets (a certain number of seats sold a certain number of days in advance for a certain price) are being jiggered to extract as much $$ from each hub-to-business-center city-pair they have. The Yield Management departments at both airlines have earned nice bonuses for doing what others are having trouble doing right now.

A big chunk of the "synergy" they calculate in the merger is the ability to right-size the "fleeter". The "fleeter" is the program that matches each aircraft type to each city-pair based on a complex RASM-to-CASM formula that accounts for every possible cost item or revenue element. (Example of "revenue element": an MLT Vacation package where NWA takes a loss on the airplane seat, but makes a profit on the rental car and hotel package)

Pilots would probably prefer blunt force efforts to stem the siphoning of our god-given revenue by usurpers like AirTran and jetBlue (that's sarcasm), but the goal is to be smarter and use tools the usurpers don't have.

We'll see how it plays out, but I'm still optimistic.

 

[Scope out RJ's]

Please don't encourage him.

Sadly, these two ****************************** bags, spinproof & tanker clown are the same person.

 

[Soverytired]

You have it backwards - they are intentionally trying to show a loss so as to convince everyone they have to merge to save money.

NWA: its second-quarter net loss amounted to $377 million,.....Northwest said it would have earned $170 million for the most recent quarter if not for a non-cash accounting charge of $547 million. It also benefited from a $250 million fuel hedging gain

Northwest ended the quarter with $3.3 billion in unrestricted liquidity.

DAL: reported a $1 billion quarterly loss, but was profitable before special charges,........took a $1.2bn charge during the second quarter to write down the value of goodwill and other intangibles.......Excluding the charges, Delta said it earned $137 million, or 35 cents per share. hedged 49 percent of its fuel consumption and realized $313 million in gains in the quarter

Delta expects to end the year with liquidity of $3.2 billion, including $1 billion under a revolving credit facility.

Remember this when tempted to respond to :nuts: TankerClown :nuts: :

DON'T FEED THE TROLLS

 

[jetflier]

Since both NWA and DAL eeked out a profit before "special" charges, they'll be crying to the DOJ to approve the merger so they can take advantages of the "synergies" that will make them profitable...

(nice options for RA and DS)

 

[Redtailer]

Keep in mind those "Special Charges" were goodwill write downs. IOW, there was no cash involved, they just devalued the company as an entity. Kind of like saying my brother isn't worth as much to me anymore. You didn't pay for him, but you supported him and now he is just not as effective as he used to be.

I foresee the DC9 aka the original RJ, being flown through ATL and CVG for a lot of the shorter runs. The new RJs may be 30% more efficient, but at least there are no payments on the DC9.

Now we are going to have to train a whole other set of controllers at CVG that everyone can't go directly to a fix. It's going to drive them batty... LOL

 

[NuGuy]

Heyas,

Yup..those baaadddd old DC-9s...they suck SOOOO much fuel. Yet with a 90 strong fleet they are still out kicking a$$ and taking names.

I still say when the last 319/320/737/757/whatever is flown to the desert, a DC-9 will be waiting to take the crew back to MSP (or ATL). Hell, they ought to just paint "Timex" on the side.

Nu

 

[spinproof]

maybee now the pilots will have the #@lls to stand up to mgt. and get their paycuts back!

Before they can stand up they will have to quit backing up to DALPA!

 

[Scope out RJ's]

Before they can stand up they will have to quit backing up to DALPA!

:laugh: this coming from former comair and present virgin america!:laugh:
So how goes the standing up to management for your pathetic payrates at va?