"NWA will be the purchaser" IMHO

[jetflier]

"NWA will be a purchaser with the backing of private equity (ie, TPG). This company has slashed costs and has become the most efficient legacy carrier. I would think money would rally a round a company that has the ability to control costs (ie lessors and labor). NWA by far controls costs better than say DAL. As for DAL buying NWA, it is the other way around. Yes, NWA has labor relations problems - who doesn't in the airline business. If NWA was to merge, a new CEO (ie R.Anderson or someone of the likes) would very much calm the labor uproar going on. All labor wants is a management team that appears to want to run an airline long term. The debacle at LLC is not a good example of how future mergers would look. A lot of lessons learned on that front for both management and labor. LLC and NWA - no way. LLC has nothing to bring to table for NWA, except a very broken, rudderless arline."

I couldn't have said it better myself !

 

[xjhawk]

whoever has written this article needs to elaborate. Who is LLC? TPG? I am pretty up on this subject, I am trying to think of any dealings with an airline with the letters......LLC, I cannot think its lelta lairline Corp maybe.......lidwest Lairlines Corp? joking

 

[Flyingcat]

LCC would be US Airways, or at least that is there new ticker symbol.

 

[Flyingcat]

Oh, I must have dyslexia just like the author of the story. I see it says LLC. Sorry bout that. I still think that is what they meant. Guess I was not looking for the humor. All I saw was the Low Class Carrier symbol.

 

[CitationLover]

whoever has written this article needs to elaborate. Who is LLC? TPG? I am pretty up on this subject, I am trying to think of any dealings with an airline with the letters......LLC, I cannot think its lelta lairline Corp maybe.......lidwest Lairlines Corp? joking

TPG owns Spirit, in the process of buying Iberia (w/ British Airways help), and in the process of buying Midwest (w/ Northwest's help). They have in the past owned Continental (also with Northwest's help) and America West. Lots of bucks for the Texas Pacific Group.

 

[Flyingcat]

That is a good point. That is also why you see the same bad management teams pop us all over the place. I guess when airlines were asked to recycle they thought they meant the CEO.

 

[Noserider76]

Think about it. Why would they bypass the opportunity to eliminate most union groups on property as they may be able to do if DL is the purchaser. Look back at the DL/Western merger. Non-union groups at DL have generally been treated better than their union counterparts at other companies in the interest of keeping unions off property.

FWIW, I think Anderson would have a rattlesnake on his hands if he allowed a much larger DL to be purchased, especially after recently going out of his way to say DL will be in control of any merger. I personally think DL is looking elsewhere for a deal. Nothing would surprise me in this crazy industry though.

 

[NuGuy]

Heyas,

I think the most important question is:

But if NWA bought Delta, what would the General do? His delicate worldview might be crushed! Oh the horror!

Nu

 

[flygirlqt]

The oldest trick in the management playbook is to divert attention from the real issues. They keep floating and leaking news of interests in buyouts to divert attention of the massive profits being made on the backs of labor.

 

[xjhawk]

I always thought NWA would snatch up JetBlue because of its similar planes and their routes do not match up, so it would a win win for routes. Not to mention, the pay rates for both pilot groups are very low. And evn if you merge the seniority lists, Jet blue is so new that it would not effect the wide body guys at NWA. Which we all know is the most important factor when dealing with contract issues at NWA. Just my two cents, oh and thanks for the clerification on the earlier question.

 

[Mea25000]

I really think the consolidation is going to be a few of the big six picking up a few of the smaller majors out there. I see NWA picking up AAI or FRNT and LCC because the first one is going so well picking up Jetblue or FRNT... it couldn't get much worse and DAL going for Jetblue or ALK... I am probably way off.

 

[catIIIc]

Who cares who buys who or which name stays, it will not influence the seniority integration which is why some of you guys get all hot under the collar when this comes up.

 

[General Lee]

"NWA will be a purchaser with the backing of private equity (ie, TPG). This company has slashed costs and has become the most efficient legacy carrier. I would think money would rally a round a company that has the ability to control costs (ie lessors and labor). NWA by far controls costs better than say DAL. As for DAL buying NWA, it is the other way around. Yes, NWA has labor relations problems - who doesn't in the airline business. If NWA was to merge, a new CEO (ie R.Anderson or someone of the likes) would very much calm the labor uproar going on. All labor wants is a management team that appears to want to run an airline long term. The debacle at LLC is not a good example of how future mergers would look. A lot of lessons learned on that front for both management and labor. LLC and NWA - no way. LLC has nothing to bring to table for NWA, except a very broken, rudderless arline."

I couldn't have said it better myself !

I am glad that is your opinion, but that is not the opinion of Richard Anderson here at Delta, and he probably knows more than you do about what is going on. But, you did use TPG to get rid of the Air Tran threat, which is good for you. If mergers do occur in the future, it may just include "pieces" of airlines, to get rid of the "political" and governmental roadblocks. Do you need GOV'T approval to buy some planes or routes from another airline? Maybe, but not as much oversight as a full merger. Tilton has hinted that he may be willing to sell parts of United (like the Asian routes), and maybe that is what is in our future. If Northwest is there instead of the UAL Pacific routes, I would think NWA employees would rather have DL management since no one anywhere likes the NWA management. It just makes sense.

Bye Bye--General Lee

 

[General Lee]

Heyas,

I think the most important question is:

But if NWA bought Delta, what would the General do? His delicate worldview might be crushed! Oh the horror!

Nu

Highly doubtful. A merged Delta and Northwest would result in a "Delta Airlines."

Bye Bye--General Lee

 

[IXLR8]

Highly doubtful. A merged Delta and Northwest would result in a "Delta Airlines."

Bye Bye--General Lee

Says you. Dont think Richard is going to be this great savior at DL. He was more popular among the ranks at NWA, but not really that much more trusted.