Question for DAL,CAL,NWA,UAL Pilots RE Mergers and Pay Raise/Work Improvements....

[Schwanker]

Hey Diesel, where did you find that document, been looking for it myself. Thanks in advance.

If you're a NWA guy, you can get it on the ALPA site. I believe the Seattle reps have it as part of their updates.

Schwanker

 

[Diesel-9]

Also saw the NWA/CAL Document. Couldn't get the link to post being a low tech F-4 guy by trade. Some still think it is as good or better fit for NWA. I think there are advantages for NWA either way but less so for who ends up with UAL. This round of consolidation having become reality if it goes through, I see an opportunity for this combination (NWA/DAL) to be a very good thing with the European Alliances. Just had a few with a DAL golf buddy and he just got a call a tentative agreement will be announced tomorrow. Knowing him, and being a Deltoid, I want a 2nd, 3rd, and 4th source. And it is better to pick your dance partner than be left sitting at the bar.

 

[tedspal01]

Delta / Northwest reserve short call

Speaking of concessions. Any chance that Delta's short call reserve would be lengthened to 3 or 4 hours instead of 2 hours? What is Northwest short call reserve time?

Cheers

 

[~~~^~~~]

Diesel - 9, appreciate the positive words. Can you elaborate on DAL/NWA?

 

[123]

NOLs, DAL $8.5 Billion, NWA $3.1 Billion. These Net Operating Losses could be negated with a change of ownership. Costing a loss of considerable tax deductions.

Diesel,

This is exactly the reason that I think the final entity will be named Delta. Need to carry those NOL's forward.

 

[Diesel-9]

Northwest Airways, 1926, carrying mail. Started first pax service in 1927. 1931 sponsored Charles Lindberg on a pioneering flight to Japan. That flight was the beginning development of Northwest Airlines Great Circle Route to Japan. Oldest U.S. airline in operation under original name. Delta Airlines. Earlier operations were a crop dusting business (Huff Daland Duster) in Monroe, LA. Did crop dusting in the winter in Peru. In 1927 got a contract to carry mail from Peru to Equador. This business was sold to a Monroe businessman. He renamed the company Delta Air (Mississippi Delta). Flew first pax service in 1929. First flight was between Dallas and Jackson, MS. http://www.nwa.com/corpinfo/upclose/1920.shtml

 

[~~~^~~~]

Diesel:

No, I meant, what is going to happen in 2008, not 1928....

 

[DTW320]

Diesel:

No, I meant, what is going to happen in 2008, not 1928....

Oh come on...what's 80 years between ALPA brothers.

Seriously though, I read the same analysis from ALPA. Some highlights:

• Would create largest carrier in the world.
• Would have 20.5% of US carrier capacity.
• 22% of total US domestic revenue.
• Estimated $30.8 Billion annual revenue.
• Top 30 Institutional investors own 61% of NWA stock/70% of Delta Stock.
• Out of 30 top Institutional investors in DAL, 27 also own NWA stock.

• Narrowbody A/C: DAL - 332, NWA - 304
• Widebody: DAL - 112, NWA - 60

Capacity:

• Domestic ASM's: DAL/NWA Combo would have 16.5% of market. Next = AMR at 14.6%
• Trans-Atlantic ASM's: DAL/NWA = 38.1% of market. Next highest = AMR at 19%
• Trans-Pacific ASM's: DAL/NWA = 33% of market. Highest still UAL at 41%
• Latin/S.America ASM's: DAL/NWA = 17.8%. AMR #1 at 38.1%. CO = 15.4%

 

[Noserider76]

Oh come on...what's 80 years between ALPA brothers.

Seriously though, I read the same analysis from ALPA. Some highlights:

• Would create largest carrier in the world.
• Would have 20.5% of US carrier capacity.
• 22% of total US domestic revenue.
• Estimated $30.8 Billion annual revenue.
• Top 30 Institutional investors own 61% of NWA stock/70% of Delta Stock.
• Out of 30 top Institutional investors in DAL, 27 also own NWA stock.

• Narrowbody A/C: DAL - 332, NWA - 304
• Widebody: DAL - 112, NWA - 60

Capacity:

• Domestic ASM's: DAL/NWA Combo would have 16.5% of market. Next = AMR at 14.6%
• Trans-Atlantic ASM's: DAL/NWA = 38.1% of market. Next highest = AMR at 19%
• Trans-Pacific ASM's: DAL/NWA = 33% of market. Highest still UAL at 41%
• Latin/S.America ASM's: DAL/NWA = 17.8%. AMR #1 at 38.1%. CO = 15.4%

I knew it already but seeing the fleet on paper was eye-opening. Not one airplane in common except the 757. Might work out good, though, as everyone just stays in place for a few years. What the H was up with the Indianapolis thing?

 

[DTW320]

What the H was up with the Indianapolis thing?

I was wondering too. I think it was just an analysis of a random, centrally located city with respect to DTW/CVG/MEM/ATL to show the possible effect of closing either CVG, MEM, or both.

 

[GogglesPisano]

Oh come on...what's 80 years between ALPA brothers.

Seriously though, I read the same analysis from ALPA. Some highlights:

• Would create largest carrier in the world.
• Would have 20.5% of US carrier capacity.
• 22% of total US domestic revenue.
• Estimated $30.8 Billion annual revenue.
• Top 30 Institutional investors own 61% of NWA stock/70% of Delta Stock.
• Out of 30 top Institutional investors in DAL, 27 also own NWA stock.

• Narrowbody A/C: DAL - 332, NWA - 304
• Widebody: DAL - 112, NWA - 60

Capacity:

• Domestic ASM's: DAL/NWA Combo would have 16.5% of market. Next = AMR at 14.6%
• Trans-Atlantic ASM's: DAL/NWA = 38.1% of market. Next highest = AMR at 19%
• Trans-Pacific ASM's: DAL/NWA = 33% of market. Highest still UAL at 41%
• Latin/S.America ASM's: DAL/NWA = 17.8%. AMR #1 at 38.1%. CO = 15.4%

Until the "synergies" kick in.

 

[Schwanker]

I knew it already but seeing the fleet on paper was eye-opening. Not one airplane in common except the 757. Might work out good, though, as everyone just stays in place for a few years. What the H was up with the Indianapolis thing?

What I thought was eye opening was Delta only has 8 (eight) 777's. The rest of the WB fleet consists of a 767 mix.

 

[General Lee]

What I thought was eye opening was Delta only has 8 (eight) 777's. The rest of the WB fleet consists of a 767 mix.

Yeah, what also hit me was how many planes, primarily DC9s and 747-200s, you guys plan to park coming up here, significantly reducing the number of mainline planes you bring to the table. We have more 777s on the way, just like you have 787s, yet you are also dumping DC9s like they are going out of style, which in reality they are. Hopefully those DC9s will be fenced.


Bye Bye--General Lee

 

[Schwanker]

Yeah, what also hit me was how many planes, primarily DC9s and 747-200s, you guys plan to park coming up here, significantly reducing the number of mainline planes you bring to the table. We have more 777s on the way, just like you have 787s, yet you are also dumping DC9s like they are going out of style, which in reality they are. Hopefully those DC9s will be fenced.


Bye Bye--General Lee

GL,
Can you enlighten us how many that would be?
Thanks.
Schwanker

By the way, why do you sound so defensive about the composition of your International Fleet? I thought you were proud of it.

 

[General Lee]

Until the "synergies" kick in.

NWA is getting rid of 30 or so DC9-30s this year, and planned to still hire. It would take a couple years to draw down the rest of the DC9s (-40s/-50s), or they would give up market share to those individual cities those planes go to, and you can't make RJs fast enough to replace them. Did you know Boeing is considering expanding the 737 assembly line? It was in Yahoo finance today or yesterday. Boeing was one of our creditors, and I think it might be a coincidence (wink wink) that we could be dumping DC9s slowly (if we merge) and replace them with 737-700s. Just a guess.... We have an outstanding order for around 25 I believe, and we get 7 this year.

Bye Bye--General Lee