The market HATES this DAL deal

[Frank Lorenzo]

Totally different fleets, pilots at each others throats, (all other work groups) NWA union & DAL non-union, overlap reduction, small hub reduction or elimination, Oberstar, DOJ, competing bids from other airlines, $110/bbl. oil, different corporate cultures, Doug Steenland still hanging around on the BOD.....

Yeah, this will be nothin' but smooooooooooth sailin' ahead!

 

[zkmayo]

Youve got to give Beuthane credit though with what he says in the last 15 seconds of that CNBC clip. "We all (the US flying public) need to pay our fair share to these airlines so that the wage earners out there arent subsidizing your $69 ticket to Fla so that they have good wages and pensions and sustainable carriers."

 

[lowecur]

I think you are heading down the right road here. In about 18 months when both airlines are losing money and still fighting over integration issues, what will stop Delta from parking the 9's and selling the 319/320 fleet?

Yup, and Oberstar and all the other genius' in Gov't have no one to blame but themselves. Now they are complaining this merger will limit competition and fares will go up, yet

• They handed MDW to WN by allowing them to buy ATA in lieu of FL
• They kept NWA safe by allowing a Midwest buyout that again kept FL from being a major competitor to MSP
• They allowed WN to keep control at DAL and AMR at DFW

You can go right down the line, and all these major airlines with their strong lobbyist teams have snuffed out any ability of the LCC marketplace to grow in this country (other than good ol WN). If they had done the right thing for the good people of this country in lieu of looking out for protecting a few jobs in each market, then the LCC's could be in a position today to take up the slack from the forthcoming capacity and fare disaster that is right around the corner. I hate to say it, but the foreign airlines will probably be allowed to have ownership in the near future. Another bailout that could have been prevented with a little good judgement and common sense.

imp: ​

 

[crjdxr]

IIRC, there is a new holding company to which both DAL and NWA are going to be beholden. Is this the portfolio concept at the mainline level?

 

[castle bravo]

Who cares?

Blue Horseshoe LOVES Endicott Steel.

Occam is right. The "haves" win, as the "have not's" carry the bag again.

 

[contrail67]

http://finance.yahoo.com/q/cq?d=v1&s=dal+nwa+aa+uaua+lcc+cal+aai

Candidly, I am surprised.

Reasons cited:

• No cuts in flights
• No reductions in staff
• No hub reductions
• "Rich Delta Pilot Pay" (doesn't exceed inflation rate in reality)
• NWA pilots & rampers against the deal

Seems like the market just is not happy unless there is blood on the floor. But the truth is, after bankruptcy there is not much bloodletting to be had. Both companies are lean.

The credit markets are similarly unimpressed. One actually lowered the combined airline to B, despite all the cash and improving cash position.

I saw on another board that Delta wants to go to 600 regional aircraft from 800...is that true?

If so, I call that cuts.

 

[On Your Six]

One of our pilots saw this coming and turned down a job at NWA, now sees USA Jet as a career location now. Making near 100K at USA Jet early 40's. He said it would 17 years before his income equaled by going to NWA. That considers NWA F/O pay difference versus what time it would take to make Captain at NWA.

He wanted to fly newer airplanes at USA Jet too....:laugh:

 

[rayford steele]

http://finance.yahoo.com/q/cq?d=v1&s=dal+nwa+aa+uaua+lcc+cal+aai

Candidly, I am surprised.

Reasons cited:

• No cuts in flights
• No reductions in staff
• No hub reductions

yet.....just give it time.

 

[WSurf]

First I've seen "good" and USAirways in the same sentence in a long time.

LOL, now that is one helluva true statement.

 

[F/O]

All 7 hubs will remain open. :laugh:

Yea sure.

I like how they trot out noted airline EXPERT Ron :laugh: Allen.

Hey, why don't we bring in "successful businessman" Jeff Skilling for a quip?

The one I'm sick of is "expert" Vaughn Cordle (UAL scab).