U.S. Airways trying to buy Delta

[BoilerUP]

LCC stock is up over 15% on this news.

Wish I had a few hundred (or more) shares as of last night...

 

[N2264J]

let me be the first to say: STAPLE

Or how about that industry leading flowthrough ALPA is always trying to sell to "regional" pilots.

What's ironic in all this is that Delta's strategy prior to bankruptcy was waiting for U. S. Airways to liquidate thereby dramatically increasing capacity.

 

[Speedmach5]

Here is the PR slant on it....

November 15, 2006

Dear Dividend Miles Member,
By now you may have heard that US Airways has made a proposal to merge with Delta Air Lines. Over the coming days there will certainly be much discussion in the media about this proposal, and in advance of that I’d like to make clear our company’s motivation for initiating this process and explain how we believe it would provide enormous benefits for you, one of our frequent flyers.
The merger of America West and US Airways has provided us with a sound platform to grow our business and provide additional opportunities for our customers. We believe a merger with Delta is the right type of opportunity that can positively benefit all of our stakeholders – customers, employees, and investors. The combination will provide an even stronger base from which the merged airline can compete with other domestic and international airlines.

For you, our customer, there will be benefits similar to what you’ve already experienced with the new US Airways:

• A much larger network of routes and frequencies to simplify your travel
• A history of reducing fares and eliminating unfriendly fare rules like Saturday-night stays
• A global frequent flyer program that would combine your Dividend Miles and Delta SkyMiles balances
• Participation in one of the world’s largest airline alliances, opening up even more of the world for your travel
• Peace of mind that you are building a travel rewards investment in a company that will be here for the long term, and that your miles will be here when you’re ready to redeem them

Of course, we don’t overlook the operational challenges inherent with this kind of transaction. Using our experience with the America West/US Airways merger we will work hard to mitigate transition difficulties, particularly with technology online and at the airports. In the short term we know there will be challenges, but in the long run you will be the beneficiary of one of the largest, most convenient airline networks in the United States, designed to make travel as efficient, economical, reliable and comfortable as possible.
This process will undoubtedly take some time to reach its conclusion, but please be assured that in the meantime our current integration processes are moving full speed ahead, including moving to one reservations system scheduled for early second quarter 2007. In addition, should this transaction fail to materialize, please be assured that the new US Airways is in a very good position, competitively and financially, to continue to build the best full-service, low-fare airline in the world.
Thank you again for your support of US Airways. We look forward to the opportunity to serve you again soon.
Sincerely,

Scott Kirby
President

 

[Apache06]

Delta/US Airways

Or how about that industry leading flowthrough ALPA is always trying to sell to "regional" pilots.

What's ironic in all this is that Delta's strategy prior to bankruptcy was waiting for U. S. Airways to liquidate thereby dramatically increasing capacity.

Morning news shows financial analysts are mostly positive on the prospects for this merger being approved by DL creditors

 

[Rottweiller]

Doug will cut PHL in half. He is fed up with the problems that the airport and it's employees presents. This will benefit SWA and other carriers looking to get into PHL. It should also free the airport of it's massive congestion.

imp:

But in the same breath he also states that it creates the most revenue in the whole of the US system.

 

[Rottweiller]

Mergers and buyouts seem to be as big a part of the PAX industry as the airplanes themselves. Looking at the past 40 years:

Pan Am and National
Mowhawk-Allegheny
USAir and Piedmont
USAir and PSA
USAirways and America West
TWA and Ozark
North Central-Southern-Hughes Airwest (Republic)
Northwest and Republic
Delta and Western
Delta and Northeast
Southwest and Morris Air
Continental-Frontier-PeoplesExpress-New York Air
American and AirCal
American and Reno Air
American and TWA

Missed UAL's purchase of Air Wisconsin Airlines.

 

[lowecur]

But in the same breath he also states that it creates the most revenue in the whole of the US system.

My guess is NE international will be moved to JFK. Doug will like nothing better than sticking it to Jetblue ops at that Airport. He will be forced to give up many gates at LGA to satisfy DOJ.

PHL will see mostly O&D with North South connecting traffic being split between ATL/CLT. ATL will be the primary fortress hub in the East with a large international presence along with continued feeder operations for both north/south & east/west operations.

imp:​

 

[Kaman]

I think that this merger will lead to an overall reduction in cpacity with less flights to some city pairings operated with larger, more efficient aircraft (787) and/or a 737NG mk.II using more composite construction. Could this be the end of RJ mania? It would make sense from a cost point of view to have more larger aircraft flying with more seats, and perhaps a return to more turboprop feeder operations, again using new techology.
Is it possible that we may be seeing the beginning of a re-invention of the wheel in the airline industry. The airlines have been plagued by over-capacity and low yields per seat mile for years. Long before 9-11 the current paradigm has been obsolete, and consolidation is long overdue. Of course, the employees and the flying public will suffer in the process as the airlines spasm toward some as yet unknown "new order" for the 21st century.

Regards,

ex-Navy Rotorhead

 

[lowecur]

In my opinion, CVG stays. You have to remember why it exists: They can't fit enough people through ATL. The only city that would come close to replacing it is PHL, and it has the exact same problem as ATL. Pittsburgh has been LCC'd, and tons of midwesterners will still go through CVG just to avoid ORD (or ATL). If that happens, then CLT gets a trimming. Comair is history.

SLC is the biggest target, but Skywest will not be a loser. Remember that they've got a contract signed which would move them to the carrier(s) without a contract, Comair and Chautauqua. Comair is the big loser here, and may once again face liquidation just because they won't need RJ's.

SLC stays if Doug wants to take pressure off PHX. Not familiar with SKYW contract, but lawyers will find a way to break it if SLC is not a part of the plan. Republic is probably a very big winner here.

imp:​

 

[TWA Dude]

Okay folks, remember when UAL and USAirways tried to merge as part of the deal some routes would be shifted to AA? The only way I can see US-DAL getting approval is with a massive deal involving UAL, CAL and AA also picking stuff up. It makes the brain hurt.

And dammit, why can't AWA merge with somebody with a base near my home!