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U.S. Airways trying to buy Delta

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"any ideas long term what this would mean?" - I'd imagine that 5 years or so from now we’ll all be working for United North∆eltinental Airways.Unless you prefer the low-cost model, then you’ll be flying for Southfrontwest Bluetranair. Of course, Canada Air and Alaska will merge too so we’ll have Air Canaska. Then Virgin will "consume" Hooters Air and we’ll all be flyin’ them Virgin Hooters. Europeans will have their share of mergers. Lufthansa, British Airways, Air France and Iberia will become LuftFransa Iberiatish Airways. Oh yeah, Iranian Air will absorb El Al…Well, maybe not… Sorry, amazing how lack of sleep affects my little brain… Btw. How come my formatting is not working today?
 
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hostile takeover

Sounds like it to me.

It will be tough for shareholders and creditors at DL to turn down this offer on a proxy vote.

Airport Winners:
  • ATL
  • CLT
Airport Losers:
  • CVG (Comair is gone)
  • PHL
  • SLC (SKYW will be pared back)
Consolidation at LGA, JFK, BOS, DCA, FLL, and MCO due to anti-trust requirements will benefit Jetblue as more gate space will become available. On the other side of the coin is that the new entity will be a formidable competitor for Jetblue and all the other carriers.

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.

:pimp:
 
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JFK, LGA, BOS, PHL, PIT, DCA, CLT, ATL, MCO, CVG, LAS, SLC, PHX. Have I missed any major hubs/operations for either airline?

What do you cut in an instance like that?
 
If this does happen, they are going to keep the name "Delta," so much for the "Cactus" call sign. I should of invested in an aircraft painting company!!
 
CNN is calling it an apparent hostile takeover bid.....I thought those days were over.......Wonder if the guys in Tempe are paying Lorenzo under the table
 
The DOJ isn't any more likely to approve this than they did the United the USAir deal. Come on guys, this isn't going to happen. I can see it now though. Delta and USAir guys can start bickering about seniority and denying jumpseats.
 
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I do believe the fecal matter has collided with the whirling blades.
 
JFK, LGA, BOS, PHL, PIT, DCA, CLT, ATL, MCO, CVG, LAS, SLC, PHX. Have I missed any major hubs/operations for either airline?

What do you cut in an instance like that?

cvg, slc, clt
 
Slightly different DOJ after the elections too...but I still think it will be a tough fight here given the overlap...we'll have to wait and see what other offers are made and how the investors feel.
 
They likely will. Different time and place.
The Wall St Bankers are running the show here, and they love Doug.


The DOJ will approve this with backing from the FAA and DOT. Any type of buyout/merger with consolidation is good for the already congested airtraffic system on the East Coast. Everyone is lean and mean at this point in time, so I don't see anti-trust issues here as long as Doug presents a viable plan.....and he will....smart guy.

:pimp:​
 
This is part of the letter Doug Parker wrote to DAL:

Do we believe??


Labor Matters. We believe that this transaction is in the best
interests of the employees of US Airways and Delta because of the strength
and stability of the company that the transaction will produce. Also, we
expect that we would move to the highest of the existing labor costs in
every group. Because the wage rates for Delta and US Airways employees
are not markedly different, we do not anticipate that this action will
have a material negative impact, and that fact has been included in our
analysis. Similar to the US Airways / America West merger in which there
were no furloughs of mainline operating group employees, our current model
does not assume furloughs of employees in the mainline operating groups.
 
Dougie may be hoping that this hostile bid will bring out other possible bidders and get industry consolidation underway.

This will bring out other bidders. No way will UAL and CAL sit on the sidelines and let USAir take Delta. Will be interesting to see how this all shakes out.
 
Delta and USAir compete alot with their express operations. So if this thing ever happens you will see many jobs lost at the commuters and possibly replaced with mainline equipment since the cost at mainline has gone down and the 8 commuter flights USair and Delta share will go to 3-4 mainline flights.

Cheers

Marty
 

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