US Airways raises the offer to 10.2 Billion

[Mercy98]

...and now it is revealed that Delta and Northwest have been in talks about a possible merger for weeks. This was just on CNBC.

 

[DustyBottoms]

General you've got yourself worked up into a bit of a frenzy here. No amount of posting is going to change the outcome of this deal. While we sit here and bit#h management is actively working this deal out.

Now you're above statement contradicts your previous statements. Obviously as you stated the DOJ will not permit excessive market dominance. If UAL/CAL or AA/NWA merge then the DOJ will force them to sell some slots/routes to appease the anticompetitive issues. The new Dal would be in a perfect position to pick up some of those routes. If it turns into three mega carriers I would imagine the government will make sure that they are fairly evenly matched...

Thank you for a logical post, Green. And along the lines of TWADude, I think Doogie (and everyone else he has hired to look into this deal) has maybe, just maybe, a little more experience in this stuff than we do. Just a thought. But then again he probably is an idiot because he did retract a statement, and is at his current point of his career path only because of free handouts and pure luck.

 

[surfnfly]

Too bad Dougie wants to keep the Delta Name.

Bad airport coffee - $1.50

Cold beer in CYUL - $7.00

Hearing General-Lee Check-in with USAir Callsign - PRICELESS

 

[michael707767]

Too bad Dougie wants to keep the Delta Name.

Bad airport coffee - $1.50

Cold beer in CYUL - $7.00

Hearing General-Lee Check-in with USAir Callsign - PRICELESS

now that's funny!!

No offense GL

 

[TWA Dude]

Hearing General-Lee Check-in with USAir Callsign - PRICELESS

Well, you know USAir is already going to have to change to our callsign "cactus". But if the merger goes through we'll just have to come up with a new callsign. My proposal: "Bubba".

 

[General Lee]

General you've got yourself worked up into a bit of a frenzy here. No amount of posting is going to change the outcome of this deal. While we sit here and bit#h management is actively working this deal out.

Now you're above statement contradicts your previous statements. Obviously as you stated the DOJ will not permit excessive market dominance. If UAL/CAL or AA/NWA merge then the DOJ will force them to sell some slots/routes to appease the anticompetitive issues. The new Dal would be in a perfect position to pick up some of those routes. If it turns into three mega carriers I would imagine the government will make sure that they are fairly evenly matched...

Green,

I try to back up my statements with articles. You know that. I will do it again. My argument with the DOJ and dominance stated that they would not allow that. But, if for some reason they approved a US and DL tie up, then they would have to do the same for the others. Here is the article stating that:


Part of Delta's argument is that a combination with US Airways could set off a consolidation wave that would leave the Atlanta-based airline in a weaker position, according to a creditor with knowledge of the carrier's efforts.
For instance, in theory a Delta takeover could convince United (UAUA - commentary - Cramer's Take) and Continental (CAL - commentary - Cramer's Take - Rating) to merge. That could, in turn, make American (AMR - commentary - Cramer's Take - Rating) go after Northwest (NWACQ - commentary - Cramer's Take).
Both of those potential mergers, if they were to occur, would produce airlines with a higher number of strong domestic hubs and with better international routes, particularly in Asia and Latin America, than a joined Delta and US Airways.
Plus, if the Justice Department allowed a Delta and US Airways merger despite the considerable overlap between the two carriers, it would hardly be in a position to deny similar advantages to other airlines.

Delta is saying, 'If we get approval [and] our deal happens, it would trigger other deals,'" the creditor, who didn't want a name used, said in an interview. "They say, 'It would mean that DOJ has to let Continental-United happen, and then American-Northwest, and then we would be worse off than we are now. We would be the No. 3 carrier, and we would have major disadvantages on the international side.'"



As far as your comment that the Government would make someone else sell some Asian slots to make sure we are "evenly matched", ONLY UAL AND NW have the rights to those slots. To be a big player in Asia, we would have to be hooked up with one of them. They both have a NRT hub, with plenty of slots that are in their names, and cannot be transferred.


So, again, if US/DL got together, the DOJ would LIKELY allow the others to mix it up, and then we would be a distant #3 and get our collective arses kicked because businesses want the abiltiy to fly anywhere and everywhere, and we would be lacking in one large part of the world. But don't worry, if NW and DL get together, then you will be the one lacking by yourself.


Bye Bye--General Lee

 

[General Lee]

Too bad Dougie wants to keep the Delta Name.

Bad airport coffee - $1.50

Cold beer in CYUL - $7.00

Hearing General-Lee Check-in with USAir Callsign - PRICELESS

That was funny. Except you got it wrong. It would be the CACTUS callsign. You guys at USAir will lose your own callsign soon. Ouch. I can't wait to hear the Paris controller call you "Cack tiiiiis."


Bye Bye--General Lee

 

[General Lee]

Thank you for a logical post, Green. And along the lines of TWADude, I think Doogie (and everyone else he has hired to look into this deal) has maybe, just maybe, a little more experience in this stuff than we do. Just a thought. But then again he probably is an idiot because he did retract a statement, and is at his current point of his career path only because of free handouts and pure luck.

Please read my above post for some logic. Doug is nervous and can already see his carrier alone in a sea of sharks. IF NW and DL get together, and UAL and CAL get together, USAir will be a distant 4th behind AA in size and scope. Desperation is Doug's problem. He can see the future.

Bye Bye--General Lee

 

[FlyWolf]

www.Southwest.com
about us tab, then click on
careers tab.

Very good idea SWA/FO, maybe second time is a charm

 

[LittleDeuce]

Creditors Committe urges a review

http://biz.yahoo.com/prnews/070110/nyw162.html?.v=69

Looks like the Fat Lady has sung.

 

[dtfl]

http://biz.yahoo.com/prnews/070110/nyw162.html?.v=69

Looks like the Fat Lady has sung.

Uhh no she hasnt - that's the unsecured, smaller group of creditors.

 

[Swaayze]

Starting to seem that something may actually happen here, possibly a break up of Delta. Hard to believe. Here's hoping that job losses are very minimal....

 

[FDJ2]

http://biz.yahoo.com/prnews/070110/nyw162.html?.v=69

Looks like the Fat Lady has sung.

"the Unofficial Committee of Unsecured Claimholders of Delta Air Lines, Inc. called upon the company to provide thoughtful and unbiased consideration to US Airways' enhanced offer."

Thanks for the good laugh. I also heard that Doug Parker's mother also wants DAL to give the proposal thoughtful consideration.:laugh:

 

[ironspud]

Now don't ya'll go fret'n yoselfs 'bout Mistah Gen-ral. He's got a burr stuck in his saddle and no 'mount reas'ng gonna change thangs. He's bound for dat coat'house now and theys gonna be H-E dubb'll hockey sticks to pay for mor'ng! Yassir I's do believes' it. Unhuh sure do's!

This is just way too much fun. GL thinks I'm in Korea while he's do'in his sister. Huh!

Yup.

Yassuh.

We be havn fun now.

 

[General Lee]

http://biz.yahoo.com/prnews/070110/nyw162.html?.v=69

Looks like the Fat Lady has sung.

Hey Little Duece, let me explain to you what the "sliver" group or UNofficial committee is all about. Read this, it explains it all (from the WSJ):


In conference calls yesteday with Deutsche Bank AG and Leman Brothers, bondholders were urged to band together to pressure Delta--which is under BK court protection--to fully consider the hostile bid from USAirways. The effort by both banks, which are Delta creditors, is aimed at creating a second group of crediotrs with some say in the airline's restructuring. Currently, the resturcturing ultimately must be approved by the official committee of unsecured creditors, which is dominated by much larger creditors."

"The outcome of the meetings wasn't immediately clear, and it remains to be seen how much leverage a splinter group could have in the takeover fight and it's strategy for exerting influence. The bondholders being pitched to combine forces represent 30% of the total $16 billion-18 billion claim that will eventually serve as the basis for dolling out equity in post BK Delta."

"The varied interests of individual creditors are likely to be a significant factor. Boeing Co., for example, is a long standing seller of aircraft to Delta, while USAirways is leaning towards Airbus. Other committee members include U.S. Bancorp, the PBGC, Coca Cola, and Fidelity." (also DALPA)

"The creation of an ad hoc creditor group in large BK cases isn't unusual, but some executives and employee groups have critisized such investors for their short term interests, rather than looking out for the longer range good of employees and companies trying to restructure."




Do you feel better? Where is that fat lady? Don't call Ironspud's wife that, not nice! (She misses him while he is on those 17 day trips )



Bye Bye--General Lee