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US Airways raises the offer to 10.2 Billion

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

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