Why Delta Should Buy Northwest

[~~~^~~~]

Not the same thing, as in "not" in it's best interest.

NWA just came out with an outstanding quarter too. No one is under immediate pressure and when something is working, there is no great need to change.

I'm sure Mr. Anderson knows who hired him, but hopefully the why he was hired has to do with his experience running an airline. Delta's and NWA's stock has also been trading positively for the last quarter.

http://finance.yahoo.com/q/bc?t=3m&s=DAL&l=on&z=m&q=l&c=NWA&c=^GSPC&c=^DJI

- incompatible fleets
- not a whole lot of hub overlap that could be consolidated without simply providing growth for competitors (CVG/MEM)
- no unlocked value which has not already been looked at through the bankruptcies

Wild card - United.

 

[Quack]

Really, the only powerful union left at NWA is ALPA, and I'm sure they can play nice with DALPA. The AFA is weak, and AMFA is dead after the failed strike and hiring of scabs. I could see the NWA stews decertifying AFA in a merger with DAL behind the wheel. As for the IAM, the unionization of the Delta's below the wing workers is inevitable anyhow.

Reminds me of Kramer...

http://www.youtube.com/watch?v=fzLtF_PxbYw

sorry way off subject though...

 

[FDJ2]

As per DAL, I do not know much. The numbers I've seen are 8 777 plus 10 737-700 minus 38 738s(sold future orders). To me, that is not much fleet growth. A negative difference of 20 hulls.

You are correct that DAL has pre-sold some 737-800s which have never been delivered. You really can't subtract aircraft that have never been delivered from the fleet size, since they were never considered to begin with.

DAL will take delivery of the aircraft you mentioned plus we are currently taking delivery of 2 B757ERs/month for a total of 15.

You seem to omit that from your count. Also, your fleet of old 767s never age.

The average age of a DAL 767-300ER I believe is about 11 years, the 767-400s and 777s are younger as are the B737-800s.

As the years go by, they get newer and do not need to be replaced. Your fleet of MD88 gets younger by the day also. They won't ever need to be replaced.

They'll be replaced, but not anytime soon. It is more likely that DAL will have more MD88/90s on the property not fewer over the next few years.

 

[FDJ2]

Delta CEO says consolidation possible
By HARRY R. WEBER AP Business Writer
Article Last Updated: 10/16/2007 09:50:23 AM MDT


A Delta plane is seen on the ground at Phoenix Sky Harbor... (AP Photo/Ross D. Franklin, file)
ATLANTA—The chief executive of Delta Air Lines Inc. said Tuesday that the carrier wants to be the "undisputed leader" in the industry and that a deal with another airline may be in its best interest.
"We are evaluating the best path forward for Delta," CEO Richard Anderson said during a conference call with analysts after the airline released third-quarter results.

FDJ2, does "interested" and "in it's best interest" not the same thing? You tell me!!!!!!

Those weren't his words, but a reporters. The only quote from Anderson you provided was "undisputed leader" and "we are evaluating the best path forward."

What CEO doesn't want his company to be the "undisputed leader" and what CEO isn't "evaluating the best path forward"

If you listen to the conference call you'll see that Anderson never said DAL was interested in consolidation or disinterested in consolidation, only that they would continue to evaluate the best path forward. That's a great big "DUH".

 

[FDJ2]

Quick snap shot of NWA/DAL

NWA Market Cap: $3.57B
DAL Market Cap: $4.92B

NWA Enterprise Value: $7.09B
DAL Enterprise Value: $10.57B

DAL 3Q operating revenue: $5.2B
NWA 3Q operating revenue: $3.4B

DAL mainline ASM (in millions): 34,707
NWA mailine ASM (in millions): 22,030

DAL total ASM: 40,943M
NWA total ASM: 22,889M

 

[Heavy Set]

Maybe Jam-Bro should re-read FDJ2's posts? Thanks for the insight FDJ2.

 

[John Pennekamp]

You seem to know a lot about the future fleet outlook for NWA. I work here and don't seem to know as much as you. By your estimates, half the pilots at NWA will be furloughed by next year since all the DC9s, 319 and 747-200 will be parked. That is 40% of our fleet. WOW!! We are gonna replace the DC9s eventually(replacement A/C not being built yet). Contrary to what you may think, the number of DC9s won't change much. By next year, we should have close to the same number of DC9s flying. They are gas hogs but they reliable and paid for. The 319s are staying also. We were able to regain the NBA charters(we used to do alot of them, but were gone with the 727). The freighters are in flux and the future of them is not cast in stone yet. But you may know more.

As per DAL, I do not know much. The numbers I've seen are 8 777 plus 10 737-700 minus 38 738s(sold future orders). To me, that is not much fleet growth. A negative difference of 20 hulls. You seem to omit that from your count. Also, your fleet of old 767s never age. As the years go by, they get newer and do not need to be replaced. Your fleet of MD88 gets younger by the day also. They won't ever need to be replaced. You sound funny!!! I am surprised I have taken the time to respond to your posts.

As to mergers, who cares. In the end, not a single pilot will be happy.

So you've now met The General. The General has a habit of speaking of things he doesn't know firsthand, and selling his opinion as fact. Only on Flightinfo!

 

[John Pennekamp]

Reminds me of Kramer...

http://www.youtube.com/watch?v=fzLtF_PxbYw

sorry way off subject though...

The Ukraine is weak! It's feeble! I think it's time to put the hurt on The Ukraine!

 

[atpcliff]

Hi!

Gen Lee:

The -9s will NOT get replaced with an Embraer product.

They will be replaced with either the Bombardier "C" class aircraft, or the new Boeing 100-seat-class product.

The "Cs" will be available in 2012, the Boeings not 'til later.

cliff
YIP

 

[Yuppyguppy]

impressive general more 767's than anyone...do you have any 4 holers or how many 777's do you have? who cares.