Will the USAir/Delta Merger happen?

[ponder]

No they're going to buy Alaska instead.

 

[737 Pylt]

The US AIR and DAL merger will not happen, and here's why....

DAL and NWA entered bankruptcy court in NY on the same day, same courthouse, same time.

I believe that this was carefully orchestrated, so that that the people and attorneys working on both of the reorganizations could essentially, work together, without having to travel accross the country. Additionally, having the same courthouse, judiciary, and staff would further enhance the efficiency of combinning DAL/NWA.

Texas Pacific Group's, David Bonderman, I believe is also a player in this deal.

I could be totally wrong, but having two major airlines file CH11, same courthouse, same time is more than just a coincidance.

Jet:
I agree. I would much rather see DL & NW join forces, if DL were to be acquired/merge with someone. Anyone but US Airways. They bring nothing to the table for DL except for some old has been airbuses from AWA. NW's Asia presence along with DL's Europe routes would, in my opinion (which ain't worth squat I know) would fit alot better than dougie parker's synergies!

737

 

[clickclickboom]

Or maybe this is just one big publicity stunt

 

[johnsonrod]

Congressman Oberstar (upcoming Chairman of the Aviation Sub Committee I believe) knows that if you allow one big merger then others will follow... However, if one airline is completely broken (like USAirways was before US/AWA merger) then a merger might make sense because the alternative is liquidation and lost jobs - but that would be an extreme situation (very similar to how USAirways was before the merger - a lost cause). The merger between USAirways and AWA made sense from a strategic standpoint too - they had complementary route structures with little overlap.

That being said, no way Oberstar will allow many mergers to happen that will eventually lead to less consumer choice and capacity reductions - especially on mid-tier routes (current RJ routes). That's the big point that everyone is missing in the "synergy" hype.

Less competition and less choice = a non-starter...

 

[GogglesPisano]

Parker wants to reduce capacity in the marketplace. This is a very stupid, and expensive, way to do it.

 

[General Lee]

I havent heard any creditors saying no yet. The overlap can be discussed and the PBGC is a creditor, which might put pressure on the Feds to help out their own agency. I'd say 50/50. Who ever thought AWA/USA would make a profit so soon? This industry is one of the trickiest to predict.
Old School

Supposedly the PBGC has come to an agreement with us. I don't know how they did it, but supposedly they did. AWA and US were "allowed" to merge by the Gov't because the hubs and majority of routes did NOT overlap. AWA had hubs in the West, US in the East. It is that simple. There is so much overlap in this proposed merger, it is ridiculous. And, good ole Parker loves to tout that there are only 11 direct routes that overlap. Well, sure, USAir doesn't fly to many cites directly out of our DL hubs. But, we hit many of the same cities in the East (NC, SC, VA, WV), and to say that we will offer service from both CLT and ATL if we did merge is RIDICULOUS. That is the overlap. And, the LCCs like SW and JB won't fill in the gaps, unless they want to go to Lynchburg. Jim Oberstar doesn't like mergers (a la his paper written during the USAir/UAL proposed merger) because one large merger would cause other mergers, and that will cause lack of "choice" for consumers, especially in the smaller cities. Sure, SW and AT could pick up some slots or gates in the larger cities, but they would not venture into smaller communities, like Hunington, WV. That is the key.

And, USAir WANTED to be merged with AWA, since they were going to liquidate. DL does NOT want to be merged, and they have Congressional support too that will help, besides Oberstar, the Chairman of the Committee.

Also, US hasn't even gotten their act together with their own pilots about their contract, or seniority integration. Parker can't even handle what is on his current plate.

UNLIKELY.


Bye Bye--General Lee

 

[737 Pylt]

Parker wants to reduce capacity in the marketplace. This is a very stupid, and expensive, way to do it.

Goggles:
Exactly! Because where (the new) DL slims down its routes, it just opens the door for new LCC's to step right in and fill the void (ergo Virgin America, and Skybus)

737

 

[Tejas-Jet]

DAL and NWA entered bankruptcy court in NY on the same day, same courthouse, same time.

I could be totally wrong, but having two major airlines file CH11, same courthouse, same time is more than just a coincidence.

I believe that it is nothing more then just coincidence. Now, if both BK's were being presided over by the same judge....now you might have something.

Lots of different cases tsake place in that courthouse...on the same day...at the same time...they all mean absolutely nothing to each other.

Again...having been through a merger...I never want to go through one again...and really feel for the employees that have to go through one.

Date of Hire=Unity=Date of Hire

Tejas

 

[TWA Dude]

I really don't think it'll happen but I voted "yes" just to piss off the Delta guys.

 

[retired guy]

PBGC hasn`t taken over or even agreed to take over the Delta pensions yet. My retirement check still comes from the Delta retirement trust.