DAL/NWA merger in trouble....?

[delta777]

We can only hope...for both sides sake.

"In the last week, oil prices have climbed to above $135 a barrel from around $126 on Friday. Analysts have estimated that for each $1 increase in the price of oil, roughly $465 million is added to airlines' total fuel expense. Jet fuel now represents more than 40% of the industry's costs."


"The risk may have become so great that Delta Air Lines Inc. may find it can't raise the capital it needs to purchase Northwest Airlines Corp. and could potentially walk away from the deal, according to Jamie Baker, an airline analyst with J.P. Morgan."

http://www.marketwatch.com/news/story/anal...amp;dist=hpmymw

 

[1Conehead]

"In the last week, oil prices have climbed to above $135 a barrel from around $126 on Friday.

"The risk may have become so great that Delta Air Lines Inc. may find it can't raise the capital it needs to purchase Northwest Airlines Corp. and could potentially walk away from the deal, according to Jamie Baker, an airline analyst with J.P. Morgan."

I thought one of the reasons we were told this merger should happen was to cope with the oil/fuel cost?

 

[BABABOOY]

One can only hope, however you forgot to add this paragraph from the
article....
"In an email, Delta reaffirmed its commitment to Northwest, saying it's more important than ever to create a global carrier with a strong balance sheet, a globally diverse network, low non-fuel costs, and a flexible fleet."


http://www.marketwatch.com/news/story/anal...p;dist=hplatest

 

[NewHampshire Black Bears]

DAM right, DL is saying it's MORE important than EVER to Merge now.

WHY ?

Because DL was desperately in need of a deal...BEFORE..oil even came close to $100 !!

IF the price of OIL..EVER stops this "Conspiracy" from going down, (One can only hope and pray IT DOES)....WATCH..VERY..CLOSELY...........Which carrier(DL or NW) finds itself in the DEEPEST DOO-DOO($$$$)
I'll give you one guess.

It's the one with their HDQ's in the place with the Hottest Summers. :down: :down:

I WILL LAUGH MY A$$ OFF, if this "thing" gets scuttled because of $$$ OIL.

Then Big DICK Anderson, will get a DOUBLE WHAMMY !! :rant: :rant:

 

[Cajun Flyer]

I thought one of the reasons we were told this merger should happen was to cope with the oil/fuel cost?

I think all employees, except maybe for Delta Pilots would be happy if this thing was called off. Maybe then Anderson would get the boot and they'd bring back Whitehurst!

 

[metopower]

One can only hope, however you forgot to add this paragraph from the
article....
"In an email, Delta reaffirmed its commitment to Northwest, saying it's more important than ever to create a global carrier with a strong balance sheet, a globally diverse network, low non-fuel costs, and a flexible fleet."


http://www.marketwatch.com/news/story/anal...p;dist=hplatest

You are right on. This merger has nothing to do with oil....It was concieved years ago when Skyteam was drawn up. The goal is patterned along the line of the Air France/Delta..KLM /NWA joint ventures..One Virtual Airline .....

 

[luv2fly]

DAM right, DEL-DUH is saying it's MORE important than EVER to Merge now.

First, the name of the airline is Delta.
Second, you are wrong as usual Bear. At least you are consistent. You need look no further than your own back yard to see real trouble. It seems AA can't keep it's name out of the news lately. AA is spiraling out of control, directly into the waiting arms of a BK judge. How secure is that pension you enjoy Bear?

IF the price of OIL..EVER stops this "Conspiracy" from going down, (One can only hope and pray IT DOES)....WATCH..VERY..CLOSELY...........Which carrier(DL or NW) finds itself in the DEEPEST DOO-DOO($$$$)
I'll give you one guess.

Of the two, either one. Analysts predict different things, but why not include all carriers?
J.P. Morgan also listed the airlines it thinks are at Chapter 11 risk, from lowest to
highest: Southwest Airlines (LUV), Alaska Air Lines (ALK), Delta Air Lines (DAL), AirTran
(AAI), Continental (CAL), JetBlue (JBLU), American Airlines parent AMR Corp. (AMR), United
Airlines parent UAL Corp. (UAUA), Northwest Airlines (NWA), and U.S. Airways (LCC).
Just to be fair, I will admit that I believe all of these so called analysts sport different opinions.

 

[getitgoin]

We can only hope...for both sides sake.

"In the last week, oil prices have climbed to above $135 a barrel from around $126 on Friday. Analysts have estimated that for each $1 increase in the price of oil, roughly $465 million is added to airlines' total fuel expense. Jet fuel now represents more than 40% of the industry's costs."


"The risk may have become so great that Delta Air Lines Inc. may find it can't raise the capital it needs to purchase Northwest Airlines Corp. and could potentially walk away from the deal, according to Jamie Baker, an airline analyst with J.P. Morgan."

http://www.marketwatch.com/news/story/anal...amp;dist=hpmymw

I suppose they've got to have some reason to further the plan for outsourcing your job.

 

[luv2fly]

I think all employees, except maybe for Delta Pilots would be happy if this thing was called off. Maybe then Anderson would get the boot and they'd bring back Whitehurst!

I agree with the Whitehurst statement. I disagree with your first. I think most DL pilots would be perfectly happy with the undoing of this all. Especially the ones on the lower half of the list.

 

[chucky]

DAM right, DEL-DUH is saying it's MORE important than EVER to Merge now.

WHY ?

Because DL was desperately in need of a deal...BEFORE..oil even came close to $100 !!



Sorry Bear, but AA is in deeper doo-doo. Why? 300 plus gas guzzling super 80s, highest labor costs, open contracts to negotiate, no ATI in place with BA, no merger partner on the horizon, increased competition from all sides and with oil sky rocketing , time is running out
If the DL/NW merger is abandoned, there is still a solid AntiTrust Alliance with AF/KL, and am sure DL will pursue a code share deal with NW to asia as well. It would not surprise me to see the DOJ hasten their decision on the merger what with the price of oil and all. We shall see.

 

[metopower]

I agree with the Whitehurst statement. I disagree with your first. I think most DL pilots would be perfectly happy with the undoing of this all. Especially the ones on the lower half of the list.

Not according to the ratification vote to approve the letter 19. (letter of agreement to approve the interim contract} What you miss read is the sentiment over the uncertainty of the new seniority list. The advantages of the combined company as a business are overwhelming.Outside of the Union vs Non-Union and seniority integration that is.

 

[Cajun Flyer]

I agree with the Whitehurst statement. I disagree with your first. I think most DL pilots would be perfectly happy with the undoing of this all. Especially the ones on the lower half of the list.

Glad to hear that. I thought most were on board due to the pay raises and that 78% voted in favor of the amendment to their contract. Perhaps some of the junior pilots didn't vote because they thought it wouldn't change the outcome. Delta was on a very good path prior to this whole merger mess. I could see some movement in seniority with the addition of so much international and with the hiring of new F/A's. I sure as hell don't want to be working on 40 year old DC-9's and having "discussions" with NWA F/A's over who got screwed in seniority, etc. Perhaps the cost of this merger will scuttle it as we cannot afford to be spending a billion dollars this year on the merger with the cost of fuel. With our stock price now at $5.50, it doesn't say much for us either. With the speculation of the merger, both NWA and Delta stock started to spiral downward and it's only getting worse. Our stock is now in the lower 3rd of stock prices among the top 10 airlines. That fact shouldn't please the investors. With Whitehurst at the helm I think Delta would've stayed independent for some time and built an incredible route structure. Anderson can deny until he's blue in the face that he wasn't brought on board to effect this merger, but I think we all know better. So, if this goes through, say hello to old equipment, old bitter flight attendants and a kick in the seniority rear end.

 

[luv2fly]

Not according to the ratification vote to approve the letter 19.

I think you are the one confused. The ratification of loa 19 has nothing to do with the desire to merge. This merger would have proceeded regarless of whether or not loa 19 passed.

 

[metopower]

I think you are the one confused. The ratification of loa 19 has nothing to do with the desire to merge. This merger would have proceeded regarless of whether or not loa 19 passed.

You are absolutly right. The merger would have proceeded without the pilots vote. However if the pilots were not infavor of this deal then the vote would have reflected that sentiment. It would have been damned by faint praise. I'm not confused . You remember the USair deal....not the same talk going around the pilot group.

 

[Baja4U]

Glad to hear that. I thought most were on board due to the pay raises and that 78% voted in favor of the amendment to their contract. Perhaps some of the junior pilots didn't vote because they thought it wouldn't change the outcome. Delta was on a very good path prior to this whole merger mess. I could see some movement in seniority with the addition of so much international and with the hiring of new F/A's. I sure as hell don't want to be working on 40 year old DC-9's and having "discussions" with NWA F/A's over who got screwed in seniority, etc. Perhaps the cost of this merger will scuttle it as we cannot afford to be spending a billion dollars this year on the merger with the cost of fuel. With our stock price now at $5.50, it doesn't say much for us either. With the speculation of the merger, both NWA and Delta stock started to spiral downward and it's only getting worse. Our stock is now in the lower 3rd of stock prices among the top 10 airlines. That fact shouldn't please the investors. With Whitehurst at the helm I think Delta would've stayed independent for some time and built an incredible route structure. Anderson can deny until he's blue in the face that he wasn't brought on board to effect this merger, but I think we all know better. So, if this goes through, say hello to old equipment, old bitter flight attendants and a kick in the seniority rear end.

Watch out, that OLD BITTER F/A might be senior to you!!!