Delta merger would be heavily scrutinized by Congress...

[delta777]

As it should be. I have a hunch that Richard Anderson will have a hard time convincing Congress that a merger between DAL/NWA or UAL will be anything but bad news for the consumer. If a DAL/LCC hook-up was troublesome, what would a merger between the numbers 2 and 3 or 3 and 4 be considered?

http://www.ajc.com/business/content/busine...delta_0113.html

 

[LukeAisleWalker]

As it should be. I have a hunch that Richard Anderson will have a hard time convincing Congress that a merger between DAL/NWA or UAL will be anything but bad news for the consumer. If a DAL/LCC hook-up was troublesome, what would a merger between the numbers 2 and 3 or 3 and 4 be considered?

http://www.ajc.com/business/content/busine...delta_0113.html

Interesting article juxtaposing Grinstein's "stand alone" statements before Congress a year ago compared to the merger road Anderson seems to be heading down now. But what they say about politics is also true about the airline industry: "A year is a lifetime....."
Oil of course, wasn't almost $100/barrel this time last year. I think it was something like $60/barrel. I'm as game as anyone for calling out management's incosistencies but this time I have to say that the economy and again, oil are completely different now than last year when DL was fending off US.

 

[brokenwrench]

Grinsteins remarks made it pretty clear that he was not against mergers per say. It was just that he considered a DL/US merger the worst of all possible combinations. Nothing but debt was all DL had to gain from that possible combination. I think it would have been around $24 BILLION, or so.

 

[ual777fan]

US/DL really made no sense what so ever, at least domestically. While I could understand USAWA wanting to get their hands on Delta's international ops (especially Europe, South America and Africa) the domestic integration would have been a total mess. ATL, CLT? JFK/LGA, PHL? PHX/LAS, SLC?

Not to mention it would be fun to see the USAir and Delta flyboys go at it over seniority. And you thought the East/West integration was fun...

 

[DalMD88]

The biggest problem Girnstien had with DL/US was DL wasn't in the driverseat. If he had said, "We need to buyout US." It would have happened. I'm not really sold on either the NW or the UA deal as an employee, but I give either of them a pretty good chance with the Bush admin if they quickly go forward.

 

[NewHampshire Black Bears]

As it should be. I have a hunch that Richard Anderson will have a hard time convincing Congress that a merger between DAL/NWA or UAL will be anything but bad news for the consumer. If a DAL/LCC hook-up was troublesome, what would a merger between the numbers 2 and 3 or 3 and 4 be considered?

http://www.ajc.com/business/content/busine...delta_0113.html

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Your article raises some good points..."777", which may be why DL is keeping UA around for a "plan B".

For example, Oberstar (MN) IS a BULL DOG, when it comes to NW, and ANY attempt to move it from MSP would be VERY DIFFICULT, at best.

DL,IMHO, would have an easier time taking over UA, and relocating to ATL. The politicians in IL. could'nt squawk as LOUD, because of AA's HUGE hub in ORD, plus if the "new" UA/DL keep most of the ORD service, then a deal would "slide through"

 

[Fly]

Delta may want to BUY but the way things appear, I think it is going to be a MERGE. There will have to be a little more give and take once everyone pairs up. Delta won't be deciding everyone's futures, that's for sure.

 

[LukeAisleWalker]

Grinsteins remarks made it pretty clear that he was not against mergers per say. It was just that he considered a DL/US merger the worst of all possible combinations. Nothing but debt was all DL had to gain from that possible combination. I think it would have been around $24 BILLION, or so.

Brokenwrench, I was commenting on the first paragraph quoteing Grinstein at the Congressional hearings. Again:

He insisted that US Airways Group's $9.5 billion offer to acquire his company would harm workers and consumers. Delta should remain "a strong, fiercely competitive, stand-alone airline," he told the Senate Commerce Committee.

 

[LukeAisleWalker]

One of my favorite things about this article is how all the Republican Congressman say they will do everything to make sure Delta HQ stays in Atlanta. I thought Republicans believed in free enterprise and gov't staying out of business. Ahh, the hypocrisy of it all... I wonder what Sen. Larry Craig thinks about all of this airline merger mania.

 

[757inthebarrel]

If I remember correctly, it seemed like United and US really started going downhill with the all-encompassing focus on the merger between the two. United pulled the deal when it looked like the government was going to require too much in order to approve it and it was a steep slide for both companies who had put all their eggs in the merger basket.

I hope DL's management is smart enough not to fall into the same trap only to see the DOJ say "no way", but I have my doubts. When these guys see dollar signs the employees usually end up paying the price.

 

[luv2fly]

As it should be. I have a hunch that Richard Anderson will have a hard time convincing Congress that a merger between DAL/NWA or UAL will be anything but bad news for the consumer. If a DAL/LCC hook-up was troublesome, what would a merger between the numbers 2 and 3 or 3 and 4 be considered?

http://www.ajc.com/business/content/busine...delta_0113.html

A DL/US merge had nothing to offer the consumer. Parker unsucessfully tried to disguise his attempt at eliminating his biggest competitor as a merge. Only problem for him was that the rest of the industry along with Congress saw it for what it was. A desperate attempt to knock out DL while in BK. Thankfully he failed.
A proposed DL/NW or UA merge would build upon each others strengths and fill critcal gaps in route structure. Furthermore, I believe Anderson may have the support of other industry leaders as any DL merge will most likely stimulate other carriers to do the same with the notable exception of US as they will most likely not be invited to the dance.