Delta Studying US Airways as Possible Acquisition Target — The irony of it all

[wings396]

And I suppose none if the airline BK s were planned with the same intended results. I feel sorry for some of you that are so out of touch with what is going on here. In the end AA nay be stronger, but it will be on the backs of labor. just wait until they are done, and then you will understand.

 

[topDawg]

Once again - it's just all too comical, and predictable. No, Delta is not the end-all-be-all. No, they have not been the most aggressive airline since deregulation - far from it. No, they have not been setting the pace for industry consolidation - they have been merely one of the pack. The continued glorification of Delta is par for the course, but as false as it has been since the last forum it was spewed on. And no, Delta, United and Southwest are not going to control 90% of the U.S. domestic market - yet another hilarious gem to remember for the future.

I bet your one happy guy today........ <_<

 

[topDawg]

WT, a couple of things to think about.

AA. = SOUTH AMERICA
AA = JFK/LAX
AA = (Best buddy) British Airways
Fuel going up-up+up !

DL and UA getting "fatter" by the day in all area's that requires use of said fuel.
Huge employee overhead(s), but AA to shrink in that area.

Ask yourself this. DID AA purposely allow the airline to go into BK, with a looong range plan in mind ?
I'm beginning to think they did.

Er how is being the 4th largest in NYC AA=JFK?
and AA is about 100 flights smaller than UA in LAX too.

 

[topDawg]

During the takeover attempt of 2006, DL management stated that the DOJ would never approve this. Basically both airlines are the same today as they were then with the exception of the NW merger. What makes them believe that this DL/US hook up would now be approved?

Nothing has changed and on the US/DL front nothing will. The overlap that was there in 2006 (ATL/CLT, PHL/JFK and PHX/SLC & LAX) are still there and always will be.
All Delta is doing is testing the waters and seeing how bad Wall Street wants more consolidation. American and Alaskan are the only two targets that Delta would really bid for. Everything else is just noise. 😉

(that or Richard Anderson is bad s**t crazy and is seeing if he can find a merger that will make the DoJ s**t a brick) 😀

 

[Kev3188]

RA is many things; bat sh*t crazy isn't one of them. I think what we're seeing here is a muddying of the waters by DL for any number of reasons.

 

[WorldTraveler]

No, Anderson is not crazy - and he has surrounded himself w/ some pretty sharp people too.
The sole reason why DL's potential interest in either AA or US is credible is because DL has the ability to make either work if it wants to.
DL knows - along with most of the rest of anybody who follows the industry - that a AA acquisition is probably US' last possibility to find a place among the largest airlines in the world. IF US fails, it will likely be marginalized to the point that it cannot survive.
As much as DL would be happy to see US gone, let's be realistic that AA is currently strong enough on the east coast that a rejuvenated AA makes US' staying ability much less likely.
As I have always said, AA continues to control a lot of premium revenue in the industry and they have key strategic assets including LHR, Latin America, and DFW and ORD hubs - plus a decent position in NYC which while lot what it once was is still large enough to be a force in the industry.
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AA's future in BK is far from certain but they have proposed a financially aggressive plan that should turn them around; the likelihood that anyone can convince the creditors or the court that a takeover bid will yield better results is questionable. As AMR moves through its restructuring, it will create a lot of value for its owners - currently creditors who will be replaced by investors. The strength of an investor will have to be equal or better than the strength of what AA will be. There is strength in size and the fact that US hasn't succeeded in multiple merger attempts says that they are working from a disadvantaged position both in size and in the ability to use some of the top industry assets to their greatest potential.
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DL's involvement is to ensure at the minimum that US is unable to make any moves on AA. While it can't be ruled out that DL itself could make a play for AA, the likelihood is that DL could finish off its strategic to-do list by spending a whole lot less money.