How about yet another airline?

DLflyer

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Jan 31, 2008
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[topic="0"]http://www.thestreet.com/_yahoo/newsanalysis/transportation/10401516.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
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Sorry, I don't know what is wrong.
It's an article about DL adding CO to the merge option.
................HMMMM?????
 
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Delta Adds Continental to Merger Options

By Ted Reed
TheStreet.com Staff Reporter
1/31/2008 7:12 PM EST
Click here for more stories by Ted Reed

Updated from 6:07 p.m. EST






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As it pursues its consolidation strategy, Delta (DAL - Cramer's Take - Stockpickr) is talking with a variety of carriers including Continental (CAL - Cramer's Take - Stockpickr - Rating).
Those talks so far have been preliminary, and have not advanced as far as merger discussions with Northwest (NWA - Cramer's Take - Stockpickr), according to a person familiar with the situation. However, discussions with Northwest appear to have hit snags, including issues involving the leadership of the combined company.

Delta has also had conversations recently with UAL (UAUA - Cramer's Take - Stockpickr - Rating), the owner of United Airlines, according to published reports.

In the past, internal Delta consolidation studies have concluded that a merger with Continental would make the most sense, while a deal with Northwest could also have value because it would provide access to the Pacific, according to sources who are familiar with the situation.

Delta bid unsuccessfully for Continental in 1998, then acknowledged it was again studying a merger effort in 2000.

The internal studies also determined that authorities wouldn't permit a merger with United because the combined airline would be too big. However, it is uncertain whether regulators would have the same view today given the rapid expansion of low-fare carriers who might also provide competitive alternatives in the event of legacy carrier mergers.

Additionally, since the internal studies were done, Delta and Continental have both dramatically built their hubs at New York's Kennedy Airport and Newark Liberty International Airport, as well as their trans-Atlantic service from the two hubs.

Publicly, Delta has said it is "analyzing strategic options, including potential consolidation transactions." Delta and Continental declined to speak for this story
 
The more news articles one reads, the more confused one can get. Now we have to throw American into the mix! It will sure be interesting to see the conclusion to all this!
 
The more news articles one reads, the more confused one can get. Now we have to throw American into the mix! It will sure be interesting to see the conclusion to all this!
They have all always been in the mix. Most of us have thought that the next big merger will set off a wave that runs through the entire US industry. Right now they are all looking for dance partners.
 
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The CO deal would make the most sense; due to the fleet type and lack of unions.
 
The CO deal would make the most sense; due to the fleet type and lack of unions.


Make the most sense for whom?

Not the Thousands who would be out of a job because of the huge overlap of both airlines.
What would CO bring to DL? What would DL bring in for CO ?
Besides, how would you get the DOT/DOJ to stop laughing to make a decision?
 
Make the most sense for whom?

Not the Thousands who would be out of a job because of the huge overlap of both airlines.
What would CO bring to DL? What would DL bring in for CO ?
Besides, how would you get the DOT/DOJ to stop laughing to make a decision?

I wholeheartedly agree. There is no way Justice would approve this just based on NY alone..controlling JFK AND EWR??? No way., not without some major divestiture...which would mean an incredible loss of jobs in the NY area.
And secondly, CO in IAH is basically DL in ATL...just a few hundred miles to the southwest. CO is a great airline but it offers nothing to DL...and DL doesn't offer much to them either.
 
I wholeheartedly agree. There is no way Justice would approve this just based on NY alone..controlling JFK AND EWR??? No way., not without some major divestiture...which would mean an incredible loss of jobs in the NY area.
And secondly, CO in IAH is basically DL in ATL...just a few hundred miles to the southwest. CO is a great airline but it offers nothing to DL...and DL doesn't offer much to them either.


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"Walker"

I don't dispute your EWR/JFK point,....BUT ...answer me this PLZ.

"With Everything you've laid out,....PLUS....the trump card NW holds over CO,............................Then WHY has Anderson involved CO into the "mix"

Hmmmmmm !
 
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"Walker"

I don't dispute your EWR/JFK point,....BUT ...answer me this PLZ.

"With Everything you've laid out,....PLUS....the trump card NW holds over CO,............................Then WHY has Anderson involved CO into the "mix"

Hmmmmmm !

No, my name's SKYwalker. You're thinking of Walker, Texas Ranger..the guy supporting Hickabilly. :) <just playing>
Anyway...Who knows for sure if that's even happened? There is so much speculation/rumors out there right now that I'm sure "some close to the discussions" are leaking and not everything is truthful. Like throwing dogs off their scent...or something like that.
I heard this one the other day...that the whole thing (exploration of a merger) is just to placate the BOD/creditors and that more than likely nothing is really going to happen.
 
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No, my name's SKYwalker. You're thinking of Walker, Texas Ranger..the guy supporting Hickabilly. :) <just playing>
Anyway...Who knows for sure if that's even happened? There is so much speculation/rumors out there right now that I'm sure "some close to the discussions" are leaking and not everything is truthful. Like throwing dogs off their scent...or something like that.
I heard this one the other day...that the whole thing (exploration of a merger) is just to placate the BOD/creditors and that more than likely nothing is really going to happen.

I have a feeling in my stomach that you just hit it the nail on the head. It might just be a ploy to get stock prices up. I guess we will have to wait and see.............
 
FROM the AJC:
Delta president: We're strong enough to go it alone
Any merger deal must fill gaps, avoid debt load, help workers, Bastian says

Full story:
http://www.ajc.com/business/content/busine...delta_0202.html

The talks (if any) with CO could be to feel them out as far as what their next
step would be.
or
Talking with CO about what piece they would want in a "carved" UAL ?
but again it could be just a big Smoke screen as Luke SKYWalker was refering to.
 
FROM the AJC:

Talking with CO about what piece they would want in a "carved" UAL ?

Why a carved UAL? Why not carving NWA? Or for that matter carving up DAL? The obvious reason for not being able to carve DAL is that it only has one hub that anyone would really want and that is ATL. It appears the DL group is desperate and can not find anyone to mate with them.

Here is another rumor passed amongst the ALPA insiders yesterday. DAL to be divided up! Yes, you heard it here first. The problem DAL has is that they are really a one hub airline. The only way to grow their market share is to merge. JFK is not a true hub as they don't have the service to as many cities and connection opportunities that a traditional hub would give. Therefore in the split B6 will be the one taking the JFK ops and utilizing the 190's to make a proper hub. CVG will disappear and UAL will acquire the Atlanta portion of DAL. SLC will go the way of the dodo bird and the landscape will be fresh again.
 
I am sure we will know soon enough....
I do believe Delta can grow/go it alone just fine.
Who else has 8 777's comming on property in just over a year?
Mar/2009 Delta will have:

N701DN 7101 2/28/08
N702DN 7102 3/21/08
N703DN 7103 12/31/08
N704DN 7104 1/31/09
N705DN 7105 1/31/09
N706DN 7106 1/31/09
N707DN 7107 2/28/09
N708DN 7108 3/31/09

BTW the 737-700's will be arriving by Aug and 11 aquired Md-90's this year alone.
Delta will be just fine, being Delta if need be.
Again I am sure we will know soon enough.
 

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