LCC Proposes $8B merger with Delta

WOW!

What else to say about this sort of proposal? It's not often that such a huge merger proposal is put forward, and that by itself makes this whole thing exciting.

I'm not gonna get into speculating or nay-saying, as today is all about standing back and admiring the bold step that LCC management is putting forward. I'm sitting here listening to the conference call & taking notes.

The timing is clever as DL management is indeed beholden to creditors. And obviously DL management is not interested in a merger, hence DP's appeal over their head to creditors. But that's what business is all about -- risk and opportunity and those with the balls to go after it.

Right now, it's all at the what if stage, and there's probably more working against a merger, than on behalf of one. But at least DP has seized the aviation podium and made some noise.

Give the man his due, he's out there plugging away in turbulent waters. Let's see if he sinks or swims.

Barry
 
Project "Spaghetti and Meatballs"

after the route map and the hub dots.

Not mine by the way so I can't claim credit.



ok.. .here's a mental exercise:

If WN had major operations at CLT/PHL/LGA/BOS/PIT/DCA/PHX/LAS/SCL/ATL/CVG/JFK

and WN had a 'express partner' operation

and WN had international routes or an international parnter

What would the route map look like?

Now, do that and add increase WN's 'connecting activity' by 10% and add the resulting added routes.

Is this how a legacy carrier transforms?
 
How come the Captain didn't tip us off to this unique corporate transaction?

Well, you see, when Doug Parker, Leo Grinstein (sp?), and George W. were jumpseating in the cockpit with the captain and were filling him in on the merger/purchase plans, they asked him to keep it confidential. :lol:
 
:unsure: I can't say that I'm neither happy nor sad. I would have to say I'm more disappointed. I don't understand how with the current "merger" not completed that this would even be thought of.

I'm also a bit taken back by the statement that the "new" carrier would be flown as Delta. I'm on furlough still so my opinions mean nothing, but I sure can relate to how the HP people felt when they became US Airways..
 
The so-called Wall Street and aviation experts from MSNBC only give this merger a 35% chance of taking place...but it sure doing wonders for the stock prices today.

Let's see what tomorrow looks like....and how DL responds beyond their initial comments that were made today.


....and they say that Politics makes for strange bed-fellows , what does that say about commercial aviation?
 
This merger is ridiculous. We already know ATL can't handle a extra 500 flights a day from what was CLT. What are they going to do, create a shuttle south and put 767-300's on the CLT-ATL run every half hour? If they were to eliminate CLT all together, they would need to get rid of more then just 10% of the fleet.
 
I don't understand how with the current "merger" not completed that this would even be thought of.

The timing couldn't be better for US Airways. The main goal during a merger is to cut costs and create synergy. Half of that equation, the cutting costs half, is already being performed by the Bankruptcy Court handling the Delta case.

In other words, usually the "buying" company would spend a significant amount of time and money in order to cut costs... and even then, they wouldn't ordinarily be able to cut health benefits and pensions with a snap of the fingers. But with the help of the bankruptcy court, US Airways would benefit from the judges recent decisions: 1) cut $50 million a year in health benefits for about 42,000 retirees, spouses and survivors; and 2) approved a request by Delta Airlines to end its pension plan for pilots.

And now, while the company is still in bankruptcy, Delta investors practically have no equity in the company. Like I said: Perfect timing!
 
Well its certainly good news in a way, route structure, aircraft, and hubs.
but there are some things i HOPE do not go away
-CLT as a hub, i think itll stay and get larger
-The usairways name would suck to go, it sounded great
-PHL should not go away, even though it has so many problems.

i think all the hubs should be left unchanged, i dont think these airports could handle way more traffic, CLT is one that can, ATL and PHL are overcrowded already and are having problems.

but hopefully lets see what happens, this was out of the blue bigtime ! i had NO idea anything like this could happen
 
Ask yourself how many pilots at DAL have a DOH of 1989 and later and then ask yourself if those thousands of DAL pilots would be willing to be effectively stapled to the bottom of the U list. I hardly doubt it. Nearly half of their list would go below your most junior F/O.

Exactly!
 
This merger is ridiculous. We already know ATL can't handle a extra 500 flights a day from what was CLT. What are they going to do, create a shuttle south and put 767-300's on the CLT-ATL run every half hour? If they were to eliminate CLT all together, they would need to get rid of more then just 10% of the fleet.


I'll tell you what they can do. Dump all the regionals, their cramped airplanes, and their mainline hating crews and put the big jets back where they belong. One of the biggest downfalls to both US and DAL were the overexposure of outsourced work hidden under names like regional jets and express.
 

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