LCC Proposes $8B merger with Delta

[ChrisUS]

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 seriously doubt they'd eliminate CLT. They may be able to move some traffic to it to help the traffic at ATL. Both cities are existing profitably now, why eliminate one? Just time the banks to offset each other. Say out of BUF, a 630am to ATL. A 730am to CLT and so on.

 

[jimntx]

I will agree with you with this statement. However, once the NMB determines that there is a single transportation system, an election will be held.
Hence, my contention that seniority integration should be fair.

Oh, I don't argue for a minute that the integration should be fair. But then, after 5000 years of fighting among those Semitic 1st cousins, there should be peace in the Middle East.

However, everything you have mentioned as happening will occur only post-merger. As an AA f/a I am ashamed to say that you might want to talk with the former TWA f/as about fair treatment post-merger. They were assured that it would all get worked out fairly; that they would be "taken care of. Just relinquish your Scope clause and sign on the dotted line for now and, above, all, trust us." :down:

 

[The Truth]

I would say that the business acumen is still alive within management. Congrats to Doug and team. I am excited about the "New" Delta. Labor should also be enthusiastic with the growth opportunities with the combine companies. This is a win-win merger.

 

[PITbull]

What are the chances of this thing happening with DL management against it? I doubt that the BOD at DL will go for something that management does not think is in the best interest of DL.

Didn't Dave Siegel call the CEO of DELTA, Dr. Evil at an Aviation annual converence in DCA, Sept, 2002?

I have the exerpt.

 

[longing4piedmont]

I would say that the business acumen is still alive within management.

Never mind. You're not worth the effort to throw the insults....

 

[TheNewLowFare]

It's a shame that they fired Queen of the Sky.

for posting her picture. I actually liked her blog!



As far as the merger, it says that we would take the Delta name. That's a shame! I'm actually getting used to making the US Airways announcements.

 

[PITbull]

I would say that the business acumen is still alive within management. Congrats to Doug and team. I am excited about the "New" Delta. Labor should also be enthusiastic with the growth opportunities with the combine companies. This is a win-win merger.

We all know what you will win, but can you explain how the employees of U will gain? Compensation? Win-win contract?

After all...you're at the table.

STOP! I havent stop reeling from todays announcements and CANNOT even begin to think about another merger! I didnt see it coming and I dont think anyone at Delta is ready to believe this will happen. Doug would never have made it so public if he didnt think it was going to happen. Every major news channel has covered the basics and not only was it presented to employees and union leaders but was on the front page of the US website. Im still shellshocked. We are going to be called Delta, can you believe it? I will not even hazzard to guess what motivates Doug or anticipate his next move. As many problems as we have(and God knows we can all list them) you have to admire his audacity(cujones?) when dealing with Deltas management. I feel like we are watching a Dallas rerun. Bobby Ewing aka Doug Parker. Maybe its J.R. Ewing aka Doug Parker? Time will tell but we are going to be the "new" Delta. Anyone hear from Delta friends/employees? Not too much on their board. More US employees looking for info than Delta employees. Question, I havent seen asked how does this affect WN and their market share? Can US(I mean, the new Delta) put the screws to WN? I know theres alot to accomplish but I would like to see WN sweat a little. No offense to WN employees but it sure would be nice to be ble to underprice and undercut them for a change. This post has kinda been all over the place so forgive me but I just needed to put some thoughts down so I can gear up for the next 2 years or so. Mama

Has Doug figured out how to operate PHL yet... is my question. B)

 

[SpinDoc]

I would say that the business acumen is still alive within management. Congrats to Doug and team. I am excited about the "New" Delta. Labor should also be enthusiastic with the growth opportunities with the combine companies. This is a win-win merger.

Have heard from sources within US that this is basically a done deal and that Parker's public announcement today was only to satisfy certain requirements for the DL creditors (ie. offer of outside bids, etc.) and US shareholders. Of course, a competing bid could be tendered, however, with the premium being offered by US, competing bids would be costly and most likely prohibitive. This is GOOD news for a change for the employees of the future combined entities, because without the combination, US could not grow quickly, and DL would likely have a difficult time emerging and competing as a stand alone carrier.

 

[N965VJ]

<SNIP> This is a win-win merger.

<yawn>

 

[PITbull]

Have heard from sources within US that this is basically a done deal and that Parker's public announcement today was only to satisfy certain requirements for the DL creditors (ie. offer of outside bids, etc.) and US shareholders. Of course, a competing bid could be tendered, however, with the premium being offered by US, competing bids would be costly and most likely prohibitive. This is GOOD news for a change for the employees of the future combined entities, because without the combination, US could not grow quickly, and DL would likely have a difficult time emerging and competing as a stand alone carrier.

It would make for quite a huge network, Internationally and domestically.


There's just one small hurdle folks need to think about? Will the gov. approve it? Plenty of "overlap" on the East, and less competition. My crystal sees United, American, and CO holding rejection hearings because of "Monopoly"...you know...that thing that creates higher ticket prices with less competition....

Although the statement that you will be getting DL rate pay might just make you feel a little better.

The DL f/as make more than U f/as across the board, even with DL two concessions.

Is there a precedent for a merger of a smaller union group and larger nonunion group. Would there be a union.nonunion vote for the combined group?

This is funny...

Honey, it will be DOH. For the f/a group, AFA will be the union and represent the DL f/as IF...IF...IF...the merger is approved. I see major hurdles on that front.

 

[l8rd8r]

Honey, it will be DOH. For the f/a group, AFA will be the union and represent the DL f/as IF...IF...IF...the merger is approved. I see major hurdles on that front.
[/quote]

I have a few questions...

1. Can DL fa's join the union while in bk?

2. If not would stapleing them be DP's way of helping his AWA FAs gain instant senority? Which would make them very happy.

3. I'm certain AFA would like to asure DL FAs they will get DOH if only to get them to join but, can they do this while in bk?

 

[EricLv2Fish]

IF the merger goes thru this could be really good for the non-union westies who didn't want to be unionized. Well, that is if the equivalent Delta groups are not unionized. Wow...what a turn of events!

 

[SpinDoc]

It would make for quite a huge network, Internationally and domestically.
There's just one small hurdle folks need to think about? Will the gov. approve it? Plently of "overlap" on the East, and less competition. My crystal sees United, American, and CO holding rejection hearings because of "Monopoly"...you know...that thing that creates higher ticket prices with less competition....

PIT:

Have also heard that Parker and Company have considered overlap/anti-trust possibilities and have had attorneys review them with DOJ personnel. One of the results was DP's announcement that one of the Shuttle products would have to be sold off to another carrier. I'm almost positive they covered all of the bases, know what needs to be changed to satisfy DOJ, and have added these changes to the merger plan. This is NOT the same management team that miscalculated anti-trust matters for the US/UA merger, and ultimately missed important details causing the demise of the US/UA merger. This team has done their homework, and they have a concrete plan of action based on complete information.

 

[UPNAWAY]

IF the merger goes thru this could be really good for the non-union westies who didn't want to be unionized. Well, that is if the equivalent Delta groups are not unionized. Wow...what a turn of events!

It would actually be good for the unions to be a stronger/bigger comapny. That gives the unions far more leverage than a smaller one. Consolidation - 3 mega Airlines, would actualy make the Unions players agian in this industry IMHO!

 

[Borescope]

Labor should also be enthusiastic with the growth

What growth? With all the overlap on the east coast you can bet that routes, gates, slots and maybe even hubs will be gone to get the deal done. This means LAYOFFS.........