More merger talk form Doug
- Thread starter luvthe9
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hp_fa
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- Feb 19, 2004
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Priceless!
TheLarkAscending
Veteran
There are some issues, however, there may not be enough Peach Fuzz to cover that entire area.
A Tony Robbins lemming! And the laughs just keep on coming. Someone has got to be making this stuff up, right?
hp_fa
Veteran
- Feb 19, 2004
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Yep. I also suspect some folks are hired to spin stuff on public message boards.
Very very highly illegal... right up there with insider trading. Why do you think the Enron folks are in such hot water?
I'm not saying it isn't happening, just that anyone who spearheads such an effort hopefully will spend a lot of time in prison.
You assume that the whole of NW is worth substantially more than the China and NRT rights/routes/frequencies. B)
IMO, those assets are worth about 85% of the whole package. So it really doesn't matter whether it happens as a merger/combination/acquisition of the whole or a Ch 7 liquidation of the key pieces; In my view, those are roughly the same situation.
I'm confident that AMR would not sit idly by while US or DL or CO made a play for 100% of NW.
Any purchaser of NW would (if they were smart) immediately close the MEM hub and reduce MSP so it resembled the current AA operation at STL. Then, DTW would be right-sized (translation: Capacity reduction).
The fleet? Situation is about the same as TWA: AA didn't buy TWA to get its fleet. And buyers of NW won't be doing it to get NW's fleet either. First thing that any buyer would do is arrange for NW to reject most of the old dog airplanes. If AA is the buyer, it will probably work with UA or US to take the Airbus narrowbodies. The A330s would be rejected. AA would order more Boeings to replace the 747s/A330s/DC-10s. Easy as that.
AA and NW won't happen in a vacuum: Other legacies will be combining as well, and there will likely be multi-party trades of unwanted facilities/routes/equipment/etc.
Sthrnboy
Senior
85%, huh? How do you come up with that figure? The percentage is meaningless unless you put a dollar figure on it, of course, but I'm surprised you think the DTW and MSP hubs, the frequent flyer program, the bankruptcy-adjusted aircraft leases, the cargo operation, the 787 delivery slots, etc combined are worth 1/5 the Asia rights.
In other words, you think if AA were to offer $850M for the Asia rights, and US were to offer $1B for the whole operation, those would be equivalent offers? You've got to be kidding.
You're also ignoring the fact that much of the Unsecured Creditor's Committee has an interest in seeing NW remain as intact as possible. Airbus, GE, Bombardier, ALPA, and IAM (more than half) really don't want to see NW liquidate.
All this may be academic if the FA's force NW into Ch 7. They seem to be trying their hardest to do so.
Also, why exactly did AA buy TW? What did they get out of it?
Crzipilot
Veteran
- Mar 23, 2004
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I'd say there's something cooking.......US clarifing this weekends news reports...
US AIRWAYS CLARIFIES WSJ ARTICLE ON MERGER RUMORS
You may have read news stories over the weekend about CEO Doug Parker calling Delta CEO Gerald Grinstein to talk about a merger possibility. Here's the real deal: When Northwest and Delta filed for bankruptcy last fall, there was a lot of industry speculation that either 1) NW and DL would merge or 2) both airlines would try to find other airlines to merge with. In the context of those rumors, US Airways was also deemed to not be a viable merger partner since they had just done a merger and therefore wouldn't be interested in doing another deal.
As those rumors picked up steam this spring, Doug phoned Grinstein to make sure that the Delta team knew not to listen to the rumor mill. That contrary to rumor and speculation, if, down the road, Delta did decide it wanted to try to emerge from Chapter 11 with a partner not to discount us simply because we were already in the midst of our integration work.
Doug has said all along that if there are further consolidation opportunities out there for our industry, we intend to look at any that might make sense for US Airways. Delta has given every indication that it plans to emerge from bankruptcy as a stand-alone carrier, Northwest doesn't appear to be shopping, and we are busy enough with our own merger at US Airways. But as Doug has said several times in recent weeks, the US Airways-America West merger is working because it grew from a bankruptcy, so it's just prudent on our part to at least explore opportunities like these.
US AIRWAYS CLARIFIES WSJ ARTICLE ON MERGER RUMORS
You may have read news stories over the weekend about CEO Doug Parker calling Delta CEO Gerald Grinstein to talk about a merger possibility. Here's the real deal: When Northwest and Delta filed for bankruptcy last fall, there was a lot of industry speculation that either 1) NW and DL would merge or 2) both airlines would try to find other airlines to merge with. In the context of those rumors, US Airways was also deemed to not be a viable merger partner since they had just done a merger and therefore wouldn't be interested in doing another deal.
As those rumors picked up steam this spring, Doug phoned Grinstein to make sure that the Delta team knew not to listen to the rumor mill. That contrary to rumor and speculation, if, down the road, Delta did decide it wanted to try to emerge from Chapter 11 with a partner not to discount us simply because we were already in the midst of our integration work.
Doug has said all along that if there are further consolidation opportunities out there for our industry, we intend to look at any that might make sense for US Airways. Delta has given every indication that it plans to emerge from bankruptcy as a stand-alone carrier, Northwest doesn't appear to be shopping, and we are busy enough with our own merger at US Airways. But as Doug has said several times in recent weeks, the US Airways-America West merger is working because it grew from a bankruptcy, so it's just prudent on our part to at least explore opportunities like these.
Mr Eagle
Senior
Doug Parker & News 31 July 2006 Talk's w/Delta Merger in The News.
LGA Fleet Service
Veteran
Give Parker a lot of credit, but let's look at it from a realistic stand point here.He's still combining two airlines operating on different operating certificates into one airline operating on one certificate.
And on top of that he gives Gerry a call in ATL just to let him know that "We're juggling six balls, but don't think we can't do ten!"
Come on now, in the middle of combining two airlines and all the endless details that entails, and here is sparky offering to take on a third carrier, still in Chapter 11?
He's good, but he ain't that good.
Another thing, no one heard a peep about AA/TWA until it was announced.I think should consolidation in the industry actually take place at some point, the lid will be on tight enough to ensure that loose lipped line captains or anyone else for that matter don't blather it all over the gawd damned internet.
And on top of that he gives Gerry a call in ATL just to let him know that "We're juggling six balls, but don't think we can't do ten!"
Come on now, in the middle of combining two airlines and all the endless details that entails, and here is sparky offering to take on a third carrier, still in Chapter 11?
He's good, but he ain't that good.
Another thing, no one heard a peep about AA/TWA until it was announced.I think should consolidation in the industry actually take place at some point, the lid will be on tight enough to ensure that loose lipped line captains or anyone else for that matter don't blather it all over the gawd damned internet.
Post 911, not what was intended.
Crzipilot
Veteran
- Mar 23, 2004
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Maybe to add some fire to the conspiracy theorists???
Wasn't Cohen (NWA CFO) here when the AWA deal was done? Have the cuts NWA has taken, labor wise, but them inline with US??? Maybe Doug's release was an indication that delta is expecting to come out solo, not merged with someone else???
Wasn't Cohen (NWA CFO) here when the AWA deal was done? Have the cuts NWA has taken, labor wise, but them inline with US??? Maybe Doug's release was an indication that delta is expecting to come out solo, not merged with someone else???
RowUnderDCA
Veteran
- Oct 6, 2002
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That's been my pool pick for months now
