Suitor balks at boosting its offer for Delta

[brokenwrench]

http://www.ajc.com/business/content/busine...30bizdelta.html

 

[WorldTraveler]

Let’s be perfectly clear. US is raising its offer because the prospect of not acquiring DL is absolutely horrifying to US’ mgmt and owners.

US is:
- US is the smallest network airline in an industry where bigger is better.
- US is the most domestic network airline in an industry where every other network carrier is more than twice as global as US.
- US is the ONLY network airline that hasn’t been mentioned as a merger partner with someone who would VOLUNTARILY merge.
- US has had little success expanding its international network other than to western Europe – where it is still outgunned by every airline network airline. US’ Latin American expansion? A complete failure.
- US’ customer service is the worst in the industry based on any industrywide metric.
- US’ network is shrinking thanks to poor management that thought that concentrating US’ hubs would work – even though US has no hubs that had the economic potential to be expanded.
- US’ hubs all are being overrun by true low fare carriers that have much lower costs than US.

Doug Parker is doing everything he can to not have to compete against a strong and much larger independent Delta, to avoid “facing the music†for US’ bad strategic decisions, or to eventually be left out of industry consolidation. After Parker’s humiliating performance in front of the Senate committee last week, no one could besides him could possibly believe that he could succeed in getting a DL acquisition approved by Washington.

Delta and its employees have a last volley up their sleeve too. You’ll hear more very soon.

 

[bigbusdrvr]

Let’s be perfectly clear. US is raising its offer because the prospect of not acquiring DL is absolutely horrifying to US’ mgmt and owners.

US is:
- US is the smallest network airline in an industry where bigger is better.
- US is the most domestic network airline in an industry where every other network carrier is more than twice as global as US.
- US is the ONLY network airline that hasn’t been mentioned as a merger partner with someone who would VOLUNTARILY merge.
- US has had little success expanding its international network other than to western Europe – where it is still outgunned by every airline network airline. US’ Latin American expansion? A complete failure.
- US’ customer service is the worst in the industry based on any industrywide metric.
- US’ network is shrinking thanks to poor management that thought that concentrating US’ hubs would work – even though US has no hubs that had the economic potential to be expanded.
- US’ hubs all are being overrun by true low fare carriers that have much lower costs than US.

Doug Parker is doing everything he can to not have to compete against a strong and much larger independent Delta, to avoid “facing the music†for US’ bad strategic decisions, or to eventually be left out of industry consolidation. After Parker’s humiliating performance in front of the Senate committee last week, no one could besides him could possibly believe that he could succeed in getting a DL acquisition approved by Washington.

Delta and its employees have a last volley up their sleeve too. You’ll hear more very soon.

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