This airline could collapse.

[robbedagain]

what about a DL/NW merger with the use of a failing carrier act or is there one where it could be 2 failing carrier act?

 

[mistified]

well.. maybe my frame of reference is too domestic oriented, but WHY whould any airline want a route system with DTW, ORD, MSP, DFW and MEM. Also, JAL joined oneworld and NW is Tokyo oriented not so much China, right? OK, I could see AMR buying NWA and then divesting the domestic system, including all airbuses and 9s to say LCC. But then there would still be 'room' for DL's system.

Who says AA is in a position to buy anything?

mistified

 

[MCI transplant]

<_< I don't think aa has any intention of futher mergers with anyone! They're still having heart burn trying to digest TWA!!!! Although to say they had no interest in NW's Oriental routes would be a total faleshood!!!!

 

[TheDog2004]

What's really frightening is that DALPA could play ball and Delta could still be near collapse.

Holly is a decent analyst but sometimes comes across as a union shill. She's still better than just about everyone else out there, though. She called UAL's troubles way earlier than anyone else.

 

[DL Gold Medallion]

I think this is a bit unfair. DL's current management team has been making some excellent changes. Unfortunately, in an organization as large as a major airline, the changes will take time to significantly affect the bottom line.

Getting the concessions from the pilots alone will not make the airline profitable. But it's one step in the right direction. Moving Song amenities to mainline aircraft will help DL differentiate itself from the other major carriers in terms of coach-class quality. Shaving marginal routes and adding European routes is going to add to the bottom line.

Basically Grinstein is a lot better at running an airline than Leo was, but it will take some time to reverse the negatives that Leo created during his tenure.

 

[Fly]

You hope!

How about getting rid of some of the ridiculous extra fees they charge. Used miles today and they charged me a $70 Rapid Rewards fee! Unbelievable.

All the majors need to stop nickle and dimeing people. When I use miles at JetBlue this never happens...only on the majors.

 

[DL Gold Medallion]

You hope!

How about getting rid of some of the ridiculous extra fees they charge. Used miles today and they charged me a $70 Rapid Rewards fee! Unbelievable.

All the majors need to stop nickle and dimeing people. When I use miles at JetBlue this never happens...only on the majors.

More important than that are the fees for telephone and ticket office ticketing. Those are the fees that will piss off the most people in the general public. Most of us are savvy enough to avoid the express processing fee.

 

[FWAAA]

Who says AA is in a position to buy anything?

mistified

Well, America West just bought USAir - with some new money from new investors.

There is no doubt that AA could similarly find addtional money from new investors if it were serious about acquiring NW.

Right now, AA has nearly $3.5 Billion of unrestricted cash. Plus stock that's worth more than $17.50/share, ten times its value in Mar-April, 2003.

So I'm definitely saying that AA is clearly in a position to buy NW if the price was right.

 

[MCI transplant]

Well, America West just bought USAir - with some new money from new investors.

There is no doubt that AA could similarly find addtional money from new investors if it were serious about acquiring NW.

Right now, AA has nearly $3.5 Billion of unrestricted cash. Plus stock that's worth more than $17.50/share, ten times its value in Mar-April, 2003.

So I'm definitely saying that AA is clearly in a position to buy NW if the price was right.

<_< Word to the wise, aa is not a white knight!!! So, be careful of what you wise for!!!! From someone who has been there!!!!

 

[FWAAA]

<_< Word to the wise, aa is not a white knight!!! So, be careful of what you wise for!!!! From someone who has been there!!!!

Of course the Evil Empire from Fort Worth is no white knight. Didn't mean to imply that AA would do such a transaction out of concern for anyone at NW.

Unlike the TWA purchase, when a reliever hub at STL actually made sense (as ORD was maxed out at the time and it didn't look like Mayor Daley would ever agree to runway reconfiguration), if AA bought NW, there would be no doubt that MEM would be promptly closed (and perhaps MSP as well). DTW would be right-sized and AA would have what it covets: Lots more access to China and some 5th Freedom rights at NRT. Maybe AA would involve a third party to take over the parts of NW that AA doesn't need (like hubs at MEM and MSP).

What happened to the TWA employees was very unfortunate. But vast numbers of NW employees would probably be furloughed right away as part of any AA purchase.

 

[LCC_#1]

What happened to the TWA employees was very unfortunate. But vast numbers of NW employees would probably be furloughed right away as part of any AA purchase.

The NWA folk must be all warm and fuzzy over this statement.
That posting was :cold:

 

[FWAAA]

The NWA folk must be all warm and fuzzy over this statement.
That posting was :cold:

Perhaps, but would their lot be any better by treating the subject as taboo and not talking about it? They'd be just a furloughed if AA takes over NW whether or not I post about it.

 

[Kev3188]

Regarding buying/taking over the 5th freedom rights; how does that work? I know UA bought Pan Am's, but didn't they take on a bunch of employees and A/C as well? Was that an issue of meeting the requirements necessary, or one of operational needs? How would an acquisition (with regards to the "surviving" carrier) differ from LHR rights?

Thanks in advance.

 

[NewHampshire Black Bears]

Regarding buying/taking over the 5th freedom rights; how does that work? I know UA bought Pan Am's, but didn't they take on a bunch of employees and A/C as well? Was that an issue of meeting the requirements necessary, or one of operational needs? How would an acquisition (with regards to the "surviving" carrier) differ from LHR rights?

Thanks in advance.

==========================================================
Excellent question KEV.

Unfortunately I don't have a friggin' clue !
(Now FWAAA, well that's a different story).

Happy holidays, to you and your's !!!!!!!!!!!!!!!!

NH/BB's

 

[FWAAA]

I've got no clue either, NH/BBs. Unlike SuperScab, I'm not a self-proclaimed expert in everything. You know who I'm talkin' 'bout. B)

I'm hoping that AA's legal team knows the answer. Or that they know who to ask (it ain't me).

Excellent question by Kev3188. Some people have posted that the Japanese government will no longer allow a transfer of the 5th Freedom rights, but to me, that makes no sense, since the USA government imposed that on Japan in 1945.

Since UA was allowed to buy the PanAm Japan rights, I have always assumed that if NW put up a For-Sale sign, someone could buy NW's rights as well.

I have posted before that the 5th Freedom rights may not be worth what they used to be worth, given the availability of much longer range aircraft. So even if AA didn't get the NRT 5th Freedom rights, there's something even more valuable at NW:

Those 29 weekly China frequencies. If AA bought NW (and was allowed by the US DOT to keep all of them), that would instantly quintuple AA's China presence and place it just ahead of UA in China. That would permit AA to finally compete against UA.