Union Chief: US Air Is Only Delta Bidder

[luv2fly]

US may be the only bidder at this point. However,

UA still interested?

The Wall Street Journal on Wednesday reported that, in addition to talking to Continental, United had informally suggested to Delta that it might be a better merger partner than US Airways if Delta feels a deal is unavoidable.

 

[rvolkcpa]

Facts? OK, lets just look at a few of the biggest creditors out of the 9 on the committee.

DALPA - This one speaks for itself. No union is going to vote itself out of a job.

Boeing - A standalone DL brings a future boat load of aircraft replacement orders. Almost all DL aircraft will be replaced in the next 5-10 years and DL is a strictly Boeing customer. A breakup would flood the market with used aircraft and eliminate a loyal customer.

PBGC - DL put a lot of effort into supporting legislation that would allow non-contract employees to keep their pensions. A breakup would likely send these retirements to the PBGC as would a merger with US.

Fidelity - Vote to put a valuable customer out of business?

Coke - Coke, DL, and Home Depot are the backbone of the Georgia economy. No chance of Coke voting for a breakup.

Pratt - DL is loyal customer. Why would any airline supplier want to see fewer airlines? Fewer companies means fewer aircraft and less parts.

You dream of a breakup probably because you fear the competition from a lean/mean DL. Sorry man, ain't gonna happen.

US Airways continues to serve Coke products, so Coke wouldn't be harmed by a DL/US merger.

 

[BoeingBoy]

I guess I missed part of your point - and I agree with that part - the employees don't matter to the money people. But big bankruptcies have always shown little/no concern for the employees - that's nothing new. I was merely pointing out that there are few simuliarities between the DL bk and what happened to PanAm.

In the PanAm case, the "breakup" was largely self inflicted by PanAm - selling off assets in what turned out to be a futile effort to survive with the competitive cards stacked against them. I've seen no signs of that at DL yet.

In big corporation bankruptcies, the judge's automatic presumption is that a reorganized company is better for creditors than auctioning off the pieces. That's why management almost always gets what they want from the judge instead of chapter 11 turning into chapter 7 immediately. Doesn't help the employees or the shareholders, may or may not be a good for the creditors, but that's the way it is...

Jim