D
delta777
Guest
Not exactly an impartial source, but oh well...
http://www.ajc.com/business/content/busine...rways_0125.html
http://www.ajc.com/business/content/busine...rways_0125.html
B.B. Mcgee
Newbie
- Jan 7, 2008
- 2
- 0
Make Delta I AM Managements Delta?
PITbull
Veteran
- Dec 29, 2002
- 7,784
- 456
Well, Mr. Boyd. Not exactly correct...if CEO Parker hadn't stepped in, someone else would have. The airline was positioned to make hundreds of millions, and anyone who had an eye for investing in airlines with bottom base labor costs instinctively knew this. Hell, we all knew it at USAirways. Parker was a sinch, as he knew he stood to make isntant millions in new stock options, in addition, his airline was months away from the same issues of dancing with bankrupcy without a merger.
No great revelation here, just some shortened-memory analysts.
galley princess
Senior
- Nov 4, 2007
- 384
- 263
Call me naive, but I disagree with the article.
Surely there are those with expertise who know that you don't dump a proven Res system and adopt MS DOS in its place because it's cheaper?
Surely there are those who know that happy employees do more for their company and equal happy customers?
Call me silly but some people know the value of clean and properly catered airplanes?
Baggage, despite PHL cannot be considered rocket science. Assumably there are ways to do it well, just not at US.'
Any MBA program has the fact that it's easier to keep a happy customer than get a new one.
US/AWA did all of these wrong, and they wonder why it's a mess?
This is easy stuff, folks, they just didn't do it right.
Reinventing the wheel, making it a square, scratching your head and going back to the round version doesn't mean people didn't notice that you were dumb to begin with. Now you have to work twice as hard to prove you're not an idiot. US' problems were the result of arrogance and lack of experience. Call me naive, but I just don't think that you'll see that kind of train wreck thinking again.
Surely there are those with expertise who know that you don't dump a proven Res system and adopt MS DOS in its place because it's cheaper?
Surely there are those who know that happy employees do more for their company and equal happy customers?
Call me silly but some people know the value of clean and properly catered airplanes?
Baggage, despite PHL cannot be considered rocket science. Assumably there are ways to do it well, just not at US.'
Any MBA program has the fact that it's easier to keep a happy customer than get a new one.
US/AWA did all of these wrong, and they wonder why it's a mess?
This is easy stuff, folks, they just didn't do it right.
Reinventing the wheel, making it a square, scratching your head and going back to the round version doesn't mean people didn't notice that you were dumb to begin with. Now you have to work twice as hard to prove you're not an idiot. US' problems were the result of arrogance and lack of experience. Call me naive, but I just don't think that you'll see that kind of train wreck thinking again.
BobbyBuckInAtlanta
Member
- Dec 19, 2007
- 55
- 0
Thankyou so much for putting out there what i've been saying all along. I was original Usair, hired 20 yrs ago.this makesmy third merger, and by far the worst. None of them were easy, and mistakes were made with each, but i have never seen the complete ineptitude that this group display's. It's CRIMINAL! I thought i would never say this but i would pay big BIG TIME to bring Steven Wolf back. Under his tenure, we had new airplane's, properly equipped to serve our eastern and INTERNATIONAL customers. They were clean, and the list goe's on. In fact, we placed first out of the 6 major's two years in a row in 98 and 99 i beleive in customer service. I'm not sure of the name of the award we won both years under Wolf.{any one with knowledge of that i would appreciate a little help withthat one } The international division was treated with the utmost resect and from my understanding went without nothing. I never thought i would actually hate who i work for. I hope in time the powers that be will come to realize that stepping over dollars to pick up pennies will only get them pocket change. Being the biggest does'nt make you the best. They need to start providing their employees with the tools they need to do their jobs CORRECTLY. Settle the labor contract's, and come with a HIGHER STANDERD for highering employee's. I realize i could go on but i think i made a point
BobbyBuckInAtlanta
Member
- Dec 19, 2007
- 55
- 0
{ After reading my post i realize my spelling and grammer error's. Please excuse them, i tried to edit the post but was unable to figure it out..lol. I'm new on here as a postee and am still tring to figure out how it works..lol }
Delta undecided between United and Northwest as talks continue; American viewed as realistic threat to Delta/Northwest tie-up
By Claudia Montoto
Published: January 30 2008 20:33 | Last updated: January 30 2008 20:33 Financial Times
Delta Airlines is understood to still be in talks with United Airlines about a potential tie-up, despite market reports that have spotlighted a Northwest/Delta combination. It was said that although Delta has not yet chosen a partner, the company finds both potential partners attractive.
Delta continues to view United as a high-yield investment opportunity following some cost cutting and restructuring. It also sees an added value in United’s strong Pacific network and its slots at London’s Heathrow airport. The labor issues of both airlines, in particular United’s under par union relations, are considered by Delta to be equally complicated and will require considerable time and attention no matter which combination is chosen, if any.
Still, an industry banker monitoring the potential wave of consolidation said he wondered whether the semi-official word that Delta was holding conversations with two parties was a strategic move to make a Northwest tie-up appear more attractive. “I think it was just a tactical head fake,†he said, noting that he had not heard talk of a Delta/United tie-up.
Acknowledging discussions with both legacy carriers could have been a means to discipline its negotiations with Northwest, the industry banker speculated. Moreover, he said that because Delta pilots had made it clear they would not merge with United, announcing discussions with Northwest in conjunction with United could have been a way of making a deal with the former appear more attractive to the unions.
Meanwhile, American Airlines, the world’s largest airline by total passengers transported, could be a threat to a Delta deal, particularly if it tied-up with Northwest, the banker said. Having taken a hard look at Northwest “years agoâ€, the banker speculated that American could attempt to bust the deal by making a competing offer if and when the deal is announced. Further, a second industry banker said Northwest did not agree to the merger with American in 2000 as the offer did not reflect the full market premium to Northwest’s share price at that time.
Moreover, the first banker noted that American has more practical experience with mergers than any other airline, which could make the top carrier “more courageous†under the right circumstances.
The banker characterized Northwest as American’s logical merger partner, and speculated that it could make a play to cement its position as a ubiquitous business-class carrier and ensure it is not short-changed during consolidation. Other potential combinations could attract the attention of antitrust regulators and are less likely, the banker said. He explained that an American/Delta merger would have significant overlaps in the Southeast; while an American and Continental tie-up could be problematic because of their Texas hubs in Dallas and Houston. Lastly, he noted that United and American would have a roughly 60% market share in the Chicago market because they are number one and two, respectively, making a tie-up unlikely.
To keep its options open to consolidation, American could proactively disrupt a Delta and Northwest combination to safeguard its position as an industry leader. Should Delta choose Northwest as a merger partner, United would likely respond by pursuing Continental, in which case the only legacy carriers not hitched would be American and US Airways - an unlikely pairing because the latter is a low cost, low-fare carrier.
American is likely thinking ahead on the probable tie-ups, the banker suggested. If United merges with Delta or Continental, American will be faced with a “very, very serious problem;†namely that its hegemony with the business traveler will be threatened, the banker said. He added that a United and Continental tie up would put American in hot water, not just because the aggregate market share of the combined entity would be bigger, but because the new entity would be an enterprise that would practically have a hub in the major population centers around the perimeter of the US. This, he said, would be a very effective kind of competitor for American.
Still, the banker said a Delta/Northwest deal is high on the inevitability scale because both airlines are members of the SkyTeam alliance. However, he said that deal would not catapult other carriers to merge because the formed entity would not be “such a world beaterâ€. One of the shortcomings of a Delta/Northwest deal would be that the combination would fail to reach several key markets, such as the West and Southwest regions, the banker said.
According to the industry banker, a tie-up of American and Northwest would be very beneficial because American’s enormous US network and transatlantic operation would act as a feeder to Northwest’s Pacific operations. This combination would likely lend a hand to American’s number-two position in Chicago, by providing hubs in Minneapolis and Detroit, he said. Yet despite the obvious sense that such a tie-up would make, the banker said he does not believe an American/Northwest deal would make more sense than a Delta/Northwest combination. Still, the banker noted that although American does not have much leverage in its stock, the company has “a ton of cash†which it could use to realize a deal.
According to AMR Corporation’s most recent quarterly filing issues in October, the company has roughly USD 5.4bn in cash.
By Claudia Montoto
Published: January 30 2008 20:33 | Last updated: January 30 2008 20:33 Financial Times
Delta Airlines is understood to still be in talks with United Airlines about a potential tie-up, despite market reports that have spotlighted a Northwest/Delta combination. It was said that although Delta has not yet chosen a partner, the company finds both potential partners attractive.
Delta continues to view United as a high-yield investment opportunity following some cost cutting and restructuring. It also sees an added value in United’s strong Pacific network and its slots at London’s Heathrow airport. The labor issues of both airlines, in particular United’s under par union relations, are considered by Delta to be equally complicated and will require considerable time and attention no matter which combination is chosen, if any.
Still, an industry banker monitoring the potential wave of consolidation said he wondered whether the semi-official word that Delta was holding conversations with two parties was a strategic move to make a Northwest tie-up appear more attractive. “I think it was just a tactical head fake,†he said, noting that he had not heard talk of a Delta/United tie-up.
Acknowledging discussions with both legacy carriers could have been a means to discipline its negotiations with Northwest, the industry banker speculated. Moreover, he said that because Delta pilots had made it clear they would not merge with United, announcing discussions with Northwest in conjunction with United could have been a way of making a deal with the former appear more attractive to the unions.
Meanwhile, American Airlines, the world’s largest airline by total passengers transported, could be a threat to a Delta deal, particularly if it tied-up with Northwest, the banker said. Having taken a hard look at Northwest “years agoâ€, the banker speculated that American could attempt to bust the deal by making a competing offer if and when the deal is announced. Further, a second industry banker said Northwest did not agree to the merger with American in 2000 as the offer did not reflect the full market premium to Northwest’s share price at that time.
Moreover, the first banker noted that American has more practical experience with mergers than any other airline, which could make the top carrier “more courageous†under the right circumstances.
The banker characterized Northwest as American’s logical merger partner, and speculated that it could make a play to cement its position as a ubiquitous business-class carrier and ensure it is not short-changed during consolidation. Other potential combinations could attract the attention of antitrust regulators and are less likely, the banker said. He explained that an American/Delta merger would have significant overlaps in the Southeast; while an American and Continental tie-up could be problematic because of their Texas hubs in Dallas and Houston. Lastly, he noted that United and American would have a roughly 60% market share in the Chicago market because they are number one and two, respectively, making a tie-up unlikely.
To keep its options open to consolidation, American could proactively disrupt a Delta and Northwest combination to safeguard its position as an industry leader. Should Delta choose Northwest as a merger partner, United would likely respond by pursuing Continental, in which case the only legacy carriers not hitched would be American and US Airways - an unlikely pairing because the latter is a low cost, low-fare carrier.
American is likely thinking ahead on the probable tie-ups, the banker suggested. If United merges with Delta or Continental, American will be faced with a “very, very serious problem;†namely that its hegemony with the business traveler will be threatened, the banker said. He added that a United and Continental tie up would put American in hot water, not just because the aggregate market share of the combined entity would be bigger, but because the new entity would be an enterprise that would practically have a hub in the major population centers around the perimeter of the US. This, he said, would be a very effective kind of competitor for American.
Still, the banker said a Delta/Northwest deal is high on the inevitability scale because both airlines are members of the SkyTeam alliance. However, he said that deal would not catapult other carriers to merge because the formed entity would not be “such a world beaterâ€. One of the shortcomings of a Delta/Northwest deal would be that the combination would fail to reach several key markets, such as the West and Southwest regions, the banker said.
According to the industry banker, a tie-up of American and Northwest would be very beneficial because American’s enormous US network and transatlantic operation would act as a feeder to Northwest’s Pacific operations. This combination would likely lend a hand to American’s number-two position in Chicago, by providing hubs in Minneapolis and Detroit, he said. Yet despite the obvious sense that such a tie-up would make, the banker said he does not believe an American/Northwest deal would make more sense than a Delta/Northwest combination. Still, the banker noted that although American does not have much leverage in its stock, the company has “a ton of cash†which it could use to realize a deal.
According to AMR Corporation’s most recent quarterly filing issues in October, the company has roughly USD 5.4bn in cash.
Delta Adds Continental to Merger Options
By Ted Reed
TheStreet.com Staff Reporter
1/31/2008 7:12 PM EST
Click here for more stories by Ted Reed
Updated from 6:07 p.m. EST
As it pursues its consolidation strategy, Delta (DAL - Cramer's Take - Stockpickr) is talking with a variety of carriers including Continental (CAL - Cramer's Take - Stockpickr - Rating).
Those talks so far have been preliminary, and have not advanced as far as merger discussions with Northwest (NWA - Cramer's Take - Stockpickr), according to a person familiar with the situation. However, discussions with Northwest appear to have hit snags, including issues involving the leadership of the combined company.
Delta has also had conversations recently with UAL (UAUA - Cramer's Take - Stockpickr - Rating), the owner of United Airlines, according to published reports.
In the past, internal Delta consolidation studies have concluded that a merger with Continental would make the most sense, while a deal with Northwest could also have value because it would provide access to the Pacific, according to sources who are familiar with the situation.
Delta bid unsuccessfully for Continental in 1998, then acknowledged it was again studying a merger effort in 2000.
The internal studies also determined that authorities wouldn't permit a merger with United because the combined airline would be too big. However, it is uncertain whether regulators would have the same view today given the rapid expansion of low-fare carriers who might also provide competitive alternatives in the event of legacy carrier mergers.
Additionally, since the internal studies were done, Delta and Continental have both dramatically built their hubs at New York's Kennedy Airport and Newark Liberty International Airport, as well as their trans-Atlantic service from the two hubs.
Publicly, Delta has said it is "analyzing strategic options, including potential consolidation transactions." Delta and Continental declined to speak for this story.
By Ted Reed
TheStreet.com Staff Reporter
1/31/2008 7:12 PM EST
Click here for more stories by Ted Reed
Updated from 6:07 p.m. EST
As it pursues its consolidation strategy, Delta (DAL - Cramer's Take - Stockpickr) is talking with a variety of carriers including Continental (CAL - Cramer's Take - Stockpickr - Rating).
Those talks so far have been preliminary, and have not advanced as far as merger discussions with Northwest (NWA - Cramer's Take - Stockpickr), according to a person familiar with the situation. However, discussions with Northwest appear to have hit snags, including issues involving the leadership of the combined company.
Delta has also had conversations recently with UAL (UAUA - Cramer's Take - Stockpickr - Rating), the owner of United Airlines, according to published reports.
In the past, internal Delta consolidation studies have concluded that a merger with Continental would make the most sense, while a deal with Northwest could also have value because it would provide access to the Pacific, according to sources who are familiar with the situation.
Delta bid unsuccessfully for Continental in 1998, then acknowledged it was again studying a merger effort in 2000.
The internal studies also determined that authorities wouldn't permit a merger with United because the combined airline would be too big. However, it is uncertain whether regulators would have the same view today given the rapid expansion of low-fare carriers who might also provide competitive alternatives in the event of legacy carrier mergers.
Additionally, since the internal studies were done, Delta and Continental have both dramatically built their hubs at New York's Kennedy Airport and Newark Liberty International Airport, as well as their trans-Atlantic service from the two hubs.
Publicly, Delta has said it is "analyzing strategic options, including potential consolidation transactions." Delta and Continental declined to speak for this story.
Be Careful What You Wish For.
Veteran
- Dec 23, 2006
- 2,269
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Be Careful What You Wish For.
Veteran
- Dec 23, 2006
- 2,269
- 571
Financial Times Article offering additional scenarios.
http://www.ft.com/cms/s/2/d5727ad0-cf6e-11...0b5df10621.html
http://www.ft.com/cms/s/2/d5727ad0-cf6e-11...0b5df10621.html
Be Careful What You Wish For.
Veteran
- Dec 23, 2006
- 2,269
- 571
I apologize if I missed your earlier post.
Thanks
freedom
Veteran
- Feb 15, 2006
- 3,244
- 274
I think it’s good we didn’t merge with delta , can anyone even imagine the combination of their pilots with our pilots ? Not to mention weren’t the delta pilots the best paid in the industry ? Last I recall they have taken pay cuts of up to 50%, there’s no way they will ever be able to live that down , the next airline that merges with them will have worse labor unrest than we at us airways are having today .. Imagine a new company with delta pilots , they will push for everything they had back ,to the exclusion of all other work groups . Eventually in order to get a fair piece of the pie all of the major work groups will have to go union if their not already , and that new company will just die as the work groups start fighting amongst themselves over the money .
N965VJ
Veteran
From all accounts, Parker absolutely loves the merger game. I can’t imagine him just sitting on the sidelines while everybody else dances.
