US went for DL (bust) but why not NW or CO

TravelDude

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Nov 21, 2003
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So looks like the DL thing will not come back to life.

But why was it DL to start with? Why not NW with its large airbus fleet and strong midwest hubs and pacific operations. The new US is lacking in the midwest and pacific.

On yet another hand CO would give great southern access and better central and south america flying.

Okay, so before ANYONE or EVERYONE gets worked up, I am not saying another merger should happen. I am just curious what made Parker want DL so bad when to me NW looks like the better fit.

Thoughts?
 
DL never made much sense to me (or to most anyone else for that matter) which is probably why management tried...

NW always seemed to make the most sense...makes you wonder if it could have happened if Doug had pursued the 'Red Tails' instead of the 'Southern Belles'...

CO and US? If you thought DL gave US a hard time can you imagine what response US would get from CO? You'd probably be able to hear the laughter in Houston all the way to the Sandpail! US would NEVER be able to pull that off, and the two couldn't be more opposite (class vs. classLESS) and moving in more different directions...it's sort of like putting on a ballgown to go to McDonalds or driving the Bentley to a campground and pitching a tent...the two just don't mix!
 
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Ha Ha funny analogies (sp) to comparing US and CO cultures.

So, why not go after NW, they were also in bankruptcy? What would scare Parker from NW but have him thinking DL is ideal?
 
you have to understand that US mgmt doesnt do what actually makes sense. thats why they went after DL! had they gone afteer NW, then that would have made sense but mgmt at US doesnt like what makes sense
 
My 2 cents? Parker went after DL for precisely the reason that it didn't make sense - route overlap. Merging with DL would have allowed reducing capacity on an awful lot of duplicate routes, which would have pushed average fares up, which would have provided the lion's share of the $1.6 billion in synergies.

Jim
 
My 2 cents? Parker went after DL for precisely the reason that it didn't make sense - route overlap. Merging with DL would have allowed reducing capacity on an awful lot of duplicate routes, which would have pushed average fares up, which would have provided the lion's share of the $1.6 billion in synergies.

Jim
But wouldn't that have made it a tougher sale to the DOJ?
 
My 2 cents? Parker went after DL for precisely the reason that it didn't make sense - route overlap. Merging with DL would have allowed reducing capacity on an awful lot of duplicate routes, which would have pushed average fares up, which would have provided the lion's share of the $1.6 billion in synergies.

Jim

Very good point Jim. I was thinking about the "eliminating the overlapping competition" factor myself...but did Doug really think merging with DL would have a better chance of passing the necessary hurdles than merging with NW?

I truly believe a proposed merger with NW might have produced different results...but clearly that would have been more of a "let's grow the airline" philosophy which would have flown in the face of this regime's "merge and downsize/consolidate" philosophy...
 
Very good point Jim. I was thinking about the "eliminating the overlapping competition" factor myself...but did Doug really think merging with DL would have a better chance of passing the necessary hurdles than merging with NW?

I truly believe a proposed merger with NW might have produced different results...but clearly that would have been more of a "let's grow the airline" philosophy which would have flown in the face of this regime's "merge and downsize/consolidate" philosophy...
I believe he was just testing it to see if actually could happen. He thought if he can pull it off, but if he couldn't oh well. Going after NW would have probably meant a merger.
 
Doug was more than willing to eliminate or sell whatever routes he had to in order to win DOJ approval. But what is a few thousand layoffs when you can make some money for the monsy markets.
 
DL never made much sense to me (or to most anyone else for that matter) which is probably why management tried...

NW always seemed to make the most sense...makes you wonder if it could have happened if Doug had pursued the 'Red Tails' instead of the 'Southern Belles'...

CO and US? If you thought DL gave US a hard time can you imagine what response US would get from CO? You'd probably be able to hear the laughter in Houston all the way to the Sandpail! US would NEVER be able to pull that off, and the two couldn't be more opposite (class vs. classLESS) and moving in more different directions...it's sort of like putting on a ballgown to go to McDonalds or driving the Bentley to a campground and pitching a tent...the two just don't mix!



Actually - you couldnt be more wrong... Just b/c CAL offers a greasy cheeseburger doesnt make them classier.. In fact they were once know as the trailer park airline you are pushing US to be.... I would not quite call CAL a superior airline.. They dont even have a 3 class service for gods sake, and most of the girls in EWR and IAH are not "classy"... if you get my drift....
 
Actually - you couldnt be more wrong... Just b/c CAL offers a greasy cheeseburger doesnt make them classier.. In fact they were once know as the trailer park airline you are pushing US to be.... I would not quite call CAL a superior airline.. They dont even have a 3 class service for gods sake, and most of the girls in EWR and IAH are not "classy"... if you get my drift....

Hmmm... Interesting. I bet most FFs would be happy if US turned into a CO.

This won't speak for the FAs, but you might want to check out these links - It lists all of the awards CO has gotten in recent years. What other US airlines can say the same?



COs Recent Awards

CO Wins Best Business for 5th Year in a Row
 
My 2 cents? Parker went after DL for precisely the reason that it didn't make sense - route overlap. Merging with DL would have allowed reducing capacity on an awful lot of duplicate routes, which would have pushed average fares up, which would have provided the lion's share of the $1.6 billion in synergies.

Jim

JMHO,
He's looking for the big pay day and he and his 'staff' will not be around when the ship hits ground. BK has been more of a 'pay day' to the people that run it into the ground than those of us that try to make it survive.

B) UT
 
Actually - you couldnt be more wrong... Just b/c CAL offers a greasy cheeseburger doesnt make them classier.. In fact they were once know as the trailer park airline you are pushing US to be.... I would not quite call CAL a superior airline.. They dont even have a 3 class service for gods sake, and most of the girls in EWR and IAH are not "classy"... if you get my drift....

There will always be people that cannot or do not project an image of class. However, I'm not speaking of some crewmembers so much as I am speaking about the overall perception of CO as a truly "world class" airline that can certainly hold it's own among the international elite.

Perception is everything...especially in the world of passenger aviation, and although CO went through the troubled years ('91-'95) those days (and that trailer park image) are long behind them as they show up just about every other domestic airline.

I think most of the "airline-wise" knowledgeable flying public would agree...

JMHO,
He's looking for the big pay day and he and his 'staff' will not be around when the ship hits ground. BK has been more of a 'pay day' to the people that run it into the ground than those of us that try to make it survive.

UT

Sadly, I believe you are 100% correct.
 
JMHO,
He's looking for the big pay day and he and his 'staff' will not be around when the ship hits ground. BK has been more of a 'pay day' to the people that run it into the ground than those of us that try to make it survive.

B) UT
How much more money does this dickhead need....He's made enough off stock options, so he does'nt have to worry about paying for a round at the pub, he wont go hungry...Maybe going up modest I just do not understand how you can fu&k people over even though you have all the money you need.
 
So looks like the DL thing will not come back to life.

But why was it DL to start with? Why not NW with its large airbus fleet and strong Midwest hubs and pacific operations. The new US is lacking in the Midwest and pacific.

On yet another hand CO would give great southern access and better central and south America flying.

Okay, so before ANYONE or EVERYONE gets worked up, I am not saying another merger should happen. I am just curious what made Parker want DL so bad when to me NW looks like the better fit.

Thoughts?
Actually, to go after Delta was quite brilliant. If you want to eliminate your MAJOR competition what do you do...BUY THEM.
 

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