USAirways tests Delta's interest in a Merger

[nycbusdriver]

I have a feeling that Doug Parker is thinking out of the box and attempting to again take advantage of the flexibility to do things while the target is in bankruptcy. He has said time and time again that the AWA/US merger could have never happened if USAirways was out of bankruptcy. The Chapter 11 gave the opportunity to size the fleet and support system as necessary to make the combined operation work profitably. For now, it appears he was correct.

I doubt Doug really thinks a Delta/US merger would be approvable (Justice Department), workable or realistically possible. However, no where has Doug said that he is interested in ALL of Delta Airlines. And I doubt that he is.

But split Delta into three parts -- Latin America/Caribbean, European, and Domestic -- and there are likely eager takers who will place piles of cash under the Delta creditors' noses to do this. And money, as we all know, talks. Especially in bankruptcy court. Each day in bankruptcy court is like Wednesday on the old Mickey Mouse Club Show -- "Anything-Can-Happen Day!"

 

[Borescope]

Best case scenario, pension relief goes through and NW fails...AA buys pacific unit. I think a CO/DL merger is a better fit and UA goes with the new US...but again, I think it's all talk

AA does want the pacific, as does CO, DL, and most likely US wouldn't turn their nose up at it either. CO and Dl may fit domestically, but what does DL bring to CO that they don't already have? Maybe a few cities in Europe? If you want to get big domestically thenb merge with WN.
The key may be NW, if they restructure then all the afore mentioned carriers will have to find other ways to get the pacific. And as long as the fares are up and everyone is making money, why get into the mess of trying to combine fleets, personel, corporate cultures, etc?

 

[WorldTraveler]

CO and DL do not fit any longer. DL and CO were problematic for quite some time due to their overlapping NYC presence and it has only grown worse as DL has grown. DL and CO will not ever merge.

Dougie also forgets that US had to merge because they were on the verge of being liquidated. Financiers were willing to throw a little more money at a HP/US merger in hopes of saving everything they had invested in US and HP up to that point. There will be no mergers like HP and US during this business cycle.

No carriers will be liquidated or split up into nice little pieces as long as they are making money which every network carrier is doing.

All of the network carriers will emerge as independent carriers. It is highly doubtful that creditors could get as good of a deal in a merger as they could if those companies remained independent.

The next phase of restructuring will begin during the next downturn. Every airline has more than enough older aircraft and flexible leases that can be used to facilitate mergers in the future. In fact, UA is perhaps the most likely merger target since it converted itself to an almost entirely virtual airline that can spin off assets on very short notice.

 

[Red Tail Bear]

A very good source has told me that NO ONE (of the 5 majors) will be doing ANYTHING (M/A's) until the ink is dry on "open skies" !!

In the meantime the "B-5" are hoarding ever "nickel/dime/dollar" that they can, as they await the dropping of the next shoe !!

 

[novaqt]

A very good source has told me that NO ONE (of the 5 majors) will be doing ANYTHING (M/A's) until the ink is dry on "open skies" !!

In the meantime the "B-5" are hoarding ever "nickel/dime/dollar" that they can, as they await the dropping of the next shoe !!

Red Tail, I believe you are the closest to being right with the above statement. James Spraygen was the lead counsel on the United bankruptcy case and is now handling the Delta bankruptcy. Here is a thought out of the box. Delta joins Star Alliance, USAirways already a member of the Star Alliance, with the open skies agreement signed, with foreign investment, the entire Star Alliance would become one global airline?? How is that for thinking out of the box?

 

[WorldTraveler]

The DOJ is still not going to give up its right to challenge antitrust cases. Open skies has nothing to do with US antitrust law.

DL and US will never combine unless one of them substantially reduces its presence in the key NE markets. NEVER.

 

[donttouchthebeauty]

The DOJ is still not going to give up its right to challenge antitrust cases. Open skies has nothing to do with US antitrust law.

DL and US will never combine unless one of them substantially reduces its presence in the key NE markets. NEVER.

Not only NE - but they have 2 major hubs in the SE CLT and ATL clearly 2 different markets but almost the same as PIT PHL - I dont see it -

 

[luvthe9]

Word from Tempe was for something to happen in 3 months or so. Should be interesting.

 

[NCFL]

Word from Tempe was for something to happen in 3 months or so. Should be interesting.

Tempe couldn't find its a$$ with two hands, let alone pull off a merger with DL or anyone else.