USAirways to buy (merge) with Delta
- Thread starter javaboy
- Start date
robbedagain
Veteran
- Oct 13, 2003
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im not sure that this will survive due to too much overlap and other issues
WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
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- Banned
- #3
DL has no interest in a merger w/ anyone and even they did it would never be w/ US. US and DL combined are so large on the East Coast that regulators would never approve it. Further, US has still not completed its merger w/ HP from a year ago.
The fact that the proposal has been on the table for 2 months should indicate that Grinstein has the backing of the creditors in not pursuing a merger.
The fact that the proposal has been on the table for 2 months should indicate that Grinstein has the backing of the creditors in not pursuing a merger.
USCREW
Veteran
OMG LMAO
It's really being discussed as a hostile takeover! I agree, the Government won't approve this!
My sentiments exactly. That Parker is turning into the tazmanian devil of the industry.
jimntx
Veteran
Don't bet the rent money on that. Ask yourself two questions...
1. How much did LCC executives contribute to the GOP this election cycle?
2. How much did DL executives contribute to the GOP this election cycle?
The greater amount wins. If LCC is the greater then the "Justice" Department will find that it is in the best interests of American business to approve the merger. However, they will have to shed certain important routes to increase competition--i.e., ALB-ABE, CVG-LEX.
(Oh, and don't assume this is an anti-GOP slam even though I am very anti-GOP. If the DEMs controlled the Administrative branch on the government, then you would substitute Democratic Party for GOP in the questions above.)
Cynical? Moi? How could you say such a thing?
ha ha ha ha ha ha.....!
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Flying Titan
Veteran
- Oct 14, 2003
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Parker's conf. call this morning indicated that SLC and PHX would remain hubs while, by implication, saying that LAS would become a focus city.
Interesting that PIT and CVG were also listed as post-merger hubs. So were CLT and ATL. Those were the most striking to me.
As for gov't approval...I'm not so quick to say that the DOJ will automatically reject the deal. Obviously, the DL shuttle will have to be sold off. My guess is AA or B6 would step up to buy it. Some DCA & LGA slots may have to be sold, too. But with DL in bankruptcy, the court may trump any other concerns - citing increased creditor value.
Interesting that PIT and CVG were also listed as post-merger hubs. So were CLT and ATL. Those were the most striking to me.
As for gov't approval...I'm not so quick to say that the DOJ will automatically reject the deal. Obviously, the DL shuttle will have to be sold off. My guess is AA or B6 would step up to buy it. Some DCA & LGA slots may have to be sold, too. But with DL in bankruptcy, the court may trump any other concerns - citing increased creditor value.
Will this get approved in its entirety...NO. We all know that. Much like UA's attempt at US in 2000, before the final nail was hit, UA dealt with AA to try for approval. Expect the same...send the CLT & SLC hubs out there as a giveaway.
As for the deal being out there for two months and that being creditor confidence...not true. This has been on Grinstein's desk for that long, but not necessarily in the court. This deal proposed to give current unsecurred creditors some value that would otherwise vanish when DL emerges. I'm not sure the court isn't at least going to look at this. And by the way, this says nothing of what other players emerge. I'm willing to bet UA will in the next week or two announce a bid as well.
Does any of it pan out into a merger...probably not, but DL is officially in play and we haven't seen all the players yet.
As for the deal being out there for two months and that being creditor confidence...not true. This has been on Grinstein's desk for that long, but not necessarily in the court. This deal proposed to give current unsecurred creditors some value that would otherwise vanish when DL emerges. I'm not sure the court isn't at least going to look at this. And by the way, this says nothing of what other players emerge. I'm willing to bet UA will in the next week or two announce a bid as well.
Does any of it pan out into a merger...probably not, but DL is officially in play and we haven't seen all the players yet.
AIRWOMAN
Veteran
- Oct 20, 2005
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And add to it all............the number of times that Delta has asked for and been granted extensions to their bankruptcy emergence plan. It's all about the creditors.the delta managemnt team has no say so in this. delta is in bk. the creditors are the ones who can say yes or no. and i bet you they say yes. sorry but delta is in bk. can't really do anything about it. it will be nice working with you world traveler.
My brother works for Delta, nearly 19 years now, and said that the unions have tried to get in many times but have not been successful. So.....that will be very, very interesting.
