Delta, US Airways Close Deal to Transfer Flying Rights in New York and Washington, D.C.
- Thread starter USA320Pilot
- Start date
WorldTraveler
Corn Field
- Dec 5, 2003
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Given that DL and US only have to wait 90-100 days before beginning the first round of flights and another 3 months for the 2nd round, we should start seeing announcements about markets in the very near future. B6 has a pretty narrow window to begin its flights before DL and US can add theirs.
At this point, the first round will probably roll out in March in time for the last half of spring break/Easter with the 2nd wave in June with the "finished product" to likely be in place by July 4 weekend.
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I still believe this will be one of the most significant transactions to realign market position in the NE and has a greater effect than any of the most recent mergers - DL/NW, CO/UA, and FL/WN.
At this point, the first round will probably roll out in March in time for the last half of spring break/Easter with the 2nd wave in June with the "finished product" to likely be in place by July 4 weekend.
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I still believe this will be one of the most significant transactions to realign market position in the NE and has a greater effect than any of the most recent mergers - DL/NW, CO/UA, and FL/WN.
Get Ready for your packet (unless you work in DCA). Let the layoffs begin. Lets see, Whats available, Only PHL. Do I move to PHL, or take the lay off and sign up for the Obama Medical Plan. Decisions, Decisions.
SparrowHawk
Veteran
- Nov 30, 2009
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Yeah! That's the ticket! The back bench junior senator from IL pretending to be leader of the free world will save you. Look how well he's done so far.
Gas Price 1/21/2009 = $1.83/Gal
Gas Price Today = $3.18/Gal (Down from $3.99/Gal)
Unemployment rate 1/21/2009 = 7.8%
Current Unemployment rate = 8.6% (Down from just under 10%)
Credit Rating 1/21/2009 = The highest possible
Credit Rating now? = Downgraded
So how is the "Hope & Change" thing workin' for ya? Food prices up 20% due to commodity inflation caused by his massive run up of the debt.
Well I have to go cling to my guns and religion now.
- Thread Starter
- #8
Jim's comment is accurate and I was wondering about the DOJ too. For US Airways and Delta to close the transaction before the DOJ made an additional public announcement should mean the two companies have confidence the DOJ will not object.
The DOJ has no authority to block the deal and according to Scott Kirby in a comment made during the 3rd quarter Earnings Conference Call and earlier in the week during the CLT Pilot Crew News session the only way for the DOJ to stop the deal is for the regulators to file suit in federal court.
In my opinion, this is the first of a couple of more steps in the DCA-LGA (and BOS) markets. Additional strategic initiatives could be the re-purchase of the 10 E-190s/DCA slots previously sold to Republic, the E-190s becoming the only Shuttle aircraft in all 3 markets, code sharing the Shuttle with American, and if the FAA Reauthorization bill provides additional beyond perimeter exemptions US Airways could obtain additional slots and/or convert existing slots to fly from DCA to SAN, LAX, & SFO.
As the largest holder of DCA slots, wouldn't US be the last carrier approved for new or beyond perimeter slots? Typically, don't new/beyond perimeter slots go to new entrants or carriers without dominant positions?
The current transaction required that eight slot pairs be divested due to the dominant position of US. And yet you think US could get more if more become available?
The current transaction required that eight slot pairs be divested due to the dominant position of US. And yet you think US could get more if more become available?
- Thread Starter
- #10
Yep; however, if a corporate combination is completed with AA then no.
I can't tell from your abbreviated post exactly what you're trying to convey.
IMO, US has no chance at acquiring new/beyond perimeter DCA slots as preference would be given to carriers less dominant than US. The current DCA slot hodings appear to be at the limit.
If a combination between US and AA occurs, it appears likely that the combined entity might have to divest some or all of AA's current DCA slots, as adding AA's slots to US would add to the DCA dominance.
Face it - US is probably maxed out in its DCA slots and unlikely to get government approval to add more, regardless of the method of acquisition.
- Thread Starter
- #12
I agree with you that if US & AA merge the combined entity could be required to divest of some DCA slots, but if more slots are provided I have been told it is not out of the question US could obtain additional slots. Furthermore, the Slot Transaction reduces NYC anti-trust issues in a M&A scenario with either US/CO or AA, but creates a greater DCA/BWI/IAD anti-trust problem with a UA-CO deal.
Another point and I cannot remember if it is in the House or Senate Reauthorization version of the bill, but companies would be permitted to convert existing slots to beyond perimeter flights, which could be good for US. This would need to be finalized in conference committee before the bill becomes law.
WorldTraveler
Corn Field
- Dec 5, 2003
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The transaction is final; the DOJ has not challenged the deal.
Money will be transferred from WestJet and JetBlue to DL and US, DL can begin work on the LGA terminal, and each carrier can begin announcing their new schedules.
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The chance of US gaining any new slights is slim to none; if the perimeter rules are relaxed, then US has a chance of being able to convert some slots to beyond perimeter slots.... but that is the only way they will gain a long-haul presence from the WAS area.
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US has more than 50% of the slots at DCA; any combination of US and another carrier that increases the number of slots held by US at DCA will almost certainly produce a much stronger reaction from the DOJ. If US can't accomplish what it needs to strategically with more than 3X more slots than any other carrier and half of all slots, then there is no additional amount of slots that will help. To have 50% share in a high value, limited access should be everything that any carrier needs to succeed.
Money will be transferred from WestJet and JetBlue to DL and US, DL can begin work on the LGA terminal, and each carrier can begin announcing their new schedules.
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The chance of US gaining any new slights is slim to none; if the perimeter rules are relaxed, then US has a chance of being able to convert some slots to beyond perimeter slots.... but that is the only way they will gain a long-haul presence from the WAS area.
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US has more than 50% of the slots at DCA; any combination of US and another carrier that increases the number of slots held by US at DCA will almost certainly produce a much stronger reaction from the DOJ. If US can't accomplish what it needs to strategically with more than 3X more slots than any other carrier and half of all slots, then there is no additional amount of slots that will help. To have 50% share in a high value, limited access should be everything that any carrier needs to succeed.
Kev3188
Veteran
WorldTraveler
Corn Field
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how many FT employees does DL and US have in DCA and LGA respectively that are realistically "at risk"... When DL added another round of DCA flying a year ago (undoubtedly to spur US to realize that if they didn't agree to the swap, DL would use the slots on "real routes" such as MCO etc), was that staffing increased using FT employees?
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It has been discussed here but it has been so long - how many Express employees at LGA will likely be cut - and are there indications that many have quit knowing the slot deal was finally going to close?
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thanks for the updates on the HR side of this deal.
