Is dougie giving up?

[longing4piedmont]

Does he know he is about to be told no for the third time?

US Airways CEO will not fight for Delta

Marilyn Adams
USA TODAY
Dec. 5, 2006 06:51 PM


US Airways will give up its proposed takeover of Delta Air Lines if management there can't be persuaded of the benefits, US Airways CEO Doug Parker said Tuesday.

Parker said Tuesday he's not prepared to fight Delta's management in bankruptcy court by submitting a merger plan to the judge without the backing of Delta's management.

"We have to get to a point where are all working together on this or it's not going to happen," Parker said during a meeting with editors and reporters at USA Today. "This is all about convincing Delta's management that this plan makes sense."

Link

 

[superG]

Does he know he is about to be told no for the third time?

US Airways CEO will not fight for Delta



Link

This must be RC's big announcement, as the other one is no news...

 

[flyhigh]

...well, he's done pursuading Delta mgmt. Most of that, if they side with US, will be done by creditors more interested in the US option.

 

[abe]

Something seems fishy with this article. I'll bet that Parker was misquoted, or it is a part of a larger stategy. Maybe to get creditors to apply pressure to Grinstein??

He and his team spent big bucks and a lot of time putting this offer together...knowing full well from the onset that Delta management would be solidly against it. He could've been working on his "other" merger in the meantime.

I don't think with all of this time and money invested that he would throw up the white flag just yet. (Not to mention the apparent fig leaf he threw out this week to move the AWA and USAirways pilot contract along). This is a calculated move on his part.

This may be like calling the auto dealership that you visited earlier in the day and telling them your final price....he's looking for a reaction from the creditors.

Now's the time to do it, because JG's offer (and maybe others) are coming soon...

Or maybe not.....who knows??

Abe

 

[UnitedChicago]

surprised WT didn't come out of hiding to post another press release

 

[whlinder]

surprised WT didn't come out of hiding to post another press release

That's because "the plan is working and we're going to rule the world!"



Whoops, forgot to put that in enourmous font.

 

[PhxMama]

It may be that as others have suggested, this was a smokescreen and NW was the real target of this merger. It should be interesting. As much as Delta employees are against this, I hope it will be NW. Its easier to work with people who are not hostile especially when neither one of the sides had a say. Still, I would love to let LUV know what Im like to work with!
Mama

 

[Vikedog64]

It may be that as others have suggested, this was a smokescreen and NW was the real target of this merger. It should be interesting. As much as Delta employees are against this, I hope it will be NW. Its easier to work with people who are not hostile especially when neither one of the sides had a say. Still, I would love to let LUV know what Im like to work with!
Mama

Has anyone thought that this is all about inflating the stock price?

 

[PhxMama]

Didnt Doug already cash in his stock options? Its alot of time and money and aggravation to raise the stock price. Why couldnt we just start a rumour that we have a jet fuel source that is is cheaper than WN fuel hedges? THAT would raise stock price without the hassle!

 

[flyhigh]

...M&A's are not something you do to raise stock prices and set up smoke screens. It's far too costly. If you were doing that, you'd do what CO did in 2000, just say something like when they said they'd buy DL in reaction to UA's attempted takeover of US. They didn't line up financing, etc. To do that means Citi went through their plan, their books and all sorts of other things to approve a loan of this nature. That is a costly endeavour to undertake in the airlines. If you were a Kirk Kerkorian or Carl Icahn...people with billions to throw around. Airlines don't have that luxury. Additionally, Parker mentioned to employees (at least those at HQ) that the reason they have targeted Delta is because of their position in Ch11 vs. that of NW who has a lot less fat to cut and is further along in the process.

 

[abe]

Additionally, Parker mentioned to employees (at least those at HQ) that the reason they have targeted Delta is because of their position in Ch11 vs. that of NW who has a lot less fat to cut and is further along in the process.

I've seen this several places and find it hard to believe. I think Delta was targeted instead of NWA because:

1. Delta pilot pension is toast (NWA is still intact)

2. Other employees pensions could be gutted at Delta (non-union)...NWA pensions still intact

3. Less post-merger labor problems to deal with (did I mention, Delta is mostly non-union). NWA has had some recent labor battles.

There are probably countless other reasons, but I'm pretty sure NWA is not any further along in the process than Delta managers are.

They filed on the same day, in the same court and are both planning on emerging around the same time (next Spring/Summer). If one were way ahead of the other, this wouldn't be the case.


Abe

 

[Gilding the Lily]

I've seen this several places and find it hard to believe. I think Delta was targeted instead of NWA because:

1. Delta pilot pension is toast (NWA is still intact)

2. Other employees pensions could be gutted at Delta (non-union)...NWA pensions still intact

3. Less post-merger labor problems to deal with (did I mention, Delta is mostly non-union). NWA has had some recent labor battles.

There are probably countless other reasons, but I'm pretty sure NWA is not any further along in the process than Delta managers are.

They filed on the same day, in the same court and are both planning on emerging around the same time (next Spring/Summer). If one were way ahead of the other, this wouldn't be the case.
Abe

removed

 

[flyhigh]

Abe,

Non-union pensions were changed to cash balance well before bankruptcy so they're not much of a weight...at least not any more than a 401 match would be. Given that DL always matched in DL stock, it's neutral...so that's a done.

When NWA went in, it was more due to the debt they incurred post-9/11. They have a niche that they're good at and run it pretty well. Delta, has a lot of fleet, property, and route structure issues that needed to be address and likely could only be addressed through bankruptcy.

As for finding it hard to believe...just because you find it hard to believe doesn't mean a thing. It just means you're not privy to all of the information and not making as informed a decision.

 

[abe]

When NWA went in, it was more due to the debt they incurred post-9/11. They have a niche that they're good at and run it pretty well. Delta, has a lot of fleet, property, and route structure issues that needed to be address and likely could only be addressed through bankruptcy.

As for finding it hard to believe...just because you find it hard to believe doesn't mean a thing. It just means you're not privy to all of the information and not making as informed a decision.

High debt load (and the cost to service that debt) was a big factor for both companies. So was gutting labor contracts....something neither could get done outside of BK.

Since you seem to be "privy", could you outline for all of us the fleet, property and route structures at Delta that have yet to addressed? Any idea what percentage of the current fleet has already been ironed out? (Hint: it's a high number)

How 'bout the route structure? Has any work been done yet in this area? How much more is occurring this month and has already been announced for the '07 summer schedule? Any changes to their hubs? Have they changed the way they allocate their planes (hint: widebodies)? Have they ordered additional aircraft?



Assuming you can answer the above questions with any bit of accuracy, please tell us how NWA's exit plan is coming along? Have you seen their business plan going forward? (Neither have I, because they are still working on it...just like Delta).

How's that NWA flight attendant contract thingy going? What about the replacements for the DC-9's?

Shed some light on all of this for us so we can all make an informed decision, like you.


Abe

And finally, if NWA is so far ahead in the process, why are they planning to emerge at roughly the same time as Delta??

 

[Nor'Easta]

(did I mention, Delta is mostly non-union).

90% non-union. Only one work group has a brain and does not drink the special sauce that Delta feeds them.

But, DL management will take care of all the non-union employees. This is what all the non-union employees believe. Why? Watch that special sauce!