LCC Proposes $8B merger with Delta

[EricLv2Fish]

Have heard from sources within US that this is basically a done deal and that Parker's public announcement today was only to satisfy certain requirements for the DL creditors (ie. offer of outside bids, etc.) and US shareholders.

Far from a done deal even if no other airline makes an equivalent offer. You can be assured DP did his homework, but there are still hurdles such as US shareholders approving it, BK judge and the federal gov. My gut feeling is it's going to go thru just like AWA/US Airways did. Kinda makes me wish I didn't leave...at least for a moment . Man...this could be one helluva an airline when all is said and done.

 

[EricLv2Fish]

It would actually be good for the unions to be a stronger/bigger comapny. That gives the unions far more leverage than a smaller one. Consolidation - 3 mega Airlines, would actualy make the Unions players agian in this industry IMHO!

Delta is larger than the current US Airways and from what I remember Delta has large workgroups not union...this could relieve those non-union westies from not having a choice to be union...possibly...dunno. Contrary to belief there are some non-union people who want to stay that way...especially if the alternative is the IAM.

 

[WNrforlife]

US Scareways really, really sucks bad

 

[HPearlyretiree]

Delta is larger than the current US Airways and from what I remember Delta has large workgroups not union...this could relieve those non-union westies from not having a choice to be union...possibly...dunno. Contrary to belief there are some non-union people who want to stay that way...especially if the alternative is the IAM.

It would be great to have a huge non union airline.

Another nail in the coffin of the sad, corrupt history of unions in America.

 

[N924PS]

US Scareways really, really sucks bad

And there's always someone like you to bring real class to USAviation. NOT!

 

[HPearlyretiree]

US Scareways really, really sucks bad

Southwest jumped the shark months ago. No thanks, I like to choose a seat and be treated like a human being, not a number.

 

[WingNut]

In retrospect I think this may be a smokescreen for the real target--NW. A NW deal makes much more sense in my opinion--lower price, less overlap, easier government approval...and the Asian routes alone are worth the price of admission.

If this deal happens, more than a few hubs will go bye bye---and in my opinion, CLT would be the most vulnerable....

For some reason I don't see this one happening.

 

[N965VJ]

<SNIP> 6. The merger could also be used to cloud the big picture and maybe NWA is the real target.

BINGO!

We certainly live in interesting times.

Ancient Chinese curse.

 

[jimntx]

It would actually be good for the unions to be a stronger/bigger comapny. That gives the unions far more leverage than a smaller one. Consolidation - 3 mega Airlines, would actualy make the Unions players agian in this industry IMHO!

Maybe. Maybe not. I grew up in Birmingham, AL which in the 50's was one of the most unionized cities in the U.S. due to the coal mines and steel mills. What made the unions strong was not the number of members in a given union, it was the fact that NO union member of ANY union would cross another union's picket line. If the steelworkers were on strike, you could forget about getting a union truck driver to deliver food/supplies to management people in the plant. And, union members would not purchase anything from a company whose non-union employees were made to cross the picket line.

I think recent airline strikes--see also AMFA strike at NWA--have pretty well shown that unions are no longer willing to back up each other.

 

[UPNAWAY]

2. By DL being "In Play" LCC's stock will rise most likely.


Piney, Did you notice that all Airline stocks where up significantly today on the speculation that this could be the start of something industry wide. With one big exception LUV shares were mostly flat. The one airline that could buy anybody they wanted to with cash, but is also considered the least likely to? If the internationl/world markets ever open up it will be interesting what SWA will do, can they keep just being themselves if massive industry consolidation happens? On a side note do you know if the Delta VFFs have a Slug or Rat group to compete with the cockroaches?

 

[WingNut]

2. By DL being "In Play" LCC's stock will rise most likely.
Piney, Did you notice that all Airline stocks where up significantly today on the speculation that this could be the start of something industry wide. With one big exception LUV shares were mostly flat. The one airline that could buy anybody they wanted to with cash, but is also considered the least likely to? If the internationl/world markets ever open up it will be interesting what SWA will do, can they keep just being themselves if massive industry consolidation happens? On a side note do you know if the Delta VFFs have a Slug or Rat group to compete with the cockroaches?

 

[EricLv2Fish]

I've been reading most of this today with great interest and I would like to share a few thoughts:

6. The merger could also be used to cloud the big picture and maybe NWA is the real target.

We certainly live in interesting times.

Could be right, but think about this. Delta is largely non-union. Much easier to merge than an airline with Management/Union scars all over it AKA Northwest. Merging with another bitter airline at this point is definetly not a good idea and DP probably would agree.

 

[PITbull]

Honey, it will be DOH. For the f/a group, AFA will be the union and represent the DL f/as IF...IF...IF...the merger is approved. I see major hurdles on that front.
I have a few questions...

1. Can DL fa's join the union while in bk?

2. If not would stapleing them be DP's way of helping his AWA FAs gain instant senority? Which would make them very happy.

3. I'm certain AFA would like to asure DL FAs they will get DOH if only to get them to join but, can they do this while in bk?

1. If there will be a merger, AFA will be the bargaining unit representing DL f/as...they will be union since they are not represented by any union.

2. If I were CEO, I would not be looking to staple 9,000 DL f/as to the bottom as that would be an action that would be clearly divisive. I believe young Doug would not be thinking of jeopardizing a merger, an $8 billion deal to make 2,500 West f/as happpy. He hasn't done one thing for any group to show that he has concern for employees.He won't even give them a pay raise when their contract has been amendable for the past 2 years. Anyway, its not up to the CEO...its AFA's constitution...and its DOH. Period. DL is a senior airline with a senior workforc....East f/as will be effected as well.

3. At this late game, AFA does not have a need to organize DL t DL is in BK. It will be automatic if the deal is accepted by all parties involved including aprroval from the government.

 

[aquagreen73s]

After four gin and tonics I must pose the question to this board: "WTF? Why, Doug, on earth would you go after DAL?" What about UAL or NWA? Screw the Atlantic. The Pacific rim is where it's at. Am I alone in this sentiment?

 

[N924PS]

After four gin and tonics I must pose the question to this board: "WTF? Why, Doug, on earth would you go after DAL?" What about UAL or NWA? Screw the Atlantic. The Pacific rim is where it's at. Am I alone in this sentiment?

Make sure the TSA doesn't catch you in the morning.