US went for DL (bust) but why not NW or CO

[NCflyer]

I'll throw another idea into the hat.

I don't believe there ever was the hope of buying DAL. By making the offer to the creditors Parker was putting DAL's management in a position where they had to show what their intentions were. Delta was in no hurry to come up with a restructuring plan to exit bankruptcy. They could have operated many more months under bankruptcy protection. By making the initial $8B offer Parker & company rattled the sword (so to speak) and put DAL's management on the hot seat to come up with an alternative proposal to the creditors.

What was their initial response? To say that Parker was trying to obtain DAL for way under market value. Their initial value range for DAL was $9-12B. So Parker up the ante to $10.5B.

So now DAL is really on the hot seat. They had extended the date for submitting their restructuring plan (4 times I think) and now some one was offering the creditors $10.5B. If the creditors were to accept this or another buyout offer, many executives would have lost $$$$$$.

First they had to discredit Parker/USAirways. Find any & every reason why this offer shouldn't be accepted. Then they had to come up quickly with a plan that the creditors would accept.

Did the initial offer force DAL to do anything that they hadn't wanted to do? Who knows. I feel certain that by making the initial offer Parker forced DAL to accelerate what ever their plans were. Personally I believe that DAL would have spent many more months under bankruptcy protection, without offering any restructuring plan while U and others were trying to return to the profit column.

 

[luv2fly]

Actually, to go after Delta was quite brilliant. If you want to eliminate your MAJOR competition what do you do...BUY THEM.

It would have been brilliant had he been able to pull it off. Jim hit the nail on the head. Parker saw the opportunity to eliminate his biggest competitor. Unfortunately for him, he failed, and now faces renewed competition from a significantly stronger DL. In addition, he suffered a PR nightmare with the revelation of his DUI history and his lackluster performance during the congressional cosolidation hearings.

 

[luv2fly]

I'll throw another idea into the hat.

They could have operated many more months under bankruptcy protection. By making the initial $8B offer Parker & company rattled the sword (so to speak) and put DAL's management on the hot seat to come up with an alternative proposal to the creditors.

What was their initial response? To say that Parker was trying to obtain DAL for way under market value. Their initial value range for DAL was $9-12B. So Parker up the ante to $10.5B.

So now DAL is really on the hot seat. They had extended the date for submitting their restructuring plan (4 times I think) and now some one was offering the creditors $10.5B. If the creditors were to accept this or another buyout offer, many executives would have lost $$$$$$.

First they had to discredit Parker/USAirways. Find any & every reason why this offer shouldn't be accepted. Then they had to come up quickly with a plan that the creditors would accept.

Did the initial offer force DAL to do anything that they hadn't wanted to do? Who knows. I feel certain that by making the initial offer Parker forced DAL to accelerate what ever their plans were. Personally I believe that DAL would have spent many more months under bankruptcy protection, without offering any restructuring plan while U and others were trying to return to the profit column.

I think your assumption that Parker's bid somehow weakened DL's BK restructuring is off base. In fact, most are claiming just the opposite.
Link

It's amazing what a well-run bankruptcy will do

 

[bofie]

It is fun speculating about who Doug might acquire, but the problem is he is doing a lousy job running the one he has. A merger will only bring more integration and operation problems.

Finance types often forget about the operation side of a business and think that they can keep doing deals and not worry about day-to-day ops. By now it is clear to all on this board that mgt is far from under control of the situation.

At this point I'd be happy if CO bought us and then started running things right. The difference between the two operations is amazing/depressing.

 

[as the prop turns]

It would have been brilliant had he been able to pull it off. Jim hit the nail on the head. Parker saw the opportunity to eliminate his biggest competitor. Unfortunately for him, he failed, and now faces renewed competition from a significantly stronger DL. In addition, he suffered a PR nightmare with the revelation of his DUI history and his lackluster performance during the congressional cosolidation hearings.

Thank God it didn't go thru. He and the other kids would have destroyed that airline also. The guy is truly an idiot and STILL doesn't know how to play with the big boys.

Hmmm... Interesting. I bet most FFs would be happy if US turned into a CO.

This won't speak for the Fast, but you might want to check out these links - It lists all of the awards CO has gotten in recent years. What other US airlines can say the same?
COs Recent Awards

CO Wins Best Business for 5th Year in a Row

Have you flown CO lately. They are fabulous. Immaculate airplanes, professional looking employees, very high standards the way USAir was. Nice service on board the a/c.

 

[nycbusdriver]

Doogie got a spanking at the hands of Delta in front of the whole class. He's not about to see if NW will do the same thing. He's right, though, that consolidation is inevitable, but Doogie will not be the one to initiate it lest he become even more of a laughing stock.

And CO is not in bankruptcy, so it wouldn't fit his one-trick-pony act.

 

[CynicalResAgent]

CO is not a trailer park airline, they consitantly win awards and I believe they are one of the few carriers who have not jumped on the Buy-On-Board meal bandwagon.

 

[FutureUScapt]

They are fabulous. Immaculate airplanes, professional looking employees, very high standards the way USAir was. Nice service on board the a/c.

No, I haven't had to opportunity to fly on CO, but I was defending them for having a good product.

 

[TravelDude]

Ha Ha funny analogies (sp) to comparing US and CO cultures.

So, why not go after NW, they were also in bankruptcy? What would scare Parker from NW but have him thinking DL is ideal?

So I understand from the previous posts there is a mixed reaction to CO and how DL may have been just a tactic (maybe). But, back to NW and the question posed above.

- NW is in bankruptcy like DL
- NW has a large Airbus fleet, which as we have seen is US aircraft vendor of choice.
- NW has a strong midwest network and hubs, US is lacking this central midwest coverage.
- NW has an amazing pacific network, which is none exitent for US
- NW has a numerous B747 Cargo freighters which in the past have kept NW profitable when the passenger market took a slump.

So with all those statements, why would Parker not want NW to be a apart of US?

 

[BuffaloJoe]

So with all those statements, why would Parker not want NW to be a apart of US?

Cause if he'd acquire NW, somebody would have access to His Old Employee record there.

 

[N965VJ]

Who’s to say it wasn’t in that smoke-and-mirrors DL deal?

Further consolidation is not an “ifâ€￾ but a “whenâ€￾. Parker blew a lot of goodwill chasing the value wagon, unfortunately.

 

[Be Careful What You Wish For.]

When DP made a run at ATA and was beat out by SWA he may have shown that he is smart enough to go after something of value.
Having SWA engage and win that transaction may be a back handed compliment. SWA doe not seem to do these things too often(Morris Air-early '90's I think). As was mentioned , it may have been a premptive strike at DAL.
I am not a "company man" so what I say is only my opinion, but DP doesn't seem to be shy about taking on something (even a far fetched something)losing and coming back for more.
As far as running the old U, my guess, for what it's worth, is that the "fine young cannibals" are in charge of things while the big wigs think "strategicly?".

 

[NewHampshire Black Bears]

So I understand from the previous posts there is a mixed reaction to CO and how DL may have been just a tactic (maybe). But, back to NW and the question posed above.

- NW is in bankruptcy like DL
- NW has a large Airbus fleet, which as we have seen is US aircraft vendor of choice.
- NW has a strong midwest network and hubs, US is lacking this central midwest coverage.
- NW has an amazing pacific network, which is none exitent for US
- NW has a numerous B747 Cargo freighters which in the past have kept NW profitable when the passenger market took a slump.

So with all those statements, why would Parker not want NW to be a apart of US?

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"dude",

Your questions are very sensical !!

But, do you or I, or anyone on here, think that this BUNCH of NINCOMPOOPS(in Tempe), could have EVER been able to handle a operation effeciently, like NW's

I mean, these F***ING Idiots probably thinks that the 747F is a "freeloaded" A/C,.........plus, they may have NEVER even heard of, or known where Anchorage is !!!


NH/BB's

 

[N903AW]

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plus, they may have NEVER even heard of, or known where Anchorage is !!!
NH/BB's

We have been flying to Anchorage since 1995 and have found it everytime we go there.

 

[BuffaloJoe]

We have been flying to Anchorage since 1995 and have found it everytime we go there.

You can Thank your Pilots for that. Sandpit thought Anchorage was a Mexican Resort!