And so it begins..

Delta in merger talks with Northwest: congressman
Wednesday January 16, 3:27 pm ET



WASHINGTON (Reuters) - Delta Air Lines (NYSE:DAL - News) has begun merger talks with Northwest Airlines (NYSE:NWA - News), the office of House of Representatives Transportation Committee Chairman James Oberstar said on Wednesday.

LINK
 
^ This was my point....they blew it big time by focusing on Delta trying to be "The Biggest", when NW was a realistic goal that would have made them a formidable player. I also agree that as long as there is labor issues, it will be hard to get equity support for another merger. This wouldn't have been an issue last year before the full-blown nature of failed labor negotiations was realized
 
Not that I have any inside information or anything but I just have a gut feeling that none of the top 4 majors would be attracted to US unless something dramatic happens. I keep wondering if US still might pursue a merger although not with a major but rather a LCC.

I don't know about the engines but F9 has a very new fleet of Airbus aircraft. They also are adding the Q400 for regional flights out of Denver. I think they are a great carrier but sadly, in this enviroment of high fuel prices, I am afraid that maybe the Lynxx subsidiary is too little too late. Could US look to aquire them? they fly a lot mexican destinations which HP management also is familiar with.

I would not be suprised if DL and NW or UA hook up, and most likely one of those two combinations will happen, that WN and FL might get in on the merger game too.

I think US could merge but I don't see what CO / AA or whoever does not merge with DL would see as a benefit to them in merging with US.

I think US would look to merge with a smaller carrier and grow their European and Pacific routes organically.

Although I would not be suprised if Doug would show interest in any assets that might need to be divested in order for a merger to get approval. Especially something like slots into NRT or widebody aircraft if they become available.
 
Interesting article about consolidation here: US Airways on the Outside Looking In

A few key points...

"A year ago, US Airways was the belle of the consolidation ball. Now, it just wants an invitation to the party."

"Parker told an investor conference in November. 'Being the sixth of the big six, we're not going to be somebody's first choice,' he said."

"US Airways is probably at some risk of being marginalized," says Standard & Poor's analyst Philip Baggaley. "If Delta were to go to one [partner] and Continental went to the other, American would be left apart, but at least they would have started out as the largest airline. Then you would have US Airways, who wanted to be involved, left on the sidelines," he says.
 
Thank you, Congressman Obvious!

US Congressman confrims Delta in merger talks with Northwest

By Christopher Hinton
Last update: 12:23 p.m. EST Jan. 16, 2008

NEW YORK (MarketWatch) -- U.S. Congressman Jim Oberstar (D-Minn.) said Wednesday that Northwest Airlines executives told him recently they were in merger talks with Delta Air Lines.

Oberstar is chairman of the House Transportation and Infrastructure Committee and represents the Minnesota 8th District, which is home to Northwest's Minneapolis headquarters. Oberstar met with Northwest executives on Tuesday, a spokesman for the committee said. Delta is also reportedly holding talks with UAL Corp, the parent company to United Airlines, concerning a possible merger.

Link
 
Not that I have any inside information or anything but I just have a gut feeling that none of the top 4 majors would be attracted to US unless something dramatic happens. I keep wondering if US still might pursue a merger although not with a major but rather a LCC.

I don't know about the engines but F9 has a very new fleet of Airbus aircraft. They also are adding the Q400 for regional flights out of Denver. I think they are a great carrier but sadly, in this enviroment of high fuel prices, I am afraid that maybe the Lynxx subsidiary is too little too late. Could US look to aquire them? they fly a lot mexican destinations which HP management also is familiar with.

I would not be suprised if DL and NW or UA hook up, and most likely one of those two combinations will happen, that WN and FL might get in on the merger game too.

I think US could merge but I don't see what CO / AA or whoever does not merge with DL would see as a benefit to them in merging with US.

I think US would look to merge with a smaller carrier and grow their European and Pacific routes organically.

Although I would not be suprised if Doug would show interest in any assets that might need to be divested in order for a merger to get approval. Especially something like slots into NRT or widebody aircraft if they become available.

American has about 4.7 Billion in cash and has halved their debt load since 2003. With American actually being in pretty decent shape financially, I don't see how they sit out this round, not with two big holes in their route network (West Coast and Transpac). I could see a bidding war breaking out for NWA because of their Asian service. If you buy NWA you would get an extraordinarily loyal customer base, a fantastic and highly profitable transpacific operation both of which it would take AA years to build up on their own, if they are successful in getting more routes to China.

I don't think a Continental and American merger would be allowed as regulators in Texas and New York/NJ would pitch a fit. Such a combination would give them control over Texas' two major airports and international gateways and the same goes for New York. But, I wouldn't be surprised to see someone make an offer for Alaska especially the carriers who don't have a strong West Coast presence (AA, DL, NW, CO).
 
I like an AA/US combo. And it would be guaranteed that the bozos in Tempe would be gone...I can dream can't I?
That would work.

Apparently, the staple gun would be put away for awhile due to two congressmen from MO.

I can't remember where I read it (maybe here, I aplogize for not being specific) but they slipped a provision into a bill that requires future airline merger seniority issues to be decided by "binding abitration".

I don't know if AA is AFA but something tells me they are not. If that is the case then it may not be so bad for us (the FAs).

Short of buying us and shutting us down, do we have anything (other then the Shuttle) they would want?
 
Thanks for the refresher course. You will have to pardon the poster from being rusty in this subject since NONE of these air carriers are accessible in our version of SHARES. :lol:
YEP! The tools to do the agents job correctly were taking away and replace with a HP Peoples Express mentality. Just be glad you are not an agent having to deal with international destinations IT SUX. By the way AA flight attendants or some of the most solidity of the airlines union groups I suspect you know this
 
AA F/As are APFA, their own union. Everyone knows what they did to the TWA F/As was despicAAble.

Not sure if AA would be interested in anything outside of the Shuttle and slots in the three cities... maybe CLT?
 
...maybe AA getting the Shuttle and maybe some of the West coast operation...

What "West coast operation"?

USAir handed that to Southwest on a silver platter 16 years ago. They now "borrow" a couple of gates from Southwest in what used to be PSA's terminal at LAX.
 
What "West coast operation"?

USAir handed that to Southwest on a silver platter 16 years ago. They now "borrow" a couple of gates from Southwest in what used to be PSA's terminal at LAX.
Well not sure where you've been but we did merge with an airline called America West about 2.5 years ago. They had (have) hubs in PHX and LAS which service airports up and down the West coast.
 
US Airways Chief Sees Deals on Horizon

By Ted Reed
TheStreet.com Staff Reporter
1/24/2008 3:47 PM EST

CHARLOTTE, N.C. -- Airline industry consolidation is nearing and US Airways may well take part, CEO Doug Parker suggested, but he isn't convinced one deal that's been rumored will actually fly.

Specifically, he said widespread assumptions that UAL and Continental would ultimately seek to join forces are flawed because of the potential disruption to the Skyteam alliance.

Parker discussed consolidation scenarios Thursday on a conference call after US Airways reported a fourth-quarter loss that was smaller than had been expected. As for mergers, "something is going to happen in my view, and once that happens, I think all of the big six are going to participate," he said.

Link to the rest