And so it begins..

[BoeingBoy]

General consensus is that AA is too big to fully merge with another major airline.

Or need to - they enplane more than 2 million more passengers a month than the next biggest legacy. Even if the #2 & #3 legacies merge (DL & UA), by the time they reduced duplicate capacity and divested any assest required by the DOT American would be in about the same position size-wise as UA now - #2. Only a merging of CO, DL, NW, and UA that resulted in 2 carriers would possibly push AA down to #3.

So they can afford to sit on the sidelines, look at any assets that become available, and watch what happens.

Jim

 

[Piedmont1984]

No one is mentionng the fact that this is the last year for the Bush administration - a government that has been merger tolerant - and that foreign ownership may be an issue which is revisited.

Also, if two weddings take place without USAirways, it doesn't follow that we will be the funeral. The other mergers will probably result in some reduction in capacity - giving us some temporary breathing room - if we can ever get our act together.

 

[Pacemaker]

"That said Parker could f%$& it all up"

He already did.

 

[NoMoreKoolAid]

I am in no way a fan of Parker but... Who's to say we are not talking to another carrier right now? We had absolutely NO idea about the US/HP merger when it was announced. While I'll be one of the FIRST to admit to our being trailer trash of the skies money talks. I'm no airline annalist but isn't Lakefield still here? He was the brains behind the HP/US merger. I just don't see Parker sitting idle while everyone else get in this game. I know we don't bring Pacific or South American strength to the table but we bring a whole lot of domestic and still a high percentage of east coast flying which is WHERE the money is domestically. The possibility is always there that we'll sit it out but my money is on our being involved. If we don't we'd be screwed and though the village seems filled with idiots I don't think they are THAT idiotic.

I totally agree with you Travelpro. The investors are here to make money and to think they are just sit back and doing nothing...I dont think so. Your point with Lakefield is noted

 

[Phoenix]

No one is mentionng the fact that this is the last year for the Bush administration - a government that has been merger tolerant - and that foreign ownership may be an issue which is revisited.

Also, if two weddings take place without USAirways, it doesn't follow that we will be the funeral. The other mergers will probably result in some reduction in capacity - giving us some temporary breathing room - if we can ever get our act together.

This year?... ALPA allow two carriers to merge in one year?

 

[Phoenix]

"That said Parker could f%$& it all up"

He already did.

I think it was a misspelling. Did he mean to spell it "Prater"?

 

[Bear96]

Calm down, everyone.

The thread subtitle is misleading. It refers to something "official" but the OP is about a Wall Street Journal report of a rumor, with a comment from a DL representative saying, "No comment." That is far from "Delta officially seeking a merger."

Make no mistake -- it has been obvious for some time that mergers and consolidation are coming, and soon. And itis likely DL will be involved. But the OP this thread is based on is far from anything "official" from DL.

 

[luvn737s]

Doug Parker has squeezed more profits out of less revenue than anyone else in this industry. I don't endorse the way he did it, but the record is what it is. You can cancel the cake for his going away party.

 

[fr8tmastr]

Hey Doug, maybe if you ordered some aircraft any of these airlines actually want (787) there might be some interest in US. At least then we would have had more to offer alive rather than more dead.

"Airbus at all costs"

 

[Tim Nelson]

General consensus is that AA is too big to fully merge with another major airline.

I disagree. I think the key reason why AA and US are 'ommitted' is because of pilot talks. Neither AA or US has the ability that DL, UA, have since the AA pilot contract is in the ammendable state and they just requested mediation. US pilots are still not transitioned. Therefore, I think the reason isn't that AA is too big to fully merge, but rather, AA has some outstanding labor issues to resolve first. Same with US. Just doesn't make 'good sense' to talk about mergers if there are open contracts or ongoing transition talks. That's why Parker is quick to 'attempt' to resolve the M &R, and fleet contracts in expeditious fashion. I personally think it will be better to hold out on Parker and bleed him for more money as opposed to signing a less than fair agreement.

regards,

 

[Piedmont1984]

This year?... ALPA allow two carriers to merge in one year?

No, paragraph one was regarding this year, not paragraph two.

 

[Dog Wonder]

Merger without US is a plus.

Merger including US is better.

 

[jimntx]

Calm down, everyone.

The thread subtitle is misleading. It refers to something "official" but the OP is about a Wall Street Journal report of a rumor, with a comment from a DL representative saying, "No comment." That is far from "Delta officially seeking a merger."

Make no mistake -- it has been obvious for some time that mergers and consolidation are coming, and soon. And itis likely DL will be involved. But the OP this thread is based on is far from anything "official" from DL.

Business segment on NPR (not a news source given to hyperbole) this afternoon reported that today Delta asked the Feds for permission to "conduct merger talks/explore merger possibilities" with Northwest AND United. Not as a both-and combination, but as an either-or. I would say that it is, in fact, official.

I think DL-NW or DL-UA will happen before the end of the year.

No comment from the DL spokesperson just means they have no comment "at this time."

 

[prechilill]

Business segment on NPR (not a news source given to hyperbole) this afternoon reported that today Delta asked the Feds for permission to "conduct merger talks/explore merger possibilities" with Northwest AND United. Not as a both-and combination, but as an either-or. I would say that it is, in fact, official.

I think DL-NW or DL-UA will happen before the end of the year.

No comment from the DL spokesperson just means they have no comment "at this time."

NW-CO leaves a pretty gaping hole west of Texas. Perhaps a breakup of LCC is on the horizon.

 

[beachboy]

There you go. This sadly might be how it ends.
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