DAL and NWA Talking

[WNrforlife]

WT-

I simply don't understand this belief that US is attempting to take over Delta because US is scared of the future. Under that hypothesis, why isn't GM attacking Toyota or Honda? Those two competitors clearly present a large threat to GM.

Toyota and Honda aren't in bankruptcy, however GM is close to it. How could GM attempt a forced merger on a company that isn't willing and has a say in the matter?

Parker is trying to capitalize on the vulnerability of Delta while and remove a competitor.

 

[757inthebarrel]

Minneapolis Star Tribune article on possible DL/NWA deal.

http://www.centredaily.com/mld/centredaily...edaily_business

 

[FA Mikey]

story here

Northwest Airlines on Friday asked for more time to file its bankruptcy reorganisation plan in a move which that will intensify speculation that it is seeking a buyer or merger partner.

The Minneapolis-based airline has held preliminary talks with fellow bankrupt carrier Delta Air Lines which is seeking an alternative to the hostile $10.3bn bid from US Airways.

The company on Friday filed a reorganisation plan which omitted details of the prospective payout to creditors, and won permission to delay its so-called "disclosure statement" containing further details until February 15.

US Airways has set a deadline of February 1 for Delta's creditors to consider its cash-and-stock offer and force management to the negotiating table. Delta rejected the bid made on November 15 and remained lukewarm to an offer raised this week by almost a quarter. The Atlanta-based carrier argued US Airways' bid was flawed and would be turned down by antitrust regulators. story here

 

[Gilding the Lily]

NW filed its plan of reorganization; but, as the articles noted, it received an extension from the judge allowing it significant time to file its Disclosure statement. The disclosure statement is the premier filing that accompanies the POR. This statement includes significant details of the POR, how it is to reach its financial goals, and the prospective returns to creditors. Thus, it would be very easy for NW to file its disclosure statement, along with a modified POR, to account for any post-bankruptcy merger deal between DL and NW.

 

[MCI transplant]

<_< ---- And then there's a strong rumor that aa will put in an offer for Northwest! --- and the beat go'es on!!!! 😛

 

[Redbone]

And there's a rumor that SW will buy American and use it as a Shuttle to feed it's money makers.

 

[WorldTraveler]

AA very could well spend its cash on NW - but it would immediately go into BK and dump half of the combined fleet, a good chunk of the combined assets, and slash AA wages.

The whole reason why DL is being pursued by US is because DL waited to go through the BK process later than US. The effects only get worse the longer the difference between AA and other carriers widens. And yes, I know AA reported its first annual profit in years but it is running a horrible operation and has angry employees throughout the company. History of this industry pretty well shows that a breaking point for AA is not far away unless something dramatically changes.

Yes, AA could go after NW but you would see an absolute meltdown in BK and integration of the route systems - and in the meantime other airlines would gain any advantage AA thought it was getting through a merger. You would see not one but two airlines destroyed. With the highest debt in the industry and the highest labor costs per ASM, AA is in no position to do anything.

 

[NewHampshire Black Bears]

World Traveler,
I would "argue", that no one has been "all over the spectrum" of AA and NW, than myself.

Having said that, With the latest announcement of AA and JAL, "rooming together" in NRT, It appears that AA's strategy(NOW) is to wait for the next China awards(1+ years from now), to secure a lone route to PEK, and in the meantime, let JAL "haul the freight" to China, via a code share.

You'll recall, that AA was flying into TPE, and could easily start up HKG.
So in reality, all AA needs is PEK, and the #3 largest city in China,,(who's name I cannot remember), that begins with the letter "G". After that, I'm speculating that AA would then look to SYD, which the 777-200LR could make the trip NS from DFW, and "possibly" ORD.

This(overal) scenario, reminds me, of when AA started it's European build up.

Back when, as CRANDALL was building up Europe, with the exception of LHR, he "cherry picked(up) routes, one at a time.(NO mass production from JFK, like DL). All the while he was doing that, he never worried about UAL, and in fact, surpassed UAL as the largest airline on the planet.(As I've been saying for years, "Don't forget that AE IS part of AMR").

Then there is the possibility of tying the 3 ONE WORLD super mega carriers into one nice neat little entity.(BA/AA/JAL). "That" scenario(as you know) would strike FEAR into the HEARTS of the world wide aviation industry !!!!!!!!

So, in summary, AA (for now) quietly "lies in the brush",like a Male Lion, stockpiling $$$$ ($6B, at yesterdays count), has the employees pension plan funded much above Govt. requirements, and IS paying down debt at a steady clip.

WT, I'll be the FIRST to admit, that US brings NOTHING to DL's table, and I hope DL and NW DO get together, to form a formidable world wide company, followed by UAL/CO.
But while ALL this is/may be taking place, As an AA retiree, I'm very satisfied with the "AA cards" i'm holding !!!!!!!!!!!

Good Luck(Seriously)

NH/BB's

Ps,
You've been CONSPICUOUSLY missing for a while, and I'm hearing that "FLY" is looking for you.
"THAT" would spread FEAR into MY heart !

"PENGUIN POWER" is a Mighty thing !! ........................ You've been WARNED !!

 

[FA Mikey]

Having said that, With the latest announcement of AA and JAL, "rooming together" in NRT, It appears that AA's strategy(NOW) is to wait for the next China awards(1+ years from now), to secure a lone route to PEK, and in the meantime, let JAL "haul the freight" to China, via a code share.

Its part of the alliance's the carriers formed. All of them slowly doing the same where they can. Putting all the carriers in close proximity to make connections and transfers easier. With the opening of T5 next year, LHR is shuffling all the carriers in to terminals with the alliance partners.

If an opportunity to get a piece of someone's Pacific op's opened up. AA would be there in a NY second.

 

[Redbone]

Its part of the alliance's the carriers formed. All of them slowly doing the same where they can. Putting all the carriers in close proximity to make connections and transfers easier. With the opening of T5 next year, LHR is shuffling all the carriers in to terminals with the alliance partners.

If an opportunity to get a piece of someone's Pacific op's opened up. AA would be there in a NY second.

But it won't.

 

[NewHampshire Black Bears]

But it won't.

..........................................................

Oh no ???

TELL me SPECIFICALLY WHY, it won't work, why AA waits for an award to PEK, in a year or two.

You guys are BIG in the orient, thats easy to realize, ...BUT... don't think for a moment that If AA saw it profitable to fly to places like GUAM, or MANILA, that they would,nt be their already.

In the whole WORLD, AA needs ONLY 4 more destinations, to be complete(IMHO)
1. PEK, which WILL come fairly soon
2. Guangzhou China(that could take awile)
3. SYD
and
4. AUK

NW does not fly SYD/AUK, does not fly South America, and relies VERY HEAVILY on KLM, for europe.

Redbone,
With AA stock over $40 a share, defined benefit pensions funded much more than required by the FEDS, only carrier NEVER to see the inside of a BK court room, AND, $6 BILLION in cold hard cash on hand AND GROWING, I'll take "my cards" ANYDAY, over your "cards"

And your reply is ?????????????

NH/BB's

 

[Fly]

My reply would be, "be careful NH, AA only got where they are by UA announcing their intention to merge with US. Otherwise, TWA would have never been stole from under them. Therefore, the minute UA decides to merge with another airline, AA goes back to their assumable 2nd place position (where they belong)".

As far as WT is concerned....He's a PUSSYcat. Don't worry about him.

 

[Redbone]

..........................................................

Oh no ???

TELL me SPECIFICALLY WHY, it won't work, why AA waits for an award to PEK, in a year or two.

You guys are BIG in the orient, thats easy to realize, ...BUT... don't think for a moment that If AA saw it profitable to fly to places like GUAM, or MANILA, that they would,nt be their already.

In the whole WORLD, AA needs ONLY 4 more destinations, to be complete(IMHO)
1. PEK, which WILL come fairly soon
2. Guangzhou China(that could take awile)
3. SYD
and
4. AUK

NW does not fly SYD/AUK, does not fly South America, and relies VERY HEAVILY on KLM, for europe.

Redbone,
With AA stock over $40 a share, defined benefit pensions funded much more than required by the FEDS, only carrier NEVER to see the inside of a BK court room, AND, $6 BILLION in cold hard cash on hand AND GROWING, I'll take "my cards" ANYDAY, over your "cards"

And your reply is ?????????????

NH/BB's

FREQUENCIES...AA is shut out of having a true presence in Asia. That is more important than having a route. Just like NW is shut out of Heathrow...for now.

Many carriers sang the same BK song before "using it".

It's $5.4 =$4.billion and some change restricted.

By the end of 07 the whole landscape will have changed...dramatically.:
PROJECTED 2007 AIRLINE EARNINGS For top 10 airlines

Estimated

2006 $1.4-$1.7 billion

2007 $5.9 billion

BREAKDOWN AIRLINE PROFIT MARGIN

$1.2 billion Northwest 9.3%

$718 million Southwest 7.3

$1.3 billion American 5.7

$593 million US Airways 5.0

$172 million Alaska 4.9

$604 million Continental 4.6

$101 million JetBlue 3.6

$584 million Delta 3.2

$605 million* United 3.1

$66 million AirTran 3.1

Avg. oil price

Per barrel

2006 $66.25

2007 Hypothetical $55

*Consensus estimates

Sources: AirlineForecasts, Bloomberg

Chicago Tribune

My hat's off to AA for not screwing it's employees over for their pensions with this PHONY use of BK like NW and UAL. However, it WILL give it's competitors a leg up. It is not fair, and should be illegal. These companies should be made to reconstitute employee pensions (level playing field).

Doug Stealin and that thing running Ual didn't lose their pensions OR have them "frozen".

All the money NW makes will never see one penny go to employees. It hasn't in the past and it never will as long as it it run by the likes of "talent" running it now.