DL Considered Combination with NW
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Blackdog
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NW and DL planned their eventual merger plans the day the DOJ rejected their anti-trust immunity request. With Air France (DL's European partner) buying KLM (NWA's European partner), they tried to have a merger of sorts on this side of the Atlantic. When this was thwarted by the DOJ it became necessary for them to find another way of linking up. BK was just the answer. (Not Burger King!) Anyway they danced into the BK court together. Same day, same hour, just a floor apart. If the FAs at NW had accepted their ridiculous TAs, we would have probably heard of their intentions long ago. When Doug Parker and his USAir made his hostile bid for DL this threw a small monkey-wrench in their plans and they had to find a way of contending with it before they could make their plans ulimately known. They want to keep SkyTeam as a viable alternate to Star and One World. And this is what will eventually happen. NW doesn't do anything without first crossing all the T's and dotting all the I's. They probably have got Congress already signed off on an eventual merger between NW and DL. Wait and see! As for the employees, no merger is ever fun but the combined strengths of the 2 companies will make it better in the long run knowing they form a formitable challenge to all other airline/airline combinations.
Alice Cramden
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Actually DAL and NWA filed on the same day because filing deadlines for pension payments were due on the 15th. Corporate deadline for filing Chapter 11 was October 7, 2006.
Even though NWA kept their pensions(sans lump sum) and DAL only kept those pensions that didn't have a lump sum, hence the reason for the same date filing...simple, didn't want to make the pension plan payment.
Take into consideration the fact that the two airlines fly very different equipment keeps it from being a "logical" match. Training and maintainence on too many types of aircraft=disaster. I don't see NWA and DAL married. IMHO
Even though NWA kept their pensions(sans lump sum) and DAL only kept those pensions that didn't have a lump sum, hence the reason for the same date filing...simple, didn't want to make the pension plan payment.
Take into consideration the fact that the two airlines fly very different equipment keeps it from being a "logical" match. Training and maintainence on too many types of aircraft=disaster. I don't see NWA and DAL married. IMHO
Gilding the Lily
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It is important to note that the Judge in the NW bankruptcy case has quashed the subpoenas issued by the hedge funds to NW seeking info about merger talks.
If the judge wouldn't have quashed the subpoenas, it would have had disastrous ramifications. For one, it would have revealed all types of trade secrets on both NW's and DL's part. Second, if there is a 'silent plan' to merge shortly after NW exits BK protection, these subpoenas would undoubtedly change the new value of the emerged company, making the merger a much larger headache with a potential higher price tag and larger debt load.
You cannot blame the hedge funds and current shareholders though... they want a merger or, at very least, merger mania talks that will raise the current value of the company so that they can maximize their recovery (before new value for current shareholders). This was a sorry effort to create the mania surrounding merger talks.
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