How this deal benefits DAL

[aislehopper]

This is a win-win offer for Doug either way. If it goes through, he has the DL assets that he needs. If it fails, it likely will cost DL more to emerge due to increased payments to creditors. In effect, he has driven up costs. Additionally, dealing with this offer is taking up time and effort of Delta's, a competitor's, management team.

There really is not much of a downside for Doug.

 

[luv2fly]

It is about what the money people want and they don't care about you or I.

Your statement is too simplistic.
I don't think Boeing Aircraft is in this for a quick buck. Your assumption completely ignores that fact that US has been no friend of Boeing.
It is rumored that Parker will try to strike a deal for Boeing airplanes. In reality, he will say what he has to in order for this to proceed.
Delta has already commtitted to an all Boeing fleet.
You also leave out the fact that at the very least there is great uncertainty as to whether or not the DOJ will even approve the merge, and there is no telling just how much US would have to give up in order for the DOJ to approve it.
Parker's plan is full of too many "what ifs" that would in all certainty extend DL's trip through the BK process. It is based on corporate speak and empty promises of synergies that would still have to be negotiated with much speculation on just what could be obtained.
To top it off, US has not fully completed/integrated its merge with AW. Numerous unresolved labor issues and yet US is ready to take on an even bigger burden with all the assumed debt?
It is not simply about who promises the biggest bang for the buck as you allude to. It is about who can deliver on their promise. My bet is on Delta.

 

[N924PS]

Sure Delta might just up the offer, but I don't even think that will happen. Delta doesn't have to necessarily offer more money. They just have to convince the creditors that their plan is more viable and could offer more of a return in long term. To say that there is alot of uncertainty in Parkers plan is a major understatement.

And Delta's plan is a certainty? I think not!

 

[luv2fly]

And Delta's plan is a certainty? I think not!

No, that's why they call it a plan.
As I described in my post, I believe there are more outstanding uncertainties with Parker's plan. Too many hurdles to clear without stumbling, all of which will alter whether or not Parker's plan is such a good deal.

 

[BottomFeeder]

No, that's why they call it a plan.
As I described in my post, I believe there are more outstanding uncertainties with Parker's plan. Too many hurdles to clear without stumbling, all of which will alter whether or not Parker's plan is such a good deal.

The research was done. The financial end was done. What makes you think that the DOT and DOJ was not handled already?

As to Boeing, they will go with every who makes them the most profit. It does not matter to them who's name is on the side of the aircraft they build.

PanAm employees said the same things your saying and we all know how that turned out.

 

[MMB]

PanAm employees said the same things your saying and we all know how that turned out.

Before DL hired them off the street, the only thing EX-Pan Am employees were saying was, "Where's the unemployment office?"

 

[NewHampshire Black Bears]

This is a win-win offer for Doug either way. If it goes through, he has the DL assets that he needs. If it fails, it likely will cost DL more to emerge due to increased payments to creditors. In effect, he has driven up costs. Additionally, dealing with this offer is taking up time and effort of Delta's, a competitor's, management team.

There really is not much of a downside for Doug.

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aislehopper,

An EXCELLANT point, my dear friend !

Though I don't think that DP did this with that anywhere near the top of his priority list, it still becomes a PROBLEM for DL.

I can't quite make up my mind, if UAL is sitting back and analizing this "whole process"(meaning all party's concerned)
In other words, looking at the legacy "pairings", I see UAL(a KNOWN consolidationist), being ONLY interested in 2 carriers.....CO, or DL.

If the US offer is Ultimately rejected(though received somewhat warmly on the majority of issues), then that will be the time, that UAL "plays their hand", that being a BETTER/HIGHER/more simplistic offer for DL, or stand "pat"

For other than US, it makes perfect sense,for AA/UA/CO/NW, to "observe" this Initial "fray" into the Looooog awaited, Loooong predicted consolidation period.

NH/BB's

 

[BottomFeeder]

Before DL hired them off the street, the only thing EX-Pan Am employees were saying was, "Where's the unemployment office?"

Just to set the record straight. Most of those PanAm people were put on the street due to Delta.

 

[jcw]

I take it from all the posts there is not a single benefit to delta from this merger.

 

[GSEMAN]

Just to set the record straight. Most of those PanAm people were put on the street due to Delta.

Just to set the record straighter, Pan Am people were put on the street by their own mismanagement. Just as if Delta people end up on the street it will be because of our misanagement.

 

[luv2fly]

The research was done. The financial end was done. What makes you think that the DOT and DOJ was not handled already?

\

Are you seriously trying to infer the DOJ has already signed off on this???

 

[eolesen]

Are you seriously trying to infer the DOJ has already signed off on this???

Signed off? No. But it wouldn't surprise me if the US folks hadn't already engaged the services of a few anti-trust experts and put together a plan, which obviously won't be made public until after a potential deal becomes a real deal. No sense tipping their hand.

 

[luv2fly]

Signed off? No. But it wouldn't surprise me if the US folks hadn't already engaged the services of a few anti-trust experts and put together a plan, which obviously won't be made public until after a potential deal becomes a real deal. No sense tipping their hand.

Engaging the services of a few anti-trust analysts and obtaining DOJ approval are two totally different things in my book. I have read reports by anti-trust analysts stating the difficulties of this proposed merge. You show me one analyst saying it would pass with ease and I'll show you one who says it won't.
The post I was referring to suggested the DOJ concerns were "handled already". Misleading at best.

 

[aislehopper]

If the US offer is Ultimately rejected(though received somewhat warmly on the majority of issues), then that will be the time, that UAL "plays their hand", that being a BETTER/HIGHER/more simplistic offer for DL, or stand "pat"

NH/BB's

NH/BB's:

Since I am armchair quarterbacking, does it now make sense for DL to string US along to the last minute(assuming it can while remaining independant)? This might keep UAL on the sidelines until too late.

 

[autofixer]

Don't be shocked if this is a head fake and LCC ends up with NWA and DAL is left standing at the alter...I hope so anyway.