I detect a bidding war ...... soon
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longing4piedmont
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And this has WHAT to do with US?
If Parker, etal, are interested in NW, both CEO's are likely already planning a transition, even though Parker previously stated that he would not approach NW unless there were other bidders. I'd bet that if a deal happened, it would be kept super secret, other than the usual unsupportable, speculative leaks, until US and NW jointly issued a surprise statement that "they were merging". A polar opposite of the DL deal. Of course we should know fairly soon if Parker is seriously considering NW, for if so, it's unlkely he'd order/lease any new long haul aircraft (A340s or 777s) to support the future US China application.
Good point about the aircraft order, I had not thought of that.
However, all along I stated that Delta was a cover for the real thing which was Northwest. Again, let me state the reasons .... the fleets match, dispose of the DC9's and get more jungle jets E190's, the unions match for the most part, pay is similar and the NW employee groups are as unhappy as we are.
Plus, believe it or not, our domestic product would be a bump up for NW, they do not even have movies.....plus their WBC is similar in service to our Envoy .... but who knows I am just a FA.
Gilding the Lily
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Well, if you are right about a 'silent plan' to merge, then the Judge in the NW bankruptcy just helped their cause. The Judge quashed the subpoenas issued by the hedge funds to NW and other airlines seeking info about merger talks.
It appears though, contrary to your assertion, that the hedge funds filed the subpoenas to obtain information about a potential merger between NW and DL and/or a UAL and CO merger (golden share NW holds in CO).
For evidence of this I look at who was served with the subpoenas: Blackstone (Advisor for DL); CO; UAL; official committee for NW; Deutsche Bank (hedge fund, unofficial committee for DL, official committee for NW); Lehman Brothers (hedge fund, unofficial committee for DL, official committee for NW); Seabury Group (NW consultant)
Obviously, forcing the airlines to divulge such information would have disastrous results. But you cannot really blame the hedge funds and current shareholders for their failed attempt. 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.
Actually I think the subpoenas were intended to determine a value for a merged NW with either CO, DL, UA and AA, not for the purpose of evaluating other potential mergers. Their position is obviously that they want to convince the BK judge to NOT zero out common shares, based on an anticipated higher (merged) value than NW will state in their forthcoming Disclosure Statement. They don't need the US data, since it's already been disclosed by Parker as part of the DL takeover bid.
http://custom.marketwatch.com/custom/tdame...3-eb3796631362}
I spoke with an individual in upper management who said we never gave any serious consideration to a merger with NW. It did not met our qualifications like DL did. Mainly, the DL proposal took out a lot of overcapacity in the Eastern U.S. which was one of the key factors in reaching the desired synergies. A NW merger would not do that.
AP
Northwest Airlines Projects It'll Be Worth $7 Billion Post-Bankruptcy
Thursday February 15, 6:45 pm ET
By Joshua Freed, AP Business Writer
MINNEAPOLIS (AP) -- Northwest Airlines on Thursday laid out its plan to emerge from bankruptcy with a value of some $7 billion and profits through 2010
http://biz.yahoo.com/ap/070215/northwest_b...uptcy.html?.v=8
Northwest Airlines Projects It'll Be Worth $7 Billion Post-Bankruptcy
Thursday February 15, 6:45 pm ET
By Joshua Freed, AP Business Writer
MINNEAPOLIS (AP) -- Northwest Airlines on Thursday laid out its plan to emerge from bankruptcy with a value of some $7 billion and profits through 2010
http://biz.yahoo.com/ap/070215/northwest_b...uptcy.html?.v=8
US1YFARE
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"took out a lot of overcapacity" = eliminate competition and jack up fares
Singleflyer
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If and just if a US NW were to happen, just think of all the fun capicity planning could have with NW 319/320.
There are many closets on NW planes, anf the 319 has 16 seats, lots to take out.
But NW has no video equipment to worry about, so they would probably take it off fleet wide.
And lets not forget the DC9s with 16 F and many closets up front.
For my travel it woul be great since US is #1 & NW #2 in usage. But I don't see this happening.
There are many closets on NW planes, anf the 319 has 16 seats, lots to take out.
But NW has no video equipment to worry about, so they would probably take it off fleet wide.
And lets not forget the DC9s with 16 F and many closets up front.
For my travel it woul be great since US is #1 & NW #2 in usage. But I don't see this happening.
And, as I stated many times, ELIMINATED larege numbers of JOBS including pilots and flight attendants. Glad this fell through.
RowUnderDCA
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This is what I've been assuming since the DL merger announcement by LCC. I had to change my thinking, but once I did, LCC/NW didn't make any sense from the perspective that LCC management has taken.
I mean if you could do it as easily as falling off a log, it might be worth it, but we know that's not reality: according the precedent reasoning of LCC management.
Other than taking out your biggest market competitor by merging with DL, what was the attraction?
A merger with NW seems more likely with fleet commonality and having the ability to fill in the gaps where LCC lacks. Most noteably middle America and Asia.
I never saw the LCC/DL merger as anything but elimination of overlap that both of these airlines have.
So what is the LCC managements perspective? Inquiring minds want to know.
Merging with NW would take real creative work. It would require upper management to work to get a buck but it could yield great things. Management does not want to work, they wanted to buy another airline, layoff a bunch of folks and continue sucking money out of the business instead of reinvesting in itself and actually becoming a decent airline. NW would require work, delta was easy just slash and take bonus checks. I hate dougie!
