Is Delta hospitable to United?

Oct 30, 2006
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Segments of an article published in "The Deal" on December 22, 2006:

The tone of Delta Air Lines Inc.'s condemnation of US Airways Group Inc.'s hostile acquisition bid has convinced some industry watchers that the bankrupt airline might be more hospitable to another merger partner.

Sources close to Delta who asked not to be identified said that the airline has not received any other firm offers, but that could change in the weeks to come as creditors and rivals have time to digest the details of Delta's standalone plan and US Airway's offer.

The most likely third party to take an interest in US Airways is UAL Corp.'s United Airlines Inc. Management of Chicago-based United have made it clear they advocate industry consolidation, and they have shown a willingness to lead the way. Industry sources say the company has in recent months approached Delta.

While Continental is likely United's preferred merger partner, the Houston-based airline is believed to prefer remaining independent. A Delta and United pairing would face little of the antitrust worry that has consumed critics of the Delta-US Airways deal, and it would create an airline with strengths across the Atlantic and Pacific and throughout the U.S.
 
I believe this could be an option. Delta indicated it would be open to a merger following its bankruptcy emergence and Grinstein indicated the Atlanta-based carrier wanted to be the surviving business entity. Would Glenn Tilton agree to this?

If a United-Delta merger moved forward, I would expect US Airways to go after Northwest.

Regards,

USA320Pilot
 
A Delta United marriage might be a very good idea.It would not be a ''Shotgun wedding''.They both have alot to bring to the table as far as routes,aircrafts,culture,and reputation.A combined carrier would have a dominant market share on the eastcoast,europe,and asia.If any merger was to get the blessing of the employees at Delta it would be this one,,,im not sure how the United employees would feel about it.Great idea and my biggest wish.
 
Well, it would reunite the pieces of Pan Am that were carved out. Maybe we could drop both the UA and DL names and call it the New Pan Am. :)

Actually, my own preference would be a merger with CO. I think there would be less of a culture clash than a merger with DL. I also think the UA/CO route network fits a bit better.

Merry Christmas!

Happy Holidays!
 
As nice as it sounds, trying to put UA & DL together would be a huge task to take on due to the size of each Airline.
I have seen first hand how difficult it can be trying to put 2 smaller airlines together, and what the outcome can be.
Then you have to deal with what the name of the combined carrier will be. Both the UA and DL names are long standing reputable names, and I'm sure nobody on either side wants to see the name brand of thier airline go away for good....
 
combine the 2 companies..combine the names ...we have DeltaUnited...looks good to me ..lots of corporations due it even if it looks ugly...........
 
Well, it would reunite the pieces of Pan Am that were carved out. Maybe we could drop both the UA and DL names and call it the New Pan Am. :)

Actually, my own preference would be a merger with CO. I think there would be less of a culture clash than a merger with DL. I also think the UA/CO route network fits a bit better.

Merry Christmas!

Happy Holidays!

Agreed and UAL doesnt need the bitterness of DAL...
 
Continental is a good airline,but they don't have the southeast to offer to United in a merger..i feel United only has one huge whole in there route structure and combining with Delta would address that...as for bitterness many employees have been forced to give back pay and benefits since 9/11 ....I don't think we are any unhappier at Delta then employees at other airlines.
 
Continental is a good airline,but they don't have the southeast to offer to United in a merger..i feel United only has one huge whole in there route structure and combining with Delta would address that...as for bitterness many employees have been forced to give back pay and benefits since 9/11 ....I don't think we are any unhappier at Delta then employees at other airlines.

AW,

I agree with you 100%. The SE is what UAL is missing and combining DL and UAL would make a nice fit in my eyes. JFK and ATL are huge for DL and would be key in making a great airline. I don't think there would be a culture clash with DL and UA. Especially any more than UA and anyone else. We have had our own issues for quite sometime and don't think anyone can beat us at internal discord at UAL :)

Merry Christmas
 
A merger with Delta also has other advantages. For one, they are largely non-union, which makes for an easier employee integration. I'm not saying "easy", I'm saying "easier". Merging any two airlines is always a struggle, no matter what. Also, given Delta being in bankruptcy, merging with them affords the combined entity the opportunity to shed excess aircraft, overhead, etc. 2007 should be interesting.
 
Word on this side of the fence was that United did approach Delta early on and Grinstein gave the same response as he did at Western; come back when we get our house in order and we'll talk.
Besides the #1 fact that DL/US is probably one of the worst matches in the industry, a problem we at DL have with US is that, like any common thug/rapist, they wouldn’t take “We’ll talk laterâ€￾ as an answer. Very bad PR. Prior to the attempt at a forced takeover, I don’t know anyone who had any strong feelings about US, one way or the other.
I don’t believe a UA/DL merger proposal would be met with any of the animosity created by the US position. UA/DL would be a good match, the sum having the potential of being much stronger than its separate parts. UA/DL under any name, Tony the Tiger if you want, would be a company that could stand up with any other pairing I can think of.
And that is the ultimate goal, is it not? To be a part of the best? When all the subsequent mergers settled out, DL/US would be a non-entity; no better off than DL as a stand alone, and probably worse for the wear.
 

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