Forbes indicates that it expects US' agressive management to go on the prowl as a buyer now that the Dl deal has fallen apart. In the same article, Forbes has Doug indicating Northwest is the only airline in bankruptcy that is viable for a turn around. Frobes then quotes NW's Flight Attendant President saying she would support a US merger. I wonder how much is speculation and how much we will read about in coming weeks? Other than Memphis, it would make a very complimentary airline network.
Is Northwest Next?
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luv2fly
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N965VJ
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FWIW, Forbes correctly predicted the delayed US/UA merger was dead in their 4-15-01 issue.
D
delta777
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Doubtful, NWA doesn't want anything to do with you either. If anything, DAL and NWA may hook up post-bankruptcy. Why? It makes sense.
"Maybe all this talk about airline consolidation is overblown. Northwest on Tuesday became the latest airline to reiterate plans to go it alone, with CEO Doug Steenland saying the Minnesota-based carrier has no plans to merge in 2007, The Associated Press reports. But the St. Paul Pioneer Press (free registration) writes that "he declined to comment on whether Northwest has had or is having merger talks with Delta or another airline. Delta has denied talks with Northwest as it fends off a hostile bid from US Airways, and also insists it intends to emerge from bankruptcy court as an independent business." Steenland says he doubts a hostile airline takeover could be successful under current market conditions. "The odds on it are very small. If it does, it puts pressure on the rest of the industry as to what their options are," he is quoted as saying by the Pioneer Press.
Steenland added that the difficult task of combining airlines is tough to pull off even when "everyone is working on a friendly basis," a likely reference to US Airways' hostile bid for Delta. As for Northwest and its future, Steenland claimed that "the airline is fixed" and ready to exit bankruptcy as a stand-alone carrier, according to the Minneapolis Star-Tribune (free registration). He went on to say that Northwest's restructuring is "basically complete," adding that Northwest is "going to be a successful airline for the long term. It has a competitive cost structure." The Pioneer Press writes that "in the past 16 months under bankruptcy court protection, the airline has cut $2.5 billion in annual costs, shrunk its fleet, cut workers' wages and benefits and renegotiated key union, vendor and financing contracts."
Need more proof? Try this on for size...
CEO says Northwest has no plans to merge this year
MINNEAPOLIS (AP) — Northwest Airlines plans to emerge from bankruptcy protection as an independent carrier and stay that way through 2007, CEO Doug Steenland said on Tuesday.
Northwest and other airlines have been the subject of intense merger speculation, and US Airways has offered to buy Delta Air Lines. Northwest has hired a merger consultant, but said that was to be prepared to respond to offers.
But Northwest has no plans to merge either before it exits Chapter 11 bankruptcy — expected by June 30 — or later this year, said Steenland, who spoke to reporters after a breakfast for Twin Cities business leaders.
He declined to comment on reports that Northwest has held talks with Delta Air Lines. Delta and Northwest filed for Chapter 11 bankruptcy on the same day in the same courthouse in 2005, fueling speculation that the two could emerge as a single carrier. Steenland also declined to comment on whether Northwest is currently in merger talks.
Northwest is due to file details of its reorganization plan by Feb. 15. "That business plan and that valuation will be predicated on Northwest being a standalone, independent airline," he said.
Steenland also said Northwest plans to keep its headquarters in the Twin Cities.
Northwest has made deals with most of its unions that cut wages in return for claims against Northwest's bankruptcy.
The union that represents baggage handlers and other ground workers said it got about 86 cents on the dollar when it sold $36 million of its $181 million claim earlier this month, and the union is aiming to distribute checks to workers by Feb. 7.
But flight attendants never ratified an agreement, and the contract imposed by Northwest included no claim against Northwest like the other unions got — a fact Northwest has been pointing out on its employee hotline messages.
On Tuesday, Steenland said Northwest still hopes to make a deal with flight attendants, with a bankruptcy claim as an incentive. He declined to comment on whether any talks are planned.
Flight attendants have been fighting for the right to strike over the imposed contract, and are awaiting a decision by the 2nd U.S. Circuit Court of Appeals.
Time for a little tough love. If anything, LCC may someday be the auquiree, rather than the acquirer.
Then again, maybe not, LCC brings nothing to the table for the other Legacy carriers. Let's be honest, other carriers aren't exactly beating down your doors to talk to Doogie. Catch my drift? 🙁
"Maybe all this talk about airline consolidation is overblown. Northwest on Tuesday became the latest airline to reiterate plans to go it alone, with CEO Doug Steenland saying the Minnesota-based carrier has no plans to merge in 2007, The Associated Press reports. But the St. Paul Pioneer Press (free registration) writes that "he declined to comment on whether Northwest has had or is having merger talks with Delta or another airline. Delta has denied talks with Northwest as it fends off a hostile bid from US Airways, and also insists it intends to emerge from bankruptcy court as an independent business." Steenland says he doubts a hostile airline takeover could be successful under current market conditions. "The odds on it are very small. If it does, it puts pressure on the rest of the industry as to what their options are," he is quoted as saying by the Pioneer Press.
Steenland added that the difficult task of combining airlines is tough to pull off even when "everyone is working on a friendly basis," a likely reference to US Airways' hostile bid for Delta. As for Northwest and its future, Steenland claimed that "the airline is fixed" and ready to exit bankruptcy as a stand-alone carrier, according to the Minneapolis Star-Tribune (free registration). He went on to say that Northwest's restructuring is "basically complete," adding that Northwest is "going to be a successful airline for the long term. It has a competitive cost structure." The Pioneer Press writes that "in the past 16 months under bankruptcy court protection, the airline has cut $2.5 billion in annual costs, shrunk its fleet, cut workers' wages and benefits and renegotiated key union, vendor and financing contracts."
Need more proof? Try this on for size...
CEO says Northwest has no plans to merge this year
MINNEAPOLIS (AP) — Northwest Airlines plans to emerge from bankruptcy protection as an independent carrier and stay that way through 2007, CEO Doug Steenland said on Tuesday.
Northwest and other airlines have been the subject of intense merger speculation, and US Airways has offered to buy Delta Air Lines. Northwest has hired a merger consultant, but said that was to be prepared to respond to offers.
But Northwest has no plans to merge either before it exits Chapter 11 bankruptcy — expected by June 30 — or later this year, said Steenland, who spoke to reporters after a breakfast for Twin Cities business leaders.
He declined to comment on reports that Northwest has held talks with Delta Air Lines. Delta and Northwest filed for Chapter 11 bankruptcy on the same day in the same courthouse in 2005, fueling speculation that the two could emerge as a single carrier. Steenland also declined to comment on whether Northwest is currently in merger talks.
Northwest is due to file details of its reorganization plan by Feb. 15. "That business plan and that valuation will be predicated on Northwest being a standalone, independent airline," he said.
Steenland also said Northwest plans to keep its headquarters in the Twin Cities.
Northwest has made deals with most of its unions that cut wages in return for claims against Northwest's bankruptcy.
The union that represents baggage handlers and other ground workers said it got about 86 cents on the dollar when it sold $36 million of its $181 million claim earlier this month, and the union is aiming to distribute checks to workers by Feb. 7.
But flight attendants never ratified an agreement, and the contract imposed by Northwest included no claim against Northwest like the other unions got — a fact Northwest has been pointing out on its employee hotline messages.
On Tuesday, Steenland said Northwest still hopes to make a deal with flight attendants, with a bankruptcy claim as an incentive. He declined to comment on whether any talks are planned.
Flight attendants have been fighting for the right to strike over the imposed contract, and are awaiting a decision by the 2nd U.S. Circuit Court of Appeals.
Time for a little tough love. If anything, LCC may someday be the auquiree, rather than the acquirer.
Then again, maybe not, LCC brings nothing to the table for the other Legacy carriers. Let's be honest, other carriers aren't exactly beating down your doors to talk to Doogie. Catch my drift? 🙁
D
delta777
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EricLv2Fish
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Of course CEOs of other airlines are posturing to try and keep DP at arms length. Who do you think the CEO of an airline that merges with US Airways will be??? Duh! You don't need two CEOs, and DP ain't gonna be the one looking for a new job. You have to hand it to the ole US Airways CEO (can't remember his name at the moment) for not being so egotistical and selfish and greeting the merger opportunity.
ChrisUS
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If you REALLY want our viewing pleasure, post a note saying you are leaving this forum and going back to your own turf forever. I wish DL well and hope that this all works out for them.
barbeetantrums
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Breath_of_Fresh_USAirways
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Of course Doug and Co are "shopping" for a dancing partner for USA. What do you think they've been doing while Delta creditors decide what they wanted to do -- twiddle their thumbs? No. Anyone remeber America West's failed attempt to acquire ATA Airlines? And then, a short time later, they're merging with USA? A LOT of people thought the whole Delta offer was "smoke and mirrors" from the beginning and that Northwest was (is?) the real target.
There's a LOT of things to consider, going forward. I think USA hooking up with NWA would be a messy, messy merger -- even if it's amicable. The route systems are complimentary, though, and USA could use a mid-west hub (MSP) and of course, Everyone covets many of Northwest's Asian routes. The A319/A320, A330, and 757 fleets are very comparable. Put the Diesel-9's out of their misery and a very strong carrier could emerge. Let's hope so, anyways...
And how do you know when Doug Steenland, CEO of Northwest is lying? Whenever his lips move -- just ask any of his FORMER employees in Atlanta ("We have no plans to close this hangar", and he did, 2 months later) or Duluth (state of MN will probably sue for all the "perks" they gave NWA to build that facility there...which is now empty of anything to do with NWA...) So, there's a strong chance that the Doogie and Doug Steelin' have already been chatting about the prospects of getting together -- despite Doug Steenland stating that NW ain't interested. However, I don't see Doogie Parker giving any power to Steelin' and I don't see Steelin' sitting back and having little or nothing to do with a merged entity. Funny how egos could get in the way of a great deal. Will be interesting to watch, when it is proposed.
Something else to think about, and I'm not wishing a second bankruptcy for anyone, but if DL and NW do both emerge, stand-alone, and they DON'T make it, and for whatever reason, one, or both of them, decides to file bankruptcy again, the bankruptcy laws have changed and from what I understand, much less favorable than they were the day NW and DL filed... Could be interesting.
Then, again, there's always a chance UA will by USA. 😉
And if as stand-alone's, Delta or Northwest get desparate, they could sell of parts of their operation or assets in order to increase cash-flow and at that time the airline with the cash to spend would then be in the cat-bird seat. Buy DL's South American routes and some European routes, perhaps, or Northwest's Asian routes...just thinking of some of the possibilities, out loud. Of course, whatever airline has the most cash or can get their hands on the most cash, may be in the best position if something like this were to happen...
As Doug Parker has said, though, the best time to merge is while one of the carrier's is in bankruptcy. It makes achieving the "synergies" rather simple. The only other viable option would be to possibly buy a "little guy" -- kind of like AirTran trying to buy Midwest. A total cash buy-out is pretty much impossible for shareholders to ignore -- if it benefit$ them. US Airways has cash, and has proven it has access to a LOT more, too. But it's much more difficult to dump aircraft leases and other contracts in this type of scenario. But, think of all the possibilities -- could be really intersting.
I'm not saying any of these things will happen or won't and I'm not saying that I WANT any of these things to happen... Just kind of brain-storming, out-loud, all the possibilities that US Airways has to shake up the industry. And it will be shakin' -- just hope we keep the Richter scale under 7!
And, let's face it. It's fun to speculate! 🙄
🙂 😛 Great thread!
longing4piedmont
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Yep. I heard today from a friend close to Tempe that hunter is about to become the hunted. Rumor has it that US will finally get a friendly partner......Mesa is going to make a tender offer for US. Of course doogie no longer takes my calls so I can not confirm or deny the rumor. May the BOB or the King can get the inside scoop.And, let's face it. It's fun to speculate! 🙄
D
delta777
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Of course Doug and Co are "shopping" for a dancing partner for USA. What do you think they've been doing while Delta creditors decide what they wanted to do -- twiddle their thumbs? No. Anyone remeber America West's failed attempt to acquire ATA Airlines? And then, a short time later, they're merging with USA? A LOT of people thought the whole Delta offer was "smoke and mirrors" from the beginning and that Northwest was (is?) the real target.
There's a LOT of things to consider, going forward. I think USA hooking up with NWA would be a messy, messy merger -- even if it's amicable. The route systems are complimentary, though, and USA could use a mid-west hub (MSP) and of course, Everyone covets many of Northwest's Asian routes. The A319/A320, A330, and 757 fleets are very comparable. Put the Diesel-9's out of their misery and a very strong carrier could emerge. Let's hope so, anyways...
And how do you know when Doug Steenland, CEO of Northwest is lying? Whenever his lips move -- just ask any of his FORMER employees in Atlanta ("We have no plans to close this hangar", and he did, 2 months later) or Duluth (state of MN will probably sue for all the "perks" they gave NWA to build that facility there...which is now empty of anything to do with NWA...) So, there's a strong chance that the Doogie and Doug Steelin' have already been chatting about the prospects of getting together -- despite Doug Steenland stating that NW ain't interested. However, I don't see Doogie Parker giving any power to Steelin' and I don't see Steelin' sitting back and having little or nothing to do with a merged entity. Funny how egos could get in the way of a great deal. Will be interesting to watch, when it is proposed.
Something else to think about, and I'm not wishing a second bankruptcy for anyone, but if DL and NW do both emerge, stand-alone, and they DON'T make it, and for whatever reason, one, or both of them, decides to file bankruptcy again, the bankruptcy laws have changed and from what I understand, much less favorable than they were the day NW and DL filed... Could be interesting.
Then, again, there's always a chance UA will by USA. 😉
And if as stand-alone's, Delta or Northwest get desparate, they could sell of parts of their operation or assets in order to increase cash-flow and at that time the airline with the cash to spend would then be in the cat-bird seat. Buy DL's South American routes and some European routes, perhaps, or Northwest's Asian routes...just thinking of some of the possibilities, out loud. Of course, whatever airline has the most cash or can get their hands on the most cash, may be in the best position if something like this were to happen...
As Doug Parker has said, though, the best time to merge is while one of the carrier's is in bankruptcy. It makes achieving the "synergies" rather simple. The only other viable option would be to possibly buy a "little guy" -- kind of like AirTran trying to buy Midwest. A total cash buy-out is pretty much impossible for shareholders to ignore -- if it benefit$ them. US Airways has cash, and has proven it has access to a LOT more, too. But it's much more difficult to dump aircraft leases and other contracts in this type of scenario. But, think of all the possibilities -- could be really intersting.
I'm not saying any of these things will happen or won't and I'm not saying that I WANT any of these things to happen... Just kind of brain-storming, out-loud, all the possibilities that US Airways has to shake up the industry. And it will be shakin' -- just hope we keep the Richter scale under 7!
And, let's face it. It's fun to speculate! 🙄
Why do some LCC employees assume DAL and NWA would be in any more trouble than would any other carrier should there be a downturn in business? We will have just exited bankruptcy with a clean financial slate, and a route structure much stronger than LCC, one they apparently envy a whole lot. If anything, with a rather limited international operation, i'd say LCC would find themselves in trouble before a carrier with a much better route system. Cost-wise we're very nearly the same. Please explain.
Breath_of_Fresh_USAirways
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First, I laughed. 😀
Then,
Be careful what you wish for!
I think THAT would be the last straw that finally forced me, and a lot of other aviation nuts into another profession. We have to be nuts, now, or why else are we still here? But at least we still have hope. With Mesa/Ornstein in charge, even Hope is lost... :down:
Has anyone seen Hope?
RowUnderDCA
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I think this is close to the truth. LCC's route structure is fine in good times, but I'm not sure it's in the right markets to survive a significant market contraction. Also, I think it doesn't have the upside revenue potential required to be able to make money at labor rates comparable to say an AA, UA or DL. I think that a NW/LCC combination does the least to improve LCCs position in the domestic market. Operationally, and in regard to international service (Asia of course) NW makes sense for LCC,.
True, but times are "good" right now. Will this profit be sustainable when times are not as "good?" What about if others merge and US is left alone? It is obviously a concern to DP, or he would not have tried so hard for Delta.
I am happy with the profit, and look forward to obtaining a fair contract and moving on. I hesitate to throw on the rose colored glasses at this point, tho. :unsure:
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