Parker: consolidation overblown

[deltawatch]

Parker also said that the expectation of further consolidation in the airline industry may be overblown, simply speculation resulting from the bankruptcies of Delta Air Lines and Northwest. "Both of these companies are going through their bankruptcies, finding themselves coming in ahead of their plan and probably have standalone plans for emerging," he said. "If they do come out independent, you won't hear much about consolidation anymore."

http://www.thestreet.com/_googlen/stocks/t...n/10287328.html

 

[whatkindoffreshhell]

Parker is a good airline CEO and is doing the right thing.

But he is wrong on future airline consolidations.

There is no way UA, DL & NW will remain pat.

 

[pilot]

Neither will US Airways.

pilot

 

[cageyjames]

But he is wrong on future airline consolidations.

There is no way UA, DL & NW will remain pat.

That isn't what he said. He said if they come out independent, they won't be interested in consolidations. I think he's implying that they would do so before leaving BK.

 

[FWAAA]

As soon as DL and NW get the concessions they seek from all workgroups (and all agreements are ratified), UAL and AMR will become interested in them. Of course nothing will be announced before the employees are beaten into submission.

 

[jerseyfinn]

Two or three years ago when US was falling back into the tank, Delta was the darling major with lots of cash and press accolades to boot. Well, they take a dunk along with NW & UA ( but only after US washes its own dirty feet in the BK waters again).

So US moves forward after HP steps in with a merger. I don't think that anyone can say for certain what lies ahead for these other BK carriers. They could indeed stand pat or time and circumstance may demand further consolidation. In any case, the airlines still have an awful lot of seats chasing the same customer dollars -- this despite improved operations.

I'm just glad that US makes its move when it does and is still flying with improving revenues and profits.

Barry

 

[USA320Pilot]

In a recent Crew News meeting webcast on theHub Doug Parker said that he does not believe Delta and Northwest will come out of bankruptcy in their current form. Parker said that once the two companies get their labor agreements and other contracts in place they may need some sort of consolidation similar in scope to what US Airways did to emerge from their formal reorganization. Parker further indicated that the carrier's would likely not consolidate together due to their financial situation.

In a recent interview I believe in BusinessWeek Online Delta CEO Gerald Grinstein said he believed consolidation would occur and it would likely be like what happened at Pan Am.

In regard to US Airways, I recently heard from an informed source that the Tempe-based company recently bid on three B767-300s, but 20 minutes prior to the auction closing US Airways was outbid by UPS for the aircraft.

Regards,

USA320Pilot

 

[700UW]

Delta has reached an agreement with thier pilots, they are the only union on the property.

NW has all ready ratified with Customer Service and the Pilots, they have T/As with the ramp and flight attendants.

You would think Doogie would know this information.

 

[USA320Pilot]

700UW:

Doug Parker's comments were made before some of the agreements you listed were obtained. I have a feeling Parker has a good understanding of macroeconomic airline industry events.

Best regards,

USA320Pilot

 

[PHL]

In regard to US Airways, I recently heard from an informed source that the Tempe-based company recently bid on three B767-300s, but 20 minutes prior to the auction closing US Airways was outbid by UPS for the aircraft.

If this is true, will US continue seeking 67's from other sources? Were they specifically seeking -300 models, or were they looking for any 3 decent 200/300 models?

 

[PITbull]

As soon as DL and NW get the concessions they seek from all workgroups (and all agreements are ratified), UAL and AMR will become interested in them. Of course nothing will be announced before the employees are beaten into submission.

The nonunionized legacy carrier will not look to merge with a union carrier. The syngergy isn't there. DL without a union still pays their nonunionized groups more than the legacy carriers.

DL, which was one if not the most profitable legacy will merge independent. I suspect, so will NW.

USAirways had to merge to survive. They didn't have the managment talent to go solo.