Transcripts of Parker and Grinstein's speeches

[gaucho99]

The merger according to Parker:

http://www.buildingabetterairline.com/docu...nyFinal_001.pdf

And here's Grinstein's take:

http://images.delta.com.edgesuite.net/delt...n_testimony.pdf

 

[BoeingBoy]

Here is a link to the webcast replay of the hearing. It's 3-1/2 hours long and the first 20 minutes is only the title screen (I'd advise skipping that!!).

Once the committee begins (20 minutes into the webcast), the initial discussion is on committee housekeeping business, so the actual hearing doesn't really start until about 29 minutes into the webcast - I'd recommend skipping straight to that point....

Senate Commerce Committee Webcast

Jim

 

[usair_begins_with_u]

Grinstein kicked Parkers arse, and its not even close.

 

[usair_begins_with_u]

Would you give us a few brief examples?? I'm not slogging through that drivel.

Bob, just look at the exhibits from Grinsteins speech. The exhibits tell a very clear tale, a tale we all know quite well. There is just too much overlap, and in the end, the consumer will ultimately get screwed by an LCC/DL merger.

Parker offers no emperical evidence to support a merger from the consumer point of view, but does add A LOT of fluff about being a pround life long airline guy. He basically comes off as power hungry empire builder.

Sorry I could not be more technical in my analysis, but sometimes it is really hard to state the obvious in more than simple terms.

 

[N965VJ]

Parker:

<SNIP> Whether or not our industry is on the cusp of a major consolidation period, I don’t know. What I do know is that our industry remains extremely fragmented with substantial levels of excess capacity.

Grinstein:

<SNIP> The combined carrier would have no significant presence in Asia and the West Coast. It would be competing against carriers with far more extensive global networks. It would be the weakest and least efficient of the major carriers when, not if, follow-on mergers occurred.

More proof that this is just a smoke and mirrors scheme.

 

[usair_begins_with_u]

As it is I don't see how the deal could support the debt load?

I don't either, but to be honest, that point should NOT be taken into consideration by the DOJ. The DOJ should only base its findings on protecting the public from anti competitive mergers/takeovers/acquistions which will lead to less competition and higher prices.

I would not want the DOJ to make a judgement call on merger activity based on percieved poor financial circumstances. That would be grossly oversteping its boundaries.

Again, this is not about profit/loss or even employees or creditors, this is about what is in the best interests of the public at large, nothing less, nothing more.

 

[brokenwrench]

"You're an aggressive suitor, but the lady from the South doesn't want to be forced into this shotgun wedding," said Sen. Trent Lott, R-Miss, a reference to Delta's Atlanta headquarters.


http://www.ajc.com/business/content/busine...ltahearing.html

 

[luvn737s]

Let's see, Parker simply tells what has happened: No furloughs, profit sharing, expanding LCC model, proven history of success.

Grinstein says sky is falling. No profits, no aircraft orders, No plan for anything much different than before BK, only less pay and bennies.

So who do you believe, the facts or the fear?

 

[ClueByFour]

Let's see, Parker simply tells what has happened: No furloughs, profit sharing, expanding LCC model, proven history of success.

Grinstein says sky is falling. No profits, no aircraft orders, No plan for anything much different than before BK, only less pay and bennies.

So who do you believe, the facts or the fear?

Hmm--so Delta is saying the same things that US was saying before it exited BK. What a shock.

BTW--Parker has furloughed (ask any MDA employee), has not expanded the "LCC" model (it's neither low cost nor low fare, and 3 quarters is not a "proven history of success." LUV has a "proven history of success." AA may go down with one as the only legacy airline never to have gone Chapter 11. But not HP/US (individually or collectively).

 

[luvn737s]

Isn't PIT-PHL the bellweather of so-called price gouging? Doesn't it represent the worst of what could come from a US/DL overlap? And look what happened: it attracted WN and the fares dropped.

In a post-deregulation world, no one has to run their prices past the CAB for approval. The prices should be the highest that the market will sustain. An airline is not a public utility. If the prices the airline wants to charge are too high, a) a lower fare competitor will come in and thrive or b] the market will be soaked dry and abandoned; neither of which would be in the incumbent airline's best interest. Small cities should expect to pay more for access to a worldwide network. If they tolerated less frequent service, then a larger airplane might be offered (probably not due to flight bank considerations, but maybe) with lower fares. But small cities cost more to operate in and only marginally contribute to profitability.

Remember folks, we're talking about a commodity here, like milk. Don't get all mushy over a particular brand. It's all just milk!

 

[Dog Wonder]

I believe both of these guys are only saying what will benefit each of them personally.

 

[US1YFARE]

Cause & Effect? You tell me? you have one business model that hasn't produced a penny of net profit since the creation of the industry and another profitable for 34 of its 36 years in business.

Duh, Piney, WN doesn't have FC. Doug has figured out that the amenities in first class are killing the industry.

 

[Flying Titan]

Would you give us a few brief examples?? I'm not slogging through that drivel.

Piney -
There were lots of examples of direct salvos launched by Grinstein that went unanswered by Parker. One by one, they wouldn't seem to matter much, but collectively, these unanswered challenges made Grinstein seem much stronger. IMHO, it appeared that Parker was not adequately prepared for the hearing.

It looked like Parker came to DC to talk in broad terms about airline industry consolidation (with a few US/DL talking points) -- Grinstein was there solely to attack the US/DL merger. I realize that the hearing topic was listed as "airline industry consolidation," but Parker should have known that this was basically going to be a Senate "trial" on the US/DL merger and should have been prepared accordingly.

The key test of who came out on top is the reaction of the Senators. Through their questions and comments, it seemed that every one of them sided with DL - not US.

 

[usair_begins_with_u]

Am I the only one who sees the irony of a bunch of LCC employees trying to convince one of their best customers that a merger between two of his best travel options are going to help him out in the long run? Yeah right.. LOL

I don't always see eye to eye with Piney, but his instincts as a customer could not be any more correct.

More competition = better choices = better prices. If you can't compete, then do the right thing and close shop and try something else. Don't use your own inadequacies to justify consolidation to screw your customers and raise prices.

 

[Informed1]

The merger according to Parker:

http://www.buildingabetterairline.com/docu...nyFinal_001.pdf

And here's Grinstein's take:

http://images.delta.com.edgesuite.net/delt...n_testimony.pdf

Did anyone else notice how Parker says "we offer first class SEATING". Note he was extremely careful to say "seating" not service. Anyone who has traveled in our first class cabin knows full well we no longer offer a first class service. Imagine United or Northwest serving wine in a plastic cup on a transcon.