US Airways - Delta Merger Update (Early Edition)

[USA320Pilot]

What is Delta official creditors committee thinking? No comment

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Schumer critical of US Airways, Delta merger impact

On Jan. 16 Schumer sent a letter to US Air CEO Douglas Parker, laying out his concerns about a decrease in competitiveness. He wants to know, Schumer said, what plans the airlines have for the New York state market, what routes or flights the airline would reduce or increase after a merger, and whether the new, larger airlines would reduce employment at New York airports.

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Schumer Eyes Air Merger Effect on NY

US Airways spokesman Philip Gee said the company has a track record of lowering prices after a merger, citing its 2005 deal with America West. "Upstate New York was a benefactor of that," said Gee, citing fare reductions in Syracuse. Gee said that merger "actually brought lower fares to about 1,000 markets, primarily along the East Coast. ... We anticipate the merger with Delta to go along the same sort of lines with that."

The Facts

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Delta: Takeover will cost cities

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Regards,

USA320Pilot

 

[Itestwell]

What is Delta official creditors committee thinking? No comment

See Story

Schumer critical of US Airways, Delta merger impact

On Jan. 16 Schumer sent a letter to US Air CEO Douglas Parker, laying out his concerns about a decrease in competitiveness. He wants to know, Schumer said, what plans the airlines have for the New York state market, what routes or flights the airline would reduce or increase after a merger, and whether the new, larger airlines would reduce employment at New York airports.

See Story

Schumer Eyes Air Merger Effect on NY

US Airways spokesman Philip Gee said the company has a track record of lowering prices after a merger, citing its 2005 deal with America West. "Upstate New York was a benefactor of that," said Gee, citing fare reductions in Syracuse. Gee said that merger "actually brought lower fares to about 1,000 markets, primarily along the East Coast. ... We anticipate the merger with Delta to go along the same sort of lines with that."

The Facts

See Story

Delta: Takeover will cost cities

See Story

Regards,

USA320Pilot

Ok, the first article states that DL/DLEx carriers control 10.5% of ALB traffic, US controls 22.9%, and WN controls 33.5%. So, would that mean that, if no reductions in service were implemented by US/DL, their combined ALB market share would be roughly 33%? If Southwest already controls 33.5%, how would a combined DL/US constitute a "stranglehold" on the market, as Schumer states? Wouldn't it still be comparable to WN's operations?

 

[bigbusdrvr]

What is Delta official creditors committee thinking? No comment

See Story

Schumer critical of US Airways, Delta merger impact

On Jan. 16 Schumer sent a letter to US Air CEO Douglas Parker, laying out his concerns about a decrease in competitiveness. He wants to know, Schumer said, what plans the airlines have for the New York state market, what routes or flights the airline would reduce or increase after a merger, and whether the new, larger airlines would reduce employment at New York airports.

See Story

Schumer Eyes Air Merger Effect on NY

US Airways spokesman Philip Gee said the company has a track record of lowering prices after a merger, citing its 2005 deal with America West. "Upstate New York was a benefactor of that," said Gee, citing fare reductions in Syracuse. Gee said that merger "actually brought lower fares to about 1,000 markets, primarily along the East Coast. ... We anticipate the merger with Delta to go along the same sort of lines with that."

The Facts

See Story

Delta: Takeover will cost cities

See Story

Regards,

USA320Pilot

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Looks like he posted the "Pro n Con" articles....

I didnt see any "spin"....

Did I miss something, or can we all just make our own conclusions from the articles....

Thanks, ab320....

 

[Busdrvr]

Ok, the first article states that DL/DLEx carriers control 10.5% of ALB traffic, US controls 22.9%, and WN controls 33.5%. So, would that mean that, if no reductions in service were implemented by US/DL, their combined ALB market share would be roughly 33%? If Southwest already controls 33.5%, how would a combined DL/US constitute a "stranglehold" on the market, as Schumer states? Wouldn't it still be comparable to WN's operations?

I think you've got to look at where the traffic goes. SWA's 33.5% of the traffic likely means they control 75% of the traffic to Florida, Phoenix and Texas, while the 33% of the traffic controlled by a US/DL merge would be 50% of the traffic that goes everywhere else, ie the traditional "business" and international travelor, who usually is less price sensitive.