US Airways Will Not Pursue Northwest

[chucky]

link

 

[N965VJ]

Always the Dealmeister:

Parker said he hasn't contacted Northwest officials and he doesn't plan to. However, if another airline makes a bid for Northwest or any other carrier, "we need to be involved in that."

Hey, look who showed up for work!

Parker said he's spent the past several days focusing on other US Airways business. The Tempe, Ariz.-based carrier still needs to settle contracts with an increasingly frustrated pilots union, and it plans to decide this month on where to locate a new $25 million flight operations center.

 

[USCREW]

My NW pilot friend said that he's been hearing a lot a talk about NW buying Delta. How would that be possible if US wasn't successful? It would be funny if someone else tried again so soon. Those buttons will come in handy!

 

[delta777]

My NW pilot friend said that he's been hearing a lot a talk about NW buying Delta. How would that be possible if US wasn't successful? It would be funny if someone else tried again so soon. Those buttons will come in handy!

Oh boy, USCREW is hearing voices again At any rate, i'll entertain the thought...

This would be like a gentleman's agreement for DAL and NWA to merge post-bankruptcy if anything were to happen, no need for a hostile takeover attempt. I don't think there would be a need for the KDMD buttons this time around either. There would be little, if any labor unrest if two carriers with "COMPLIMENTARY" route and pay scale structures were to willingly merge.

Think about the worldwide footprint of a DAL/NWA!!!Would there be a weak-point in the route system of said carrier because i'm not seeing it. We would have Asia, Europe, South/Central America, Africa and the U.S. covered quite nicely ,
to say nothing of NWA's very profitable cargo fleet. As for fleet integration, i'll let the experts chime in on that one, i haven't a clue.

As has been stated before, DAL isn't anti-merger, we're just hostile to flawed takeover attempts with another carrier with a ridiculous overlapping route structure. :down:

If indeed this friendly merger were to happen, it would be because it is all the things a LCC/DAL wouldn't have been. 😀

 

[BottomFeeder]

Oh boy, USCREW is hearing voices again At any rate, i'll entertain the thought...

There would be little, if any labor unrest if two carriers with "COMPLIMENTARY" route and pay scale structures were to willingly merge.


Delta777

Stop sniffing the captain's crack. You are getting brain damage :blink: :blink: :blink:

Little labor unrest?

Your talking about the NWA cobras that have a fast strike.

 

[gaucho99]

I'm a little surprised that Doug tried every thing imaginable to get DL but is not even looking twice at NW. Is there something I'm not seeing here?

 

[BoeingBoy]

I suspect that attempting a hostile bid for NW would be a pretty steep hill to climb at this point. DL hadn't filed either their POR or Disclosure Statement when US made the initial offer for them - I don't think they'd even indicated when they would file them. NW has already filled a POR and will presumably file the Disclosure Statement within a week, with Creditor Committee support for extending the deadline for filing the DS.

Jim

 

[Rico]

1. Jim's right, no such thing as another hostile attempt, as IMo the money men that fronted the financing for the Delta Attempt have told DP "not again" in so many words.

2. As for a possible DAL/NWA merger, IMO this was the plan from the start, esp. with them skipping hand in hand into BK court at the same time.

And It might just explain a lot. It would explain Parker making a bold move on Delta in an attempt to "beat em to the punch", and it would be a great explanation of why Grinstein seemed so against the idea of US coming in and playing a different song on the jukebox.

Afterall, I really have a hard time swallowing the fluff that he gives a flying poop about the DAL employees. Obviously there would have been some payoff for him to go along with the US offer. But if he already had a even more lucrative offer (for himself) from the NWA people..., Well then why not fight off US...?

But it would be fun to watch, I'm pretty sure the Delta and NWA people do not have a clue what kind oif misery they would be in for, in the event of that merger.

 

[luv2fly]

But it would be fun to watch, I'm pretty sure the Delta and NWA people do not have a clue what kind oif misery they would be in for, in the event of that merger.

No logic in your statement unless you are just lamenting over the failure of the DL/US merge.
Why is it so hard for you to accept what the creditors committe ultimately concluded? The proposed DL/US merge was the worst possible scenario. It stood little chance of surviving the DOJ review. It represented a 35% route overlap that would have resulted in massive layoffs contrary to what Parker alluded to. It brought little benefit to DL's current route structure. It would have postioned the new DL very poorly in the new airline industry relative to other more powerful mergers such as UA/CO and AA/NW which would have been brought about as a result.

 

[Cosmo]

IMHO, a DL/NW merger is the beginning of a mightmare scenario for US. A DL/NW merger eliminates NW's "golden share" in CO, leading to a CO/UA merger (however it might be structured in terms of ownership, leadership, HQ location, etc.) in a proverbial heartbeat, and AA will either stand pat or merge with Alaska (and actually keep the West Coast operation this time 😛 ). US then becomes a distant 5th in the carrier rankings after the above 3 plus WN. I believe that this scenario explains, to a large degree, US' unsuccessful bid for DL. But this is just speculation on my part and, as I said above, JMHO.

 

[RowUnderDCA]

I kind of agree with Cosmo.... just less dramatically. Hey, if you believe that consolidation will happen, there are a few, predictable outcomes. US is in the least advantageous position of ending up locked out of major market's shares and locked out of national and global reach. That's why Parker is pro-active. Even a NW/LCC combo would probably create the weakest domestic market presence.... but obviously have asia. I think he's thinking ahead and presume that they have a strategy for transitioning into a niche carrier, or a real LCC.

 

[Rico]

No logic in your statement unless you are just lamenting over the failure of the DL/US merge.
Why is it so hard for you to accept what the creditors committe ultimately concluded? The proposed DL/US merge was the worst possible scenario. It stood little chance of surviving the DOJ review. It represented a 35% route overlap that would have resulted in massive layoffs contrary to what Parker alluded to. It brought little benefit to DL's current route structure. It would have postioned the new DL very poorly in the new airline industry relative to other more powerful mergers such as UA/CO and AA/NW which would have been brought about as a result.

Well for a start, let's talk about your mostly unrepresented workforce.

Rumor is that NWA has had a few issues with certain of it's unions, you might not have heard that since all you care about is yourself. Picture this then.

"Go work that struck work"

"Ummm, no, err, that's not my job, I am a Delta employee..."

"Do that work or you are fired, any questions...?"

Ahhh, but what about the pilots, since they are both ALPA, I am sure it would be smooth sailing there, right...?

Hmmmrph, there are few examples of a more acrimonious relationship between merged pilot groups than what happened at NWA after the Republic merger.

Do the math, do you think they will keep NWA's DC-9's, or the A330's around post BK if there is a merger with DAL coming...? How do you think that's going to sit with their pilots as that flying is shrunk while you keep most of your's...?

No matter who DAL merges with it will be a rough ride for your people, get used to the idea.

 

[Blackdog]

NW and DL planned their eventual merger plans the day the DOJ rejected their anti-immunity request. With Air France (DL's European partner) buying KLM (NWA's European partner), they tried to have a merger of sorts on this side of the Atlantic. When this was thwarted by the DOJ it became necessary for them to find another way of linking up. BK was just the answer. (Not Burger King!) Anyway they danced into the BK court together. Same day, same hour, just a floor apart. If the FAs at NW had accepted their ridiculous TAs, we would have probably heard of their intentions long ago. When DP made his hostile bid for DL this threw a small monkey-wrench in their plans and they had to find a way of contending with it before they could make their plans ulimately known. They want to keep SkyTeam as a viable alternate to Star and One World. And this is what will eventually happen. NW doesn't do anything without first crossing all the T's and dotting all the I's. They probably have got Congress already signed off on an eventual merger between NW and DL. Wait and see! As for the employees, no merger is ever fun but the combined strengths of the 2 companies will make it better in the long run knowing they form a formitable challenge to all other airline/airline combinations.

 

[PurduePete]

I just came across something that you guys might find interesting.

http://sfgate.com/cgi-bin/article.cgi?f=/c...&type=chart

It's a list of the pairings for the 2007 AT&T Pebble Beach Pro-Am golf tournament held from Feb. 8-11 last month. Two PGA pros get paired up with two amatuers for the weekend.

I'm sure that you all know who Derek Kerr is (CFO). But look who was in his foursome...

8:00 9:40 8:50 Jim Rutledge Derek Kerr (9)
Darron Stiles Doug Steenland (15)

Yes, it's that Doug Steenland, CEO of Northwest Airlines.

Isn't it funny that on the same day that D. Parker says that he hasn't been in contact with NW about any buyout/merger plans, he has his CFO out playing golf with the CEO of NW. Don't they say that all of the business is done on the golf course instead of the boardroom?

Anyone want to rethink a USAir-Northwest buyout/merger now? :unsure:

 

[BuffaloJoe]

And you all think there is "Labor" problems now. For the sake of US Airways employees, I hope this is just a rumor! And for the sake of passengers. And DoUgIe Parker will still be saying "All is Well, Stay Calm, All is Well". Quoted from National Lampoons "Animal House".