USAir withdraws its offer
- Thread starter FWAAA
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luv2fly
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WorldTraveler
Corn Field
- Dec 5, 2003
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DL's response to US' unwanted offer will be a business school case study for years to come.
There has never been a successful hostile takeover in the airline industry.
The Senate made it clear last week that it cannot and will not support mergers that harm the travelling public. If a deal doesn't make rational sense, it won't fly.
There has never been a successful hostile takeover in the airline industry.
The Senate made it clear last week that it cannot and will not support mergers that harm the travelling public. If a deal doesn't make rational sense, it won't fly.
To DL folks.
Now that the "deal" is "NO DEAL", if I were in your shoes, this is the outcome, I would have wished for !!
(Now a "hook up" with NW, well that's a different story)
NH/BB's
Now that the "deal" is "NO DEAL", if I were in your shoes, this is the outcome, I would have wished for !!
(Now a "hook up" with NW, well that's a different story)
NH/BB's
luv2fly
Veteran
NHBB,
I believe DL and NW already have a plan for a merge after exiting BK. The only question is whether or not US tries to make a play for them.
WorldTraveler
Corn Field
- Dec 5, 2003
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DL just wrote a business case on how to repel a hostile takeover. Do you think NW is any more interested in merging with US than DL was. Heck no! US will be relegated to a position of obsolescence while the rest of the network carriers consolidate into desired and logical matches. Parker's worst nightmare is becoming reality - US will be dwarfed but much bigger and better network carriers while its core markets continue to be overrun by true low fare carriers.
scot Yesterday, 08:31 PM Post #1
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Group: Moderator
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Joined: 19-August 02
Member No.: 10
Since the DL/US thing isnt happening, everyone needs to just chill on their bashing of each other. I know there was lots of hostility (especially on these boards), but its over now. Back to the mundane please.
As of 830pm Eastern time 1/31, any further bashing of anybodies airline by anybody will result in a couple of days off.
So when do the moderators actually back the threat up? He spent years bashing US and UAL while they were in bk, spent the last 3 months hiding in the corner, and it took him less than 2 hours after the announcement to come back spewing his nonsense. Why was it ok for this particular poster to knock the other carriers when they were down but not his favorite (gulp!) airline?
geez WT, if you'd just tone down the hatefulness, people might be able to get your points. I kind of agree with the premise of your statement, but I don't want to be associated with your obsessive, pshyco bs.
To think DL wrote some game plan on repeling US is a little overblown. The facts, as they've come out in recent writings in the press seem to show otherwise. The more likely "story" is that had US entered their bid earlier, it would have been more likely to succeed. Also, in order to win, it seems DL has had to relegate itself to being merged as noted by the fact that the committee is requiring that DL emrge with no poison pill and a merger friend board. They seem to clearly see the advantages of Delta getting eaten up and are positioning things to go that way.
No buisness school in its right mind uses the airlines as case studies for much of anything other than bad business practices. They're not very profitable companies in the best of times, over-run by unions that drive poor decision making, short term thinking, testosterone driven organizations.
Also, it depends on what you consider success WT. To say there has never been a successful hostile takeover could be incorrect. Carl Icahn made a ton of money for Carl Icahn. I think everyone would agree that his main objective is to make money and he did. Was it to the detriment of the business? Sure, but that's rarely his focus. "Wall Street" is a pretty close interpretation of the fight between Icahn and Lorenzo and while the actual greed speech is attributed to Ivan Boesky (sp.?), Icahn is a dead believer in its content.
No buisness school in its right mind uses the airlines as case studies for much of anything other than bad business practices. They're not very profitable companies in the best of times, over-run by unions that drive poor decision making, short term thinking, testosterone driven organizations.
Also, it depends on what you consider success WT. To say there has never been a successful hostile takeover could be incorrect. Carl Icahn made a ton of money for Carl Icahn. I think everyone would agree that his main objective is to make money and he did. Was it to the detriment of the business? Sure, but that's rarely his focus. "Wall Street" is a pretty close interpretation of the fight between Icahn and Lorenzo and while the actual greed speech is attributed to Ivan Boesky (sp.?), Icahn is a dead believer in its content.
NYCDelta
Senior
When I was finishing my HR degree in the mid 90's, one textbook we used had case studies of companies that exemplified good employee relations from an HR perspective. At that time, the only 2 airlines on that list were Southwest and Delta.
You are correct in that Delta will be positioned to merge once exiting BK. The creditors committee supported DL's plan once management and the BOD made changes to that plan. One of the changes was that the creditors would get more say in who made up the BOD and executive compensation. DL has stated from the beginning that they would merge with the "correct" partner. I doubt the top 3 "legacy" will merge with each other, so that leaves us with CO,NW, or US. Clearly, they didn't want to merge with US, so I'm assuming it would be CO, NW or nobody. I've always thought that since US and UA are the biggest proponents of M & A, then they should merge. I think it would make for a very strong airline.
I was injecting some sarcasm in my response admittedly. In reality there are certain areas where airlines are used for case studies. Typically, economics and logistics classes use them to study price discrimination (through revenue management) and scheduling respectively.
I was responding to WT's assertion that Delta somehow masterfully maneuvered its way through the process. It's an opinion that I disagree with based on the stories we've all seen come out.
It seems to me, based on the information that Delta placed enough fear in the creditors to reject this specific deal. Conversely, US seems to have injected enough intrigue in them that they forced Delta to organize a company that will have limited ability to fend off a future predator through a poison pill strategy. Additionally, by forcing a M&A friendly BOD, they'll be actively serching. Now, many will say that could mean DL will be the buyer...maybe, but my interpretation would be not likely. I believe the creditors don't see any way Delta can provide the value they're trying to sell in their plan but that they could get quite a chunk through a buyout and the banks are willing to lend. As such, they're expecting the new BOD pick up the phone and listen carefully to the next suitor...
I was responding to WT's assertion that Delta somehow masterfully maneuvered its way through the process. It's an opinion that I disagree with based on the stories we've all seen come out.
It seems to me, based on the information that Delta placed enough fear in the creditors to reject this specific deal. Conversely, US seems to have injected enough intrigue in them that they forced Delta to organize a company that will have limited ability to fend off a future predator through a poison pill strategy. Additionally, by forcing a M&A friendly BOD, they'll be actively serching. Now, many will say that could mean DL will be the buyer...maybe, but my interpretation would be not likely. I believe the creditors don't see any way Delta can provide the value they're trying to sell in their plan but that they could get quite a chunk through a buyout and the banks are willing to lend. As such, they're expecting the new BOD pick up the phone and listen carefully to the next suitor...
Or maybe a US/NW combo...with the name
NAUSIA.. (the IA for International Airlines)
