USairways ups the offer for Delta

[luv2fly]

That will happen right after the New Delta emerges. Gordo will tell them how to fragment Old Delta first. Then it is on to merger #3 with NWA before they exit from BK.

I think ol Gordo told Doug that his proposal wasn't going to fly. That's why Doug had to rethink his offer.

 

[757inthebarrel]

It doesn't appear that way at all to me. It appears that DL is going to appease the creditors with the proposal of a merger that actually makes sense. It is more likely that a proposed NW/DL deal would be supported by the Delta pilot group that happens to be one of the biggest unsecured creditors. In addition there would most likely be less scrutiny by the DOJ as there is significantly less route overlap.

I agree with you on this. I think the DL/NW discussions have been going on for some time. Both companies wanted to exit BK then do a possible deal. The timeline probably moved up when Parker learned of it and launched a preemptive strike. NW/DL creates a much better airline and will result in a better investment for the creditors.

 

[Redbone]

I agree with you on this. I think the DL/NW discussions have been going on for some time. Both companies wanted to exit BK then do a possible deal. The timeline probably moved up when Parker learned of it and launched a preemptive strike. NW/DL creates a much better airline and will result in a better investment for the creditors.

I think many of us speculated on this after the twin BK filings.

US is out. As a creditor...what would I want. Dal/US, or twice the value of my dollar with a Dal/NWA.

 

[phasersonstun2]

I feel that the very thing that Delta wants, a merger with NW instead of LCC, could occur BECAUSE of Parker throwing cash into Delta. Another theory:

Parker picks up some assets from Delta for cold hard cash, and Delta uses the cash to buy NW.

Far fetched? Parker wants something and the creditors and board members know what it is.

 

[WorldTraveler]

a couple points...

Even if Doug Parker fails at a merger, he wants to be able to look at DL's books as part of a merger PROPOSAL - which is precisely why DL mgmt is resisting US' attempts. The last thing you want is to compete w/ a company that has seen your books.

Congress has said they will hold hearings on airline consolidation. You can bet Congress will hear the possible combinations in the industry. The whole reason the DL-NW talks "leaked" is so that DL can show that there are other options - ones that will not concentrate East coast markets any more - and will give DL communities and people the ability to control their destiny - regardless of the amount of money US wants to throw. The US government is not interested in seeing the industry consolidate in an uncompetetive manner - even if it means US is left alone and is not picked in any merger proposal.

DL tried to renegotiate its unsecured debt TWO times before it filed - largely w/o suceess.. No other airline besides AA has even tried to renegotiate its debt - and AA hasn't been overly successful. The unsecured creditors are pushing for a recovery that is better than what DL offered 2X before and what it will get under DL's standalone plan - equity in a standalone DL.

those of you who want to attack DL's valuations might want to go back and look at what UA valued itself at as part of its POR... it was more than what DL is offering... and UA had not attained significant profits at that point either.

 

[N924PS]

It doesn't appear that way at all to me. It appears that DL is going to appease the creditors with the proposal of a merger that actually makes sense. It is more likely that a proposed NW/DL deal would be supported by the Delta pilot group that happens to be one of the biggest unsecured creditors. In addition there would most likely be less scrutiny by the DOJ as there is significantly less route overlap.
[/quote

Please explain to me why you think a DL/NW deal is more "pilot friendly" than US/DL? As I recall, the Northwest/Republic merge was a bit contentious in terms of seniority list integration and decades long fences.

Inquiring minds would like to know.