Why do you think or don't think this merger will happen

ekjkj

Member
Feb 16, 2006
52
1
Before I start I want to say all the comments I make are from what i've read in the media, and using my deductive reasoning skills (or lack of) so don't beat me they are just my epinions but please add your own comments on the subject I like to read them on a cold winters day.

First I don't think this merger will happen because the creditor committee hasn't wormed up to the deal and why I think this is because.

1. The committee doesn't think it will get approved in the current form meaning the final deal might not be as lucrative as the original (both immediately and long term).

2. The employees from both airlines dont want it, I can't say how the Delta employees are responding but the US employees are fed up with Parker along with his entourage and their work productivty is starting to show it. Imagine if this thing does get done everyone will be fighting with everyone (this is the voice of experience I am a original Piedmont employee and bid to a US Air
station after the merger my tools disapeared on a regular basis, I was always given the worst jobs while the US Air mechanics slept, The foreman told all of the Piedmont mechanics when we bid in that he was not for this merger and didn't want any "good ole boys" around. I bid out within 30 days).

3. The Goverment doesn't want it by the way hearings are being set up (atleast until their palms are greased) that is why the crediters are weary look what AT&T had to do to get Bell South I don't think Parker is willing to do whatever it takes to get the deal done and if he doesn't deliver then where does that leave Delta if they halt everything to let the US Airways deal proceed.

4. This is where the Delta management team show their brillance, The creditor committee has to weigh all this plus the fact that Delta could emmerge from BK buy Northwest and never knowing what the new Delta Northwest combo would be worth, or do they take the 5 billion in cash with options that are not guaranteed and could end up being worth much less than they are now worth.

I hope this give you something to think about Ed
 
The whole deal is just smoke and mirrors about moving paper around and creating “valueâ€￾.

Today’s email I received from buidingabetterairline.com has a paper airplane at the top, an unintended hint about what this “mergerâ€￾ is really about.

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Won't happen. If Parker and co. gets anyone with standing (i.e., creditor's committee) to petition the court to abrogate the DL pilots' contract--which, as it stands, is a deal killer-- AND, the court grants the petition (not a guarantee), the DL pilots' will walk.

This leaves nothing for Parker to merge with. DL will not survive a strike. If that happens, there are other airlines with a lot more money at the yard sale.
 
It's looking more and more likely this deal ain't goin' anywhere. It's been nearly a week since LCC announced the improved offer to DAL and the creditors STILL haven't requested "due diligence" to begin. And with Doogie's self-imposed deadline of Feb. 1 quickly approaching, time is running short. Bethune himself just came out and said there were no new meetings between him and LCC/DAL/Creditors. Give credit where credit is due, Doogie made a hell of a run at it but ultimately fell short.
 
Things are happening in the bg. Senate hearings are the next show, and they will ultimately determine whether any mergers will be allowed. NW is submitting the exit plan, DL will release theirs. Parker may actually be too late with his strategy. But I don't think the silence is a no-go. It's more like a no, go away. Maybe another boost is coming. Parker has up to 10 billion dollars in cash to spend.
 
I don't think this merger is going to happen for a number of reasons. Mainly, it serves no benefit to anyone except the executives. Employees AND customers will get hosed, as will shareholders in the long run. Someone once mentioned that this whole deal is a distraction for a management team who can't even properly complete their own merger in 16 months time. They have made penny wise and pound foolish decisions, many of which have been made without consideration for consequences. Here are two which come to mind off the top of my head:

1. The web site--nuff said--it doesn't work, 8 months after being combined. They made the cutoff in May to save money from SABRE, but what has it COST them? Millions I am sure.

2. Reconfigs like the 320 debacle on the east side. They want to clamor to add seats to the east 320s so it's okay to screw the frequent fliers by not only removing a row of F, but taking half the overhead capacity in the F cabin because they weren't smart enough to realize that some of the equipment in the departed closets had to go somewhere else. Also, it is apparent the east certificate doesn't allow for hanger hooks on the bulkheads. And adding more coach seats on the 321 at the expense of first class, while may make sense to some, is stupid on an already performance challenged airplane--more load, less range....

For what it's worth, I tried the competition this week--better product and a lower fare. If they continue removing value from the proposition you will see yields plummet as FF's move on.

I think they should just stick to ruining 2 airlines, rather than trying for 3.

But then again, I am just a dumb customer.....
 
At this point, with all the animosity from so many at DL, I hope it doesnt happen. Look at all the problems with had with PI and that was a "friendly" merger. It took years to get that all straightened out and is it really? Still a North vs South battle from time to time. :(