Will Delta and US Air get together on DELTA's terms

[deltawatch]

http://www.marketwatch.com/news/story/delt...mp;siteid=yhoof

 

[brokenwrench]

You are kidding, right?

 

[Coffee_Tea_Or_Me]

You are kidding, right?

I don't know -- anything is possible. Nothing really suprises me about this industry any more, especially with all of the merger talk. The only merger announcement that would really shock me would be American and United -- or Southwest with a legacy. Beyond that, I think there a lot of unexpected possibilities, and I recall that a lot of industry leaders thought that a US/DL merger made a lot of sense (and cents).

 

[delta777]

I don't know -- anything is possible. Nothing really suprises me about this industry any more, especially with all of the merger talk. The only merger announcement that would really shock me would be American and United -- or Southwest with a legacy. Beyond that, I think there a lot of unexpected possibilities, and I recall that a lot of industry leaders thought that a US/DL merger made a lot of sense (and cents).

No chance. Anderson wants a ready-made merger with another airline that has a robust Asian network. Either NWA or UAL.

One would think that if it were DAL/NWA, then UAL and CAL would soon join forces. AMR is already big enough on its own even if these carriers were to merge, so i don't see them doing anything. Which begs the question, where does all this leave LCC? This may turn into Dougie's worst nightmare, for he was the one who stated that consolidation needed to happen, yet if it does indeed happen, he could very well be the one left holding the bag.

 

[GoldenRam94]

No chance. Anderson wants a ready-made merger with another airline that has a robust Asian network. Either NWA or UAL.

One would think that if it were DAL/NWA, then UAL and CAL would soon join forces. AMR is already big enough on its own even if these carriers were to merge, so i don't see them doing anything. Which begs the question, where does all this leave LCC? This may turn into Dougie's worst nightmare, for he was the one who stated that consolidation needed to happen, yet if it does indeed happen, he could very well be the one left holding the bag.

If things played out the way you said, then LCC would fold up shop and liquidate. Do not worry about Doug though, he will be financially taken care of!

 

[aquagreen73s]

If things played out the way you said, then LCC would fold up shop and liquidate. Do not worry about Doug though, he will be financially taken care of!

One thing for certain is that no matter how the industry consolidation plays out, there won't be any financial rewards for labor. The dirty little secret that nobody is talking about is right here: http://www.theoildrum.com/

World oil production peaked in May, 2005. If there was plenty of oil left in the ground, especially in the Middle East, then why is OPEC fretting about the current price? Why not just pump more? Answer: they can't - Saudi is at peak, Mexico is in steep decline as is the North Sea, and world demand continues to soar. There is no way out of this other than a significant curtailment in demand, read: severe economic recession but even that would only delay the inevitable. This is the reality which awaits this industry as well as the largest oil consumer in the world, us.

 

[donttouchthebeauty]

If things played out the way you said, then LCC would fold up shop and liquidate. Do not worry about Doug though, he will be financially taken care of!

No they won't ... They will purchase AMR...

 

[aafsc]

No they won't ... They will purchase AMR...

I can see you are still obsessed with AMR.

 

[donttouchthebeauty]

I can see you are still obsessed with AMR.

Oh yes, I drool over the Super-80 poster children, their day is done and so are yours.... That is just what I see as a possibility not an obsession at all... I am obsessed with hot PR men, so come correct or don't come at all!!!

 

[Travelpro72]

Anyone being "obsessed" with AMR is about as laughable as another airline wanting to emulate Usairways.

 

[US1YFARE]

I am obsessed with hot PR men,

THe A on recent CO flight was PR (around 40) and he kept calling the lead flight attendant (who wasn't the A????)...anyway, he kept calling the lead flight attendant who must have been 30 years old, Mama....he would yell, hey mama, could you grab such and such....hey mama could you ask 3D what he wants to drink....hey mama....

 

[Coffee_Tea_Or_Me]

THe A on recent CO flight was PR (around 40) and he kept calling the lead flight attendant (who wasn't the A????)...anyway, he kept calling the lead flight attendant who must have been 30 years old, Mama....he would yell, hey mama, could you grab such and such....hey mama could you ask 3D what he wants to drink....hey mama....

I think the CO FAs swap roles like PI did. I notice when I travel on them they keep their jumpseats, but their cabin duties change each leg.

Anyway, funny story about the PR guy. There is this annoying guy at US who likes to fly E in Envoy to Europe and calls everyone "Sweets." Sweets do this, sweets do that, thanks sweets. It was awful. I hated him so much.

 

[autofixer]

One thing for certain is that no matter how the industry consolidation plays out, there won't be any financial rewards for labor. The dirty little secret that nobody is talking about is right here: http://www.theoildrum.com/

World oil production peaked in May, 2005. If there was plenty of oil left in the ground, especially in the Middle East, then why is OPEC fretting about the current price? Why not just pump more? Answer: they can't - Saudi is at peak, Mexico is in steep decline as is the North Sea, and world demand continues to soar. There is no way out of this other than a significant curtailment in demand, read: severe economic recession but even that would only delay the inevitable. This is the reality which awaits this industry as well as the largest oil consumer in the world, us.

Aqua, I agree 100%. I had to give a guy an economics lesson at the gas station yesterday. Most Americans are oblivious as to what's comming down the track at 100 mph. Jimmy Rogers is calling for $150 per barrel oil soon. As for production, Jim Rogers agrees as he says that oil production has been flat for several years; demand has not. I think oil could soon be denominated in Euros as the dollar is further devaluated by the Fed; that would cause a 40% increase in our (US) oil costs over night.

At any rate, the future for the US aviation industry is very bleak and for the US economy in gerneral. It kind of makes me glad my career is nearly over.

 

[RowUnderDCA]

I think the CO FAs swap roles like PI did. I notice when I travel on them they keep their jumpseats, but their cabin duties change each leg.

Anyway, funny story about the PR guy. There is this annoying guy at US who likes to fly E in Envoy to Europe and calls everyone "Sweets." Sweets do this, sweets do that, thanks sweets. It was awful. I hated him so much.

Seems like every time I get upgraded to first, there's one obnoxious, rude, entitled or even disgusting businessman, who appears to be an experienced frequent-flyer. Last time, I sat next to a rude man that devoured three bags of chips in what seemed a deliberately disgusting and messy fashion. He was unpleasant.

 

[aquagreen73s]

I had to give a guy an economics lesson at the gas station yesterday. Most Americans are oblivious as to what's comming down the track at 100 mph.

I too am amazed that people just don't grasp the obvious. Another example: Americans just seem to sluff off the fact that the Canadian Loonie is now more valuable than the dollar. Even though it's quite easy to self-educate oneself about peak oil via the internet (www.theoildrum.com), I won't knock most Americans who never bother to read anything other than Paris Hilton's latest escapade. But the dollar collapse against other major currencies is obvious and you don't even need to read the paper to figure it out.

Jimmy Rogers is calling for $150 per barrel oil soon.

T. Boone Pickens is calling for $100 oil in the near term, possibly by Christmas.

As for production, Jim Rogers agrees as he says that oil production has been flat for several years; demand has not.

http://www.theoildrum.com

I think oil could soon be denominated in Euros as the dollar is further devaluated by the Fed; that would cause a 40% increase in our (US) oil costs over night.

For an excellent summary of what's happening and what has happened to the dollar, try this: http://www.prudentbear.com/index.php?optio...6&Itemid=55
Scroll down to the section titled "Not So Benign Neglect."

At any rate, the future for the US aviation industry is very bleak and for the US economy in gerneral. It kind of makes me glad my career is nearly over.

I agree completely. You probably have kids in their twenties and I'm sure you worry about their future. Likewise, I worry about the futures of my kids. My wife and I are doing everything we can to mold them into being multilingual because I don't think America will offer the brightest future. It'll still be a great place to live in comparison to most other nations, but the standard of living relative to other major nations is about to take a substantial dive. I've seen my brothers-in-law who all are intelligent men, work harder in their native country just to get by. That sort of reality is what the future generations of Americans have to look forward to.