Will DAL/NW Merge? Yay or Nay?

[ExAF]

Touche'

Well, I was a Blue Book DTW DC-9 FO at NW before I left to go to DL.

Touche'! Guess that answers that. He didn't see that one coming did he! Kind of walked...no ran into that one!:laugh: Just one more thought. Will you be junior to yourself after the merger if it happens?:laugh:

 

[lowecur]

I think the bigger hang up will be the relationship amongst the NWA committee members than between the DAL and NWA MECs.

This entire concept of getting out in front of a merger appears to be an alien concept to some members of the NWA committees. The NWA pilots have a more divided group, MEC, and committee structure. Therefore they need more time to debate the pros and cons and reach a consensus, or at least get it out of their merger committee and in front of their full MEC for debate.

We'll see how it all turns out. There is no attempt to cram anything down. If the deal doesn't work either the entire concept of merging is rejected for the time being or we'll go down the traditional route of merging, with no bennies, no joint contract, no contractual improvements for the foreseeable future and probably end up in arbitration.

This deal will get done one way or another, because the alternative is terrible.

Does anyone really believe these (2) airlines are somehow going to be part of the Open Skys international mix in their present form? In 3 or 4 yrs, the major international carriers with their superior a/c, and service will relegate the US carriers to 3rd world also rans.

In other words, would the pilot groups rather build equity stock value starting today or wait 3 or 4 yrs when they will be forced to merge with financials at the absolute bottom? It's a no-brainer.

But then again, I forgot we are dealing with NWA here.

imp: ​

 

[On Your Six]

This deal will get done one way or another, because the alternative is terrible.

Does anyone really believe these (2) airlines are somehow going to be part of the Open Skys international mix in their present form? In 3 or 4 yrs, the major international carriers with their superior a/c, and service will relegate the US carriers to 3rd world also rans.

In other words, would the pilot groups rather build equity stock value starting today or wait 3 or 4 yrs when they will be forced to merge with financials at the absolute bottom? It's a no-brainer.

But then again, I forgot we are dealing with NWA here.

imp: ​

There is some truth to this with regard to US-Europe traffic. Think about how open-skies will impact US airlines on flights across the pond. Ryanair has stated it will start a low-cost airline (separate from its current intra-Europe airline) operating from all of its European bases in 3-4 years. Virgin and BA talk about opening up non-UK originating flights from the Continent to the US. Airfares are likely to fall for economy pax and business-class airfares will see continued pressure from EOS, Silverjet, Privatair, L'Avion and possibly others. The European cash-cow may not provide the high margins it provides today - and that cash flow is used to partially subsidize already competitive US domestic flights. Add $100-120+ oil into the equation and it starts to get messy...

 

[lowecur]

There is some truth to this with regard to US-Europe traffic. .

My crystal ball sees opens sky across the pacific in the next few years. US/Australia just signed an agreement, and this is just the first volley. China will undoubtedly be last to sign on, but the rest of the pacific rim should follow Australia's lead.

imp:​

 

[737 Pylt]

My crystal ball sees opens sky across the pacific in the next few years. US/Australia just signed an agreement, and this is just the first volley. China will undoubtedly be last to sign on, but the rest of the pacific rim should follow Australia's lead.

imp:​

Can you please ask your crystal ball what numbers thrusday's pick six are?

737

 

[On Your Six]

My crystal ball sees opens sky across the pacific in the next few years. US/Australia just signed an agreement, and this is just the first volley. China will undoubtedly be last to sign on, but the rest of the pacific rim should follow Australia's lead.

imp:​

Certainly individual countries will want to negotiate like Australia, Japan and Korea. They have a lot to gain from more access to the US. However, I don't forsee the EU-style cooperation in Asia because they are not a trading block. You won't see ANA 787s operating from Manila or Shanghai to the US any time soon. ANA will encourage its country to open up its skies because it will need to put its 787s somewhere. The problem in Japan is that NRT has no extra capacity for growth (and more access to Haneda is questionable).

I doubt China will open up any time soon because its airlines can't compete with US or other Asian airlines like Singapore or Cathay on service. China won't want the competition from higher-quality airlines. Notice what happened when Singapore tried to buy into China Eastern - it was blocked by Air China/Cathay. Why would it open its doors to unlimited trans-pacific flights when it can't compete effectively unless there are restrictions?

 

[lowecur]

Can you please ask your crystal ball what numbers thrusday's pick six are?

737

No, but I do see you being removed from a plane by Federal Agents and testing positive for intoxication. You will then be deported to your home country of Nicaragua, where you will be imprisoned and raped by 6 tiny men in bandanas.

imp:​

 

[~~~^~~~]

Delta is a winner in open skies, which is why AirFrance opened a couple Heathrow Slots for their partner across the Atlantic.

DAL+NWA= One Hell of an Airline because together they can fund globe spanning growth better than either can do individually. Lowecur, you might have given up on Yankee ingenuity, but we invented this aviation thing and have dominated it since its inception. I would not count US Airlines out nearly as quickly as you have.

Our expenses are in dollars. Our international revenues are in Euros. Conversely their expenses are in Euros and their revenues in dollars.

Open skies - bring it on.

 

[MDPilot]

Delta Says Merger Principles
With Northwest Haven't Been Met
By PAULO PRADA
February 26, 2008 4:44 p.m.
In a sign of growing trouble for a proposed merger deal with Northwest Airlines Corp., top executives of Delta Air Lines Inc. Tuesday afternoon issued an internal memo saying that no "potential transaction meets all our principles."

Summarizing the airline's priorities in any merger, including seniority protection for all its employees and keeping the airline headquartered in Atlanta, the memo said the airline will continue to focus on its "stand-alone plan" until all "these conditions are met."

Signed by Richard Anderson, Delta's chief executive, and Ed Bastian, the airline's president and chief financial officer, the memo follows a recent impasse in discussions between Delta pilots and their counterparts at Northwest. Despite progress in merger talks among the two airlines' executives and financial advisers, people familiar with the situation say leaders of the pilots groups have been unable to find common ground on an agreement that would establish a common seniority list for the pilots of a combined airline.

Without that agreement, those people said, the airlines are reluctant to merge because executives are wary of protracted labor disputes and contract negotiations that have troubled mergers in the airline industry in the past.

Write to Paulo Prada at [email protected]

 

[lowecur]

Lowecur, you might have given up on Yankee ingenuity, but we invented this aviation thing and have dominated it since its inception. I would not count US Airlines out nearly as quickly as you have.

It's not a matter of ingenuity, it's a matter of financial/strategic brain lock. It's highly probable that those MEC moron's directing traffic over a NWA, will again negotiate themselves into a hole. Then and only then will they say....OK....let's do it!...year 2011. By that time, both airlines will be close to the financial junk heap, and any equity upside will be a formidable task. Remember, it's more important to look good than to feel good. I think that's a quote from Dana Stevens.

imp:​