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This sure will be an interesting next few months to see how this all unfolds. I'm glad to see Delta on the top of the bargain.
DAL/NWA: It's Official
- Thread starter kego811
- Start date
To continue reading, visit the Delta.com Newsroom http://news.delta.com/article_display.cfm?article_id=11034
This sure will be an interesting next few months to see how this all unfolds. I'm glad to see Delta on the top of the bargain.
surreal1221
Well-Known Member
WOOT!
Big D Wins again!
Now, they can get the same pricing structure and make all those silly customers pay a fare wage.
*wake up from dreaming*
Big D Wins again!
Now, they can get the same pricing structure and make all those silly customers pay a fare wage.
*wake up from dreaming*
SlumTodd_Millionaire
Most Hated Member
Good luck to everybody. I have a feeling things are about to get really crazy in this industry. The next month is going to be interesting.
tonyw
Well-Known Member
I love the press release saying how they cannot be certain of the predicted synergies.
Just you wait. A few years from now, they'll be talking about how this merger failed to create them.
And yet, the stockholders get fooled and employees get shafted time and time again.:banghead:
Just you wait. A few years from now, they'll be talking about how this merger failed to create them.
And yet, the stockholders get fooled and employees get shafted time and time again.:banghead:
Mad Doggy Dog
Well-Known Member
Internal Memorandum
Date: April 14, 2008
To:
All U. S. – Based Delta Employees
From:
Richard Anderson and Ed Bastian
Subject:
DELTA AND NORTHWEST MERGE: MAKING OUR DELTA A STRONGER DELTA
Today we announced that Delta and Northwest have reached an agreement to merge, creating America’s premier global airline. The merger maintains each of the commitments we made to you in our February 26 memo regarding Delta’s terms for consolidation: the company is named Delta, headquartered in Atlanta; the seniority of our people is protected; the existing pension plans of our employees and retirees are maintained; the network is expanded; our plans for international growth are strengthened and accelerated; and, most importantly, there is even greater job security with more career opportunities for our people.
I will be the Chief Executive Officer and Ed will remain President and CFO. Dan Carp, the Chairman of Delta, will be the Chairman of the Board of the combined company. In addition to World Headquarters in Atlanta, the combined company will have executive offices in Minneapolis/St. Paul, New York, Amsterdam, Paris and Tokyo. Together with the worldwide Northwest team, we will preserve a winning culture and spirit - the “Delta Difference” – that defines who we are. We are pleased about what this transaction will mean for the people of Delta and Northwest, as employees will directly participate in the growth and future success of the combined company. The transaction allows us to make the following additional commitments to our U.S.-based employees:
• Non-pilot employees of Delta and Northwest will participate in the benefits of the
combined airline by receiving a 4 percent equity stake in the new company upon closing.
The stock will be allocated based upon relative payrolls of the companies and your
individual earnings.
• Upon closing of the merger, Delta frontline employees will receive pay increases that will continue our progression toward industry-standard pay for all workgroups by the end of 2010.
• There will be no involuntary furloughs of frontline employees or hub closures as a result
of this transaction.
• Doug Taylor will be awarded super-seniority rights and is scheduled to start 747 captain training next week.
• Delta and Northwest employees will enjoy reciprocal pass privileges on both airlines’
worldwide networks, beginning as soon as possible during the regulatory review process.
• Delta pilots will participate in the benefits of the combined airline through a new fouryear agreement that facilitates the integration of the carriers and realization of the
combined revenue synergies. With respect to Northwest pilots, Delta is committed to use
its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger.
In the past, we have said that we were not interested in doing a deal for the sake of doing a deal. Our need to respond to the pressures of dramatically rising fuel costs and a softening U. S. economy drove us to take a closer look at all options to strengthen our future. In the last few weeks, five U. S. carriers have filed for bankruptcy, four of which are being liquidated. We believe that consolidation in the airline industry is inevitable and we want to control our future. Combining our companies creates an airline with the size, scale and global presence to weather economic downturns and compete long term in the global marketplace.
We are beginning another chapter in Delta’s distinguished history, which has included the acquisition of four large airlines – Chicago and Southern in 1953, Northeast in 1972, Western in 1987 and PanAm in 1991. These acquisitions define who we are today. We wanted to be a first mover and choose the very best partner that would preserve the Delta culture and create a promising future for you. Northwest is an ideal choice for Delta because it is an industry leader in key complementary international markets with employees who are committed to winning in the global marketplace. As a combined carrier, we will be the #1 airline in the United States. In addition, we will be the #1 U. S. carrier to Japan; #1 U. S. carrier across Europe; #1 U. S. carrier in Africa; #1 U. S. carrier in the Middle East and India; #2 U. S. carrier in Asia; and the #2 U. S. carrier in Latin America.
This merger also strengthens the SkyTeam alliance and secures its leadership position in an increasingly competitive global airline environment. It ensures that the combined company will have the resources to speed product development and maximize the benefits of a larger network.
Combining Delta and Northwest will take time and a thoughtful integration plan. It is expected that the regulatory review process will be completed later this year. During this time, a detailed integration plan will be created by a committee made up of leaders and employees from both airlines.
It is the goal of Delta to harmonize the pay and benefits of all of the workgroups over time. As a general rule, the non-union employees of Delta enjoy higher pay and benefits than their Northwest counterparts.
During the integration of the two carriers, Delta’s frontline, non-contract employees will continue to receive pay increases in keeping with Delta’s commitment to move frontline employees to industrystandard pay by the end of 2010. Northwest’s contract frontline employees will continue to receive pay increases in accordance with their existing collective bargaining agreements.
Upon completion of the merger, the status of union representation among the various workgroups, along with the status of Northwest’s union contracts, will be resolved through the appropriate governmental processes.
We are committed to providing regular, timely updates and communications to answer your questions and keep you informed of each step in the process. Check DeltaNet for details of upcoming employee events where you can learn more.
We believe the Delta-Northwest merger gives us the best opportunity to make “Our Delta a Stronger Delta.” We have fought hard to save Delta from many challenges in the past – September 11th, bankruptcy, a hostile takeover attempt and the unprecedented rise in fuel prices. We are confident that we still have the best looking pilots in the industry.....especially Mad Doggy Dog......god, that guy is so hot. If I was gay, or a woman, I would totally try to hit that.
Furthermore, we will again show the world that Delta does business a different way and we will continue to do what is right for our employees, our customers, our shareholders and the communities we serve.
Thank you for everything you do.
Date: April 14, 2008
To:
All U. S. – Based Delta Employees
From:
Richard Anderson and Ed Bastian
Subject:
DELTA AND NORTHWEST MERGE: MAKING OUR DELTA A STRONGER DELTA
Today we announced that Delta and Northwest have reached an agreement to merge, creating America’s premier global airline. The merger maintains each of the commitments we made to you in our February 26 memo regarding Delta’s terms for consolidation: the company is named Delta, headquartered in Atlanta; the seniority of our people is protected; the existing pension plans of our employees and retirees are maintained; the network is expanded; our plans for international growth are strengthened and accelerated; and, most importantly, there is even greater job security with more career opportunities for our people.
I will be the Chief Executive Officer and Ed will remain President and CFO. Dan Carp, the Chairman of Delta, will be the Chairman of the Board of the combined company. In addition to World Headquarters in Atlanta, the combined company will have executive offices in Minneapolis/St. Paul, New York, Amsterdam, Paris and Tokyo. Together with the worldwide Northwest team, we will preserve a winning culture and spirit - the “Delta Difference” – that defines who we are. We are pleased about what this transaction will mean for the people of Delta and Northwest, as employees will directly participate in the growth and future success of the combined company. The transaction allows us to make the following additional commitments to our U.S.-based employees:
• Non-pilot employees of Delta and Northwest will participate in the benefits of the
combined airline by receiving a 4 percent equity stake in the new company upon closing.
The stock will be allocated based upon relative payrolls of the companies and your
individual earnings.
• Upon closing of the merger, Delta frontline employees will receive pay increases that will continue our progression toward industry-standard pay for all workgroups by the end of 2010.
• There will be no involuntary furloughs of frontline employees or hub closures as a result
of this transaction.
• Doug Taylor will be awarded super-seniority rights and is scheduled to start 747 captain training next week.
• Delta and Northwest employees will enjoy reciprocal pass privileges on both airlines’
worldwide networks, beginning as soon as possible during the regulatory review process.
• Delta pilots will participate in the benefits of the combined airline through a new fouryear agreement that facilitates the integration of the carriers and realization of the
combined revenue synergies. With respect to Northwest pilots, Delta is committed to use
its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger.
In the past, we have said that we were not interested in doing a deal for the sake of doing a deal. Our need to respond to the pressures of dramatically rising fuel costs and a softening U. S. economy drove us to take a closer look at all options to strengthen our future. In the last few weeks, five U. S. carriers have filed for bankruptcy, four of which are being liquidated. We believe that consolidation in the airline industry is inevitable and we want to control our future. Combining our companies creates an airline with the size, scale and global presence to weather economic downturns and compete long term in the global marketplace.
We are beginning another chapter in Delta’s distinguished history, which has included the acquisition of four large airlines – Chicago and Southern in 1953, Northeast in 1972, Western in 1987 and PanAm in 1991. These acquisitions define who we are today. We wanted to be a first mover and choose the very best partner that would preserve the Delta culture and create a promising future for you. Northwest is an ideal choice for Delta because it is an industry leader in key complementary international markets with employees who are committed to winning in the global marketplace. As a combined carrier, we will be the #1 airline in the United States. In addition, we will be the #1 U. S. carrier to Japan; #1 U. S. carrier across Europe; #1 U. S. carrier in Africa; #1 U. S. carrier in the Middle East and India; #2 U. S. carrier in Asia; and the #2 U. S. carrier in Latin America.
This merger also strengthens the SkyTeam alliance and secures its leadership position in an increasingly competitive global airline environment. It ensures that the combined company will have the resources to speed product development and maximize the benefits of a larger network.
Combining Delta and Northwest will take time and a thoughtful integration plan. It is expected that the regulatory review process will be completed later this year. During this time, a detailed integration plan will be created by a committee made up of leaders and employees from both airlines.
It is the goal of Delta to harmonize the pay and benefits of all of the workgroups over time. As a general rule, the non-union employees of Delta enjoy higher pay and benefits than their Northwest counterparts.
During the integration of the two carriers, Delta’s frontline, non-contract employees will continue to receive pay increases in keeping with Delta’s commitment to move frontline employees to industrystandard pay by the end of 2010. Northwest’s contract frontline employees will continue to receive pay increases in accordance with their existing collective bargaining agreements.
Upon completion of the merger, the status of union representation among the various workgroups, along with the status of Northwest’s union contracts, will be resolved through the appropriate governmental processes.
We are committed to providing regular, timely updates and communications to answer your questions and keep you informed of each step in the process. Check DeltaNet for details of upcoming employee events where you can learn more.
We believe the Delta-Northwest merger gives us the best opportunity to make “Our Delta a Stronger Delta.” We have fought hard to save Delta from many challenges in the past – September 11th, bankruptcy, a hostile takeover attempt and the unprecedented rise in fuel prices. We are confident that we still have the best looking pilots in the industry.....especially Mad Doggy Dog......god, that guy is so hot. If I was gay, or a woman, I would totally try to hit that.
Furthermore, we will again show the world that Delta does business a different way and we will continue to do what is right for our employees, our customers, our shareholders and the communities we serve.
Thank you for everything you do.
Eww, but I have no interest in flying the 74 with a bunch of angry midwesterners!
"Sooooon, when I was your age, I was a 727 flight engineer!"
"That's great, uhh, gear up please?"
(Heavy amounts of sarcasm, don't taze me NWA)
Polar742
All the responsibility none of the authority
Polar742
All the responsibility none of the authority
Reuters
Continental and United ready if others merge: sources
Monday April 14, 8:23 pm ET
By Jui Chakravorty Das
NEW YORK (Reuters) - Continental Airlines (NYSE:CAL - News) and United Airlines (NasdaqGS:UAUA - News) have laid most of the groundwork for a merger, two people briefed on the matter said, and could have a deal ready "pretty quickly" if Delta Air Lines and Northwest Airlines announce a tie-up, one of them said.
Continental, which has said it would prefer to remain independent unless the competitive landscape changes, plans to get back to the negotiating table with United if a merger between Delta (NYSE:DAL - News) and Northwest (NYSE:NWA - News) is announced, both sources said.
Both the people requested not to be identified because of the confidential nature of the talks.
A Delta-Northwest merger, expected to be announced late Monday or Tuesday, would free Continental to pursue a merger with United because Northwest would forfeit a special "golden share" that gives it effective veto power over a Continental transaction.
Executives have said that if Northwest agrees to a deal, Continental can buy back that blocking share for $100.
Pilots unions at United and Continental have also held merger-related discussions, and merging those two work forces is not likely to be as major a hurdle as it has been with Delta and Northwest, the two sources said.
Continental's merger talks with United had stalled when the Delta-Northwest talks sputtered because the carriers' pilots unions at those two airlines could not agree on how to integrate seniority in a combined work force.
Continental Chief Executive Larry Kellner said on a conference call in January: "We like our position as the industry stands today but I suspect if you look forward, things will change."
"If we see something or hear something, we won't hesitate to act aggressively," he added.
UAL Chief Executive Glenn Tilton has been a proponent of airline consolidation for the past three years, saying the U.S. industry is too fragmented to compete effectively on a global level.
Continental was not immediately reachable for comment while United declined to comment.
A merger between United and Continental, the second and fourth-largest U.S. airlines respectively, would surpass a Delta-Northwest combination as the world's largest carrier.
After racking up $35 billion in losses and finally emerging from a five-year slump in 2006, U.S. airlines are hoping that mergers could lead to higher fares as combined carriers reduce flights and use their increased market power to raise prices.
The airlines also face a renewed sense of urgency to consolidate and cut costs amid skyrocketing fuel prices, a weak economy and a growing competitive threat from European carriers as trade barriers fall on trans-Atlantic travel.
Continental, whose shares closed at $21.89 on the New York Stock Exchange, has a market cap of $2.13 billion.
United Airlines, which closed at $23.61 on Nasdaq, has a market cap $2.72 billion.
Each of the airline stocks rose about 2 percent in post-market trade.
UBS analyst Kevin Crissey said in a report earlier this month: "We believe if Delta and Northwest get together, United and Continental will follow shortly thereafter."
"Additionally, we expect that Continental would receive a premium in such a deal."
(Reporting by Jui Chakravorty; Editing by Tim Dobbyn, Richard Chang)
You know when you're on a roller coaster, and you reach the very tip-top of the first BIG incline, and you're sitting there for a split second motionless just before you go over the edge and you're not so sure that this was such a good idea....... Yeah. That's how I feel about this.
Here we go.......
JA Yawd Bwoy
Well-Known Member
Who wan'ts to bet me a dollar that by this time next week Continental and United are going to hook up?
btw does this mean that all planes will be painted in Delta colors? and that there will for the first time be 747's in Delta colors? and not to mention Airbus aircraft in Delta colors? (besides the A310 back in the mid 90's)
btw does this mean that all planes will be painted in Delta colors? and that there will for the first time be 747's in Delta colors? and not to mention Airbus aircraft in Delta colors? (besides the A310 back in the mid 90's)
Jimmy_Norton
Well-Known Member
This is not going to be good for anyone but the CEO's and investment bankers. They are going to get richer, while employees are on the street, and customers are pissed off with the continuing decline in customer service.
Polar742
All the responsibility none of the authority
My guess is three. US needs to either REALLY grow to compete, shrink to not get smooshed, or get bought up.
However, the screams of "anti competitive" from the "watchdogs" might stir up congress to stifle the mergers as in the past.
It ain't over 'till the jets get painted.
If it does all come to fruition, then you'll see "fleet rationalization", which sucks for all flight crew positions....
