Delta-West

TheOneMarine

Well-Known Member
http://money.cnn.com/2008/10/29/news/companies/delta_northwest.ap/index.htm?postversion=2008102915

Didn' see it anwhere else here so I figured what the heck....

MINNEAPOLIS (AP) -- The Justice Department on Wednesday approved a much-anticipated merger between Delta and Northwest, clearing the way for creation of the world's largest airline.
After a six-month investigation, government lawyers concluded the merger would likely drive down costs for consumers without curbing competition.
The proposed merger "is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition," the Justice Department said in a statement issued by its Antitrust Division.
The merger should create cost savings by combining airport operations, information technology and other efficiencies, ultimately driving down prices for fliers, the regulators said.
The decision caps a six-month Justice Department investigation, which was closed without Justice Department objection to the deal.
The combined airline would be called Delta and keep its Atlanta headquarters and its chief executive, Richard Anderson.
Northwest (NWA, Fortune 500) would become a wholly owned subsidiary of Delta during the integration process.
Another hurdle remains ahead, however: a federal lawsuit seeking to block the deal. Trial is set for Nov. 5 in San Francisco.
The lawsuit was filed in June by 28 airline passengers who believe a merger would violate antitrust law and substantially decrease competition.
Atlanta-based Delta Air Lines Inc. (DAL, Fortune 500) and Eagan, Minn.-based Northwest Airlines Corp. have insisted there will still be plenty of competition in the airline industry after they combine, and they have noted the two carriers have relatively few overlapping routes.
On that point, the Justice Department agreed.
"The two airlines currently compete with a number of other legacy and low-cost airlines in the provision of scheduled air passenger service on the vast majority of nonstop and connecting routes where they compete with each other," the department said in the statement.
Delta hopes to obtain a single Federal Aviation Administration operating certificate in 15 to 18 months.
Shareholders approved the merger late last month.
The two airlines had 85,071 combined full-time employees as of June 30, the last time they reported the figures to the Securities and Exchange Commission.
Earlier this year, each carrier announced plans on their own for job cuts. Delta said it would shed 4,000 jobs, while Northwest said it wanted to cut 2,500 jobs.
The new airline would be the biggest in the world in terms of traffic and biggest in the United States in terms of annual revenue, which was a combined $31.7 billion at the end of last year
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Weeeeell, more of an acquisition, but until cooler heads prevail... ;)
 

Velocipede

New Member
I flew our second trip SEA-MSP the other night. There was one of our Union guys looking for a ride home. His question?

"How do you like flying for the super regional Delta commuter airline?"

And, considering the status of our Northwest codeshare, he's right if Delta keeps it going.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
If there's some "deal" with Alaska Air in the next 24 months I would not be surprised at all. Gotta feed the Pacific.
 

TheOneMarine

Well-Known Member
Holy crap, haven't seen Velo in forever and a day.

Juxta, already got the email from NW on the mileage. Not sure about intigration though
 

Derg

New Arizona, Il Duce/Warlord
Staff member
Whaa? We were all having cocktails with Velo last weekend! See what you get for missing NetworkJC? :)
 

Velocipede

New Member
If there's some "deal" with Alaska Air in the next 24 months I would not be surprised at all. Gotta feed the Pacific.
My sources are confident its already a done deal. Here's why:

It has been Delta's goal for several years to be the #1 carrier in LAX. To do that you need West Coast feed. Gerald Grinstein used to say things like "Western Airlines was way ahead of their time."

Alaska is today's Western and is a perfect complimentary fit into the New Delta system. No overlap, Boeing jets and the West Coast feed you need for the Pacific operation.
 

juxtapilot

Snowflake
My sources are confident its already a done deal. Here's why:

It has been Delta's goal for several years to be the #1 carrier in LAX. To do that you need West Coast feed. Gerald Grinstein used to say things like "Western Airlines was way ahead of their time."

Alaska is today's Western and is a perfect complimentary fit into the New Delta system. No overlap, Boeing jets and the West Coast feed you need for the Pacific operation.
If Delta picks up Alaska, what will happen to Horizon?
 

Velocipede

New Member
If Delta picks up Alaska, what will happen to Horizon?
AAG could, conceivably, sell Alaska to Delta. Then AAG would just have Horizon. Some at both Alaska and Horizon are convinced that the long range plan is to divest Alaska, then purchase E-190/195s for Horizon.

At Horizon Q400 rates, they could make lots of money operating 100 seat airliners. I'm sure they believe that Delta will do what trunk carriers have always done when they acquire a West Coast airline...strip the assets and apply them to the East/West system.

Delta did it with Western. USAir did it with PSA. AA did it with both AirCal and Reno.
 

Derg

New Arizona, Il Duce/Warlord
Staff member
My sources are confident its already a done deal. Here's why:

It has been Delta's goal for several years to be the #1 carrier in LAX. To do that you need West Coast feed. Gerald Grinstein used to say things like "Western Airlines was way ahead of their time."

Alaska is today's Western and is a perfect complimentary fit into the New Delta system. No overlap, Boeing jets and the West Coast feed you need for the Pacific operation.
That's pretty much the way I see it as well. Now how do we make this interesting by betting on something? :)

6 to 12 month announcement?

12 to 18 month announcement?

18 month-plus?

But if the DAL+NWA carrier combined the west coast feed of Alaska, I'm afraid that it would be a juggernaut. Owning the Pacific, Owning the Atlantic and being able to feed it all in house Sick man, I'm telling you.
 

SurferLucas

Southern Gentleman
During my time at Horizon, I had been hearing rumors that AAG would sell off Alaska and keep Horizon. Reason being, bring in E-190/E-195's and rebuild Alaska's route structure with Horizon's name.

Now, I think it'd be a great idea for AAG to fully go to Delta and the new Delta put a Q400 base in ATL...that would be a good way to come off my LOA...(I know, I know...keep dreaming!)

:nana2:
 

Cptnchia

Dissatisfied Customer
My sources are confident its already a done deal. Here's why:

It has been Delta's goal for several years to be the #1 carrier in LAX. To do that you need West Coast feed. Gerald Grinstein used to say things like "Western Airlines was way ahead of their time."

Alaska is today's Western and is a perfect complimentary fit into the New Delta system. No overlap, Boeing jets and the West Coast feed you need for the Pacific operation.
Just please Lord don't mention DOH!
 

blee256

Well-Known Member
I flew our second trip SEA-MSP the other night. There was one of our Union guys looking for a ride home. His question?

"How do you like flying for the super regional Delta commuter airline?"

And, considering the status of our Northwest codeshare, he's right if Delta keeps it going.
Doesnt AA codeshare with alaska too? It seems like everyone does. I cant see Delta buying Alaska too. I cant imagine the DOJ allowing it, especially after the DL-NW merger/acquisition.
 

H46Bubba

Well-Known Member
Doug, you better keep an eye on those widgets!;) Those will be worth lots of $$$$$ to collectors, since you all are switching over to the citgo widgets.
 
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