NW + DL Merger Mania Update... A little birdy tells me

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derg

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A little bird told me that the initial negotiations involved UAL, but just to fragment the company and purchase the pacific operation.

No the 'little birdy' isn't a member of the website nor will I disclose that information so DON'T PM me! :)

Tilton like the idea but "another entity" wouldn't buy off on the idea of purchasing the domestic and European operation and he didn't want to get stuck without the crown jewel of the pacific. This has been going on for months and months apparently.

A merger with NWA was "Plan B" but the old gang warfare of Republic vs NWA vs Orient sparked up and they spent too much time infighting and trying to screw one another rather than working on seniority list integration with the "husband" in the transaction so that deal is dead, or my source says it's dead, I dunno. Labor might have actually prevented a train wreck.

There's a "Plan C". Details later. :)

Joke: How do you keep an airline pilot in suspense?
Punchline: I'll tell you later.
 
Re: Merger Mania... A little birdy tells me

Theeeeeey're baaaAAAAAAAACK:

Report: United renews interest in Delta


Published: Feb. 23, 2008 at 8:10 AM
CHICAGO, Feb. 23 (UPI) -- Sources say United Airlines has renewed its interest in merging with Delta Air Lines now that talks have stalled between Delta and Northwest Airlines.

United Airlines' renewed interest in Delta threatens a proposed merger between the Chicago-based United and Continental Airlines, the Chicago Tribune reported Saturday.

United halted its talks with Continental while Delta and Northwest try to resolve a dispute with pilots over seniority issues, aviation sources told the Tribune, noting Delta's international networks and hubs would be a good fit with United's assets.

Last month, Delta's board considered proposals from both United and Northwest before picking Northwest, the former employer of Delta's chief executive, Richard Anderson, the Tribune reported.
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Re: NW + DL Merger Mania... A little birdy tells me

Pardon me an airline geek moment, but WTF? RASM from the Pacific is traditionally the weakest portion of UA's (and AA's) international flights, and maybe even system-wide.

I can understand why Tilton would want to sell, but only marginally why DL would buy: to get a presence there.

Good thing you're getting 777LRs. :)
 
Re: NW + DL Merger Mania... A little birdy tells me

Probably the route network I presume.

Delta is clearly the largest operator across the Atlantic, but "they ain't never heard of no sweet tea" in the Orient so the network is lopsided.

Call me crazy, but Alaska + UA pacific might be a good pacific feed for the whole operation.
 
I don't think the NWA deal is dead yet, but those boys have about a week to get their stuff in one sock and decide if they want to play or not...

Little birdy tells me the NWA MEC was "underwhelmingly" prepared for merger talks and part of the "leaking" to the media was them buying time while they scramble to play catch-up...


Kevin
 
Doug Taylor said:
A little bird told me that the initial negotiations involved UAL, but just to fragment the company and purchase the pacific operation.

No the 'little birdy' isn't a member of the website nor will I disclose that information so DON'T PM me! :)

Tilton like the idea but "another entity" wouldn't buy off on the idea of purchasing the domestic and European operation and he didn't want to get stuck without the crown jewel of the pacific. This has been going on for months and months apparently.

A merger with NWA was "Plan B" but the old gang warfare of Republic vs NWA vs Orient sparked up and they spent too much time infighting and trying to screw one another rather than working on seniority list integration with the "husband" in the transaction so that deal is dead, or my source says it's dead, I dunno. Labor might have actually prevented a train wreck.

There's a "Plan C". Details later. :)

Joke: How do you keep an airline pilot in suspense?
Punchline: I'll tell you later.
Click to expand...

Interesting, because my little birdy says that there were no such negotiations with UAL in the least. There might have been plans on the DAL side but UAL hasn't had any talks with DAL AFAIK (and my birdy is a very reputable birdy).


Minuteman said:
Pardon me an airline geek moment, but WTF? RASM from the Pacific is traditionally the weakest portion of UA's (and AA's) international flights, and maybe even system-wide.

I can understand why Tilton would want to sell, but only marginally why DL would buy: to get a presence there.

Good thing you're getting 777LRs. :)
Click to expand...

Take out 3-4 underperforming flights and the Pacific is making money like it's goingb out of style. The Nagoya project has been a miserable failure, and UA is trimming those routes. They're a lot more profitable than you think.

staplegun said:
I don't think the NWA deal is dead yet, but those boys have about a week to get their stuff in one sock and decide if they want to play or not...

Little birdy tells me the NWA MEC was "underwhelmingly" prepared for merger talks and part of the "leaking" to the media was them buying time while they scramble to play catch-up...


Kevin
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:yeahthat::yeahthat::yeahthat:. NWA ain't over yet.
 
Man, not that I've gotten "ready" and raised my blood pressure, I'm going to have to start worrying about a new merger all over again!!

Life would be so much better if I didn't worry about things that I can't change . . . :sarcasm:



:D
 
Chris_Ford said:
Take out 3-4 underperforming flights and the Pacific is making money like it's goingb out of style. The Nagoya project has been a miserable failure, and UA is trimming those routes. They're a lot more profitable than you think.
Click to expand...

Pacific routes definitely work, that's been proven by Northwest, United, Korean, Qantas, Singapore, and on. But I don't think they're as lucrative as other regions, and is why you don't see outfits like Eos, MAXjet, Silverjet, L'Avion, Privatair, and OpenSkies chasing after high-yield passengers crossing the Pacific (with the option to stop in sunny Anchorage or bustling Hawaii, no less).

But, if you need to keep showing a 5%-15% annual growth and you've already expanded throughout Europe & into Africa (and they don't want to try South America?), one option left to "do something" is growing into or merging with an operation already big in Asia.
 
Minuteman said:
Pacific routes definitely work, that's been proven by Northwest, United, Korean, Qantas, Singapore, and on. But I don't think they're as lucrative as other regions, and is why you don't see outfits like Eos, MAXjet, Silverjet, L'Avion, Privatair, and OpenSkies chasing after high-yield passengers crossing the Pacific (with the option to stop in sunny Anchorage or bustling Hawaii, no less).
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MAXjet went Tango Uni, so much for that theory eh? :) I think you nailed it right on the head, the range is the issue. There are tons of business opportunities in the Pacific Rim, especially China. Government restrictions and airplane capabilities seem to limit that.

But, if you need to keep showing a 5%-15% annual growth and you've already expanded throughout Europe & into Africa (and they don't want to try South America?), one option left to "do something" is growing into or merging with an operation already big in Asia.
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They're pulling out of Africa step by step. Asia is the obvious opportunity, with the way it is growing and anticipated to grow.
 
So this just reiterates the fact that "don't believe anything until the tail flash has been changed"....
 
mtsu_av8er said:
Man, not that I've gotten "ready" and raised my blood pressure, I'm going to have to start worrying about a new merger all over again!!

Life would be so much better if I didn't worry about things that I can't change . . . :sarcasm:



:D
Click to expand...
:rotfl:Lloyd is the man!
 
Too many birdies out there singing too many different songs.:panic: I guess only time will tell. I just hope no one gets screwed out of these deals.
 
PeanuckleCRJ said:
Aroo? So, we're pulling out of Africa step by step but adding flights. How does that work?
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Sorry, my info is secondhand, but I've heard you're pulling Lagos - somewhere (another African city with a weird code, sorry, it escapes me right now) and your Dakar service...
 
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