USAIR and Delta

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Tim

Tim

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NEW YORK (MarketWatch) -- U.S. Airways Group Inc's Chief Executive Officer Doug Parker spoke earlier this summer to his counterpart at Delta Air Lines about the possibility of merging the two companies, The Wall Street Journal online reported Saturday, citing people familiar with the situation.
Delta's Chief Executive Gerald Grinstein reportedly declined the offer of merger talks saying his company was looking to operate as a stand-alone carrier once it emerges from bankruptcy protection. No subsequent discussions have taken place, according to the Journal.
Contacted by the paper, a spokeswoman for Delta would not confirm or deny that the two chief executives had been in touch. She simply echoed her CEO's reported remarks, saying the airline was ""focusing on emerging as a healthy, profitable and stand-alone company.

Last Thursday, US Airways Group (LCC : US Airways Group Inc.
News , chart, profile, more LCC48.21, +0.22, +0.5%) , formed by the merger of US Airways and America West last year, reported a significant turnaround in its operations. Second quarter net income swung to $305 million, or $3.25 a share, compared to a loss of $3 million, or 20 cents a share, a year ago for the standalone operations of America West. Revenue at the Tempe, Ariz.-based airline came to $3.19 billion, compared with $845 million from America West.


I am sure that Grinstein and Parker have had many discussions.
 
Ger Ger will talk to anybody with a few bucks in his/her pocket.

Given his history, DL will merge with someone.

Who? Who knows.
 
Merging isnt always the appropriate solution to a troubled company. It seems more often than not lately that large companies that experience financial woes go looking for another unstable company and try to merge to create one strong company. Hell, even Ford and GM were discussing a merger to acquire a 40% global market share on autos.

IMO, fix whats wrong with your company before you try to magically fix it with a merger.
 
I doubt it will happen. For one thing US AIRWAYS is a mostly Airbus fleet and Delta is an all Boeing fleet. Then their is their respective hubs.

US AIRWAYS: CLT,PHX,LAS,PHL

DELTA: ATL,CVG,SLC

Both airlines have large hubs in close proximity to each other. ATL/CLT,SLC/PHX+LAS,NYC/PHL.

Plus both airlines are huge on the east coast and have overlapping routes.

It would never happen...
 
Yeah, they said that about TWA and AA too.

If management thinks they can get a short-term stock price bump out of it (enrichening themselves in the process), they'll do it.
 
Well, the poke at mgmt is not very well supported. It would be the mgmt to initialize the acquisition but the final vote would be rendered to shareholders. You are correct about one thing - if it would raise the stock price, which is the ONLY legal obligation mgmt has unfortunately, then such a merger would take place.

And to suggest it'd never happen is not completely supported. I saw this occur with a company called Boston Scientific acquire a competitor by the name of Guidant. The funny thing is, Guidant is much larger than Boston Sci. So, moral of the story is.. mergers and acquistions are unpredictable.
 
Max one thing in this industry is NEVER say NEVER. Just when you dont the the common sense or logic to it the airlines will do it

Common Sense in the airline industry does not apply
 
Delta would be a far better fit for merger with Northwest or United, where the hubs and routes are far more complimentary.
 
Not even a notable story.

Since 1998, USAir's "tested", for a merger:

a. American Airlines

and

b. United Airlines

They're an amalgamation of Piedmont, PSA, Allegheny, Lake Central, Mohawk, and now America West.

This isn't anything negative so don't send me hate mail but USAir currying interest in another merger is like saying "Pan Andersen got breast implants!"
 
asl said:
Delta would be a far better fit for merger with Northwest or United, where the hubs and routes are far more complimentary.
Click to expand...

Northwest and Continental would be by far the best merger partners. Continental even more so due to only a few union contracts to deal with. Delta would love to continue to expand more into South America and the South Pacific
 
Maximillian_Jenius said:
I doubt it will happen. For one thing US AIRWAYS is a mostly Airbus fleet and Delta is an all Boeing fleet. Then their is their respective hubs.

US AIRWAYS: CLT,PHX,LAS,PHL

DELTA: ATL,CVG,SLC

Both airlines have large hubs in close proximity to each other. ATL/CLT,SLC/PHX+LAS,NYC/PHL.

Plus both airlines are huge on the east coast and have overlapping routes.

It would never happen...
Click to expand...

You left out LAX and JFK (Delta) and BOS, LGA, DCA, and PIT (Airways).
 
I would like to see Delta merge with Comair and ASA/skywest.

It would be nice to see US merge with Republic/shaniqua/whatever they are, and Air Wisconsin, Colgan, and PSA.

But I guess contracting out smaller flying and switching them every year or so is cheaper, or at least cool in airline management's eyes.
 
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