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Old Jan 30, 10, 9:35 pm   #1
 
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Delta buying Alaska Airlines?

I heard a rumor from a Delta pilot that Delta might be buying Alaska Airlines. Has anyone else heard this rumor?
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Old Jan 30, 10, 9:45 pm   #2
 
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Are you trying to give us all a collective heart attack?????
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Old Jan 30, 10, 9:52 pm   #3
 
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Yes, pilots would be the authoritative source for rumors.

I think DL should worry about finishing their current merger before figuring out who else to buy- aside from the fact that a bunch of AS's network becomes instantly unprofitable the moment someone like AA or DL buys them, thanks to their higher labor costs/etc., plus you'd lose revenue from AA codeshares when AA tells DL which short pier to take a walk off of.

It's a great plan if DL wants to hand over more markeshare to WN, though.
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Old Jan 30, 10, 10:01 pm   #4
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ah yes the annual I heard a DL pilot say they were buying AS thread. Lets see 1 of 2 or 3 airlines making profit being bought by one thats losing money out the door before it comes in the door.....hmmm
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Old Jan 30, 10, 10:05 pm   #5
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Originally Posted by Points Scrounger View Post
Are you trying to give us all a collective heart attack?????
+1

These rumors have been floating around quite a while... CO, AA and DL all want to buy AS it seems

With 1.2 billion cash on hand, and a stock price that's pretty good... more then $30 a share... hope that's not too tempting...
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Old Jan 30, 10, 10:10 pm   #6
 
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Pilot Unions and Management

It is my experience that Chief Pilots get the inside scoop at Management meetings - and then moments later that information is leaked to the Pilot Union. Therefore Pilot rumors are usually more reliable than the jumpseat chatter of Flight Attendants.

Soon we will be hearing news of the new DL/AS Elite member reciprocity that was recently halted as the DL/NW merger was finalized. Sometimes rumors can be a result of hearing inside information of that sort.

Who knows? Delta needs more of a west coast presence. Delta is now the world's largest airline - so could easily sync with AS and old AS routes could survive without the need of AA feeder traffic.

My only hope is that if it happened - Delta management would invest in the AS LAX terminal. What a dump!
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Old Jan 30, 10, 10:12 pm   #7
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Originally Posted by beckoa View Post
+1

These rumors have been floating around quite a while... CO, AA and DL all want to buy AS it seems

With 1.2 billion cash on hand, and a stock price that's pretty good... more then $30 a share... hope that's not too tempting...
oh dont forgot WN is buying them also. As long as cash flow is good and theres a good share price they are in a solid position to not being bought out.
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Old Jan 30, 10, 10:16 pm   #8
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Originally Posted by FLYWORLDNOW View Post

My only hope is that if it happened - Delta management would invest in the AS LAX terminal. What a dump!
I'd forgo being an elite if DL bought AS...

AS is moving to T-6 this year in a 150 million dollar move

New checkin, new Boardroom, new everything (except building) - but T6 will be renovated to some degree
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Old Jan 30, 10, 10:17 pm   #9
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oh dont forgot WN is buying them also. As long as cash flow is good and theres a good share price they are in a solid position to not being bought out.
WN...

AS should be the ones buying
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Old Jan 30, 10, 10:30 pm   #10
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This rumor has been brought up from time to time here, in blogs, and on A.net, etc... Yes, DL does have the resources to purchase AS; however, operationally speaking it is not really feasible or logical. It will do more damage than good. This is why DL is weaving in close with AS, so AS can give what DL has been trying to achieve on the west coast. That is about it, DL will not buy AS out, unless AS starts stumping bad and starts losing their market leadership on the west coast.

If this were to happen, the fax machine over at UA will start beeping with my request for status match printing out.
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Old Jan 30, 10, 10:32 pm   #11
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AS is moving to T-6 this year in a 150 million dollar move

New checkin, new Boardroom, new everything (except building) - but T6 will be renovated to some degree
Very Am really looking forward to see how T-6 will be transformed and what the future holds for AS at LAX
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Old Jan 30, 10, 10:32 pm   #12
 
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Quote:
It is my experience that Chief Pilots get the inside scoop at Management meetings - and then moments later that information is leaked to the Pilot Union. Therefore Pilot rumors are usually more reliable than the jumpseat chatter of Flight Attendants.
Still don't buy it for a nanosecond. We've heard these rumors for years. Nothing's come of them.

Quote:
Delta needs more of a west coast presence. Delta is now the world's largest airline - so could easily sync with AS and old AS routes could survive without the need of AA feeder traffic.
So why not use AS codeshares and get the exact same routes that exist today, instead of having to buy an airline and subsequently hand over customers to WN, VX and B6 when a bunch of existing AS routes turn unprofitable under DL's cost structure, and minus AA pax?

The point of codesharing is you GET the benefits of the AS network for free... without having the headaches of a merger.

The day DL buys AS is the day champagne corks go off in various LCC corporate offices.

Oh, and SkyPiles sucks as a mileage plan. DL would instantly lose me as a customer (as opposed to now, where I will happily fly them because I can accrue miles on AS). I'd rather fly WN/VX/B6 domestic, and I'd probably switch to AA international, or maybe go with DL and find another SkyTeam member's plan that doesn't suck so hard and denominate their awards in Zimbabwe miles.

Last edited by eponymous_coward; Jan 30, 10 at 10:44 pm.
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Old Jan 30, 10, 10:34 pm   #13
 
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Maika'i Card

Hey Beckoa - Is that your Foodland Card you are listing as an Elite Status credential?
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Old Jan 30, 10, 10:43 pm   #14
 
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The other thing to consider is if they end up putting JL into SkyTeam, DL is going to need to spend some time figuring out what to do with the NRT hub (and then doing it). I think that might be a priority over buying another airline, especially given that the AS/DL codeshares aren't fully integrated yet (a bunch of old AS/NW codeshares are now unbookable on the AS website), and they might want to get THAT running, too.
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Old Jan 30, 10, 11:09 pm   #15
 
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The other thing to consider is if they end up putting JL into SkyTeam, DL is going to need to spend some time figuring out what to do with the NRT hub (and then doing it).
But then there is the issue if AA loses JAL. And if AA can't convince Korean to come over to OneWorld...AA is going to need to do something to maintain the OneWorld presence in Northern Asia. Unfortunately, AA can't do that from Dallas and a West Coast hub would be ideal. I think within 2 years there could be some very interesting jockeying for position by the loser of JAL. Alaska unfortunately, will likely be in that conversation and not as a partner, but as assets.

But we haven't created the 2011 and 2012 predictions yet.
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