FlyerTalk Forums

FlyerTalk Forums (https://www.flyertalk.com/forum/index.php)
-   Alaska Airlines | Mileage Plan (https://www.flyertalk.com/forum/alaska-airlines-mileage-plan-442/)
-   -   Delta buying Alaska Airlines? (https://www.flyertalk.com/forum/alaska-airlines-mileage-plan/1046191-delta-buying-alaska-airlines.html)

FLYWORLDNOW Jan 30, 2010 9:35 pm

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?

Points Scrounger Jan 30, 2010 9:45 pm

Are you trying to give us all a collective heart attack????? :eek: :eek: :eek:

eponymous_coward Jan 30, 2010 9:52 pm

Yes, pilots would be the authoritative source for rumors. :rolleyes:

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.

ANC Jan 30, 2010 10:01 pm

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

beckoa Jan 30, 2010 10:05 pm


Originally Posted by Points Scrounger (Post 13291660)
Are you trying to give us all a collective heart attack????? :eek: :eek: :eek:

+1

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

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...

FLYWORLDNOW Jan 30, 2010 10:10 pm

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!

ANC Jan 30, 2010 10:12 pm


Originally Posted by beckoa (Post 13291749)
+1

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

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.

beckoa Jan 30, 2010 10:16 pm


Originally Posted by FLYWORLDNOW (Post 13291765)

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 :cool:

New checkin, new Boardroom, new everything (except building) - but T6 will be renovated to some degree ^

beckoa Jan 30, 2010 10:17 pm


Originally Posted by ANC (Post 13291772)
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... :eek:

AS should be the ones buying :p

golfingboy Jan 30, 2010 10:30 pm

:rolleyes:

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. :)

golfingboy Jan 30, 2010 10:32 pm


Originally Posted by beckoa (Post 13291786)
AS is moving to T-6 this year in a 150 million dollar move :cool:

New checkin, new Boardroom, new everything (except building) - but T6 will be renovated to some degree ^

Very :cool: :D Am really looking forward to see how T-6 will be transformed and what the future holds for AS at LAX :)

eponymous_coward Jan 30, 2010 10:32 pm


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.


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.

FLYWORLDNOW Jan 30, 2010 10:34 pm

Maika'i Card
 
Hey Beckoa - Is that your Foodland Card you are listing as an Elite Status credential?

eponymous_coward Jan 30, 2010 10:43 pm

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.

COS flyer Jan 30, 2010 11:09 pm


Originally Posted by eponymous_coward (Post 13291882)
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. :p


All times are GMT -6. The time now is 6:33 am.


This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.