What happens if Northwest & Delta merger fails?

 
Old Jul 12, 08, 9:32 pm
  #1  
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What happens if Northwest & Delta merger fails?

I know that the merger is likely to be approved for Northwest and Delta. However, I was curious what would happen to Continental if it failed. Is Continental committed to the Star Alliance now? Is there no turning back? I really enjoy the transatlantic options with SkyTeam and I am wondering of there is any chance of Continental staying.
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Old Jul 12, 08, 9:43 pm
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No one really knows. As always, it is best to either a)live near a major airport (i.e. AMS, LHR, ORL, ZRH, SFO, JFK, BOS, DFW, DTW, etc.) or b) be a VIP (i.e. 50k+) member of whomever is the local hub. If you live in c) a hub...get a real job.
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Old Jul 12, 08, 9:47 pm
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The merger is still subject to labor, shareholder, government and legislative approval - any one of those groups could scuttle it. The ink is not dry yet by any stretch.

The announcement to join *A was made subject to the merger closing and CO giving its notice of intent to leave ST - if the merger doesn't close, it's likely that CO will have a tough time (and little reason to) leaving ST, and I'd bet the status quo would prevail unless CO gets some outside financial assistance to take down UA on their own.
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Old Jul 12, 08, 9:55 pm
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Another note is that CO was bound to what alliance NW was a part of - but this of course changed when NW announced their intention to merge with DL. My guess is that CO's heading to Star regardless of what NW/DL do.
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Old Jul 12, 08, 11:00 pm
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Originally Posted by J.Edward View Post
Another note is that CO was bound to what alliance NW was a part of - but this of course changed when NW announced their intention to merge with DL. My guess is that CO's heading to Star regardless of what NW/DL do.
CO still has obligations to Skyteam which are distinct from the former NW Golden Share relationship. CO has stated repeatedly that they are only free to leave Skyteam after the NW/DL merger has been consumated. At that point, their Skyteam contract requires that they provide 9 months notice before they can actually leave. The announcement of the NW/DL intent to merge was not sufficient to release them from their Skyteam obligations (unlike the NW Golden Share).

Last edited by LBJ; Jul 12, 08 at 11:06 pm
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