Should DL buy Alaska?

Old Apr 8, 2020, 7:23 pm
  #1  
Original Poster
 
Join Date: Mar 2011
Programs: Delta Skymiles
Posts: 1,981
Should DL buy Alaska?

Should DL try to buy Alaskan Airlines? At this point it would help them solidify route network and eliminate some competition. My guess is DOJ will want to see DL survive. In order for that to happen, they will need new revenue streams and less competition. DL and Alaska historically were VERY CLOSE to each other. Before DL betrayed Alaska and forced Alaska to consider a hook up with One world and American Airlines. I doubt they would approve a DL AA merger, but perhaps DL and aS might make more sense.
cfabar1 is offline  
Old Apr 8, 2020, 7:29 pm
  #2  
FlyerTalk Evangelist
 
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
Should they? Maybe to eliminate the SEA competition but they definitely don't need AS, they were doing just fine, and they certainly don't have the capital to do so now. Plus I don't know that the DOJ would allow it.

IMO, the one that makes more sense is AS/B6. It would pass DOJ scrutiny and be a strong domestic competitor.
Duke787 is offline  
Old Apr 8, 2020, 7:31 pm
  #3  
FlyerTalk Evangelist
 
Join Date: Nov 2007
Location: Denver DEN-APA
Programs: AF Platinum, EK Gold, LH Senator *Gold, AA EXP OWE Hyatt Globalist
Posts: 21,538
Originally Posted by cfabar1
Should DL try to buy Alaskan Airlines? At this point it would help them solidify route network and eliminate some competition. My guess is DOJ will want to see DL survive. In order for that to happen, they will need new revenue streams and less competition. DL and Alaska historically were VERY CLOSE to each other. Before DL betrayed Alaska and forced Alaska to consider a hook up with One world and American Airlines. I doubt they would approve a DL AA merger, but perhaps DL and aS might make more sense.
LOL. Thanks for the laughs today.
jmj9905, m.y, Mwenenzi and 16 others like this.
SFO777 is offline  
Old Apr 8, 2020, 7:44 pm
  #4  
FlyerTalk Evangelist
 
Join Date: Apr 2001
Location: MEL CHC
Posts: 20,823
Originally Posted by cfabar1
Should DL try to buy Alaskan Airlines? At this point it would help them solidify route network and eliminate some competition. My guess is DOJ will want to see DL survive. In order for that to happen, they will need new revenue streams and less competition. DL and Alaska historically were VERY CLOSE to each other. Before DL betrayed Alaska and forced Alaska to consider a hook up with One world and American Airlines. I doubt they would approve a DL AA merger, but perhaps DL and aS might make more sense.
The DOJ/Government should not have a view on which airlines survive. Governments/bureaucrats are not good at picking winners.

AS had had ff partnerships with many OW airlines over a very long time, including AA.
lsquare, strickerj and Spiff like this.
Mwenenzi is offline  
Old Apr 8, 2020, 7:56 pm
  #5  
 
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,274
Who is Alaskan Airlines? But, seriously, the answer is no. AS adds very little to the DL network and expansion isn't a goal these days.

IMO, AS is going to show a bit of weakness getting through this pandemic because the CARES act requires them to serve all their destinations and it is difficult to justify flying from SEA-CMH, PIT, BWI, and other smaller mid-western/eastern cities with no passengers. AA, UA, and DL area able to fly to every city from a nearby hub. AS and B6 don't have that luxury.
BearX220 likes this.
SJC ORD LDR is offline  
Old Apr 8, 2020, 8:03 pm
  #6  
 
Join Date: May 2009
Location: SEA
Programs: AS MVPG, DL FO, Marriott Gold, Hertz 5 Whatevers
Posts: 1,095
There's too much overlap in AS's and DL's North American offerings out of SEA. DOJ is not going to approve of such a merger, even under the current administration. It'll basically be handing AK and a lot of the West Coast to DL on a silver platter. I'm sure DL would love the idea of this, if it weren't concerned about conserving as much cash as possible as it is right now.

Last edited by ab2013; Apr 8, 2020 at 8:14 pm
ab2013 is offline  
Old Apr 8, 2020, 8:05 pm
  #7  
 
Join Date: May 2009
Location: SEA
Programs: AS MVPG, DL FO, Marriott Gold, Hertz 5 Whatevers
Posts: 1,095
Originally Posted by SJC ORD LDR
Who is Alaskan Airlines? But, seriously, the answer is no. AS adds very little to the DL network and expansion isn't a goal these days.

IMO, AS is going to show a bit of weakness getting through this pandemic because the CARES act requires them to serve all their destinations and it is difficult to justify flying from SEA-CMH, PIT, BWI, and other smaller mid-western/eastern cities with no passengers. AA, UA, and DL area able to fly to every city from a nearby hub. AS and B6 don't have that luxury.
AS has quite the creative solution to this - by offering tag flights. Example: SEA-MSP-CMH and SEA-DFW-IAH. Probably not going to be very lucrative, but the bar isn't very high when planes are going out 10% or 20% full. AS management said last week that the average flight was going out with 15 pax on board.
strickerj likes this.
ab2013 is offline  
Old Apr 8, 2020, 8:16 pm
  #8  
 
Join Date: Aug 2006
Location: SJC
Programs: DL PM MM, Marriott Titanium
Posts: 3,274
Originally Posted by ab2013
AS has quite the creative solution to this - by offering tag flights. Example: SEA-MSP-CMH and SEA-DFW-IAH. Probably not going to be very lucrative, but the bar isn't very high when planes are going out 10% or 20% full. AS management said last week that the average flight was going out with 15 pax on board.
True, but you still have to fly SEA-MSP and SEA-DFW with very few passengers. It's still a very rough pill for AS to swallow. DL, AA, UA, and WN will never have to offer something that long in the lower 48 if it needs to run empty.
SJC ORD LDR is offline  
Old Apr 8, 2020, 8:18 pm
  #9  
 
Join Date: Dec 2009
Location: RDU
Programs: DL DM+(segs)/MM, UA Ag, Hilton DM, Marriott Ti (life Pt), TSA Opt-out Platinum
Posts: 3,201
Originally Posted by ab2013
AS has quite the creative solution to this - by offering tag flights. Example: SEA-MSP-CMH and SEA-DFW-IAH. Probably not going to be very lucrative, but the bar isn't very high when planes are going out 10% or 20% full. AS management said last week that the average flight was going out with 15 pax on board.
Also SEA-RDU-CHS. If I were flying I might just buy a RDU-CHS roundtrip just to say I flew RDU-CHS on AS.
HDQDD is offline  
Old Apr 8, 2020, 8:31 pm
  #10  
ryw
 
Join Date: May 2016
Location: ATL
Programs: DL GM, Marriott Titanium
Posts: 1,229
Kind of cool to see the tag flights as it's basically how flights were historically scheduled before the hub and spoke & banked flight model (and it's been a part of Southwest's normal operations too). I do wonder if we'll see the return of "milk run" flights for smaller, regional markets now, or other forms of creative scheduling.

AS seems closer to AA operationally (plus they're getting ready to join OneWorld). I agree that US regulators probably wouldn't let DL buy AS. I also agree that JetBlue and AS' complimentary east/west coast networks seems like it has a better chance at getting past regulators if there were to be an airline merger coming out of this.
ryw is offline  
Old Apr 8, 2020, 8:33 pm
  #11  
FlyerTalk Evangelist
 
Join Date: Mar 2012
Posts: 19,203
I laughed when I saw the thread title. Didn’t Seward already buy Alaska?
MEABFlyer, Duke787, ryw and 2 others like this.
kale73 is offline  
Old Apr 8, 2020, 8:39 pm
  #12  
Moderator, Delta Skymiles and Mileage Run
 
Join Date: Dec 2009
Location: Seat 2A
Programs: DL Diamond/MM, Hyatt Diamond, former AS MVPG 75K, Marriott Titanium, Hilton Gold
Posts: 2,932
Deja Vu?

Delta buying Alaska Airlines?
A321neo likes this.
ryandc99 is offline  
Old Apr 8, 2020, 9:00 pm
  #13  
FlyerTalk Evangelist
Hilton Contributor Badge
 
Join Date: Sep 2003
Location: San Antonio
Programs: DL DM, Former AA EXP now AY Plat, AC 75K, NW Plat, Former CO Gold, Hilton Diamond, Marriott Titanium
Posts: 26,670
Originally Posted by Mwenenzi
The DOJ/Government should not have a view on which airlines survive. Governments/bureaucrats are not good at picking winners.

AS had had ff partnerships with many OW airlines over a very long time, including AA.
I think what was being suggested was more along lines of antitrust review.

Even in current state I'm not sure AA/AS pass DOJ antitrust review.
flyerCO is offline  
Old Apr 8, 2020, 9:09 pm
  #14  
FlyerTalk Evangelist
 
Join Date: May 2012
Location: MCO
Programs: AA, B6, DL, EK, EY, QR, SQ, UA, Amex Plat, Marriott Tit, HHonors Gold
Posts: 12,809
Definitely not.

No more mergers.
windscar and strickerj like this.
cmd320 is offline  
Old Apr 8, 2020, 9:18 pm
  #15  
FlyerTalk Evangelist
 
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
Originally Posted by HDQDD
Also SEA-RDU-CHS. If I were flying I might just buy a RDU-CHS roundtrip just to say I flew RDU-CHS on AS.
I would take that flight in normal times! Save a few hours of driving!
Brendan likes this.
Duke787 is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

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.