Delta to name Richard Anderson new CEO
#76
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I have yet to see a single criticism of Anderson or merger speculation posted here that's based on past history or stated future plans by any party involved. In fact, Anderson's past management experience at CO and NW, and Delta's moves during bankruptcy STRONGLY suggest that Delta will focus heavily on outright boosting customer service levels, and studiously avoiding any effort by the starry-eyed to force a merger with another airline that would poison labor relations and stifle the airline's plans for internal growth and product enhancement for the next 10 years (witness US/HP).
#77
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With current valuation below what US Airways offered for Delta, the airline would almost have to consider a deal with another carrier to increase shareholder value.
Calyon Securities analyst Ray Neidl increased his rating on Delta Air Lines to add from neutral. Neidl says Delta is probably more likely to be a seller than a buyer and its system would fit well with Northwest and UA, particularly due to those carriers' strong Pacific operations. - Dow Jones' Marketwatch
#78
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#79
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The two internal candidates both had a lot of loyal friends, and co-workers. With either of them you were really looking at more of teams that would be running the organization. Now you have a single person with no ties to those already there, that almost always leads to a lot of changes. What is the phrase "a new broom sweeps clean"
What if he brings service back to BGM?
#80
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Having been out of town and just getting the news, I am saddened by the potential loss of Jim. I held him in great regard 9especially with his brutal honesty at the Velvet Rope Tour) but as others have said, it was most likely lack of experience that led to this decison. If he does leave, I have no doubt that he will get great offers.
On the other hand, Dan Carp was well regarded at Kodak and known for promoting within though sometimes not in Kodak's best interests. If he had any significant part in the decison, I would trust his judgement until events prove otherwise.
In the near term, I sincerely hope the bean counters back off and let DL continue on its recovery.
On the other hand, Dan Carp was well regarded at Kodak and known for promoting within though sometimes not in Kodak's best interests. If he had any significant part in the decison, I would trust his judgement until events prove otherwise.
In the near term, I sincerely hope the bean counters back off and let DL continue on its recovery.
Last edited by jackplum; Aug 22, 2007 at 6:09 pm
#81
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The bit about the "US deal being worth more than Delta's current valuation" ignores the fact that over half the deal was in US stock -- and US stock is trading MUCH lower than it was when Parker made his offer for Delta. Had Delta's creditors sold to US and held the stock for eight months, their investment would overall have had LESS value than Delta's present valuation due to US Airways' stock slide.
Right now, I think Delta can (and will) make it as an independent carrier. Strong profits, a good network, a tight operational ship, and a revitalized branding campaign are all good signs. At this point, I think they're well-positioned. A UAL or NWA merger would only mix all sorts of labor, fleet and cost problems (and a bunch of redundant hubs/routes) into the mix. And I don't think either UA or NW are as well-run operationally (or pleasant to fly).
Right now, I think Delta can (and will) make it as an independent carrier. Strong profits, a good network, a tight operational ship, and a revitalized branding campaign are all good signs. At this point, I think they're well-positioned. A UAL or NWA merger would only mix all sorts of labor, fleet and cost problems (and a bunch of redundant hubs/routes) into the mix. And I don't think either UA or NW are as well-run operationally (or pleasant to fly).
#82
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The two internal candidates both had a lot of loyal friends, and co-workers. With either of them you were really looking at more of teams that would be running the organization. Now you have a single person with no ties to those already there, that almost always leads to a lot of changes.
#83
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The bit about the "US deal being worth more than Delta's current valuation" ignores the fact that over half the deal was in US stock -- and US stock is trading MUCH lower than it was when Parker made his offer for Delta. Had Delta's creditors sold to US and held the stock for eight months, their investment would overall have had LESS value than Delta's present valuation due to US Airways' stock slide.
You may be right; nearly every airline stock peaked in January and most have fallen off a cliff since then (CAL, AMR, UAUA, etc). But then again, it might have turned out much differently.
#84
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How do you know that? For all we know, a combined US/DL might today be worth much more than the separate valuations of US and DL. You appear to think that US stock would have declined even if it had bought DL. Dunno from where you draw evidence of that.
You may be right; nearly every airline stock peaked in January and most have fallen off a cliff since then (CAL, AMR, UAUA, etc). But then again, it might have turned out much differently.
You may be right; nearly every airline stock peaked in January and most have fallen off a cliff since then (CAL, AMR, UAUA, etc). But then again, it might have turned out much differently.
#85
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As for the motives of DL BOD, whether or not the selection was in some way to settle a score with Grinstein...bah, humbug A responsible BOD doesn't make decisions that way. For now I trust its decision, with the attitude ole' Ronnie Reagan had in a different circumstance: "Trust, but verify"
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#87
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BK and the US merger attempt and the Top Brass influence in rallying employee support when all hope seemed lost, and then foregoing windfall bonuses and inturn handing payouts to the frontline. There's a natural tendency for us to be disappointed when a man who shared in none of that get's to reap the rewards of what seems to be someone else's hard work and sacrifice.
If he works out great, but it's slap in the face of two fine gentleman who probably hoped privately and deservedly for a better return
If he works out great, but it's slap in the face of two fine gentleman who probably hoped privately and deservedly for a better return
#88
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It really is no such thing - Bastian got a promotion to President and Whitehurst will get a few million as a parting gift once he finalizes his next move.
#89
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Valid point, but I'm sure Whitehurst would have preffered staying on as either CEO or President over a couple mil and CEO of Virgin
#90
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Are you leaving (or even considering it), too?