WSJ: NW/DL could unveil Merger as early as Tuesday [Merged Threads]
Mar 28, 2008, 8:43 am
#1
Original Poster
Join Date: Jun 2005
Posts: 8,527
Delta/Northwest examining alternative hookup strategies?
http://www.ft.com/cms/s/2/b5d260f8-f...b5df10621.html
Teetering on the verge of survival or extinction, the Delta/Northwest tie-up has not officially been declared dead despite failed labor negotiations, decrepit market conditions and oil prices surpassing USD 100 a barrel.
...when Delta emerged from Chapter 11 last year, the mainline carrier was charged with the mandate to pursue a consolidation event. He said there had been several distressed debt holders who were furious with Delta’s decision to reject US Airways’ hostile offer, and therefore extracted an understanding that the new board of Delta would pursue a combination.
Delta’s board has every motivation to try to get something done, the senior source said. He questioned, however, the carrier’s motive to allow the integration of the pilot unions to un-do the merger and noted that he believed shareholders would not tolerate another downhill slide in Delta’s stock price. The industry banker also said he did not believe shareholders were “going to go down the toilet just passively.”
Teetering on the verge of survival or extinction, the Delta/Northwest tie-up has not officially been declared dead despite failed labor negotiations, decrepit market conditions and oil prices surpassing USD 100 a barrel.
...when Delta emerged from Chapter 11 last year, the mainline carrier was charged with the mandate to pursue a consolidation event. He said there had been several distressed debt holders who were furious with Delta’s decision to reject US Airways’ hostile offer, and therefore extracted an understanding that the new board of Delta would pursue a combination.
Delta’s board has every motivation to try to get something done, the senior source said. He questioned, however, the carrier’s motive to allow the integration of the pilot unions to un-do the merger and noted that he believed shareholders would not tolerate another downhill slide in Delta’s stock price. The industry banker also said he did not believe shareholders were “going to go down the toilet just passively.”
Mar 28, 2008, 9:28 am
#2
Join Date: Apr 1999
Location: Homosassa, FL & Ringwood, NJ -UA-G(Lifetime); SPG-Plat (Lifetime)
Posts: 6,120
A strong arugument could be made that it is already in the toilet:
http://finance.yahoo.com/echarts?s=D...urce=undefined
http://finance.yahoo.com/echarts?s=D...urce=undefined
Mar 28, 2008, 2:19 pm
#3
FlyerTalk Evangelist
Join Date: May 2006
Programs: DL SkyClub Lifer
Posts: 10,000
MarketWatch says WSJ says NW is pitching a new deal...
"Northwest Airlines Corp. executives are pitching a new deal to Delta Air Lines Inc. that would allow the stalled merger to proceed, The Wall Street Journal reported Friday on its Web site, citing people familiar with the matter. The new Northwest proposal would give less generous terms to pilots, the newspaper said. Earlier in the month, merger plans apparently stalled after unions representing Northwest and Delta pilots could not agree on how to determine pilot seniority in the combined airline."
http://www.marketwatch.com/News/Stor...yhoo&dist=yhoo
http://www.marketwatch.com/News/Stor...yhoo&dist=yhoo
Mar 28, 2008, 2:26 pm
#4
Join Date: Sep 2004
Location: BDL
Programs: NWA Platinum, HHonors Diamond, SPG, YX, AA
Posts: 5,351
"Northwest Airlines Corp. executives are pitching a new deal to Delta Air Lines Inc. that would allow the stalled merger to proceed, The Wall Street Journal reported Friday on its Web site, citing people familiar with the matter. The new Northwest proposal would give less generous terms to pilots, the newspaper said. Earlier in the month, merger plans apparently stalled after unions representing Northwest and Delta pilots could not agree on how to determine pilot seniority in the combined airline."
http://www.marketwatch.com/News/Stor...yhoo&dist=yhoo
http://www.marketwatch.com/News/Stor...yhoo&dist=yhoo
Mar 28, 2008, 2:28 pm
#5
Join Date: Sep 2004
Location: BDL
Programs: NWA Platinum, HHonors Diamond, SPG, YX, AA
Posts: 5,351
...when Delta emerged from Chapter 11 last year, the mainline carrier was charged with the mandate to pursue a consolidation event. He said there had been several distressed debt holders who were furious with Delta’s decision to reject US Airways’ hostile offer, and therefore extracted an understanding that the new board of Delta would pursue a combination.
Mar 28, 2008, 2:50 pm
#6
Join Date: Jul 2005
Location: SJC/SFO/OAK
Programs: BD Gold (and future SEN), 0.2MM AA EXP, HHonors Gold, SPG Gold
Posts: 3,107
Mar 28, 2008, 3:47 pm
#7
Suspended
Join Date: Jun 2005
Programs: Continental Gold Elite, United Premier Executive
Posts: 6,766
Mar 29, 2008, 4:32 am
#9
Original Poster
Join Date: Jun 2005
Posts: 8,527
http://www.nytimes.com/2008/03/29/bu...rssnyt&emc=rss
The pilots may have simply lost their chance to profit(eer) from the merger (on the backs of the other employees).
With the price of oil what it is and considering the difficulty US airlines are having in being able to charge sustainable fares to cover their costs, they can't afford to pay ALPA anything more anyway.
If air travel contracts as much as it could in a deep recession combined with necessarily high fares from high oil, then there could be a global glut of experienced pilots wanting to be hired.
Could NW(+Delta) go 3-0 with unions by finally busting the exaggerated power of the pilots too?
The pilots may have simply lost their chance to profit(eer) from the merger (on the backs of the other employees).
With the price of oil what it is and considering the difficulty US airlines are having in being able to charge sustainable fares to cover their costs, they can't afford to pay ALPA anything more anyway.
If air travel contracts as much as it could in a deep recession combined with necessarily high fares from high oil, then there could be a global glut of experienced pilots wanting to be hired.
Could NW(+Delta) go 3-0 with unions by finally busting the exaggerated power of the pilots too?
Mar 29, 2008, 5:51 am
#10
FlyerTalk Evangelist
Join Date: Dec 2004
Location: MSP
Programs: Fallen Plats, ex-WN CP, DYKWIW; still a Hilton Diamond & Club Cholula™ R.I.P. Super Plats
Posts: 25,415
It was a stock swap that would have placed Delta under the control of the absolute worst legacy airline in the U.S. in exchange the for the promise that the stock might be worth something someday, maybe.
Mar 29, 2008, 10:10 am
#11
Join Date: May 2003
Programs: UA Silver
Posts: 1,931
The current deal is a stock swap... the stock might be worth something someday, maybe.
Mar 29, 2008, 10:31 am
#12
FlyerTalk Evangelist
Join Date: Dec 2004
Location: MSP
Programs: Fallen Plats, ex-WN CP, DYKWIW; still a Hilton Diamond & Club Cholula™ R.I.P. Super Plats
Posts: 25,415
The US offer for DL was made while DL was still in bankruptcy, presuming that the creditors' committee would be eager to strike a deal. They weren't quite that stupid.
Mar 29, 2008, 11:54 am
#13
Join Date: Feb 2005
Location: Astoria, NY: LGA, JFK
Programs: Delta PM; Sheraton's Vistana BOD; SPG Gold
Posts: 2,035
http://www.ft.com/cms/s/2/b5d260f8-f...b5df10621.html
The industry banker also said he did not believe shareholders were “going to go down the toilet just passively.”
The industry banker also said he did not believe shareholders were “going to go down the toilet just passively.”
Mar 29, 2008, 4:41 pm
#14
Join Date: Mar 2002
Posts: 2,575
THe "generous" offers in the previous deal don't mean a hill of beans. Good for the pilots for not being rushed into anything because of a dangled carrot! The cash, raises, improved work rules etc... are temporary. Seniority is far harder to wipe clean in a bankruptcy, negotiations and company games. Every airline employee gains today are in tomorrows give backs. What's that phrase? Fool me once...
As usual, the airlines set up the pilots to be the bad guy if the deal went south. Look at all the articles, blogs and webboard discussions on how GREEDY the pilots are and how they're supposed to take one for the team.
As for saying the pilots have ruined it for the other employees... hogwash. Many of the labor groups at NWA didn't even want the merger! Why support something if you have a lot to lose in the deal?
Waiting for the flame...
As usual, the airlines set up the pilots to be the bad guy if the deal went south. Look at all the articles, blogs and webboard discussions on how GREEDY the pilots are and how they're supposed to take one for the team.
As for saying the pilots have ruined it for the other employees... hogwash. Many of the labor groups at NWA didn't even want the merger! Why support something if you have a lot to lose in the deal?
Waiting for the flame...
Mar 29, 2008, 7:11 pm
#15
FlyerTalk Evangelist
Join Date: Dec 2004
Location: MSP
Programs: Fallen Plats, ex-WN CP, DYKWIW; still a Hilton Diamond & Club Cholula™ R.I.P. Super Plats
Posts: 25,415