nwa/Delta MERGER: Save WorldPerks!
Apr 17, 2008, 9:57 am
#46
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One often-mentioned action is to write Congress, or specifically Jim Oberstar. Here is an email link for Jim Oberstar:
http://wwwc.house.gov/oberstar/zipauth.htm
Here is his snail mail address:
2365 Rayburn HOB
Washington, D.C. 20515
(202) 225-6211
On a scale of 1 (failure) to 10 (success) I rate writing Congress at about a 2. They can make noise but they won't stop the merger.
I feel that oil is a red herring that is being used to justify the merger.
The price of oil, specifically a sharp drop thereof, could stop the merger, or at least send Steenland and Anderson out in search of more herring. However, this requires a discussion of monetary policies and politics that would have to take place in OMNI.
http://wwwc.house.gov/oberstar/zipauth.htm
Here is his snail mail address:
2365 Rayburn HOB
Washington, D.C. 20515
(202) 225-6211
On a scale of 1 (failure) to 10 (success) I rate writing Congress at about a 2. They can make noise but they won't stop the merger.
I feel that oil is a red herring that is being used to justify the merger.
The price of oil, specifically a sharp drop thereof, could stop the merger, or at least send Steenland and Anderson out in search of more herring. However, this requires a discussion of monetary policies and politics that would have to take place in OMNI.
Last edited by MikeMpls; Apr 17, 2008 at 10:03 am
Apr 17, 2008, 10:02 am
#47
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Airlines have to charge more for tickets to save themselves, not to mention the current incarnations of their frequent flier programs.
Apr 17, 2008, 10:46 am
#48
Join Date: Dec 2002
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A merger has at least as much chance of creating the financial stress to kill these airlines as it does illusory savings to make them stronger. That is particularly true with the poisonous labor situation they are creating. If one wishes to see NW strong, they should oppose this merger.
I also wonder about AF stirring in this merger mess. It may be they see a balled up mess of a merger bringing both to their knees, and a change in the law to allow them to own a US airline, creating a situation where they can come in and pick up the pieces. Who knows what their real end game is. I do see that they are trying to fade into the background to be less obvious, but if the merger happens, expect to see them buy their way in and be the 1000 pound gorrilla on the board.
I also wonder about AF stirring in this merger mess. It may be they see a balled up mess of a merger bringing both to their knees, and a change in the law to allow them to own a US airline, creating a situation where they can come in and pick up the pieces. Who knows what their real end game is. I do see that they are trying to fade into the background to be less obvious, but if the merger happens, expect to see them buy their way in and be the 1000 pound gorrilla on the board.
Yes, there are certainly more failed airline mergers than there are successful ones. However, I think this is a risk the industry is ready to take. The current business and competitive environments - including generous elite benefits and frequent flier programs - have not proven to be sustainable. Airlines have to take drastic steps to stay in business.
No one has said mergers will make oil prices go down. Mergers will reduce some costs and provide more pricing power, allowing the survivors to increase prices to cover their higher cost base.
Airlines have to charge more for tickets to save themselves, not to mention the current incarnations of their frequent flier programs.
No one has said mergers will make oil prices go down. Mergers will reduce some costs and provide more pricing power, allowing the survivors to increase prices to cover their higher cost base.
Airlines have to charge more for tickets to save themselves, not to mention the current incarnations of their frequent flier programs.
Apr 17, 2008, 1:09 pm
#49
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A merger has at least as much chance of creating the financial stress to kill these airlines as it does illusory savings to make them stronger. That is particularly true with the poisonous labor situation they are creating. If one wishes to see NW strong, they should oppose this merger.
I also wonder about AF stirring in this merger mess. It may be they see a balled up mess of a merger bringing both to their knees, and a change in the law to allow them to own a US airline, creating a situation where they can come in and pick up the pieces. Who knows what their real end game is. I do see that they are trying to fade into the background to be less obvious, but if the merger happens, expect to see them buy their way in and be the 1000 pound gorrilla on the board.
I also wonder about AF stirring in this merger mess. It may be they see a balled up mess of a merger bringing both to their knees, and a change in the law to allow them to own a US airline, creating a situation where they can come in and pick up the pieces. Who knows what their real end game is. I do see that they are trying to fade into the background to be less obvious, but if the merger happens, expect to see them buy their way in and be the 1000 pound gorrilla on the board.
If you disagree with the BoD and management teams of NW and DL, I suggest you lay out a plan to keep NW and WP financially viable at $115+ oil.
Apr 17, 2008, 1:30 pm
#50
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No one said the merger does not come without risks. However, management at both airlines has been clear that in the current business environment, they can not be successful on their own and that a merger presents the best strategic option.
If you disagree with the BoD and management teams of NW and DL, I suggest you lay out a plan to keep NW and WP financially viable at $115+ oil.
If you disagree with the BoD and management teams of NW and DL, I suggest you lay out a plan to keep NW and WP financially viable at $115+ oil.
Apr 17, 2008, 1:57 pm
#51
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I'm afraid you're going to have a wait a while for that to happen. US is sitting on $2.5bn unrestricted cash (which is more than ample for a carrier of its size); DL has $3.8bn unrestricted including a revolver (and its current standalone plan including the recently-announced cuts and oil at $110/barrel assumption projects unrestricted cash to be at $3.7bn by the end of 2008); UA has about $2.9 to $3.0 billion unrestricted cash. Not to mention that if push came to shove, DL and UA's strong European partners, AF and LH respectively, could conceivably inject additional capital (minority stake) if necessary into their biggest US partners.
Apr 17, 2008, 2:05 pm
#52
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Besides, shareholders are not content to sit and wait, bleeding cash.
Apr 17, 2008, 2:15 pm
#53
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Apr 17, 2008, 2:31 pm
#54
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The problem is that their plan is about 1) Dougie's $10 million golden parachute which he doesn't get if he doesn't do a deal by June, 2) Anderson's ego, and 3) board members at both airlines who represent former bankruptcy creditors who want to churn their stock in an anticipated merger euphoria boomlet.
From what I am reading elsewhere, the stock's of both airlines have fallen sharply since the merger announcement, which of course means that investors think that this is a poor plan. The stock did better as standalones. That speaks volumes. And it also means those ex-bankruptcy creditors probably won't get to churn their stock.
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
From what I am reading elsewhere, the stock's of both airlines have fallen sharply since the merger announcement, which of course means that investors think that this is a poor plan. The stock did better as standalones. That speaks volumes. And it also means those ex-bankruptcy creditors probably won't get to churn their stock.
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
No one said the merger does not come without risks. However, management at both airlines has been clear that in the current business environment, they can not be successful on their own and that a merger presents the best strategic option.
If you disagree with the BoD and management teams of NW and DL, I suggest you lay out a plan to keep NW and WP financially viable at $115+ oil.
If you disagree with the BoD and management teams of NW and DL, I suggest you lay out a plan to keep NW and WP financially viable at $115+ oil.
Apr 17, 2008, 2:42 pm
#55
Join Date: Jul 2004
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From what I am reading elsewhere, the stock's of both airlines have fallen sharply since the merger announcement, which of course means that investors think that this is a poor plan. The stock did better as standalones. That speaks volumes. And it also means those ex-bankruptcy creditors probably won't get to churn their stock.
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
Apr 17, 2008, 2:45 pm
#56
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What constitutes a "done deal"? I don't agree with these large payouts for a company that is bleeding millions. Give him a million, and free coach flights for a few years, and that'd be fine for me.
Apr 17, 2008, 3:37 pm
#57
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The problem is that their plan is about 1) Dougie's $10 million golden parachute which he doesn't get if he doesn't do a deal by June, 2) Anderson's ego, and 3) board members at both airlines who represent former bankruptcy creditors who want to churn their stock in an anticipated merger euphoria boomlet.
From what I am reading elsewhere, the stock's of both airlines have fallen sharply since the merger announcement, which of course means that investors think that this is a poor plan. The stock did better as standalones. That speaks volumes. And it also means those ex-bankruptcy creditors probably won't get to churn their stock.
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
From what I am reading elsewhere, the stock's of both airlines have fallen sharply since the merger announcement, which of course means that investors think that this is a poor plan. The stock did better as standalones. That speaks volumes. And it also means those ex-bankruptcy creditors probably won't get to churn their stock.
Do you think these self-interested executives and directors smarter than the investors in the market? I don't!
Since emergence from BK:
DAL down 62.48%
NWA down 61.46%
Apr 17, 2008, 4:48 pm
#58
Join Date: Jun 2004
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Northwest shareholders will be paid with stock in the combined company, which will be about as valuable as Monopoly money in one or two years, IMO.Dave
Apr 17, 2008, 5:12 pm
#59
Join Date: Oct 2007
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deal is done.
Apr 17, 2008, 5:31 pm
#60
Join Date: Apr 2007
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What accept this sham arguement about no hub closers, no reduced capacity, more wages for everyone, etc? Be realistic, man. The street saw this merger plan and realized it was a bad deal for all parties (NW and DL are both down nearly 20% since the annoucement). The current plan for this merger is bad for consumers, bad for NW employees, and will actually increase the cost structure of both NW and DL.
Really, it is hard to see how anyone benefits from this merger except Steenland's buy-out and Anderson's ego.
Now a real merger plan would be, "We are going to close CVG and MEM, dramatically reduce capacity out of MSP and SLC, eliminate a bunch of front line employees, and sack all of NW's administrative staff." That would result in a stronger company that was actually poised to go forward.
Really, it is hard to see how anyone benefits from this merger except Steenland's buy-out and Anderson's ego.
Now a real merger plan would be, "We are going to close CVG and MEM, dramatically reduce capacity out of MSP and SLC, eliminate a bunch of front line employees, and sack all of NW's administrative staff." That would result in a stronger company that was actually poised to go forward.