U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-13-2012, 09:36 AM
 
Location: Willowbend/Houston
13,403 posts, read 20,282,670 times
Reputation: 10181

Advertisements

Quote:
Originally Posted by Metro Matt View Post
I'd like to hear JustMe02's opinion on this since he works in the industry.
Right now, there are a lot of questions surrounding Delta's motives for launching such a bid. Delta will have to go through a lot of regulatory hurdles and probably give up concessions. But thats not even the hard part. The hard part is convincing Americans creditors and labor unions that this is the best thing for American, which it clearly isnt. They are the ones with the say.

However, Delta knows this.

In my opinion, the real motive for Delta in doing this is not to buy American, its to force both American and US Airways to show their intentions. By making US and American transparent, they have plenty of time to adjust how they need to.

I dont think American is necesarily opposed to merging, but a merger with Delta would mean huge amounts of layoffs because the networks are not complementary. A merger with US is different because the networks are more complementary. American has no deep douth hub or western hub (LA is mostly an O&D opperation so that doesnt count). US Airways doesnt have anything in the way of service to Asia or much of South America.

This is how I see the different scenarios playing out:

Delta and American merge: As a resident of DFW, I would be opposed to a Delta merger because DFW would be cut by at least 1/3-1/2. Positively, DFW probably would gain AeroMexico service to every small town in Mexico, Korean Air would increase service, KLM would have daily service, and Air France would show up. The negative of that is that DFW would lose service to every city in South America minus Sao Paulo and maybe Buenos Aires, DFW would probably be capped at 5 daily flights to Europe (serivce to London, Paris, Amsterdam, and Frankfurt) since they already have Atlanta, and DFW would lose service to many of the smaller cities in the midwest. DFW's Asia network would look the same (flights to Seoul and Tokyo). Naturally, DFW would lose the HQ.

US Airways and DFW merge: As a resident of DFW, Im not opposed to this as much. DFW is a larger and more important local market than any city where they have a hub (with the possible exception of Philly and the local markets are completely different so there is no overlap). Positively, the HQ in Phoenix would be moved to Fort Worth because the facilities are much larger and better here, DFW's service to Central America would go up and its South American network would be maintained, and DFW's European network would be maintained. Negatively, there would probably be some layoffs, but that would be minimal at DFW.

American comes out as a stand alone: You would see some growth now that their costs are in line with the competitors (thanks to Chapter 11), but it would have to shrink first. Weve already seen some of that with Chicago-Delhi and DFW-Burbank. All in all, DFW would be affected minimally since DFW and Miami are the brightest spots in AA's route network.

A Delta merger would be a huge negative for DFW in a lot of ways, but I really dont think Delta actually wants to buy AA. I think that DL wants US and AA's intentions (whatever they are) to be exposed, thus making them more at risk. However, should DL actually buy AA, it would be very negative for DFW. DFW isnt what Delta is truly interested in. Miami and New York are.
Reply With Quote Quick reply to this message

 
Old 01-13-2012, 09:37 AM
 
Location: Rocky Mountain Xplorer
956 posts, read 1,247,785 times
Reputation: 684
Quote:
Originally Posted by Spade View Post
I don't see how the feds approve this and yes, the Texas govt will probably get involved.
Did the "Texas govt" get involved in the United takeover of Continental ?
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 09:42 AM
 
27,456 posts, read 44,947,050 times
Reputation: 14041
what about US Airway and the Chicago market
AA is still fairly big in CHI because of their history there

and how would US Airway and AA merger effect American Eagle?
I think that (from my limited insight) sounds like something that would be a BENEFIT to much larger section of the US economy in general than the Delta one--
and I bet there is no one within Delta--pilots/flight attendants/maintenance--who would see a benefit because AA people can't be regulated to the bottom of the pecking order when they have decades of experience in most cases...
AA has LOT of employees and many, many of them have lot of experience...
unions involved could not justify cutting the legs out from under those employees in deference to Delta's

Integrating the last merger AA went through caused so many headaches/problems that some are still plaguing AA--
Delta + AA would be the worst case senario from a union leader's standpoint IMO--because so many cuts would be needed....
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 10:40 AM
 
12 posts, read 34,376 times
Reputation: 17
Quote:
Originally Posted by kdogg817 View Post
FORT WORTH, Texas >> Shares of Delta Air Lines Inc. rose today after a report that the world's second-biggest airline may try to buy American Airlines parent AMR Corp.
The Wall Street Journal reported that Delta and buyout firm TPG were separately looking at AMR, which is in the early stages of reorganizing through the bankruptcy process.
Delta, AMR and TPG declined to comment.
Three big mergers since 2008 have helped the airline industry by reducing competition and making it easier to raise prices. In one of those deals, Delta bought Northwest.
American missed out on the merger mania and fell from first to third among the world's biggest airlines by passenger traffic. US Airways Group Inc., which tried to buy Delta out of bankruptcy in 2006, is widely viewed as a possible bidder for AMR. US Airways declined to comment.

Delta reportedly interested in buying American Airlines' parent - Hawaii News - Honolulu Star-Advertiser

Maxim Group analyst Ray Neidl said in a research note to investors that he believes a Delta-AMR combination is unlikely.
"We believe that any possible takeover of AMR by Delta is remote since the sheer market size of the combined airlines would probably not obtain DOJ (Department of Justice) or foreign approval," Neidl said. "AMR, even though they are in bankruptcy, is not a failing company since we believe that they can successfully reorganize, hence this argument would have a difficult hearing with the DOJ."
Read more here: Sky Talk: Delta, TPG preparing bids for American, WSJ says
I hate this!!!! Delta couldn't make their hub work when they had it here, why do they think taking over American will work for them?
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 10:50 AM
 
27,456 posts, read 44,947,050 times
Reputation: 14041
you are over-reacting--
most comments are really saying that this is a ploy by Delta and probably MOST of the companies being mentioned--
they are trying to anticipate/flush out any info that will help them react to prevent their own companies being damaged by whatever the outcome of this bankruptcy filing with be...
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 08:56 PM
 
13,180 posts, read 12,689,915 times
Reputation: 4531
Quote:
Originally Posted by kdogg817 View Post
It’s not going to happen....Delta and American Airlines merging would be horrible for the Airline industry.... If you think the legislators down in Austin will allow Texas largest Airline carrier to merge with Delta, which more than likely will shift the headquarters to Atlanta think again. Besides DOJ will not approve of such merger because it would give Delta a massive share of the airline market.
Oh yea. Lessening competition, giving them more pricing power, would be "terrible" for the airline industry.

And legislators down in Austin have nothing to do with it. Texas doesn't own AA.
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 09:01 PM
 
13,180 posts, read 12,689,915 times
Reputation: 4531
Quote:
Originally Posted by potterplano View Post
I hate this!!!! Delta couldn't make their hub work when they had it here, why do they think taking over American will work for them?
Gee, maybe eliminating AA by buying them, thus eliminating your competition might help Delta in DFW?

Then they would have a bigger market share that what AA has now.

Just a hunch that might help. ...lol
Reply With Quote Quick reply to this message
 
Old 01-13-2012, 10:15 PM
 
Location: Southlake. Don't judge me.
2,810 posts, read 3,565,871 times
Reputation: 3600
Quote:
Originally Posted by JimBaker488 View Post
Did the "Texas govt" get involved in the United takeover of Continental ?
You mean the Continental takeover of United?

Make no mistake, the name may be "United", but it's Continental that came out the winner in that deal. The new CEO is the Continental guy and he's running the show, the Houston hub is still going to be huge, and a not insignificant amount of people are still working in Houston (and I believe going to down TO Houston) rather than up in Chicago. IIRC, a majority of the systems being adopted by the new United are Continental systems.

I'm curious what justme02's thoughts are on that merger, which was technically completed long ago but is still going on as far as integrating operations.
Reply With Quote Quick reply to this message
 
Old 01-14-2012, 08:44 AM
 
27,456 posts, read 44,947,050 times
Reputation: 14041
Delta has not submitted a bid--that is inaccurate...
the stories are all that Delta and the other companies mentioned are CONSIDERING making a bid...
that is also called blowing smoke...
Reply With Quote Quick reply to this message
 
Old 01-14-2012, 09:38 AM
 
Location: Washington D.C. By way of Texas
18,211 posts, read 25,902,249 times
Reputation: 8963
Quote:
Originally Posted by JimBaker488 View Post
Did the "Texas govt" get involved in the United takeover of Continental ?
Unfortunately, good point. If I remember correctly, I think Texas and COH got in there too late though. They tried to make up ground and the decision was already made.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top