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USAirways bid for Delta


MJLO

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I dunno there are some big anticompetitive concerns with the merger, especially in the deep south where it would control a great deal of business. I don't want to see it happen, simply from the standpoint that there's about a 99 percent chance that Atlanta would keep the headquarters, and Phoenix would lose one. I can't remember where, but if I remember correctly, I heard a statistic saying that the new airline would control a super majority portion in quite a few regional airports in the south. Regional airports are really to small for other airlines to swoop into them and take up spare gates. There's just not enough market for it.

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US Airways to up ante for Delta?

Wow they really are being aggressive about this. Which makes sense since it's a hostile takeover. I just feel that if this gets approved, and by god it seems it just might. That the valley will lose a key player in it's economy. I don't see the "new Delta" headquarters remaining here. What would be the purpose of this anyway? It would create the largest airline. Which in essence would be America West under the Delta nameplate. Would they then try and actually be an airline, reducing debts, attempting to be competitive. And perhaps not being what they currently are, which is a mergers and aquisitions firm?

USAirways don't leave the valley.

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I read today that USAirways posted profits this year. I think Delta will most likely prevail in holding off the takeover. Do you think that they will target another ailing airline? Say Northwest Airlines? It seems they'd have an easier time of getting in the door on that one. It would still create the worlds largest airline, and there would be very little hub overlap, or regional overlap for that matter. With hubs in Minne and Memphis, and the fortress hub at Detroit, I'm suprised they didn't go for NWA at the start. What do you all think?

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They might well go after Northwest. I still would not be overjoyed to see them take over another airline, but if they go after another one, NWA seems a likely target. While there is less overlap, I still think a NWA/USAirways merger would spell higher fares and less choice for the consumer. Anti-trust laws are in place for a reason, or at least they once were. Another enormous airline (think of the bad service and generally indifferent attitudes at United) isn't going to help anyone but itself.

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It's Over- At Least For Now

A group of key creditors rejected USAirways' advances today. This does not rule out the possibility of a merger once Delta emerges from bankruptcy later this year, however I believe that it may significantly dim the chances of a merger. Perhaps USAirways will pursue Northwest?

The Washington Post

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I didn't think it would happen. I do expect USAirways to continue to try and make itself larger. It's not an airline. It's a mergers and aquisitions company. I'd suspect NWA may be next. NWA i'm sure wants to partner with another airline, although, I highly doubt that it want's to with USAirways. I'd think they'd be more opent to a Delta merger. Northwest and Delta have been friends for decades, have been partners in various routes and such. Delta even has gates in Northwests, gigantic Detroit terminal.

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wow I think people called it from the start. At the very front someone said, they'd never be able to get Delta, It was just a stall tactic, to take northwest off of it's feet. What would the ramifications be? Northwest is one of the oldest airline brands left. But I don't see there being such a huge fight to keep it status quo as with delta.

Two questions, Do you think:

1. A new airline would keep the Northwest Nameplate?

2. Would the new airline stay in Tempe or relocate to Eagan MN? I can't see the Minneapolis area fighting as hard as say GA lawmakers to keep the airline. GA people have a hardon for corporate headquarters. Both Minne and Atlanta, have enough to go around, and if they were to lose one, wouldn't take an economic hit.

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Whether or not they'd keep the Northwest name is a good question. Whatever the reality of the situation with service, Delta's reputation is still somewhat better than Northwest's- at least as far as service is concerned. Somewhow, I don't see a groundswell of support emerging for NWA. That doesn't mean it would go without a fight. I think Minneapolis would take measures to try to keep the corporate headquarters there. As for the Delta bid being merely a delaying tactic, it would appear to be an expensive one, but you may well have a point. I'm sure the next few months will be interesting ones for the airline business.

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wow I think people called it from the start. At the very front someone said, they'd never be able to get Delta, It was just a stall tactic, to take northwest off of it's feet. What would the ramifications be? Northwest is one of the oldest airline brands left. But I don't see there being such a huge fight to keep it status quo as with delta.

Two questions, Do you think:

1. A new airline would keep the Northwest Nameplate?

2. Would the new airline stay in Tempe or relocate to Eagan MN? I can't see the Minneapolis area fighting as hard as say GA lawmakers to keep the airline. GA people have a hardon for corporate headquarters. Both Minne and Atlanta, have enough to go around, and if they were to lose one, wouldn't take an economic hit.

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Agreed. "Delta", for me, and I think many others, equals "Atlanta". It would be too weird to think of it in any other town, especially Phoenix.

Northwest is smaller so they'd almost certainly be absorbed and the headquarters moved. Minneapolis would certainly remain a hub, but a lot of jobs would be lost there.

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I consider this good news

USAirways has said that they won't seek another merger partner unless the industry starts shaking itself up. It sounds like they are going to focus on Being an airline again, and start to fix the customer service and image problems it has. That's great. If they focus on being competitive, the could be a very healthy well thought of Airline and that could be great for the valley, and Arizona.

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It could also be a blood-thirsty monster.

There is a cycle with industries: they merge into a behemoth, then split off to try to be more "efficient" and provide better customer service. Right now, with the airlines, it's definitely in the former.

I don't think either is good though, personally.

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Parker Says USAirways Group Will Not Pursue NWA

Doug Parker announced today that USAirways Group will not pursue Northwest at this time. He did leave the door open to a possible bid if and when another carrier should pursue them. I think they will be better off tending to their own business at the moment.

Associated Press/Clarion Ledger

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  • 2 weeks later...
  • 2 weeks later...

Tommorrow USAirways merges reservation systems with America West. Everyone cross their fingers that air transit in Arizona doesn't come to a complete standstill as it's largest airline implodes.

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