Delta, United Airlines to merge?!

[912]

http://biz.yahoo.com/ap/071114/delta_united.html

So the article states that the combined compnay would retain the United name, and HQ would remain in Chicago.

Atlanta would be reduced to an operations center.

What a terrible, TERRIBLE idea! I know Delta wants to buy/merge with someone. Why not court someone who would be more willing to move to Atlanta & retain the storied Delta name? I don't know who that would be, but still.

It would be a crying shame that the only airline based at the world's busiest airport would be.....Airtran.

[USAirways]

I would imagine Airtran, USAirways, Southwest, Continental, and Northwest would support this merger.

Salt Lake City: major flight reductions.

Cinncinati: Major flight reductions

Denver: Flight increases

Chicago: flight increases

Dulles: Flight increases

Los Angeles: Flight increases

San Fransico: Flight increases

Atlanta: maybe a good chunk of flights lost. USAirways will cry foul if "United" had hubs in IAD, and ATL. Routes would overlap with IAD {bad for ATL, good for IAD}. Airtran will cry foul, and force Delta too give up gates, along with Southwest. Northwest will also be vocal about "United" Having the two hubs.

During the United/USAirways merger, "United" was required to spin off a certain number of gates in Philadelphia.

In my opinion:

Winners:

United {All cities}

USAirways {Charlotte}

Northwest {Memphis, Detriot}

Continental {Columbus}

Airtran {Atlanta}

Southwest {Atlanta}

Losers:

Delta {Salt Lake, Atlanta, Cinnci.}

[912]

I'm not aware that United & USAir ever merged. I know USAir merged with someone (forgot the name offhand).

I'm also not aware of Southwest flying into Atlanta.

[USAirways]

I'm not aware that United & USAir ever merged. I know USAir merged with someone (forgot the name offhand).

I'm also not aware of Southwest flying into Atlanta.

[perimeter285]

http://biz.yahoo.com/ap/071114/delta_united.html

So the article states that the combined compnay would retain the United name, and HQ would remain in Chicago.

Atlanta would be reduced to an operations center.

What a terrible, TERRIBLE idea! I know Delta wants to buy/merge with someone. Why not court someone who would be more willing to move to Atlanta & retain the storied Delta name? I don't know who that would be, but still.

It would be a crying shame that the only airline based at the world's busiest airport would be.....Airtran.

[pksiv]

Well unfortunately, if this merger goes through, I doubt ATL would be the world's busiest anymore because I'm sure United would move a bulk of the flights, possibly including the new China route, to Chicago.

This is absolutely terrible news for Atlanta, especially given the losses we already have sustained in the past couple of years.

[Martinman]

Right. Both companies flat out deny any talks between the two. The NY Times has the "real" story.... Hedge Fund Seeks Delta-United Deal

[912]

What I want to know is, when did these hedge funds become so powerful? I mean, speculators within these funds are THE reason oil is priced so high. Now they're trying to use their infulence & financial muscle to, in effect, screw Atlanta.

I'm all for capitalism, but it should not be used to exploit the basic needs of all Americans, to include oil, electricty, water, communications, food & employment. That's all these hedge funds have done. If you've invested in one of these, consider yourself part of the problem.

[Go Gators]

What I want to know is, when did these hedge funds become so powerful? I mean, speculators within these funds are THE reason oil is priced so high. Now they're trying to use their infulence & financial muscle to, in effect, screw Atlanta.

I'm all for capitalism, but it should not be used to exploit the basic needs of all Americans, to include oil, electricty, water, communications, food & employment. That's all these hedge funds have done. If you've invested in one of these, consider yourself part of the problem.

[912]

Consider myself part of the problem? Last I checked, our inability to refine oil was a major contributing cause to oil prices. Check your facts.

[Go Gators]

Do you invest in hedge funds? Then yes, you're part of the problem. Their speculating in oil is THE major reason for high prices. Heck, even OPEC has stated that there's sufficient oil supply, but due to speculation in the market, the product is priced higher than it should be. It doesn't matter if we have 10 or 100 refineries (although the lack of them is a contributing factor), if the raw product is priced high, then the end product will be priced higher.

And no need to be so snide by saying "check your facts". I've already done that.

[ramblinwreck]

Do you invest in hedge funds? Then yes, you're part of the problem. Their speculating in oil is THE major reason for high prices. Heck, even OPEC has stated that there's sufficient oil supply, but due to speculation in the market, the product is priced higher than it should be. It doesn't matter if we have 10 or 100 refineries (although the lack of them is a contributing factor), if the raw product is priced high, then the end product will be priced higher.

And no need to be so snide by saying "check your facts". I've already done that.

[monsoon]

No more comments on the price of oil and hedge fund investing. This is about an airline merger. If you want to discuss that topic, then please go the the $100 oil topic in the UrbanPlanet coffee house

On the topic of the merger, I am of the opinion there is still too much capacity in the USA airline industry and it's eventually going to mean a merger of two of the major airlines into one unless there is a fundamental change in the way the airline business is regulated in the USA. (unlikely) Delta and USAir are always considered in these potential merger plans because they are the primary carriers of the fastest growing part of the USA. The fact the last major attempt at consolidation involved both airlines is a testimate to that.

Given this is the second attempt at what is essentially a Delta takeover, should be a wake up call to that management.

[Kenneth Disraili-Jean]

The reason Delta was awarded the new China route was because the south was under served in that market. UAL already has flights from Chicago to China.

This is all speculation that was started by an investment firm which owns stock in both airlines and "wants" them to merge. For its own self interest.

"First, there are currently no discussions going on with any carrier."

...

"Furthermore, if there is to be industry consolidation, Delta is in a position to participate as an acquirer. In short, we are not for sale."

http://www.ajc.com/business/content/busine...age_tab_newstab