Delta, Northwest Could Unveil Merger as Early as Tuesday (April 15/08)
From Wall Street Journal,
Delta Air Lines and Northwest Airlines this week are expected to announce a long-anticipated merger, The Wall Street Journal reported Sunday.
The merger may to be unveiled as early as Tuesday, The Journal reported, adding that the deal could go through without support of Delta’s 6,000 pilots.
Delta and its pilots were holding separate talks this weekend on a post-merger contract, while negotiations with Northwest’s 5,000 pilots were to be held at a later date, the daily reported.
Last week, US authorities gave tentative approval for Delta, Northwest, and four of their international partners to combine their transatlantic routes in the SkyTeam alliance.
The two US carriers, along with Air France, Alitalia, Czech Airlines and KLM Royal Dutch Airlines, plan “to coordinate their services and act as a single carrier for US-Europe services,” according to the US Department of Transportation.
A final decision by the US government will come after a two-week comment period.
Doesn’t matter what the proposed color scheme is like. Based on Delta’s recent history (last ~10 years), the color scheme changes more often than Clinton and Obama and other politicians change their minds.
The only way this merger can be profitable is if it results in a reduction in the number of flights and therefore expeditures. That means less pilots on less routes and the unions know it. Sadly, there’s enough out-of-work pilots from every other airline folding that DL/NW could probably break any resulting strike. This is going to get ugly.
True to that. I actually think Clinton lies more then she puts down Obama…Bosnia…oh, i’ll save that for the *de-united democratic lets fight all the time *forum (I just made that up)
As for the merger, we have heard this a million times. There is news that Anderson and Steeland have met in Minneapolis to discuss the merger. It looks like it might go through this time and like most times, one airline’s employees are getting screwed. But I am for this merger. I think the network will look like this:
HUBS- in order of size
ATL- the mega hub lives on, takes some MEM traffic
DTW- serves east well, takes a lot of CVG traffic
MSP- a good transpacific gateway, continues stronghold in midwest
SLC- reduced, gives reach in west
JFK- serves the big city, good transatlantic gateway along with ATL
FOCUS CITIES
CVG
LAX
BOS
DROPPED CITIES
MEM
IND
LGA
Maybe they can call it Nelta . Actually they will stick with the Delta name. But imagine a few name combinations using both names.
Of all reasons, that sounds like the most logical. I can just see Delta management. Anderson (CEO) says, *“We want to merge with United but they don’t have compass.” *Another employee says, "Hey, Northwest has a compass. Let’s merge with them. " All the Delta employees clap and the guy with the genius discovery gets a pay raise and promotion.
The new color scheme should be solid red because, despite their optimism, that’s going to be the color of the income statement’s bottom line for the next few years.
Better yet, make the color scheme all pink to reflect the number of employees at both airlines that will be losing their jobs.
I believe that only ones that will benefit on this merger will be the executives. That’s why I agree with this quote from today’s San Francisco Chronicle:
(Joe) Brancatelli, however, is not convinced a Delta-Northwest merger is a positive thing - he thinks it would benefit the chief executive officers of the airlines financially…